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Why Do Firms Exercise Foothold Options?: Explanations from Multipoint Competition and Real Options Theory

A foothold is a business unit within a diversified firm that possesses a very small market share. How a foothold behaves and whether a foothold stays small or grows has implications for competitive dynamics within its industry and for the performance of firms involved in the industry. However, little is known about why some footholds pursue growth while others do not. I build upon theory on multipoint competition and real options to examine foothold behavior. Data from 270 footholds reveal that variables grounded in each theory explain significant and unique variance. Thus, each theory offers a necessary but not sufficient explanation for foothold behavior. / A Dissertation Submitted to the Department of Management in Partial Fulfillment of
the Requirements for the Degree of Doctor of Philosophy. / Spring Semester, 2008. / March 28, 2008. / Real Options Theory, Multipoint Competition, Foothold / Includes bibliographical references. / Annette L. Ranft, Professor Directing Dissertation; Larry C. Giunipero, Outside Committee Member; David J. Ketchen, Jr., Committee Member; Bruce T. Lamont, Committee Member.

Identiferoai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_175975
ContributorsUpson, John W. (John Willis) (authoraut), Ranft, Annette L. (professor directing dissertation), Giunipero, Larry C. (outside committee member), Ketchen, David J. (committee member), Lamont, Bruce T. (committee member), Department of Management (degree granting department), Florida State University (degree granting institution)
PublisherFlorida State University, Florida State University
Source SetsFlorida State University
LanguageEnglish, English
Detected LanguageEnglish
TypeText, text
Format1 online resource, computer, application/pdf
RightsThis Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s). The copyright in theses and dissertations completed at Florida State University is held by the students who author them.

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