Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 1st July 2025, 11:28:31am BST
Session Chair: Mahmoud Elmarzouky, University of St Andrews
Location:Susan Cadbury Lecture Theatre
Ground Floor Aston Business School
Presentations
Examining Strategic Factors Influencing the Use of Risk Analysis Techniques in Strategic Investment Decision-Making
Jari Huikku1, Jouko Karjalainen2, Tomi Seppälä1
1Aalto University School of Business, Finland; 2Aalto University School of Science, Finland
Risk analysis techniques (RATs) greatly support managers in obtaining a more comprehensive view of the threats and opportunities of strategic investment proposals. Our study investigates what strategic factors influence the use of RATs, an area largely overlooked by the prior literature. Specifically, we address the frequency of use of the most common RATs, such as sensitivity, scenario, simulation and CAPM analyses. We investigate firms’ strategic factors, such as corporate strategy, business strategy, and financial strategy. We test our hypotheses using multiple linear regression and data based on 105 structured interviews from among the 150 largest Finnish manufacturing companies. We contribute to the scarce and inconclusive prior literature by showing that strategic planning style tends to mitigate the relationship between prospector orientation and the use of RATs. We also provide clear evidence that difficulties in the availability of funding encourage companies to use RATs more frequently.
