TY - JOUR
T1 - On the diffusion of probabilistic investment appraisal and decision-making procedures in the UK's upstream oil and gas industry
AU - Finch, J.H.
AU - Macmillan, F.
AU - Simpson, G.
PY - 2002
Y1 - 2002
N2 - A critical activity for companies involved in the upstream oil and gas industry is deciding whether or not to invest in developing hydrocarbon prospects. Decisions are characterised by combinations of uncertainty and incomplete information assembled by professionals with different, but highly complementary areas of expertise. This paper presents evidence of variation among companies in the industry in the extent to which formal appraisal and decision-making procedures are adopted, and, where adopted, in the manner of application. An explanation is set out in which the importance of senior managers' attitudes is tempered by limits to the adaptability of organisational routines, of which appraisal and decision-making processes are prominent.
AB - A critical activity for companies involved in the upstream oil and gas industry is deciding whether or not to invest in developing hydrocarbon prospects. Decisions are characterised by combinations of uncertainty and incomplete information assembled by professionals with different, but highly complementary areas of expertise. This paper presents evidence of variation among companies in the industry in the extent to which formal appraisal and decision-making procedures are adopted, and, where adopted, in the manner of application. An explanation is set out in which the importance of senior managers' attitudes is tempered by limits to the adaptability of organisational routines, of which appraisal and decision-making processes are prominent.
KW - Investment appraisal procedures
KW - Upstream oil and gas industry
KW - Organisational routines
KW - Uncertainty
KW - Monte Carlo simulation
UR - http://suprimo.lib.strath.ac.uk/primo_library/libweb/action/search.do?cs=frb&frbg=5675249&fctN=facet_frbrgroupid&fctV=5675249&frbg=&dum=true&vid=SUVU01&vl(54032236UI0)=lsr02&srt=rank&indx=1&vl(69186824UI1)=all_items&dstmp=1259841964151&tab=local&ct=search
UR - http://dx.doi.org/10.1016/S0048-7333(01)00171-8
U2 - 10.1016/S0048-7333(01)00171-8
DO - 10.1016/S0048-7333(01)00171-8
M3 - Article
SN - 0048-7333
VL - 31
SP - 969
EP - 988
JO - Research Policy
JF - Research Policy
IS - 6
ER -