Testing the waters: using collective real options to manage the social dilemma of strategic alliances

Article Type: Abstracts From: Strategic Direction, Volume 28, Issue 4

McCarter M.W., Mahoney J.T. and Northcraft G.B.The Academy of Management Review, Oct 2011, Vol. 36 No. 4, Start page: 621, No of pages: 20

AbstractWe extend real options research by introducing the concept of collective real options and model how collective real options provide strategic alliances a mechanism to manage social uncertainty. Collective real options manage social uncertainty by producing relational small wins that develop trust. The amount of trust developed by acquiring a collective real option depends on the exposure of alliance partners. Alliance partner reputation also plays an important role in the impact of collective real options.Article type: Research paperISSN: 0363-7425Reference: 40AT413

Keywords: Real Options, Strategic Alliances, Uncertainty