Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Using calculations in the early phase of strategic capital investment projects: insights from the mining industry
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0001-8188-0588
2018 (English)In: Qualitative Research in Accounting & Management/Emerald, ISSN 1176-6093, E-ISSN 1758-7654, Vol. 15, no 4, p. 465-484Article in journal (Refereed) Published
Abstract [en]

Purpose

The purpose of this paper is to identify and describe how calculations are used in the early phase of strategic capital investment projects (SCIPs) in the mining context and thereby create an understanding of what calculations do in these situations.

Design/methodology/approach

The authors conducted a case study based on interviews with project managers, controllers and top-level managers, as well as documents and observations.

Findings

The empirical evidence provides key insights into the different uses of calculations in the early phase of SCIPs in the mining industry. The authors found evidence that calculations in the early phase of SCIPs are used to generate ideas, support learning and discussions, evaluate decisions and act as a mediating device.

Research limitations/implications

The paper is based on a single organization, and therefore, the findings of the paper are limited to theoretical generalization.

Practical implications

The study has practical implications directed toward top management, controllers and project managers working with SCIPs. This study suggests that calculations in the early phase are used to unite and create a shared view in the early phase rather than to present rational answers to different investment decision. Calculations can also be used to direct attention toward important areas, sort out and prioritize among ideas, communicate a shared view and function as a template. Thus, calculations are essential in the early phase as they help to transform activities into actions.

Originality/value

This paper contributes to the accounting literature in which it has been emphasized that we still know little of strategic capital budgeting processes, with insights into the multiple uses of calculations in the early phase of SCIPs. We also argue that calculations act as mediating devices in the early phase of SCIPs as they provide a common frame of reference and a basis for action.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2018. Vol. 15, no 4, p. 465-484
Keywords [en]
Case study, Strategic capital investment projects, Using calculations, Mediating devices
National Category
Business Administration
Research subject
Accounting and Control
Identifiers
URN: urn:nbn:se:ltu:diva-71303DOI: 10.1108/QRAM-09-2017-0089ISI: 000448129700003Scopus ID: 2-s2.0-85055291064OAI: oai:DiVA.org:ltu-71303DiVA, id: diva2:1257900
Note

Validerad;2018;Nivå 2;2018-11-06 (svasva)

Available from: 2018-10-23 Created: 2018-10-23 Last updated: 2018-11-15Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records BETA

Karlsson, BoKurkkio, Monika

Search in DiVA

By author/editor
Karlsson, BoKurkkio, Monika
By organisation
Business Administration and Industrial Engineering
In the same journal
Qualitative Research in Accounting & Management/Emerald
Business Administration

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 360 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf