The real options theory and the diversification approach to strategic investments represent two important ways of thinking about how firms cope with uncertainty. Yet, these two lines of reasoning have developed independently of each other and the literature has missed interesting opportunities...

Purpose – There is little doubt that organizational identity – that which is central, distinctive, and enduring about an organization – mediates in adaptive processes. Exactly how this mediation takes place, and whether it is favorable or unfavorable to adaptation, must still be fully...