Real options and strategic investment decisions: can they be of use to scholars ?

Charlotte Krychowski () and Bertrand Quelin
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Charlotte Krychowski: IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique

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Abstract: Real options (RO) analysis has been of growing interest to the academic community as a promising approach to supporting investment decisions under uncertainty. In this article we examine an applied investment decision in the telecommunications industry to highlight the main benefits associated with using real options. The paper then discusses the theoretical issues raised by real options. Specifically, we examine two research streams to explain how real options contributes to a theoretical understanding of strategic management, and to better understand the gap between theory and practice of real options. Finally, we lay out an agenda for future research.

Keywords: Decision making; Real options; Risk assessment; Strategic planning (search for similar items in EconPapers)
Date: 2010-05
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Citations: View citations in EconPapers (13)

Published in Academy of Management Perspectives, 2010, 24 (2), pp.65-78. ⟨10.5465/amp.24.2.65⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00517195

DOI: 10.5465/amp.24.2.65

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