Navigating the Landscape of Strategic Investment Decisions - A qualitative study investigating factors influencing the individual decision-maker during the SID process.

Abstract: Title: Navigating the Landscape of Strategic Investment Decisions Course: BUSN79, Degree Project in Accounting and Finance, Master, 15 ECTS Authors: Ida Pettersson & Arnela Saranovic Supervisor: Johan Dergård Examiner: Anders Anell Key words: Strategic investment decision, managerial judgment, economic rationality, decision making behavior, uncertainties Purpose: The purpose of this study is to investigate factors influencing the individual decision maker during the process of SIDM. Methodology: The research approach of this study is qualitative and of exploratory nature. A literature review was conducted. Secondly, empirical data was collected via semi-structured interviews. The empirical data was then put in relation to the theory in order to answer the research question. Theoretical perspectives: The theoretical perspective of the study is based on existing literature within the field of SIDM. The literature review is focused on the characteristics of SIDM, the process of SIDM, managerial judgment and economic rationality and factors of SIDM. Empirical Foundation: The empirical data of the study was gathered through semi-structured interviews with nine professionals within the field of SID. Conclusions: The decision maker tends to be more influenced by managerial judgment and previous experience, but there is a clear need for economic calculations in the early stages of the process. The decision maker is influenced by several contextual factors, both the ones they can control and those outside their power.