Advanced topics in information resources management
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
Impact of Licensing on Investment and Financing of Technology Development
Management Science
50th ANNIVERSARY ARTICLE: Option Pricing: Valuation Models and Applications
Management Science
Impact of Licensing on Investment and Financing of Technology Development
Management Science
Journal of Management Information Systems
A multi-criteria game theory and real-options model for irreversible ICT investment decisions
Telecommunications Policy
Should We Go Our Own Way? Backsourcing Flexibility in IT Services Contracts
Journal of Management Information Systems
Broadband business by utilities infrastructure exploitation: A multistage competition model
Telecommunications Policy
Evaluate IT Investment Opportunities Using Real Options Theory
Information Resources Management Journal
Journal of Engineering and Technology Management
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We provide a strategic rationale for growth options under uncertainty and imperfect competition. In a market with strategic competition, investment confers a greater capability to take advantage of future growth opportunities. This strategic advantage leads to the capture of a greater share of the market, either by dissuading entry or by inducing competitors to "make room" for the stronger competitor. As a result of this strategic effect, payoffs are in a rough sense more convex than in the case of no investment in a growth option. When the strategic advantage is strong, increased uncertainty encourages investment in growth options: higher uncertainty means more opportunity rather than simply larger risk. If the strategic effect is weak, the reverse is true. On the other hand, an increase in systematic risk discourages the acquisition of growth options. Our results contradict the view that volatility is a strong disincentive for investment.