Real Options in Strategy and Finance. Current Gaps and Future Linkages

Abstract

Two main academic areas that have devoted their attention to the study of real options are financial economics and strategy. Despite significant progress made by each field separately towards our understanding of the theory and application of real options, opportunities exist for more cross-fertilization and the development of a more interdisciplinary knowledge base and research agenda. Furthermore, some new and relevant areas of study have deserve attention. In this paper, we take stock of the field of real options, focusing on the fundamental theoretical differences and remaining gaps between financial economics and strategy research, and we offer specific suggestions for future work to narrow this gap.

Keywords: Real Options, Finance, Management, Review