Does Real Options Reasoning Support or Oppose Project Performance? Empirical Evidence from Electronic Commerce Projects

Asghar Afshar Jahanshahi; Alexander Brem

doi:10.1177/875697281704800404

Does Real Options Reasoning Support or Oppose Project Performance? Empirical Evidence from Electronic Commerce Projects

Asghar Afshar Jahanshahi, Alexander Brem

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

22 Scopus citations

Abstract

There is a consensus among scholars that real options reasoning is crucial for improving project performance but there has been little empirical support thus far; hence, we explore how real options reasoning may influence project timeliness, efficiency, and effectiveness. Our longitudinal analysis of 110 electronic commerce projects, drawn from new technology ventures, indicated the differential effects of real options reasoning on project performance. We find that higher uncertainty does not always lead to a greater use of real options reasoning. Although perceived environmental state uncertainty is positively linked to real options, perceived environmental effect and response uncertainty are not.

Original language	English
Pages (from-to)	39-54
Number of pages	16
Journal	Project Management Journal
Volume	48
Issue number	4
DOIs	https://doi.org/10.1177/875697281704800404
State	Published - 1 Aug 2017
Externally published	Yes

Keywords

electronic commerce investment
flexibility
perceived environmental uncertainty
project performance
real options reasoning

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abstract = "There is a consensus among scholars that real options reasoning is crucial for improving project performance but there has been little empirical support thus far; hence, we explore how real options reasoning may influence project timeliness, efficiency, and effectiveness. Our longitudinal analysis of 110 electronic commerce projects, drawn from new technology ventures, indicated the differential effects of real options reasoning on project performance. We find that higher uncertainty does not always lead to a greater use of real options reasoning. Although perceived environmental state uncertainty is positively linked to real options, perceived environmental effect and response uncertainty are not.",

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Does Real Options Reasoning Support or Oppose Project Performance? Empirical Evidence from Electronic Commerce Projects

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Keywords

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