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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.
- Summer '14
- The Land