Theoretical Foundations of Strategic Investment Decisions in Modern Enterprises

Abstract

Strategic investment decisions (SIDs) are pivotal to the long-term competitiveness and growth of modern enterprises. These decisions involve substantial resource allocation under uncertainty and are influenced by both internal strategic priorities and external environmental factors. This paper explores the theoretical foundations underpinning SIDs, drawing upon classical and contemporary economic, financial, and strategic management theories. It highlights how concepts from agency theory, resource-based view (RBV), real options theory, and stakeholder theory provide essential frameworks for understanding how enterprises evaluate, prioritize, and execute high-stakes investments. By synthesizing these perspectives, the study illustrates how theoretical models can enhance decision-making, manage risk, align investments with strategic goals, and drive sustainable value creation in a rapidly evolving business landscape.