How does an organisation currently formalising its capital budgeting processes work to achieve the intentions of the reform? Insights from a Swedish company in the food processing industry

Abstract: This thesis reports on an ongoing formalisation of processes related to capital budgeting in a Swedish company operating in the food processing industry. We have performed a qualitative single case study based on interviews and documentation, to understand how an organisation works to achieve the intentions of formalising capital budgeting processes. The theoretical part of the study builds on the concepts of enabling versus coercive formalisation (Adler and Borys, 1996; Wouters and Wilderom, 2008). Our findings identify characteristics of the studied formalisation process which could contribute to making the new capital budgeting process an enabling formalisation. However, while employees were found to be optimistic about the new procedures, it was acknowledged that it was too early to evaluate the consequences of the formalisation initiative.