A real options logic for initiating technology positioning investments

Rita Gunther McGrath

doi:10.5465/AMR.1997.9711022113

A real options logic for initiating technology positioning investments

Rita Gunther McGrath

Columbia Business School

Research output: Contribution to journal › Article › peer-review

590 Citations (Scopus)

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.

Original language	English
Pages (from-to)	974-996
Number of pages	23
Journal	Academy of Management Review
Volume	22
Issue number	4
DOIs	https://doi.org/10.5465/AMR.1997.9711022113
Publication status	Published - Oct 1997

ASJC Scopus Subject Areas

General Business,Management and Accounting
Strategy and Management
Management of Technology and Innovation

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10.5465/AMR.1997.9711022113

Cite this

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A real options logic for initiating technology positioning investments

Abstract

ASJC Scopus Subject Areas

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