| The purpose of this research was to examine if a difference exists between a specific decision method and the corresponding satisfaction rating of that method. The phenomenon addressed in this research was whether the decision methods utilized by businesses to determine capital investments were effective and flexible, by being better able to control risks associated with the uncertainty from future outcomes. Based on the findings from this study, it was indicated that decision makers would support the notion of augmenting their decision methods with the strategic thinking from real-option methodology that values managerial flexibility to control a project over its economic life. Therefore, it is recommended that decision makers incorporate real-option methodology into their decision-making process and, equally important, judge the intrinsic value of the applicable option a priori, so that the on-going effectiveness of decision-making is enhanced. |
