The influence of managerial discretion, innovation and uncertainty on export intensity: A real options perspective

Geographic sales diversification (i.e., exports) is a multidimensional phenomenon that has primarily been examined using a single theoretical perspective drawn from international trade or organizational strategy. This study uses managerial discretion, real options, and innovation literatures to examine the roles of managers, context, and environment in motivating geographic sales diversification. We contribute to the international business and organizational strategy literatures by highlighting how the combination of managerial discretion, capacity to offer innovative products, and uncertainty can motivate export-driven internationalization.

► We examine effects of managerial discretion and environment in motivating exports. ► We find that significant relationship exists between discretion and exports. ► Discretion–exports relationship gets enhanced when innovation levels are high. ► Discretion–exports relationship gets enhanced when domestic uncertainty is high. ► A combination of discretion, uncertainty, and innovation produces the strongest relationship with industry exports.