Real Options and International Investment

Real Options and International Investment

by Alan M. Rugman, Jing Li
ISBN-10:
1840649011
ISBN-13:
9781840649017
Pub. Date:
12/27/2005
Publisher:
Edward Elgar Publishing
Real Options and International Investment

Real Options and International Investment

by Alan M. Rugman, Jing Li

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Overview

The application of real options theory to the decision making of multinational enterprises (MNEs) is an exciting new area of research within the field of international business. Such contributions will make existing theories in international business (such as internalization theory) dynamic and more realistic. This important collection presents 20 of the most significant articles that apply real options theory to international business and strategic management.

The volume organizes the recent literature so that further advances can be made by international business scholars to capitalize on the power and usefulness of the real options approach. Part I includes articles that help to clarify the definitions of real options and the boundaries of applying real options theory to analyze the decision making of firms. Part II consists of applications to operational flexibility of the multinational network. Part III comprises applications to market entry modes among which joint ventures are most widely studied. Part IV refers to applications to market entry timing. Part V includes several applications to strategic management.


Product Details

ISBN-13: 9781840649017
Publisher: Edward Elgar Publishing
Publication date: 12/27/2005
Series: The International Library of Critical Writings in Economics series , #190
Pages: 424
Product dimensions: 6.62(w) x 9.62(h) x (d)

About the Author

Edited by the late Alan M. Rugman, formerly Henley Business School, University of Reading, UK and Jing Li, Assistant Professor of International Business, Simon Fraser University, Canada

Table of Contents

Contents:
Acknowledgements
Introduction Alan M. Rugman and Jing Li
PART I THE REAL OPTIONS APPROACH TO INTERNATIONAL BUSINESS AND STRATEGY
1. Peter J. Buckley, Mark Casson and Mohammed Azzim Gulamhussen (2002), ‘Internationalisation – Real Options, Knowledge Management and the Uppsala Approach’
2. Peter J. Buckley and Mark C. Casson (1998), ‘Models of the Multinational Enterprise’
3. Ron Adner and Daniel A. Levinthal (2004), ‘What is Not a Real Option: Considering Boundaries for the Application of Real Options to Business Strategy’
PART II APPLICATIONS OF REAL OPTIONS TO MULTINATIONAL AND OPERATIONAL FLEXIBILITY
4. Alan M. Rugman (1976), ‘Risk Reduction by International Diversification’
5. Bruce Kogut and Nalin Kulatilaka (1994), ‘Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network’
6. José Manuel Campa (1994), ‘Multinational Investment Under Uncertainty in the Chemical Processing Industries’
7. Subramanian Rangan (1998), ‘Do Multinationals Operate Flexibly? Theory and Evidence’
8. Kent D. Miller and Jeffrey J. Reuer (1998), ‘Firm Strategy and Economic Exposure To Foreign Exchange Rate Movements’
9. Jeffrey J. Reuer and Michael J. Leiblein (2000), ‘Downside Risk Implications of Multinationality and International Joint Ventures’
PART III REAL OPTIONS AND MARKET ENTRY MODES
10. Bruce Kogut (1991), ‘Joint Ventures and the Option to Expand and Acquire’
11. Tailan Chi and Donald J. McGuire (1996), ‘Collaborative Ventures and Value of Learning: Integrating the Transaction Cost and Strategic Option Perspectives on the Choice of Market Entry Modes’
12. Timothy B. Folta (1998), ‘Governance and Uncertainty: The Trade-off Between Administrative Control and Commitment’
13. Tailan Chi (2000), ‘Option to Acquire or Divest a Joint Venture’
PART IV REAL OPTIONS AND MARKET ENTRY TIMING
14. Peter J. Buckley and Mark Casson (1981), ‘The Optimal Timing of a Foreign Direct Investment’
15. Pietra Rivoli and Eugene Salorio (1996), ‘Foreign Direct Investment and Investment Under Uncertainty’
16. Timothy B. Folta and Kent D. Miller (2002), ‘Real Options in Equity Partnerships’
17. Timothy B. Folta and Jonathan P. O’Brien (2004), ‘Entry in the Presence of Dueling Options’
PART V REAL OPTIONS AND STRATEGIC MANAGEMENT
18. Edward H. Bowman and Dileep Hurry (1993), ‘Strategy Through the Option Lens: An Integrated View of Resource Investments and the Incremental-Choice Process’
19. Rita Gunther McGrath (1997), ‘A Real Options Logic for Initiating Technology Positioning Investments’
20. Bruce Kogut and Nalin Kulatilaka (2001), ‘Capabilities as Real Options’
Name Index
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