Buhra Jesfu
In recent years, the use of real options theory in international strategy has exploded. However, because it is still a new and ill-defined topic, there are a number of limitations to practical uses of this strong theory. To advance this topic, the study first presents a comprehensive review of real options theory's theoretically and empirically contributions to three fundamental challenges in internationalization process: valuing multinational networks, appraising market entry methodologies, and determining market entry timing. Future research could focus on a more sophisticated analysis of unpredictability and the establishment of a dynamical theory in international strategy, according to the article. In these directions, five verifiable propositions are created. The emphasis is on the real options logic's decision-making and performance features in relation to strategic investments, governance modes, and international operations management. These characteristics are studied from a strategic and operational perspective of organisational decision-making, as well as an overview of empirical research on option pricing decision-making and performance.