A Theoretical Perspective on Strategic Investment Decision Making in Modern Enterprises

Abstract

Strategic investment decision-making is one of the most critical determinants of long-term organizational success in modern enterprises. In an era characterized by technological transformation, globalization, and heightened competition, firms are increasingly challenged to make complex investment choices that balance risk, return, and sustainability. This paper provides a comprehensive theoretical perspective on how enterprises conceptualize and execute strategic investment decisions. It explores the intersection of classical decision-making models, behavioral finance, organizational psychology, and modern computational methods. The study further incorporates an experimental framework simulating enterprise investment decisions using a game-theoretic model with multiple competing scenarios. The results reveal that organizations relying on structured, evidence-based models outperform those using purely intuitive or short-term approaches. This research contributes to the growing body of literature by integrating theoretical models with simulated experimentation, offering both practical and academic insights.