Skip to main content

Research Repository

Advanced Search

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

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

Authors

Tarik Driouchi

Raymond H.Y. So



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
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