A Real Options Perspective on Entrepreneurial Orientation and Government Ties

Firms’ strategic orientation toward entrepreneurship exposes them to regulatory uncertainties. Prior research suggests that addressing these uncertainties through corporate political activities (CPA) may require costly trade-offs, such as the loss of strategic flexibility. We argue that some of these trade-offs can be mitigated by the way firms structure their CPA. We extend the insights from real options reasoning (ROR) to offer a framework for how firms may circumvent some of these trade-offs through greater CPA breadth, which allows firms to retain their strategic flexibility while reaping some of the benefits of CPA.

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Publication Details

Journal
Entrepreneurship Theory and Practice
Published
2024-10-26
DOI
https://doi.org/10.1177/10422587241292074
Citations
3
Primary Topic
Capital Investment and Risk Analysis
Type
article
Field-Weighted Citation Impact
1.62
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article

A Real Options Perspective on Entrepreneurial Orientation and Government Ties

Jeffrey Cavanaugh, Izuchukwu Evans Mbaraonye, Varkey Titus
3 citations
Entrepreneurship Theory and Practice
Capital Investment and Risk Analysis
1.62
article

A Real Options Perspective on Entrepreneurial Orientation and Government Ties

Jeffrey Cavanaugh, Izuchukwu Evans Mbaraonye, Varkey Titus
article en
3 citations

Abstract

Firms’ strategic orientation toward entrepreneurship exposes them to regulatory uncertainties. Prior research suggests that addressing these uncertainties through corporate political activities (CPA) may require costly trade-offs, such as the loss of strategic flexibility. We argue that some of these trade-offs can be mitigated by the way firms structure their CPA. We extend the insights from real options reasoning (ROR) to offer a framework for how firms may circumvent some of these trade-offs through greater CPA breadth, which allows firms to retain their strategic flexibility while reaping some of the benefits of CPA.

Entrepreneurship Theory and PracticeVol. 49(3)
University of Nebraska–Lincoln (US), University of Missouri–Kansas City (US)
Decent work and economic growth
Openalex Percentile: Top 15%
Capital Investment and Risk Analysis
1.62
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A Real Options Perspective on Entrepreneurial Orientation and Government Ties — Jeffrey Cavanaugh, Izuchukwu Evans Mbaraonye, et al. · Entrepreneurship Theory and Practice (2024) | TGRS Research Map | TGRS