The chapter showed how there have been limitations in

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Unformatted text preview: that has prompted increasing interest in decision analysis techniques in the industry (Chapter 6). The chapter showed how there have been limitations in the recent studies into current practice in investment appraisal in the oil industry and that therefore there is a need for a study to investigate investment decision-making in the oil and gas industry. The following chapter first states the methodological approach adopted for this study and second, evaluates its effectiveness. 54 Chapter 4 Methodology 55 4.1 INTRODUCTION The current study contributes to the current deepening understanding of the value of the application of decision analysis to organisational investment decision-making. Set in the context of the operating companies in the U.K. oil industry the research has three specific objectives. It aims firstly to propose which decision analysis techniques are the most appropriate for upstream oil and gas companies to utilise in their investment decision-making; secondly, to ascertain which of these tools upstream companies choose to use in their investment appraisal and why; and lastly, to establish if there is a relationship between the use of decision analysis in investment decisionmaking and good organisational performance in the operating companies in the upstream oil and gas industry. A qualitative methodology was chosen to answer these research questions with semistructured interviews being chosen as the primary research method. The interview transcripts allowed the researcher to be able to model companies’ investment decision-making processes and, in particular, organisations’ use of decision analysis techniques in investment appraisal. Then, using this model, together with published financial measures and other criteria indicative of organisational performance in the upstream, non-parametric statistical analysis was employed for the examination of the relationship between the use of decision analysis in investment appraisal decisionmaking and organisational performance. In this chapter, this methodology will be evaluated. Particular attention will be focussed on the different methods of qualitative data analysis used and their appropriateness for the study of investment decisionmaking. The choice of the oil industry as the context for the current study has already been justified in the preceding chapter hence it will be taken as given here. Directions for future research will not be discussed in this chapter but instead will be proposed in Chapter 8. The chapter follows the approach outlined by O’Mahoney (1998) and is written as a case history of the methodology of the current study. The chapter aims to recreate the iterative and dynamic flows between research area and methodology that has been the feature of several recent works. A feature of the research has been the development 56 of the researcher as an academic researcher. In this regard, the papers and presentations that have been prepared during the course of the current study are shown in Appendix 2. 4.2 ADOPTING AN APPROPRIATE METHODOLOGICAL FRAMEWORK Orton’s (1997) summary of Daft’s (1985) distinction between deductive research (theory, method, data, findings) and inductive research (method, data, findings, theory) sug...
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This document was uploaded on 03/30/2014.

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