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In this paper, we consider the relationship between the investment decision process and returns to investments in capabilities. We draw on characteristics of capabilities to develop a framework that identifies four components of the returns to an investment that are derived from industry-based versus firm-specific elements, and option and non-option elements. We then link these components to elements of the resource allocation process. In taking this approach we place the study of real options into the larger investment context, recognizing that they co-exist with and should be understood in conjunction with other investment characteristics. These arguments highlight the importance of connecting the investment process with realization of returns, thereby providing the conceptual foundations for a decision tool.

Purpose – Emerging work on returnee entrepreneurs has done little to examine how these individuals coordinate the resources they need to exploit their opportunities. Existing research has recognized the role of context, but this has been quite limited. The chapter provides a novel analytical framework that integrates a resource orchestration perspective with recognition of the heterogeneity of context.

Design/Methodology – The authors build upon returnee entrepreneurship, strategic entrepreneurship theory, and theories relating to context and spillovers to distinguish the implications of temporal, institutional, social, and spatial dimensions of context for resource selection and coordination.

Findings – The authors identify a range of research themes relating to each context. The authors also discuss methodological issues relating to both qualitative and quantitative research.

Originality/Value – The intention is to spur further entrepreneurship, strategy, and international business research.