The chapter tries to clarify the contribution of the real option approach to green investment decisions and to show that the traditional positive relationship between uncertainty and the value of the option to wait has been questioned by recent developments in real option theory. Based on an investigation of recent developments in real option theory, the ‘wait and see’ attitude appears to be inadequate for the characteristics of green investment decisions. More realistic assumptions lead to sped-up green investments compared to the recommendation of the traditional real option models currently used in the green investment literature. If the arguments presented in this chapter convince companies to adapt their investment decision models, it could foster green investment decisions. It could also help the government to define appropriate incentives that can induce green investments. The originality of the chapter is in showing that financial theory is not necessarily an obstacle to green investment decisions.
Jessica Fouilloux and Jean-Laurent Viviani
Karine Picot-Coupey, Jean-Laurent Viviani and Paul Amadieu
Building on the exploration–exploitation–ambidexterity perspective as a broad theoretical framework, the overall objective of this chapter is to contribute to a better understanding of the impact that different mixes of organizational forms have on performance in a retail setting. Four organizational forms are considered: (1) the plural form; (2) the dual form associating company-owned stores and shop-in-shops; (3) the dual form associating franchised stores and shop-in-shops; and, finally, (4) the combined form associating company-owned stores, franchised stores and shop-in-shops. These organizational design–performance relationships are tested on a sample of 170 French fashion retail networks. The results show that (1) none of the pure or dual forms tended to generate better financial performance than any other; (2) combining company-owned units, franchised units and shop-in-shops tends to generate better financial performance compared to dual and pure forms, up to a certain point.