Strategic investment decision-making: A theoretical perspective

Elmassri, Moataz, Abdelrahman, Mahmoud and Elrazaz, Tariq (2020) Strategic investment decision-making: A theoretical perspective. Corporate Ownership and Control, 18 (1). pp. 207-216. ISSN 1727-9232

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Abstract

There is a stream of research that has introduced strategic investment decision-making (SIDM) through case studies and organisation-based fieldwork. However, a systematic theorisation around SIDM processes and practices still under-presented in the literature. This research aims to show how strong structuration theory (SST) could be used as an appropriate theoretical lens to explore how SIDM studies are theorised and conducted. Through employing the parameters and the concepts of SST within the SIDM context, we found that SID is a judgemental decision that is constructed by various influences. SIDs are not isolated from the social, political, and economic aspects. Subjective judgements and the decision-makers’ intuition are crucial throughout the process of SIDM. Therefore, SIDs cannot be abstracted as an objective decision-based on applying investment appraisal technical methods. The theoretical lens presented in this paper will enable researchers to drill down into the ‘ontic’ level to empirically explore in-depth the complex interrelationships between various agents and structures which, arguably, fits the SID context. Furthermore, this paper will help scholars understand how SID is made from SST perspective and guide them to conduct future research to build on and also help executives to be guided by.

Item Type: Article
Uncontrolled Keywords: Strategic Decision-Making, Investment Appraisal, Managerial Judgement, Strong Structuration Theory
Subjects: N100 Business studies
N200 Management studies
Department: Faculties > Business and Law > Newcastle Business School
Depositing User: Elena Carlaw
Date Deposited: 02 Nov 2020 09:29
Last Modified: 02 Nov 2020 09:30
URI: http://nrl.northumbria.ac.uk/id/eprint/44658

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