Strategic flexibility in export expansion: growing through withdrawal

Increasing Supply Chain Robustness through Process Flexibility and Strategic Inventory

This paper combines process flexibility and strategic inventory to develop an effective disruption mitigation strategy. We consider a manufacturer with multiple plants producing multiple products where strategic inventory can be held for any product. We measure the level of supply chain robustness by proposing the concept of Time-to-Survive (TTS) defined as the maximum time that no customer dem...

Strategic Flexibility in Mating Intelligence

Strategic choice during economic crisis: Domestic market position, organizational capabilities and export flexibility

This study examines how sudden shrinkage of domestic demand affects firm-level export performance. Using the Asian economic crisis as a natural experiment, we show that while the industrial organization (IO) economics and resource-based view (RBV) apply well in the pre-crisis period, the real options perspective does a better job in explaining firms’ efforts to increase exports in the post-cris...

Valuing Flexibility in Infrastructure Expansion

Infrastructure facilities are generally heavy, fixed, and normally irreversible once construction has been completed. As existing facilities, they may confront economic competition of an increased space demand and the need for future expansion. Due to economic-based irreversibility, the expansion of a constructed facility requires the foundation and, to a lesser degree, columns to be enhanced a...

Flexibility and Commitment in Strategic Investment

The paper deals with the tradeoffs between the option value of managerial flexibility and the strategic value of early commitment in a dynamic competitive environment. It departs from the standard real options optimization problem (game against nature) to model strategic games against competition. It thus provides an integration of real options valuation with game-theoretic principles that enab...