Time Horizon in Corporate Resource Allocation—Investment Horizon, Investor Horizon, and Stakeholders

Research in strategic management emphasizes that managers struggle with decisions that require an intertemporal tradeoff between short-term success and long-term performance. With respect to corporate resource allocation, this tradeoff also manifests itself via short-term versus long-term investments; via investors that exhibit heterogenous time horizons; and via the time horizon of the firm's stakeholders. I contribute to this literature by reviewing and synthesizing extant findings on time horizon in strategy; identifying relevant, emerging themes for future lines of inquiry; and highlighting logical inconsistencies at the intersection of time horizon and stakeholder theory. More empirical and theoretical extensions are warranted on this topic, which is characterized by inherent complexity.