STRATEGY THROUGH THE OPTION LENS - AN INTEGRATED VIEW OF RESOURCE INVESTMENTS AND THE INCREMENTAL-CHOICE PROCESS

This article develops an option-theoretic perspective for organization al strategic management. Grounded in the basic intuition that people s eek to ''keep options open'' in situations that involve an unforeseeab le future, and supported by theory in financial economics. this view i s a recent development in strategy. The theory integrates resource all ocation. sense making, organizational learning, and strategic position ing in a unified framework, and it provides a new explanation for some counterintuitive empirical findings.