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Unformatted text preview: more interested in decision
analysis. Often the respondents from these companies were actively involved in this
change and, on many occasions, they perceived the current study as a vehicle for
initiating or encouraging it. As indicated in section 4.2, this significantly affected the
response rate and also resulted in these respondents being particularly forthcoming
70 with information on company practice. If it had been possible to return to these
companies, it would have been interesting to look further on the effect of the mergers
on companies’ investment appraisal decision-making practices.
Thirdly, resource and time constraints affected the number of people consulted in each
company. Despite the initial intention to consult multiple respondents in each company this was often not possible. Typically, only one person in each company
was interviewed usually this individual was the Exploration, Commercial or License
Manager. Bowman and Ambrosini (1997) have described the dangers of using singlerespondents to ascertain company practice. They argue that where single-respondents
are used, the researchers must be convinced that the research results are not dependent
on the person that happened to be surveyed or interviewed. In this study, where the
researcher felt there was the possibility of bias from a particular company
representative, this data was disregarded and another respondent in that organisation
sought. Hence, the researcher is confident that the data gathered is representative of
company practice. Furthermore, in this study, as indicated above, it was the Exploration Managers that were usually interviewed. In most companies Exploration
Managers are usually involved in generating investment proposals and presenting
these proposals to the boards of their companies. So, in most cases, this individual is
often the only person in the company who has been involved in both generating the
analysis and witnessing the investment decision-making process.
The methodology that was used to explore the research questions set out in Chapter 1
has been described and critically evaluated in this chapter. In doing so, it has provided an example of how research can differ from the ordered and rational
approaches of the more prescriptive research methodology texts. The limitations of
the current study have been highlighted. Directions for future research will be proposed in Chapter 8.
The following chapter presents the results from the first stage of the research.
Specifically, it aims to identify the tools that are available to the upstream oil and gas
industry for investment appraisal decision-making.
71 Chapter 5 Current capability in investment appraisal in
the upstream oil and gas industry 72 5.1 INTRODUCTION
This chapter focuses on answering the first research question proposed in Chapter 1.
It draws on the discussion in Chapters 2 and 3, the decision theory and industry
literatures and insights gained at conferences and workshops, to present the ra...
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- Summer '14
- The Land