Strategic and cultural contexts of real options reasoning in innovation portfolios

Decision makers find creating an innovation portfolio challenging, because more innovative projects are associated with a higher degree of uncertainty. In this study, we investigate the potential benefits applying real options reasoning (ROR) in management from attention-based view. Using sample 137 portfolios multiple informants, ROR's influence on innovativeness and, ultimately, success mediated model. Further, analyze moderating portfolio's organizational context—entrepreneurial orientation and climate—on application. The results support positive relationship to success. analysis also supports interaction between entrepreneurial ROR respect innovativeness. This study contributes literature by demonstrating success, addition, study's offers explanation previously mixed findings regarding considering firm's strategic cultural contexts. underline relevance for effectiveness management. Furthermore, encourage managers implement ROR, but stress essential contribution makes when do so.