Second after this initial coding the data is coded

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Unformatted text preview: pecified, and other emergent themes are included. This allows the researcher to develop a model of current practice in investment decisionmaking in the upstream oil and gas industry that is grounded in the data. The model provides insights into the use of decision analysis in investment appraisal decisionmaking organisations. In particular it permits identification of the techniques organisations do use and those that they do not, and, by drawing on the behavioural decision theory literature and the interview data, it is possible to suggest reasons for this. 3. Is there a relationship between using decision analysis techniques in investment appraisal decision-making and good organisational performance? This question is motivated by the observation by Clemen (1999) discussed in section 1.2 that there is a need for researchers to explore the relationship between the use of decision analysis in investment appraisal decision-making by companies and organisational performance. The current study investigates whether such a relationship exists in the operating companies in the U.K. upstream oil and gas industry. 6 Very few other studies have attempted to value the usefulness to organisations of using decision analysis (Clemen, 1999). Some studies in behavioural decision theory have evaluated the effectiveness of individual decision analysis techniques (for example, Aldag and Power, 1986; John et al., 1983; Humphreys and McFadden, 1980). However, such research has been criticised because the studies typically use hypothetical decision situations and there is evidence in the behavioural decision theory literature to suggest that people make different decisions under these circumstances than the decisions they would make if the situation were real (Slovic, 1995; Grether and Plott, 1979; Lichenstein and Slovic, 1971; Lindman, 1971). Clemen and Kwit (2000) investigated the existence of a relationship between use of decision analysis and organisational performance in Kodak. The researchers used depth interviews and documentary analysis to inform their research. This methodological approach permitted the researchers to value the “soft” effects on the organisation’s performance of utilising decision analysis techniques and concepts. However, whilst their research provides useful insights, as the authors themselves acknowledge, the focus on one organisation meant that the results could not be generalised to a larger sample. The current study differs from this since it attempts to establish whether there is a relationship in the operating companies in the U.K. oil industry between using decision analysis in investment decision-making and business success. Therefore, by implication, the research involves numerous companies and this prohibits use of the type of time-consuming qualitative methodology implemented by Clemen and Kwit (2000). Instead, the current study uses the indication of current capability and current practice, gained from answering the first and second research...
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