JOINT VENTURES AND REAL OPTIONS: AN INTEGRATED PERSPECTIVE

We provide a comprehensive synthesis and extension of the real option (RO) literature on joint ventures (JVs), contributing in three main areas. First, we examine major alternative theoretical perspectives on JVs learning, bargaining, transaction cost and agency theory - to elaborate how they complement or contradict RO predictions. Second, we compare arguments and variables used to explain different JV stages - initial RO explicitness and equity shares, JV stability, and performance consequences - and highlight research opportunities. Third, we discuss and extend research about behavioral aspects of making RO (JV) investments. Overall, we offer new predictions and suggestions for a better integration within the RO literature, and between RO and related literatures on JVs.