Abstract
This paper reports the results of a series of case studies of capital expenditure decision processes in divisionalized firms. The case studies were designed to explore the elements of broadly defined control systems operating on divisional management participants in these decisions. Twenty-one interviews were conducted with central and divisional management. The findings provide an insight into the incidence of ‘functional’ capital expenditure decisions, and the contextual influences on divisional management. In particular they illustrate the role of managerial service histories, corporate familiarity with divisional operations, strategic planning and multiple performance measures within the organizational control system.
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