Agents' context-specific conduct in making strategic investment decisions

PurposeThis study aims to explore how managers exercise agency in strategic investment decisions (SIDs) by drawing on their knowledgeability of the strategic context. Specifically, the authors address the role of position-practice relations and irresistible causal forces in this conduct.Design/methodology/approachThe authors examine SID-making (SIDM) practices in four case organisations operating in highly competitive markets, conducting interviews with managers at various levels and analysing company documents. Drawing on strong structuration theory, the authors show how managerial decision makers draw upon their knowledge of organisational context when exercising agency in SIDs.FindingsThe authors provide insights into how SIDM behaviour, specifically agents' conduct, is shaped by a combination of position-practice relations and the agents' comprehension of their organisation's context.Research limitations/implicationsThe authors extend the SIDM literature by surfacing the issue of how actors' conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice.Originality/valueThe authors extend the SIDM literature by surfacing the issue of how actors' conjuncturally-specific knowledge of external structures shapes the general dispositions they draw on in exercising agency in practice. Particularly, the authors contribute to this literature by identifying irresistible causal forces and illuminating why actors might not resist in SIDM processes, despite having the potential to do so.