Strategic investment models: New research opportunities

Abstract

This paper focuses on the potential advantages of strategic investment models in examining firm investment behavior. Strategic investment models are derived from rigorous modeling techniques grounded on formal analytical models, and they have been widely applied in corporate finance and economics to examine the problem of firm underinvestment. In this paper, we present an overview of strategic investment models, including empirical applications that highlight their methodological strengths. We conclude that the empirical application of such investment models in the context of strategic management research presents research opportunities in many new directions.

Citation

Chaddad, F.R. and Reuer, J.J. (2009), "Strategic investment models: New research opportunities", Bergh, D.D. and Ketchen, D.J. (Ed.) Research Methodology in Strategy and Management (Research Methodology in Strategy and Management, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 269-300. https://doi.org/10.1108/S1479-8387(2009)0000005011