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The process for allocating resources to major capital investment projects was studied in two vertically integrated and two diversified corporations. The hypotheses predicting greater decentralization of decision making in the diversified corporations were strongly confirmed. However, the results did not support other hypotheses related to the influence of a financial model on the process. Instead, decisions were guided by product-market strategy and measures of organizational performance.
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Robert W. Ackerman (1970) studied this question.
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