PlumX Metrics
Embed PlumX Metrics

Using calculations in the early phase of strategic capital investment projects – insights from the mining industry

Qualitative Research in Accounting and Management, ISSN: 1176-6093, Vol: 15, Issue: 4, Page: 465-484
2018
  • 3
    Citations
  • 0
    Usage
  • 22
    Captures
  • 0
    Mentions
  • 27
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    3
    • Citation Indexes
      3
  • Captures
    22
  • Social Media
    27
    • Shares, Likes & Comments
      27
      • Facebook
        27

Article Description

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.

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know