To enter or not : the effects of network intensity on real options and market entry.

• Main Authors: Kwek, Chiaw Hong., Goh, Si Hui., Loh, Jun Yu.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::General::Economic and business aspects
• Online Access: http://hdl.handle.net/10356/51358
• Institution: Nanyang Technological University

This paper examines the effect of network intensity on the relationship between real options and market entry by addressing the limitations of past real options research. By conducting tests on 2,655 publicly listed non-US firms from 1990 to 2010, we find that the presence of network intensity in markets does have a positive influence on the relationship between growth options and market entry but not for that of deferral options. This is then followed by a discussion of the limitations of our research and the implications of our findings on managers’ decision-making regarding market entry strategies.