INFLUENCE OF RISK TOLERANCE TO DECISION MAKING EFFECTIVENESS, A CASE STUDY FROM PERTAMINA SUB HOLDING UPSTREAM
This research investigates the influence of risk tolerance, decision style on decisionmaking effectiveness in the context of PERTAMINA Sub Holding Upstream. The study utilizes statistical methods including Structural Equation Modelling, Confirmatory Factor Analysis, and bootstrapping to assess the s...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80127 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | This research investigates the influence of risk tolerance, decision style on decisionmaking effectiveness in the context of PERTAMINA Sub Holding Upstream. The study utilizes statistical methods including Structural Equation Modelling, Confirmatory Factor Analysis, and bootstrapping to assess the significant influence of risk tolerance on decision effectiveness.
The major insight drawn is that although the risk tolerance is a weak exogenous variable explaining decision effectiveness, it indeed positively impacts it significantly. Additionally, the research offers critical recommendations for enhancing decision-making processes within companies.
These recommendations focus on implementing structured decision-making frameworks, promoting data-driven decisions, managing business risk effectively, organizing targeted training and development sessions for decision-makers, incorporating stakeholder involvement, integrating modern decision-support technology, ensuring continuous process monitoring and improvement, and fostering a rational corporate culture. By incorporating these measures, a company can streamline its decision-making process, thereby becoming more resilient, agile, and capable of effectively navigating potential business risks.
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