earticle

영어

This work examines whether IT managers adopt of real options such as defer, expand, contract, and abandon in order to cope with ERP risks, which include technological risk, relationship risk with SW vendors, economic risk, and security risk. We collect data of logistics firms in Seoul and its suburbs in 2018 to empirically validate the effect of risks upon the adoption of real options. The results suggest that IT managers adopt all 4 options when facing economic risk and adopt contract and abandon options only when facing security risk. Additionally, we find that IT managers prefers expand option and avoid abandon option when they think ERP compatibility is high.