The allocation of capital within firms

Metin Sengul, Afonso Almeida Costa, Javier Gimeno

Research output: Contribution to journalArticlepeer-review

44 Citations (Scopus)
921 Downloads (Pure)


The allocation of capital within firms is a core managerial function, yet a topic that only recently has resurged in management research. We review research across disciplines dealing with how firms allocate capital, with an emphasis on the relevant research in strategy and management. We integrate relevant research across multiple disciplines and theoretical perspectives to bring forth a theoretically grounded conceptualization of capital allocation within a firm as (i) a process of determination, comparison, and selection among multiple investment alternatives, (ii) taking place across organizational levels of the firm, and (iii) influenced and constrained by the external context in which the firm is situated. We conclude by discussing some important implications for future research.
Original languageEnglish
Pages (from-to)43-83
JournalAcademy of Management Annals
Issue number1
Publication statusPublished - Jan 2019


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