This paper contributes to the debate on the role of real options theory in business strategy and organizational decision-making. It analyses and critiques the decisionmaking and performance implications of real options within the management theories of the (multinational) firm, reviews and categorizes the organizational, strategic and operational facets of real options management in large business settings. It also presents the views of scholars and practitioners regarding the incorporation and validity of real options in strategy, international management and business processes 1 . The focus is particularly on the decision-making and performance attributes of the real options logic concerning strategic investments, governance modes and multinational operations management. These attributes are examined from both strategic and operating perspectives of decision-making in organizations, also with an overview of the empirical evidence on real options decision-making and performance.

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This paper studies the determinants of software piracy in world economies from a risk avoidance perspective. A risk aversion model for the commercialization of pirated software is developed to account for behavioral elements of risk and uncertainty avoidance among countries' software pirates (i.e., counterfeiters and suppliers) and test empirically for the effects of country characteristics on piracy levels. Panel regression analysis is conducted to identify the determinants of software piracy using this model on a data set of 87 countries during 2007-2011. The empirical results confirm those obtained in prior research (e.g., the inverted U-shaped relationship between GDP per capita and piracy rates) but divulge that the behavioral-country component capturing the attitudes towards risk of software pirates improves the explanatory power of the statistical regressions after controlling for country performance and institutional factors. We also show that human development and good country governance reduce piracy rates. Besides providing support for our risk aversion-based piracy model and hinting at the need to consider population behavior in policy-making, these findings underline the relevance of human development and country institutions in explaining software piracy rates.