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.
McGrath, Rita. "A Real Options Logic for Initiating Technology Positioning Investments." Academy of Management Review 22, no. 4 (October 1997): 974-96.
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