Real Options: Connecting with Other Perspectives and Exploring New Frontiers.
Real options have gained considerable traction among management scholars and practitioners, yet some challenges remain regarding their strategic value and appropriate use. This article seeks to add clarity to the nature and application of real options and suggests several emerging strategy contexts in which a real options approach can add value. First, we describe the nature of real options and discuss the value of real options with regard to various firm strategic initiatives. Second, we briefly highlight recent efforts to incorporate real options with other well-known and frequently used management perspectives. Finally, we propose several novel contexts that would benefit from the application of real options by scholars, managers, and policymakers: platform strategy, nonmarket strategy, and environmental shocks.
Chintakananda, Asda; McIntyre, David P.; Tong, Tony W. Real Options: Connecting with Other Perspectives and Exploring New Frontiers. Academy of Management Perspectives. Jun2024, p1-17.