Drawing on real options theory, we examine MNE decisions to acquire IJVs (buyout) under uncertainty. We explore how characteristics of MNE foreign affiliate portfolios delay or expedite buyout decisions, considering sequential and simultaneous interactions of options. Using a sample of IJVs in Korea, we demonstrate that within-country resource redeployment opportunities in the MNE host country affiliate portfolio decrease the irreversibility of buyout, mitigating the negative impact of uncertainty on the chance of buyout. We also show that having across-country switching options in MNE global portfolios makes buyout more attractive, creating greater incentives for buyout. However, the effect of the characteristics of MNE global affiliate portfolios becomes weaker when competing switching options are available in the host country.
