When Real Options Theory Meets the Network Perspective: Investment Hysteresis and MNE’s Networks

This study investigates how an MNE manages a subsidiary under a high- uncertainty context. In real options theory, the phenomenon of consistent strategic responses regardless of varying levels of uncertainty is called hysteresis. Previous studies have shown an MNE can continue investment under conditions of uncertainty thanks to internal operational flexibility. This study further explores the organizational foundation of the phenomenon. Our...