Rita McGrath

A Real Options Logic for Initiating Technology Positioning Investments

Abstract:
In this article I extend real options theory to technology positioning projects and specify how the relationship between boundary conditions and uncertainty influences the value of a technology option, as well as the appropriate timing of its exercise. I also take a strategic perspective on uncertainty itself, concluding that option value can be amplified by investments to shift boundaries, ideally in ways that are idiosyncratic to the firm.

Source: Academy of Management Review
Exact Citation:
McGrath, Rita. "A Real Options Logic for Initiating Technology Positioning Investments." Academy of Management Review 22, no. 4 (October 1997): 974-96.
Volume: 22
Number: 4
Pages: 974-96
Date: 10 1997
Descriptors: Mathematical and Quantitative Methods Business Administration and Business