This paper proposes a contextual approach to explaining differences in strategic investment
decision (SID) making practices. First, a systematic contextual framework is developed from
the existing research literature. Then this framework’s potential for explaining differences
in SID making practices is explored through 14 case studies of U.K., U.S. and Japanese companies
from both stable and dynamic business sectors. Our findings suggest substantial
SID differences across our four contextual categories of market creators, value creators, refocusers
and restructurers. The differences relate to the emphasis on strategic versus financial
considerations, the thoroughness and rigidity of financial analysis, the attitudes towards
incorporating less easily quantifiable factors and the level of hurdle rates.