Instead the current study uses the indication of

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: questions, to rank the operating companies according to the number of decision analysis techniques they use for investment appraisal. The research then assumes that any value added to the company from using a decision analysis approach, including any “soft” benefits, ultimately affects the bottom-line. This means that it is therefore possible to use publicly available financial measures and other criteria indicative of performance in the upstream oil and gas industry, to indicate business success. The existence of a relationship between organisational performance and use of decision analysis in investment appraisal decision-making in the oil industry is then analysed statistically. 7 The remainder of the thesis concentrates on answering these research questions. Each chapter is outlined in the following section. 1.4 OUTLINE OF THESIS The literature review in Chapter 2 draws on the academic literature on investment decision-making to highlight the gaps in the existing literature that the research questions presented above are drawn from. It is structured so that attention is focussed on the source of each of the research questions in turn. Chapter 3 draws on the oil industry literature to provide a brief description of the context of the current study that highlights the main challenges facing the oil industry in the 21st century. Since the current study is located in the U.K., the effects of these global changes on the U.K. oil industry are examined. This indicates the growing complexity of the industry’s business environment and highlights why it is such a useful environment in which to study the use of decision analysis in investment decision-making. Chapter 4 outlines the methodology adopted in the research. The current study utilises qualitative methods for data collection and a combination of mechanisms for data analysis. The qualitative method of semi-structure interviewing is used for the investigation of companies’ investment decision-making processes and nonparametric statistical analysis is employed to investigate the relationship between the use of decision analysis in investment appraisal decision-making and organisational performance. Each type of analysis is evaluated in terms of their appropriateness for the study of investment decision-making. Whilst Chapter 5 primarily draws on secondary data sources, it is presented as a significant contribution to this thesis, since it first identifies the decision analysis techniques available for upstream oil and gas industry investment decision-making, and also presents a new approach to investment decision-making in the industry which utilises this spectrum of tools. 8 Chapter 6 presents the first set of findings from the research interviews. It draws on the interview data to provide a model current practice in investment decision-making in the upstream oil and gas industry. In particular, the decision analysis techniques that upstream organisations actually use are presented. When this is compared with the i...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online