Through this process a description of current

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Unformatted text preview: ty of the data and the objectivity of the resultant findings is for researchers to use verbatim accounts taken within their original context. Through this process a description of current practice was produced and, therefore, research question two was answered. As indicated earlier, through the answering the first research question, the quantitative techniques available to companies for investment appraisal decision-making had been identified and an approach to investment decision-making developed that utilised the full spectrum of available techniques. These both acted as input into the third stage of the research which aimed 65 to establish if there is a relationship between the use of decision analysis in investment appraisal decision-making in companies and business success in the operating companies in the U.K. upstream oil and gas industry. As indicated in Chapter 2, very few studies have attempted to value the usefulness of a decision analysis approach (Clemen, 1999). Clemen and Kwit (2000) are the only researchers who have attempted to evaluate the benefits of a decision analysis approach to managing risk and uncertainty in investment decision-making. These authors investigated the value of a decision analysis approach within one company using a qualitative methodology, specifically using depth interviews and documentary analysis to inform their research. This methodological approach permitted these researchers to value the “soft” benefits to an organisation of utilising a decision analysis approach. However, whilst their research provides useful insights, as the authors themselves acknowledge, the focus on one organisation means that the results cannot be generalised to a larger sample. The current study differs from this since it aims to produce an indication of the value of using a decision analysis approach in upstream oil and gas companies. Therefore, by implication, the research involves numerous companies and this prohibits use of the time-consuming qualitative methodology implemented by Clemen and Kwit (2000). Instead, using the results from the semi-structured interviews as input, it was assumed that any value added to the company from using a decision analysis approach, including “soft” benefits, ultimately affects the bottom-line (this assumption is justified in Chapter 7). It was then possible to investigate the relationship between an organisation’s use of decision analysis and good decision-making statistically by using criteria that are indicative of organisational performance. To permit a comparison of companies according to the decision analysis techniques used for investment appraisal (identified by answering the second research question), a ranking scheme was devised which assigned two points for full implementation of each of the techniques identified by answering the first research question, one point for partial implementation of, or some familiarity with, the technique, and zero for non-use. Companies were also graded in the same way on how well the decisio...
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This document was uploaded on 03/30/2014.

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