Abstract
PurposeThis paper seeks to explore how aspects of pre‐decision control mechanisms impact managerial decision‐making behaviour with regard to strategic investment projects.Design/methodology/approachThis study adopted a mixed‐method research approach. Research evidence was collected using a questionnaire survey of 320 large UK companies and eight semi‐structured follow‐up interviews with financial directors who responded to the questionnaire.FindingsThe study offers insights into the use and impact of pre‐decision control mechanisms such as: organizational strategy and operating objectives; expectations regarding the involvement of organizational personnel; formal approval procedures; financial evaluation requirements; pre‐determined hurdle rates; established authorization levels and the influence of managerial intuition.Originality/valueThis study adds to prior understandings of capital investment practice by employing mixed methods to examine how pre‐decision controls shape the outcomes of strategic investment decision making. Pre‐decision controls have received little attention within the prior literature, which focuses primarily on project financial analysis.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Qualitative Research in Accounting & Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
