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

Asghar Afshar Jahanshahi, Alexander Brem

Research output: Contribution to journalJournal articleResearchpeer-review

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 languageEnglish
JournalProject Management Journal
Volume48
Issue number4
Pages (from-to)39-54
ISSN8756-9728
DOIs
Publication statusPublished - 1. Aug 2017
Externally publishedYes

Fingerprint

Electronic commerce
Environmental impact
Uncertainty
Real options
Empirical evidence
Project performance

Keywords

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

Cite this

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Does Real Options Reasoning Support or Oppose Project Performance? Empirical Evidence from Electronic Commerce Projects. / Jahanshahi, Asghar Afshar; Brem, Alexander.

In: Project Management Journal, Vol. 48, No. 4, 01.08.2017, p. 39-54.

Research output: Contribution to journalJournal articleResearchpeer-review

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