Environmental Scanning and Investment Decision Quality

In a dynamic environment, scanning becomes critically important when making decisions, particularly capital investment decisions. This book will discuss on environmental scanning behavior of Investment decision maker. Empirical test was done to 118 decision maker in Malaysia and found that only technology, economic and competition information was scanned by Malaysian manager in making capital investment decision. They scan for information at a moderate level, using both formal and informal methods and various sources (both personal and impersonal) of information. Limited relationships were observed between scanning behavior and investment decision quality. Regression analysis show that the quality of decision is positively and significantly related to extent of economic and competition information and formality of method used to scan competition information. Information processing capacity was found to be a quasi moderator, thus having a direct as well as an interaction effect on decision quality.