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Validating a second-order model for oil and gas projects’ investment climate scale

Purpose:The investment climate is one of the key factors considered by foreign investors while deciding their investment destination.This paper aims to attempt at validating the second-order model of oil and gas projects’ investment climate. Examination of the relationship between the dimensions of...

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Main Authors: Mas’ud, Abdulsalam, Abd Manaf, Nor Aziah, Saad, Natrah
Format: Article
Language:English
Published: Emerald Publishing Limited 2017
Subjects:
HD28 Management. Industrial Management
Online Access:http://repo.uum.edu.my/23661/1/IJESM%2011%201%202017%2065%2079.pdf
http://repo.uum.edu.my/23661/
http://doi.org/10.1108/IJESM-08-2015-0003
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spelling my.uum.repo.236612018-03-15T01:35:50Z http://repo.uum.edu.my/23661/ Validating a second-order model for oil and gas projects’ investment climate scale Mas’ud, Abdulsalam Abd Manaf, Nor Aziah Saad, Natrah HD28 Management. Industrial Management Purpose:The investment climate is one of the key factors considered by foreign investors while deciding their investment destination.This paper aims to attempt at validating the second-order model of oil and gas projects’ investment climate. Examination of the relationship between the dimensions of oil and gas projects’ investment climate; strategy, participants/operating environment and risk/return; and the overall latent construct was conducted. The study also evaluates the goodness of fit of the second-order model using relevant fit indices.Design/methodology/approach: Oil and gas experts in Malaysian marginal oil fields subsector were deployed, through whom responses were collected that formed the data set used in the analysis. Then, the data were used for confirmatory factor analysis, evaluation of the second-order model through path analysis and for model fit evaluation.Findings: The finding revealed that the second-order model of oil and gas projects’ investment climate is valid and reliable. It also revealed that all the three dimensions, strategy, participants/operating environment and risk/return, have significant effects on the formation of the oil and gas projects’ investment climate. Finally, the goodness of fit of the second-order model satisfied the relevant fit indices.Research limitations/implications: The findings present valuable insights to policymakers on the extent of the influence each of the dimensions has on the overall latent construct. The validity and reliability analysis suggests the measurements of the second-order model of oil and gas projects’ investment climate construct, and its dimensions are valid, reliable and fit for future empirical research. Thus, it calls for replication in other oil and gas settings.Originality/value: The findings from the results of this study are pioneering. Extant literature falls short in attempting the validation of the second-order oil and gas projects’ investment climate scale, as well as relating each of the dimensions with the overall latent construct. Emerald Publishing Limited 2017 Article PeerReviewed application/pdf en http://repo.uum.edu.my/23661/1/IJESM%2011%201%202017%2065%2079.pdf Mas’ud, Abdulsalam and Abd Manaf, Nor Aziah and Saad, Natrah (2017) Validating a second-order model for oil and gas projects’ investment climate scale. International Journal of Energy Sector Management, 11 (1). pp. 65-79. ISSN 1750-6220 http://doi.org/10.1108/IJESM-08-2015-0003 doi:10.1108/IJESM-08-2015-0003
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Mas’ud, Abdulsalam
Abd Manaf, Nor Aziah
Saad, Natrah
Validating a second-order model for oil and gas projects’ investment climate scale
description Purpose:The investment climate is one of the key factors considered by foreign investors while deciding their investment destination.This paper aims to attempt at validating the second-order model of oil and gas projects’ investment climate. Examination of the relationship between the dimensions of oil and gas projects’ investment climate; strategy, participants/operating environment and risk/return; and the overall latent construct was conducted. The study also evaluates the goodness of fit of the second-order model using relevant fit indices.Design/methodology/approach: Oil and gas experts in Malaysian marginal oil fields subsector were deployed, through whom responses were collected that formed the data set used in the analysis. Then, the data were used for confirmatory factor analysis, evaluation of the second-order model through path analysis and for model fit evaluation.Findings: The finding revealed that the second-order model of oil and gas projects’ investment climate is valid and reliable. It also revealed that all the three dimensions, strategy, participants/operating environment and risk/return, have significant effects on the formation of the oil and gas projects’ investment climate. Finally, the goodness of fit of the second-order model satisfied the relevant fit indices.Research limitations/implications: The findings present valuable insights to policymakers on the extent of the influence each of the dimensions has on the overall latent construct. The validity and reliability analysis suggests the measurements of the second-order model of oil and gas projects’ investment climate construct, and its dimensions are valid, reliable and fit for future empirical research. Thus, it calls for replication in other oil and gas settings.Originality/value: The findings from the results of this study are pioneering. Extant literature falls short in attempting the validation of the second-order oil and gas projects’ investment climate scale, as well as relating each of the dimensions with the overall latent construct.
format Article
author Mas’ud, Abdulsalam
Abd Manaf, Nor Aziah
Saad, Natrah
author_facet Mas’ud, Abdulsalam
Abd Manaf, Nor Aziah
Saad, Natrah
author_sort Mas’ud, Abdulsalam
title Validating a second-order model for oil and gas projects’ investment climate scale
title_short Validating a second-order model for oil and gas projects’ investment climate scale
title_full Validating a second-order model for oil and gas projects’ investment climate scale
title_fullStr Validating a second-order model for oil and gas projects’ investment climate scale
title_full_unstemmed Validating a second-order model for oil and gas projects’ investment climate scale
title_sort validating a second-order model for oil and gas projects’ investment climate scale
publisher Emerald Publishing Limited
publishDate 2017
url http://repo.uum.edu.my/23661/1/IJESM%2011%201%202017%2065%2079.pdf
http://repo.uum.edu.my/23661/
http://doi.org/10.1108/IJESM-08-2015-0003
_version_ 1644283841852997632
score 13.211869

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