This conceptual article brings forth the argument that combinations of endogenous and exogenous uncertainties affect the decisions that high-tech, international new ventures (INVs) make in relation to investment decisions in the international arena. Using real option theory, it holds that uncertainty not only poses risks but also opportunities for INVs. Four propositions are offered regarding international investments by high-tech INVs, which are related to various combinations of levels of endogenous and exogenous uncertainties. Endogenous uncertainty is argued to result from technological changes and organizational growth and exogenous uncertainty is argued to result from the existence of Free Trade Agreements and level of economic development.
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Tamar Almor (2018) studied this question.
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