74 ranking companies by organisational performance in

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Unformatted text preview: KLMNOPQR S T 2222222222222222222 1222222222222222222 2222222222222222222 0001001021020212111 0122222222122221222 0100010100112211222 0121202222222221222 0000000000001010010 0000000000000000100 0000000000000000000 00000101012 011 211 0000000000101011011 0000000000011001001 0000000000000000011 5 9 10 10 10 10 11 12 12 12 13 15 15 15 15 15 16 17 17 use of decision analysis techniques and concepts (red=2 points, Using Chapter 6 as the main data source, the companies that were interviewed were ranked according to the criteria specified above. The result of this ranking is shown 168 in table 7.1. The red squares are used to indicate where companies were assigned two points; the green squares one point and blue no points. For each of the techniques and concepts, where there were numerical ties according to the criteria detailed above, the tie was broken on the basis of other material from the interviews, which was not available for every company (and therefore, not included as an overall rank measure). For example, the tie between companies S and T was broken on the basis that company T applied decision analysis software company-wide whereas in organisation S access to such software was restricted. The gap between practice and capability identified in Chapter 6 is shown explicitly in the table. The following section proposes the criteria that will be used to measure organisational performance. These measures together with table 7.1 will be used in section 7.5 for the statistical analysis of the association between organisational performance and use of decision analysis techniques and concepts. 7.4 RANKING COMPANIES BY ORGANISATIONAL PERFORMANCE In this section, financial measures will be selected that are indicative of organisational performance in the upstream. The upstream shares with other industries such as the pharmaceutical and aeronautics industries specific characteristics that make assessing performance particularly challenging. Hence, financial criteria that are not typically associated with organisational performance are more pertinent in this case. There are also other unique measures, which indicate success in the oil industry. These will be included in the assessment of organisational performance in the upstream. Papadakis (1998) comments that despite the fact that performance is the most critical and frequently employed variable in strategy research (for example, Hambrick and Snow, 1977), its theoretical aspects have not been adequately developed and tested (Keats, 1988). Compounding this, measuring organisational performance in different industries, and even in different samples, presents distinct challenges. Consequently, previous researchers studying the decision-making process have used various and different criteria to assess organisational performance (Venkatraman and Ramanujam, 1987; Dess and Robinson, 1984). Following this trend, the current study uses a variety of measures to assess organisational performance. The choice of these criteria 169 is limited by two factors; first...
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This document was uploaded on 03/30/2014.

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