Prioritization of Factors Affecting Operational Budgeting in Oil Industry Using Analytic Hierarchy Process (AHP)

Subject Areas : International Journal of Mathematical Modelling & Computations

Amir Taha Amiri ¹ , Mohammad Jalali Varnamkhasti ^{2 *}

1 - Department of Management, Isf. C., Islamic Azad University, Isfahan, Iran
2 - Department of Mathematics, Isf. C., Islamic Azad University, Isfahan, Iran

Received: 2025-04-01 Accepted : 2025-06-03 Published : 2025-06-04

Keywords: Prioritization, Operational Budgeting, Factors Affecting Operational Budgeting, Oil Industry, Analytic Hierarchy Process (AHP). ,

Abstract :

This study aims to identify and rank the factors influencing the establishment of operational budgeting at Isfahan Oil Company. The statistical population comprised executives from the company, from which 15 participants were selected through purposive sampling to engage in focused group discussions. To identify the factors affecting operational budgeting, a questionnaire consisting of 16 Likert-scale items was utilized. The results, analyzed using a one-sample t-test, demonstrated the significance of all identified factors. Additionally, a paired comparison questionnaire was employed to rank these factors. The content validity of the questionnaire was substantiated through feedback from academic experts and oil company managers, and its reliability was confirmed with an inconsistency rate of 0.04. Data analysis was performed using the Analytic Hierarchy Process (AHP). Findings revealed that the familiarity of managers with budgeting received the highest priority, while their interest in implementing budgeting was ranked lowest. Among structural factors, strategic planning was prioritized above internal controls and non-financial systems. In terms of environmental factors, transparent policies held the highest priority, while adequate theoretical support ranked the lowest. Overall, strategic planning achieved the highest rank with a weight of 0.247, while the provision of executive instructions compatible with environmental characteristics received the lowest rating, with a weight of 0.0008.                                              

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