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Managers' Perspectives on Making Major Investment Decisions: the Problem of Linking Strategic and Financial Appraisal
Author(s) -
Grundy Tony,
Johnson Gerry
Publication year - 1993
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.1993.tb00062.x
Subject(s) - strategic financial management , strategic thinking , investment (military) , finance , strategic planning , process (computing) , interpretation (philosophy) , business , economics , marketing , political science , politics , computer science , law , operating system , programming language
SUMMARY Major investment decisions are an important factor shaping strategic change in complex organisations. Traditionally, they have been primarily regarded as the domain of financial theory, with a few notable exceptions. This paper explores how the apparent gulf between strategic and financial appraisal of major investment decisions can be bridged. The approach taken in this research study was to explore linkages between strategic and financial appraisal from managers' own perspectives. These perspectives were examined through a learning process. This enabled managers to reflect and debate on their experiences and issues ‐ upon both strategic and financial theory(s). Unlike many prior studies, this research took a qualitative approach to data analysis and interpretation. This yielded a range of insights ‐ some of these amplified findings in earlier research studies; others suggested a more radical shift in thinking on strategic/financial appraisal linkages towards a closer fusion of the two disciplines.