This ranking together with the performance measures

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: performance for any length of time! Given this, the current research will be correlational and will aim to establish if there is an association between organisational performance and use of decision analysis techniques and concepts. Following Leach (1979 p19), the use of decision analysis tools and concepts will be labelled the explanatory variable and organisational performance the response variable. Leach (1979 p20) argues that provided the researcher acknowledges that when an explanatory variable is handled as an attribute, the researcher cannot conclude that any variation in the explanatory variable “explains” variation in the response variable, it is permissible for the label to be used in correlational studies. In the following two sections, data will be compiled and presented that indicates first, organisations’ use of decision analysis tools and concepts and second, business performance. In section 7.4, the statistical discussion will resume and the statistical tests will be chosen based on the types of data that have been gathered. 160 7.3 RANKING COMPANIES BY USE OF DECISION ANALYSIS TOOLS AND CONCEPTS In Chapter 5 the range of decision analysis techniques and concepts that are available to upstream companies for investment appraisal were presented. Chapter 6 indicated which of these tools and ideas companies choose to use and why. In this section, the two preceding chapters are used as input to construct a ranking scheme which grades companies according to their use of decision analysis techniques and concepts, with the higher-ranking positions being given to those companies that use a larger number of decision analysis techniques and ideas. This ranking together with the performance measures ranking compiled in the following section, will be statistically analysed in section 7.5. The techniques and concepts presented in Chapter 5 comprise the toolkit currently available to the upstream decision-maker. They vary in complexity from basic DCF techniques to the more obscure option and preference theories. Some of the ideas have been applied to the industry in the literature for many years, others only relatively recently. Whilst for most of the tools there is software available making it possible to automate their use, for a few there is no software package manufactured, making manual manipulation the only option. implementation of the techniques in companies. Such factors have affected the However, Chapter 6 provided evidence of other influences, which are perhaps stronger, which have also affected organisations’ uptake and use of decision analysis techniques. In particular, in each company, the top management’s attitude towards decision analysis and the corporate culture appear to affect the extent to which decision analysis techniques are used. Chapter 6 confirmed the findings of earlier studies by Schuyler (1997) and Fletcher and Dromgoole (1996) by providing evidence that there is a gap between practice and capability in the extent to which the upstream industry use decision analysis techniques and concepts. However, it also indicated that individual companies vary in the extent to which they contribute to this gap. Whilst some companies might have no knowled...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online