Real options theory and the value of strategic flexibility for MNEs

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.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2024

Author dc:creator

• Ma, Hyewon

Contributors dc:contributor

• Clougherty, Joseph A
• Mahoney, Joseph T
• Yao, Fiona Kun
• Tong, Tony W

• Trade War
• Multinational Enterprises
• Global Strategy
• Strategic Flexibility
• Real Options Theory
• Geopolitical Uncertainty

Statement dc:rights

• Copyright 2024 Hyewon Ma

Language dc:language

en, eng

Handle dc:identifier

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

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F127374