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.
The findings update previous studies on the use of financial analysis tools, but also examine how
their use varies between strategic and non-strategic investment projects and the extent to which
emergent analysis tools are impacting decision-making practice. Little evidence emerges of
integration between strategic and financial analysis approaches. Financial analysis techniques still
dominate the appraisal of all categories of capital investment projects, while risk analysis approaches
remain simplistic, even for complex strategic projects. Despite their noted potential for informing
strategic investment decisions, the emergent analysis tools barely register in practice.

Available Versions of this Item

• Strategic capital investment decision-making: A role for emergent analysis tools?: A study of practice in large UK manufacturing companies. (deposited 17 Jan 2019 15:22) [Currently Displayed]
  • Strategic capital investment decision-making: A role for emergent analysis tools?: A study of practice in large UK manufacturing companies. (deposited 18 Feb 2019 10:02)