Quotation Ipsmiller, Edith, Brouthers, Keith, Dikova, Desislava. 2021. Which export channels provide real options to SMEs? Journal of World Business. 56 (6)


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Abstract

Real option logic helps managers create value when making decisions because it focuses on managing the uncertainty concerning potential upside benefits and downside risks of an investment. Yet there is little research looking at the real option consequences of making export channel investments. We propose that export channel investments vary in their ability to provide real options and present a novel classification of real option export channels. We suggest that when faced with high uncertainty SMEs will prefer simpler real option export channels over more complex options. We also theorize that firm-level strategic flexibility (i.e. the depth and breadth of export experience) negatively moderates the relationship between uncertainty and real option export channel choice. Based on a sample of Austrian exporting SMEs, we find some support for our propositions. Hence, we contribute to the real option and export channel literatures by providing new insights into how export channel decisions are made and how firms choose between different real option alternatives.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of World Business
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, MAN-A, STRAT-B, VW-C, WH-A
Language English
Title Which export channels provide real options to SMEs?
Volume 56
Number 6
Year 2021
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S1090951621000572
DOI https://doi.org/10.1016/j.jwb.2021.101245
Open Access Y
Open Access Link https://reader.elsevier.com/reader/sd/pii/S1090951621000572?token=034F524E531899928B833A812BEB72A21ED0D227A29CBFE02CC79D3EFA2B6F98788BCDF123686F270662

Associations

People
Ipsmiller, Edith (Details)
Dikova, Desislava (Details)
External
Brouthers, Keith (King's College London, United Kingdom)
Organization
Institute for International Business (Dikova) (Details)
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