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Strategic capital investment decision-making: A role for emergent analysis tools?

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  • Alkaraan, Fadi
  • Northcott, Deryl

Abstract

The complexity surrounding strategic capital investments present challenges to managers charged with evaluating these projects. In particular over-reliance on financial appraisal tools is thought to bias decision-makers against undertaking strategic projects that are crucial to the development of business capability and innovation. In response to this concern, several emergent analysis tools have been advanced as means to integrate strategic and financial analyses of capital investment projects. This paper examines the use of both conventional financial analysis tools and selected emergent analysis approaches in the capital investment decision-making of large UK manufacturing companies.

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  • Alkaraan, Fadi & Northcott, Deryl, 2006. "Strategic capital investment decision-making: A role for emergent analysis tools?," The British Accounting Review, Elsevier, vol. 38(2), pages 149-173.
    • Handle: RePEc:eee:bracre:v:38:y:2006:i:2:p:149-173
    DOI: 10.1016/j.bar.2005.10.003
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