Asghar Afshar Jahanshahi - Department of Industrial & System Engineering, Pontificia Universidad Catolica de Chile, Chile
Stephen X. Zhang - Department of Industrial & System Engineering, Pontificia Universidad Catolica de Chile, Chile
Khaled Nawaser - Department of Management, Payame Noor University, Iran

Why managers in electronic commerce investment projects should pay attention to real options logic when they operate in unpredictable environment?Whether existing of real options’ thinking in these kinds of investments led to better performance and enables firms to manage, handles uncertainty andrisk effectively, and minimizes any unexpected results? Which kind of uncertainty will reduce by using real options thinking? In the present study,we explore how real options’ thinking has been conceptualized in the information technology and electronic commerce investment decision processes that are subject to multiple sources of uncertainties. Finally, we show that real options reasoning doesnot always enhance project performance underconditions of higher uncertainty. We conclude with implications for future empirical research hope that our study stimulates future work on real options and electronic commerce investment.

electronic commerce, information technology investment, real options, flexibility, decision making