TY  - JOUR
AB  - Over the last years traditional accounting methods of investment
appraisal (such as pay‐back period and discounted cash‐flow analysis)
have been abundantly criticized for not being appropriate to evaluate
strategic investments, in advanced production technology. It has been
argued that strategic arguments should be used as the only sound basis
for investment justification. However, opinions continue to be divided
about which evaluation criterion (strategic and/or financial) should
prevail in the evaluation of flexible manufacturing technology (FMT)
investments if the firm is to end up with a successful project. Studies
the investment decision‐making process which precedes a major investment
in FMT. It is hypothesized that different ways of investment
justification can lead to high financial performance of investment
projects in FMT, but each way may not be equally effective in every
situation. Based on field research in six manufacturing companies, some
of the key characteristics of the decision process on the one hand and
the investment context on the other have been identified. Suggests how
their interaction may affect the ex post financial performance
of an FMT investment project.
VL  - 3
IS  - 3
SN  - 0957-6061
DO  - 10.1108/09576069210015856
UR  - https://doi.org/10.1108/09576069210015856
AU  - Slagmulder Regine
AU  - Bruggeman Werner
PY  - 1992
Y1  - 1992/01/01
TI  - Justification of Strategic Investments in Flexible
Manufacturing Technology
T2  - Integrated Manufacturing Systems
PB  - MCB UP Ltd
SP  - 4
EP  - 14
Y2  - 2024/04/19
ER  -