How structuration theory is used to refine and design this thesis

As discussed in the introduction to this chapter, the main question was developed by identifying a gap in the literature and referring this to the methodological position of the researcher. Therefore this section of the chapter will be used to explain how the research questions, main and sub-questions, were refined using ST and this is presented in Figure 7. Each sub-question, highlighted in green, is directly related to one of the structures by examining the structure, modality and interaction within Giddens’ duality of structure.

131 Structure

Modality Interaction

Figure 8: Giddens’ duality of structure linked to research questions

Giddens’ duality framework offers three structures, which consider communication, power and sanctions. From these structures the author then offers three sub-questions relating to the role of investment appraisal techniques. Communication allows the frame of reference to be explored and power examines the use of rules and resources and sanctions identifying the influence of social, political and economic factors.

Establishing the sub-research questions related to the three structures presented an opportunity to refine the interview questions by applying the theory within each structure. These questions allowed the researcher to collect data relating to the reality of the actors: the facts, logics, values and communication that are based upon the social, political and economic environment.

What role does investment appraisal play in the investment decision-making process within the UK electricity industry?

Signification Domination Legitimation

Interpretive scheme Facility Norm

Communication Power Sanction

What are the social, political and economic factors that influence investment decisions? Have these factors changed over time? What frame(s) of reference are

used when making investment decisions?

What resources are used in communicating and discussing investment decisions among the various actors involved? What are thesources of power?

132 Analysing triggers for change in social, political and economic environments requires ‘norms’ to be understood; accepted ‘norms’ will influence these environments. By addressing the higher concerns of social, political and economic issues this case study will explore how the societal totalities of the government, regulators and generators have influenced changes within the accepted ‘norms’ and ‘sanctions’.

Figure 9: Extending legitimation to examine the influence of social totalities

Ribeiro and Scapens (2006) explained that organisations often adopt rules and norms that are accepted socially and culturally. It is those rules, which are used to legitimise processes and decisions. Bringing together Giddens’ duality of structure and understanding the influence of historic ‘norms’ of this industry, the model used for the thesis is as follows on the next page:

Structuration theory

Legitimation Government – influence

from EU policy makers and UK government

Norms Regulators – influence

from regulators and industry forums

Sanctions Generators – influence

133 Structuration Theory

Structure

Modality Interaction

Figure 10: Model of the design process

What role does investment appraisal play in the investment decision-making process within the UK electricity industry?

Government – influence from EU policy makers and UK government

Signification Domination Legitimation

Regulators – influence from regulators and industry forums

Interpretive scheme Facility Norm

Communication

Generators – influence from the generators

Power Sanction

What are the social, political and economic factors that influence investment decisions? Have these

factors changed over time? What frame(s) of reference are

used when making investment decisions?

What resources are used in communicating and discussing investment decisions within the various actors involved? What are

thesources of power?

Sustainability Investment

134 The main research question is highlighted in blue at the top of the model. To address this research question successfully, the three structures within Giddens’ ST inform three sub-questions, highlighted in green, which guide the analysis of the main research question. The data collected through the interviews, as presented in Tables 4 and 5 in Chapter 3, was collated when designing interview questions using ST34. The information collected from the interviews was based upon the three themes of paradox within the UK generation industry, i.e. regulation, investment and sustainability, as highlighted in orange. These questions were tested using pilot interviews and shaped by feedback from the interviewees. The data collected was analysed based on the three structures and is presented in separate chapters: Chapters 5-7.

4.6 Conclusion

Referring back to Chapter 2, the literature review, Haka (2007) emphasised the importance of understanding capital budgeting through the influence of societal institutions. ST overcomes some of the problems that other research have encountered when assuming that decision makers always aim to maximise profits (González González, 2010). By using a flat local duality perspective (Englund and Gerdin, 2011) this research maintains the inter-subjective position, as discussed in the previous chapter; drawing upon Giddens’ (1979; 1984) notion that agency and structure do not pre-suppose one another. Using ST, this thesis will examine investment appraisal in three interwoven structures and analyse it against other competing and contradictory systems’ structures. By observing change within this industry and questioning whether overlapping social systems have been used as a way of facilitating power, the research will question the motivation for change. ST rests firmly within the epistemological and

135 ontological position of this research, and links to research questions by using theory. The model, Figure 9, demonstrates the relationship between the theories and research questions within this thesis.

Now the literature gap, methodology and theory have been established, the remaining chapters will provide the data analysis and present the research findings. Each structure within Giddens’ theory will be used pragmatically to divide the interpretation of the research questions. From here on, the research will focus on the shared interpretations of the actors, using theory to assist in understanding the meaning of these interpretations.

137