University of Illinois Urbana-Champaign

Real options theory and the value of strategic flexibility for MNEs

Ma, Hyewon

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https://hdl.handle.net/2142/127374

Description

Title
Real options theory and the value of strategic flexibility for MNEs
Author(s)
Ma, Hyewon
Issue Date
2024-12-05
Director of Research (if dissertation) or Advisor (if thesis)
Clougherty, Joseph A
Doctoral Committee Chair(s)
Clougherty, Joseph A
Committee Member(s)
  • Mahoney, Joseph T
  • Yao, Fiona Kun
  • Tong, Tony W
Department of Study
Business Administration
Discipline
Business Administration
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
  • Multinational Enterprises
  • Global Strategy
  • Strategic Flexibility
  • Real Options Theory
  • Geopolitical Uncertainty
  • Trade War
Abstract
This dissertation explores how multinational enterprises (MNEs) pursue and leverage strategic flexibility in uncertain global environments through the lens of real options theory. It comprises three chapters, each addressing different aspects of MNE strategic responses. The first chapter analyzes MNE behavior during trade wars, focusing on involved-country MNEs and how multinationality fosters operational flexibility and strategic agility when facing trade policy shocks. The second chapter shifts attention to the adaptive strategies employed by third-country MNEs to capture potential positive spillover effects. The final chapter investigates the formation of real options in cross-border acquisitions, with a particular emphasis on the role of behavioral motivations in shaping MNE strategies. Collectively, this research contributes to the international business field by assessing the value of strategic flexibility, extending the application of real options theory to the context of trade uncertainties, and incorporating behavioral perspectives into MNE decision-making. This approach offers a comprehensive view of how MNEs navigate complex and dynamic global challenges.
Graduation Semester
2024-12
Type of Resource
Thesis
Handle URL
https://hdl.handle.net/2142/127374
Copyright and License Information
Copyright 2024 Hyewon Ma

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