Moderating effect of information processing capacity to investment decision making and environmental scanning / Nik Maheran Nik Muhammad ,Muhamad Jantan and Fauziah Md Taib

This study will examine the role of information processing capacity in enhancing investment decision
quality and environmental scanning relationship. Cross sectional data was collected through a survey
and analyzed by means of factor analysis and hierarchical regression analysis. Information processing
capacity is only contingent upon technology information in order to affect the quality of investment
decision. Method of scanning on the other hand will lead to quality decision only with the inclusion of
information processing capacity. Use of convenience sampling may restrict the generalizability of
findings. Information processing capacity is needed when scanning technology information to bring about
decision quality, thus for technology related matters, firms should be investing in the information
processing capacity to produce quality decision. Information processing capacity theory is genuinely new
in the literature of investment decision making. This study uses decision as its unit of analysis.
Keywords – environmental scanning, decision quality, information processing capacity
Paper Type – Research Paper