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...

This paper studies how firms use acquisitions to achieve long-term business reconfiguration. We base the study in a routine-based perspective on business dynamics. We develop and test hypotheses concerning the relative extent of change by acquiring and non-acquiring businesses, focusing on...