Quotation Ross, Jan-Michael, Fisch, Jan Hendrik, Varga, Emanuel. 2017. Unlocking the value of real options: How firmspecific learning conditions affect R&D investments under uncertainty. Strategic Entrepreneurship Journal (SEJ). 12 (3), 335-353.


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Abstract

Why do some firms increase R&D investments in the face of uncertainty, while others do not? Contrary to common wisdom, this study posits that uncertainty prompts firms to invest in R&D. The value to invest under uncertainty is, however, bounded by a firm's learning conditions (i.e., human capital, relatedness of innovation activities, and industry maturity). An empirical test on a cross-industry panel of 551 business divisions of manufacturing firms reveals how organization-environment interactions determine the firm-specific value to invest in learning prior to full-scale commercialization. The insights help to bridge real options theory and the learning literature.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Strategic Entrepreneurship Journal (SEJ)
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, MAN-A, STRAT-A, WH-A
Language English
Title Unlocking the value of real options: How firmspecific learning conditions affect R&D investments under uncertainty
Volume 12
Number 3
Year 2017
Page from 335
Page to 353
Reviewed? Y
DOI http://dx.doi.org/10.1002/sej.1275
Open Access N

Associations

People
Fisch, Jan Hendrik (Details)
External
Ross, Jan-Michael (Imperial College London, United Kingdom)
Varga, Emanuel (BMW Group, Germany)
Organization
Global Business and Trade DP (Details)
International Business (Details)
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