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A Real Options Perspective on Entrepreneurial Orientation and Government Ties

Author

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  • Izuchukwu Mbaraonye
  • Varkey Titus Jr.
  • Jeffrey Cavanaugh

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.

Suggested Citation

  • Izuchukwu Mbaraonye & Varkey Titus Jr. & Jeffrey Cavanaugh, 2025. "A Real Options Perspective on Entrepreneurial Orientation and Government Ties," Entrepreneurship Theory and Practice, , vol. 49(3), pages 817-845, May.
    • Handle: RePEc:sae:entthe:v:49:y:2025:i:3:p:817-845
    DOI: 10.1177/10422587241292074
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