DOI: 10.5176/2251-1997_AF14.42
Authors: Christine Soh, and Chris Carr
Abstract:
To investigate the role of context and culture in strategic investment decision (SID) making practises, 16 case studies incorporating 32 interviews with chief executive officers (CEOs) and finance directors from Singapore are conducted. The 16 firms are structured into 3 categories where contextual distinctions are found. Market Creators, Value Creators and Restructurers show marked differences in financial flexibility, financial expectations and attitude towards financial targets. Strategically, the 3 categories exhibit differences in their strategic and control orientation. Market Creators tend to be highly opportunistic and hands-off, Value Creators are highly defensive and exert moderate control. Finally, Restructurers are low cost defenders, and exercise active control. The results show cultural attributes predominate over key contextual factors on certain aspects of SID making, specifically for the dimensions of intuition, power distance relationships and long term orientation. However, key contextual differences prove overriding in other aspects of SID making, such as financial expectations, flexibility in respect to financial targets, financial controls orientation and strategic approaches.
Keywords: case studies, context, culture, decision making practises, strategic investment decisions, Singapore
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