Individual antecedents of real options appraisal: The role of national culture and ambiguity

Driouchi, Tarik; Trigeorgis, Lenos; So, Raymond H.Y.

Abstract

This paper studies the antecedents of cognitive options appraisal in a cross-cultural sample of specialists and generalists. Examining the role of national culture and ambiguity in the real option logic, we show that individuals have more propensity to intuitively value options opportunities using ambiguity-based approaches than standard Bayesian benchmarks, and identify the drivers behind such behavioral deviations. We find that knowledge and cultural factors, along with age, gender and international life experience, influence subjective real options values and ambiguity attitudes. Results also confirm the higher tolerance for uncertainty of the Chinese relative to others.

Citation

Driouchi, T., Trigeorgis, L., & So, R. H. (2020). Individual antecedents of real options appraisal: The role of national culture and ambiguity. European Journal of Operational Research, 286(3), 1018-1032. https://doi.org/10.1016/j.ejor.2020.03.015

• Journal Article Type: Article
• Acceptance Date: Mar 6, 2020
• Online Publication Date: Mar 14, 2020
• Publication Date: Nov 1, 2020
• Deposit Date: Feb 14, 2023
• Journal: European Journal of Operational Research
• Print ISSN: 0377-2217
• Electronic ISSN: 1872-6860
• Publisher: Elsevier
• Volume: 286
• Issue: 3
• Pages: 1018-1032
• DOI: https://doi.org/10.1016/j.ejor.2020.03.015
• Public URL: https://durham-repository.worktribe.com/output/1181045