A New Era of Strategic Investment Decision-Making Practices in UK Companies: Towards Sustainable Supply Chains and Circular Economy — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
A New Era of Strategic Investment Decision-Making Practices in UK Companies: Towards Sustainable Supply Chains and Circular Economy
Lincoln International Business School, University of Lincoln, Lincoln, UK
,
Lincoln International Business School, University of Lincoln, Lincoln, UK
,
Lincoln International Business School, University of Lincoln, Lincoln, UK
,
Lincoln International Business School, University of Lincoln, Lincoln, UK
1 Lincoln International Business School, University of Lincoln, Lincoln, UK
2 Lincoln International Business School, University of Lincoln, Lincoln, UK
3 Lincoln International Business School, University of Lincoln, Lincoln, UK
4 Lincoln International Business School, University of Lincoln, Lincoln, UK
Emerging global governance issues include economic, social and environmental problems. The COVID-19 pandemic and policies such as EU Green Deal and Brexit have led to great concerns about supply chains. Proactive strategies, adaptation and resilience are issues of significant importance for companies regarding seizing opportunities for business transformation. The evolution of crises associated with supply chains has been complex and resulted in widespread problems. Companies have enormous opportunities to revisit their business model and their strategic investment decision-making practices to play an active role in society. Industry 4.0 mechanisms , including big data, artificial intelligence, and advanced analytics , have brought unprecedent ed standards of ethic s , governance, accounting, and accountability to the new era of supply chains. Successful strategic investment decision-making practices require a proper understanding of stakeholders’ interests and expectations. Such understanding enables organizations to achieve effective planning and control of organizational and policy resources and successful value crea tion. Business model transformation towards a circular economy enables companies to achieve potential objectives , including increasing production efficiency, productivity, and quality, supplementing operational flexibility, contributing to safety issues and operational sustainability, and amalgamating the production system with stakeholders. The increasing concern about supply chain issues has raised a call for boardrooms to revisit their strategies toward sustainable supply chains. This paper aims to shed light on the contextual factors surrounding the new era of strategic investment decision - making practices in UK companies towards green sustainable supply chain s and sustaina ble performance maximization. The methodology underlying this study is based on a qualitative paradigm. The study utilizes secondary data, mainly the recent studies related to current issues in governance surrounding business model transformation. The conceptualization underpinning this study is rooted mainly i n stakeholder theory and resource-based perspective. The results of this study articulate the wider stockholders ’ concern, and the debates underpinning this study have managerial and theoretical implications , includ ing regulatory bodies, standard setters, decision-makers, and other stakeholders.
Adel, N., & Alkaraan, F. (2019). Strategic Investment Acquisitions Performance in UK Firms: The Impact of Managerial Overconfidence. Journal of Financial Reporting and Accounting, 17, 24-41. https://doi.org/10.1108/JFRA-02-2017-0013
Aggarwal, V. A., Posen, H. E., & Workiewicz, M. (2016). Adaptive Capacity to Technological Change: A Microfoundational Approach. Strategic Management Journal, 38, 1212-1231. https://doi.org/10.1002/smj.2584
Alam, S. T., Ahmed, S., Ali, S. M., Sarker, S., Kabir, G., & Ul-Islam, A. (2021). Challenges to COVID-19 Vaccine Supply Chain: Implications for Sustainable Development Goals. International Journal of Production Economics, 239, Article ID: 108193. https://doi.org/10.1016/j.ijpe.2021.108193
Alkaraan, F. (2015). Strategic Investment Decision-Making Perspectives. In C. L. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 14, pp. 5-66). Emerald Group Publishing Limited. https://doi.org/10.1108/S1479-361X20150000014004
Alkaraan, F. (2016). Strategic Investment Decision-Making—Scanning and Screening Investment Opportunities: The Expansion of Guinness in West Africa. Meditari Accountancy Research, 24, 505-526. https://doi.org/10.1108/MEDAR-01-2016-0007
Alkaraan, F. (2017). Strategic Investment Appraisal: Multidisciplinary Perspectives. In C. L. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 16, pp. 67-82). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20170000016004
Alkaraan, F. (2018). Corporate Governance in Ireland: New Challenges and Opportunities. In A. N. Kostyuk, U. Braendle, & V. Capizzi (Eds.), Corporate Governance: New Challenges and Opportunities. Virtus Interpress.
Alkaraan, F. (2019). Making M&A Less Risky: The Influence of Due Diligence Processes on Strategic Investment Decision Making. In C. L. Cooper, & S. Finkelstein (Eds.), Advances in Mergers & Acquisitions (Vol. 18, pp. 99-110). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20190000018007
Alkaraan, F. (2020). Strategic Investment Decision-Making Practices in Large Manufacturing Companies: A Role for Emergent Analysis Techniques? Meditari Accountancy Research, 28, 633-653. https://doi.org/10.1108/MEDAR-05-2019-0484
Alkaraan, F. (2021a). Editorial: Recent Debates on Corporate Governance and Sustainability. Corporate Governance and Sustainability Review, 5, 4-6. https://doi.org/10.22495/cgsrv5i3editorial
Alkaraan, F. (2021b). Strategic Investment Decision-Making: Mergers and Acquisitions toward Industry 4.0. In C. L. Cooper, & S. Finkelstein (Eds.), Advances in Mergers and Acquisitions (Vol. 20, pp. 39-52). Emerald Publishing Limited. https://doi.org/10.1108/S1479-361X20210000020004
Alkaraan, F. (2022). Editorial: Current Issues in Corporate Governance and Sustainability. Corporate Governance and Sustainability Review, 6, 4-6. https://doi.org/10.22495/cgsrv6i2editorial
Alkaraan, F. (2023). Editorial: Corporate Governance and Sustainability Issues. Corporate Governance and Sustainability Review, 7, 4-6. https://doi.org/10.22495/cgsrv7i1editorial
Alkaraan, F., & Floyd, D. (2020). Rethinking of the UK Strategic Public Decision: Outsourcing Accountability and Governance Perspectives. Strategic Change, 29, 625-632. https://doi.org/10.1002/jsc.2370
Alkaraan, F., & Northcott, D. (2006). Strategic Capital Investment Decision-Making: A Role for Emergent Analysis Tools: A Study of Practice in Large UK Manufacturing Companies. The British Accounting Review, 38, 149-173. https://doi.org/10.1016/j.bar.2005.10.003
Alkaraan, F., & Northcott, D. (2007). Strategic Investment Decision Making: The Influence of Pre-Decision Control Mechanisms. Qualitative Research in Accounting & Management, 4, 133-150. https://doi.org/10.1108/11766090710754204
Alkaraan, F., & Northcott, D. (2013). Strategic Investment Decision-Making Processes: The Influence of Contextual Factors. Meditari Accountancy Research, 21, 117-143. https://doi.org/10.1108/MEDAR-09-2012-0031
Alkaraan, F., Albahloul, M., & Hussainey, K. (2023a). Carillion’s Strategic Choices and the Boardroom’s Strategies of Persuasive Appeals: Ethos, Logos and Pathos. Journal of Applied Accounting Research. https://doi.org/10.1108/JAAR-06-2022-0134
Alkaraan, F., Albitar, K., Hussainey, K., & Venkatesh, V. G. (2022). Corporate Transformation toward Industry 4.0 and Financial Performance: The Influence of Environmental, Social, and Governance (ESG). Technological Forecasting and Social Change, 175, Article ID: 121423. https://doi.org/10.1016/j.techfore.2021.121423
Alkaraan, F., Elmarzouky, M., Hussainey, K., & Venkatesh, V. G. (2023b). Sustainable Strategic Investment Decision-Making Practices in UK Companies: The Influence of Governance Mechanisms on Synergy between Industry 4.0 and Circular Economy. Technological Forecasting and Social Change, 187, Article ID: 122187. https://doi.org/10.1016/j.techfore.2022.122187
Baig, A., Hall, B., Jenkins, P., Lamarre, E., & McCarthy, B. (2020). The COVID-19 Recovery Will Be Digital: A Plan for the First 90 Days. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-covid-19-recovery-will-be-digital-a-plan-for-the-first-90-days
Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A Literature and Practice Review to Develop Sustainable Business Model Archetypes. Journal of Cleaner Production, 65, 42-56. https://doi.org/10.1016/j.jclepro.2013.11.039
Carr, C., Kolehmainen, K., & Mitchell, F. (2010). Strategic Investment Decision Making Practices: A Contextual Approach. Management Accounting Research, 21, 167-184. https://doi.org/10.1016/j.mar.2010.03.004
Chesbrough, H. (2020). To Recover Faster from Covid-19, Open up: Managerial Implications from an Open Innovation Perspective. Industrial Marketing Management, 88, 410-413. https://doi.org/10.1016/j.indmarman.2020.04.010
Choi, T. M. (2021). Fighting against COVID-19: What Operations Research Can Help and the Sense-and-Respond Framework. Annals of Operations Research. https://doi.org/10.1007/s10479-021-03973-w
Chowdhury, P., Paul, S. K., Kaisar, S., & Moktadir, M. A. (2021). COVID-19 Pandemic Related Supply Chain Studies: A Systematic Review. Transportation Research Part E: Logistics and Transportation Review, 148, Article ID: 102271. https://doi.org/10.1016/j.tre.2021.102271
De Sousa Jabbour, A. B. L., Jabbour, C. J. C., Foropon, C., & Godinho Filho, M. (2018). When Titans Meet—Can Industry 4.0 Revolutionise the Environmentally-Sustainable Manufacturing Wave? The Role of Critical Success Factors. Technological Forecasting and Social Change, 132, 18-25. https://doi.org/10.1016/j.techfore.2018.01.017
Deloitte (2020a). COVID-19: Managing Supply Chain Risk and Disruption. https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/finance/Supply-Chain_POV_EN_FINAL-AODA.pdf
Deloitte (2020b). COVID-19: Shaping the Future through Digital Business: Leveraging Technology to Support the Recovery and Produce Lasting Change. https://www2.deloitte.com/global/en/pages/about-deloitte/articles/covid-19/ shaping-the-future-through-digital-business.html
Foresight (2013). The Future of Manufacturing: A New Era of Opportunity and Challenge for the UK. The Government Office for Science.
Huikku, J., Karjalainen, J., & Seppala, T. (2018). The Dynamism of Pre-Decision Controls in the Appraisal of Strategic Investments. The British Accounting Review, 50, 516-538. https://doi.org/10.1016/j.bar.2018.04.002
Hussainey, K., Albitar, K., & Alkaraan, F. (2022). Corporate Narrative Reporting on Industry 4.0 Technologies: Does Governance Matter? International Journal of Accounting & Information Management, 30, 457-476. https://doi.org/10.1108/IJAIM-02-2022-0024
Ivanov, D. (2020). Viable Supply Chain Model: Integrating Agility, Resilience and Sustainability Perspectives—Lessons from and Thinking beyond the COVID-19 Pandemic. Annals of Operations Research. https://doi.org/10.1007/s10479-021-04181-2
Ivanov, D. (2021). Exiting the COVID-19 Pandemic: After-Shock Risks and Avoidance of Disruption Tails in Supply Chains. Annals of Operations Research. https://doi.org/10.1007/s10479-021-04047-7
Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Sarkis, J., & Godinho Filho, M. (2019). Unlocking the Circular Economy through New Business Models Based on Large-Scale Data: An Integrative Framework and Research Agenda. Technological Forecasting and Social Change, 144, 546-542. https://doi.org/10.1016/j.techfore.2017.09.010
Jain, P., & Mondal, T. (2017). The HfS Blueprint Guide to Industry 4.0 Services. Horses for Sources.
Northcott, D., & Alkaraan, F. (2007). Strategic Investment Appraisal. In T. Hopper, D. Northcott, & R. Scapens (Eds.), Issues in Management Accounting (pp. 199-122). Pearson Education.
Queiroz, M. M., Ivanov, D., Dolgui, A., & Fosso Wamba, S. (2020). Impacts of Epidemic Outbreaks on Supply Chains: Mapping a Research Agenda amid the COVID-19 Pandemic through a Structured Literature Review. Annals of Operations Research, 319, 1159-1196. https://doi.org/10.1007/s10479-020-03685-7
Sarkis, J. (2021). Supply Chain Sustainability: Learning from the COVID-19 Pandemic. International Journal of Operations & Production Management, 41, 63-73. https://doi.org/10.1108/IJOPM-08-2020-0568
Schaltegger, S., & Wagner, M. (2011). Sustainable Entrepreneurship and Sustainability Innovation: Categories and Interactions. Business Strategy and the Environment, 20, 222-237. https://doi.org/10.1002/bse.682
Schleper, M. C., Gold, S., Trautrims, A., & Baldock, D. (2021). Pandemic-Induced Knowledge Gaps in Operations and Supply Chain Management: COVID-19’s Impacts on Retailing. International Journal of Operations & Production Management, 41, 193-205. https://doi.org/10.1108/IJOPM-12-2020-0837
Singh, A., & Hess, T. (2017). How Chief Digital Officers Promote the Digital Transformation of Their Companies. MIS Quarterly Executive, 16, 1-17.
Singh, S., Kumar, R., Panchal, R., Tiwari, M. K. (2020). Impact of COVID-19 on Logistics Systems and Disruptions in Food Supply Chain. International Journal of Production Research, 59, 1993-2008. https://doi.org/10.1080/00207543.2020.1792000
Stock, T., & Seliger, G. (2016). Opportunities of Sustainable Manufacturing in Industry 4.0. Procedia CIRP, 40, 536-541. https://doi.org/10.1016/j.procir.2016.01.129
Van Hoek, R. (2020). Research Opportunities for a More Resilient Post-COVID-19 Supply Chain—Closing the Gap between Research Findings and Industry Practice. International Journal of Operations & Production Management, 40, 341-355. https://doi.org/10.1108/IJOPM-03-2020-0165
Wang, Y., Wang, J., & Wang, X. (2020). COVID-19, Supply Chain Disruption and China’s Hog Market: A Dynamic Analysis. China Agricultural Economic Review, 12, 427-443. https://doi.org/10.1108/CAER-04-2020-0053
World Economic Forum (2020). How China Can Rebuild Global Supply Chain Resilience after COVID-19. https://www.weforum.org/agenda/2020/03/coronavirus-and-global-supply-chains/