1. How Do You Make Capital Investment Decisions?  Esp. when new technology or ecological issues are involved? Dorothy Wood, Australian National University Chris Robinson, Atkinson School of Administrative Studies, York University

2. Theories/Factors profit legislation stakeholder pressure ethics  Bansal and Roth (2000)‏ networking (Uzzi, 1997)‏ strategy technical competence  del Rios Gonzalez (2005)‏

3. Method/Companies Case studies Pulp and paper Dry cleaners Why? environmental issues, different size and ownerhsip structures

4. What did we find in pulp and paper? very technically competent staff –innovative economics – very limited capital budget social/ethics – most capital spending was on environmental projects with low payoff economics – formal manual requires NPV and payback, but they are only some of the factors ethics – environment manager has to agree to eery project stakeholder pressure – kept marginal mills running to save communities legislation, of course – but they also had several convictions for water pollution --> conflict of old tech/keep communities alive?

5. Findings cont'd Networking: design the major equipment with the suppliers, not off the shelf ($100 mm a pop)‏ Strategy/economics – they decide which are the core businesses, which get the investments; also profitability Dry cleaning: Family-owned and run. Small $ business and expenditures, but big to the family extensive networking with competitors before buy a new machine protect family, employees from risk of harmful chemicals is first priority, second is $ and compliance, but our interviewees invested before laws changed.