Quotation Ipsmiller, Edith, Brouthers, Keith D., Dikova, Desislava. 2019. 25 Years of Real Option Empirical Research in Management. European Management Review (EMR). 16 (1), 55-68.




For several decades, management scholars have extolled the virtues of using real option logic when making decisions under uncertainty. Real option logic suggests that in such situations, firms might be better off deferring or staging investments, reducing potential financial losses, while at the same time securing an option to grow (or abandon) the investment when uncertainty abates. Our analysis of the empirical research published in leading management journals over the past 25 years suggests that while some progress has been made, much more work needs to be done. We still do not have the answers to critical questions such as: Which entrepreneurial/managerial traits impact the identification or exploitation of real options? Do multiple types of uncertainties interact with each other and influence real option decisions? Addressing these and other issues identified in our study can help improve our understanding of the usefulness of real option logic in management.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Management Review (EMR)
Citation Index SSCI
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title 25 Years of Real Option Empirical Research in Management
Volume 16
Number 1
Year 2019
Page from 55
Page to 68
Reviewed? Y
URL https://onlinelibrary.wiley.com/doi/full/10.1111/emre.12324
DOI https://doi.org/10.1111/emre.12324
Open Access Y
Open Access Link https://onlinelibrary.wiley.com/doi/full/10.1111/emre.12324


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