The role of organizational routines in investment decisions in the E&P segment of the oil and gas industry
DOI:
https://doi.org/10.14488/1676-1901.v21i4.4269Keywords:
Organizational routines, Investment decisions, Dynamic capabilities, Exploration and production, Oil and gas industryAbstract
Much of the literature on organizational routines focuses on stability and changes in the operational activities of organizations. Complementarily, this work emphasizes that organizational routines can also influence investment decision-making processesin large companies. Through theoretical and applied literature review, by making the theoretical connection between organizational routines and the concept of Dynamic Capabilities,a Theoretical Model of Decisions Supported by Routines (MTDAR) was builtto advance the understanding of how companies can: how companies can: build their organizational routines that will influence investment decision-making processes in new capital assets; and howorganizational routines canalter the routines themselves that,as a consequence, will impact strategic investment decisions. Finally, it offers some examples of higher-level routines used in the upstream (E&P) segment of the oil and gas industry.
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