Chapter 3 Methodology
I. Introduction
The study aims to investigate the extent that QED International Limited, a service support company for the oil and gas industry, plays the role of supporting the industry by providing specialist engineering and support services globally. To achieve this aim, the study seeks to fulfil the primary objective of conducting a strategic audit of QED International Limited. The strategic audit is the prelude to recommendations on the future strategic action of the company. In addition, the research also seeks to address the knowledge gap in existing literature of using only one or more of elements of the strategic resulting to the derivation of limited information. As such, the study utilises the complete strategic audit of QED International Limited instead of just using one or more components to derive a comprehensive understanding of the resources and competencies of the business firm.
The chapter discusses the methodology framework applied in collecting the data needed to achieve this aim and objectives. The methodology framework applies the research onion (Saunders, Lewis & Thornhill 2003) model shown in Appendix 1 below. The research onion guides the methodological considerations of the research study by starting with general before going to the specific approaches and methods.
II. Research Design
A. Research Philosophy
The study utilises the objective approach, which is the recognition “that social entities exist in a reality external to social actions” (Saunders, Lewis & Thornhill 2003, p. 108). This applies to the study because the target of the research is the processes, structures and systems applied in the business firm subject of the study within which personnel operates. Conducting the strategic audit involves a consideration of the strategies, practices and norms of QED International Limited based on the assumption that these would remain more or less the same regardless of the people working within the system. Objectivity applies to the study by supporting a fact-based approach (Gill & Johnson 1997) used through the determination of analytical instruments and measurements that addresses the aims and objectives of the study.
B. Research Approach
The inductive approach applies to the study because the data collection process involves the derivation of specific data on the various aspects of operations of QED International Limited. Specific data then becomes the basis of conclusions relative to the research aims and objectives together with generalisations on the merit of conducting a complete strategic audit for the company as well as other firms within the service sector for the oil and gas industry. The study collects specific data and analyses the data to come up with general statements on the implications of the data relative to the situation of the company subject of the study.
C. Research Strategy
The investigation applies case study as the strategy. Case study constitutes an empirical or experience-based inquiry that is “strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (Robson 2002, p. 178). This strategy also employs evidence from different sources to derive a complete understanding of the phenomenon (Yin 1984). These have implications to the study. One, the strategy applies to empirical studies, which is a characteristic of the present study that draws on the experiences of QED International Limited in terms of the different aspects of the strategic audit. Another, the strategy employs different sources of information, which also fits the intention of the study to deriving secondary and primary data from various sources including reports and interviews.
The case study strategy fits the aims and requirements of the study because this meets the objective of coming-up with a context-based and detailed analysis of a specific situation, which is the strategic operation of QED International Limited. In addition, the investigation only focuses on a single company, QED International Limited, which constitutes the case subject of the study.
D. Methodology Choice
Mixed methods constitute the choice of methodology. This method employs “quantitative and qualitative data collection techniques and analysis procedures either at the same time (parallel) or one after the other (sequential) but does not combine them” (Saunders, Lewis & Thornhill 2003, p. 145-146). This aligns with the research strategy of case study that involves different sources. Qualitative method applies in studies deriving detailed accounts, descriptions, and experiences of phenomena and processes (Rubin & Rubin 2006). This applies to the study because the intention is to derive accounts from managers of the QED International Limited with direct experience and knowledge of the various aspects of the strategic audit. Quantitative method works in investigations that involve the testing of principles and theories and derivation of measurable data (Blaxter, Hughes & Tight 1998). This applies to the current study because the strategic audit involves the testing of the concepts comprising the audit and some aspects of the audit involve the consideration of measurable data. Using both quantitative and qualitative methods as a mixed method provides a number of benefits. One is the ability to draw a deeper and wider perspective of the subject to the study by drawing measurable and non-measurable data covering the different aspects of the study. Another is the achievement of the benefit of drawing rich data from mixing both methods since this is not achievable by sticking to only one or the other. Last is the minimisation of the disadvantages of using one or the other since using quantitative method covers measurable data but fails to consider the explanations for measurable data while employing qualitative method alone fails to consider the measurable aspects of the phenomenon.
The utilisation of the quantitative and qualitative methods occurs at the same time or in parallel to each other. The completion of the strategic audit involves the use of quantitative method in conducting the strategic audit since some aspects such as the performance analysis involve the consideration of quantitative data including revenue and profit measuring performance. The strategic audit also applies the qualitative method in aspects such as core competence analysis and value chain analysis by considering the accounts of managers with direct experience and knowledge of these areas of the strategic audit.
E. Time Horizons
Cross-sectional method is the time horizon of the study. This method is the investigation of “a particular phenomenon (or phenomena) at a particular time” (Saunders, Lewis & Thornhill 2003, p. 148). This applies to the current study because the data collected pertains to phenomenon or situation during the period of the data collection. This means that considerations of past data and future expectations found basis on the present period of the data collection. In addition, the data collection period occurs in a short period. The interview period occurs in a relative short period making the time horizon for the study cross-sectional as opposed to the longitudinal study that involves data and data collection occurring in an extended period.
F. Techniques and Procedures
1. Data Requirement
The research involves the collection of primary and secondary data. Primary data refers to information obtained first hand through the interviews with managers of QED International Limited with experience and knowledge of the aspects of the strategic audit. Secondary data are those derived for their original intentions reported as raw data or interpreted. Sources of secondary data include books, journal articles, research papers, and relevant online papers. Secondary data constitutes a framework for the current study and supports the role of the study in reflecting academic learning. Using both primary and secondary data aligns with the case study strategy of deriving information from different sources. This also aligns with the application of the qualitative method that involves the determination of concepts relating to the study and the application of these concepts in the data collection process.
2. Data Collection
The method used in collecting primary data is the interview method, which allows the research to capture the perspectives of people (Rubin & Rubin 2006), with direct experience and valuable insight of the phenomenon investigated, through a purposeful conversations or discussions (Saunders, Lewis & Thornhill 2003). Using the interview method allows the research to obtain accounts or descriptions from parties directly involved in the phenomenon subject of the study that aligns with the qualitative method applied in the study. The interview proceeds through an unstructured framework since the interview proceeds using open-ended questions or questions without a set of specific answers provided (Rubin & Rubin 2006; Schostak 2006). The unstructured interview carries the advantage of allowing the researcher to gain data based on the answers given by the respondents and to probe deeper to derive rich explanations of answers. This also has a number of limitations such as the difficulty to reduce volumes of information into transcribed data as well as the need for accurate transcription by the researcher. However, by using the questionnaire as guide, the researcher mindful of the aims and purpose of the study, and practice in efficient transcription, these would address the limitations. In addition, the quantitative data and secondary data would serve to support an accurate understanding of the context of the answers provided by the respondents to ensure valid research outcomes.
The interview questionnaire found in Appendix 2 below is categorised and organised according to the six aspects of the strategic audit, which are 1) Resource Audit, 2) Value Chain Analysis, 3) Core Competence Analysis, 4) Performance Analysis, 5) Portfolio Analysis, and 6) SWOT Analysis. This ensures that research questions provide answers to the interview questions that also pertain to the different aspects of the strategic audit.
3. Data Analysis
The data analysis happens by comparing the answers to the interview from the different interviewees to determine similarities and differences in answers and explain any differences based on the context of the interviews and the interviewees. The data analysis also involves the interpretation of the results of the data from the different aspects of the strategic audit in terms of the research aim and objectives. Moreover, the data analysis also covers the derivation of generalisations as these arise.
III. Viability and Reliability Issues
Two issues that arise in the research investigation are reliability and validity. Reliability is the extent that the data collection method would result to consistent outcomes (Easterby-Smith, Thorpe & Lowe 2002). A reliability issue in the study is participant or subject error since an interview with the respondents at one time could yield to a different result when made at another time. The solution to this is setting an interview schedule according to the convenient time of the respondents to ensure sufficient time and attention in the interview process. Another reliability issue is researcher bias especially in the transcription of the interview results but by combining data collection methods to derive different perspectives of the phenomenon subject of the study and sticking to the aims and objectives, then this would be minimised.
Validity refers to the extent that the findings or results captures or represents the phenomenon subject of the study (Easterby-Smith, Thorpe & Lowe 2002). Valid data is ensured by developing an interview questionnaire that reflects the aims and objectives of the study, employing data analysis methods that also target the aims and objectives of the study, and effective interpretation by linking and supporting conclusions and generalisations with secondary and primary data.
IV. Ethical Considerations
Ethical considerations in the study focus on the voluntary participation of the respondents by obtaining their consent to participate in the study. Initially, the purpose of the research and the participation expected to the participants are communicated to them as part of the selection process. It is important that all the respondents understand what is expected of them and the express what they expect from the researcher and the interview process. By obtaining the consent of participants, the interview process flows smoothly.
V. Timeline
The study follows a research timeline shown below as a means of organising the research process and ensuring sufficient time for all the stages of the process.
May 2008
Submission of Research Proposal
Mid-June 2008
Finalisation of the Research Proposal based on the Comments
End of June to Mid-July 2008
Completion of the Introductory Chapter, the Literature Review, and Methodology Chapter
End of July to August 2008
Collection of Primary Data through Interviews
Mid-September 2008
Data Analysis
End of September 2008
Submission of First Draft
October 2008
Submission of Second Draft
November 2008
Submission of the Final Research Paper
References
Blaxter, L, Hughes, C & Tight, M (1998) How to Research, Open University Press, Buckingham.
Easterby-Smith, M, Thorpe, R & Lowe, A (2002) Management Research: An Introduction, 2nd edition, Sage Publications, London.
Gill, J & Johnson, P (1997) Research Methods for Manager, 2nd edition, Paul Chapman, London.
Robson, C (2002) Real World Research, 2nd edition, Blackwell Publishing, Oxford.
Rubin, H & Rubin, I (2006) Qualitative Interviewing: The Art of Hearing Data, Sage Publications, Thousand Oaks, CA.
Saunders, C, Lewis, P & Thornhill, A (2003) Research Methods for Business Students, 3rd edition, London, Prentice Hall Financial Times.
Schostak, JF (2006) Interviewing and Representation in Qualitative Research Projects, Open University Press, Berkshire.
Yin, RK (1984) Case Study Research: Design and Methods, Sage Publications, Newbury Park, CA.
Appendices
Appendix 1: Methodology Framework
Source: (Saunders, Lewis & Thornhill 2003, p. 102)
Appendix 2: Research Questionnaire
______________________________________________________________________
Personal Information
Name: ________________________________________________________________
Position in the Company: _________________________________________________
Department or Division: __________________________________________________
Years of Service: _______________________________________________________
Instruction: Please freely provide your answers to the following questions.
Resource Audit
1. How would you describe the availability and allocation of financial resources of the company? Please explain further.
2. How would you describe the sufficiency and capabilities of human resources in terms of performance and productivity? Please explain further.
3. How would you describe the availability and allocation of financial resources of the company? Please explain further.
4. How would you describe the availability and allocation of physical resources of the company? Please explain further.
5. How would you describe the role and application of resource audit in the company? Please explain further.
6. Are there any problems in company resources? Please explain further.
7. What are your recommendations in addressing this problem area? Please explain further.
Value Chain Analysis
8. What primary activities create value for the company and its consumers? Please explain further.
9. What secondary activities support the creation of value for the company and its consumers? Please explain further.
10. To what extent do secondary activities support the completion of the primary areas of operation of the company? Please explain further.
11. Are there any problems in the creation of value in the company and for consumers? Please explain further.
12. What are your recommendations in addressing this problem area? Please explain further.
Core Competence Analysis
13. What capabilities provide the firm with a competitive advantage? Please explain further.
14. How would you describe the competitive atmosphere faced by the company? Please explain further.
15. How would you describe the extent that the company adjusts to changes in the competitive environment? Please explain further.
16. Are there any problems in developing competencies to support competitiveness? Please explain further.
17. What are your recommendations in addressing this problem area? Please explain further.
Performance Analysis
18. How would you describe the performance of the company based on the achievement of its goals? Please explain further.
19. How would you describe the performance of the company relative to the position and status of its competitors? Please explain further.
20. How would you describe the performance of the company relative to the best performer in the industry? Please explain further.
21. Are there problems in the internal and relative performance of the company? Please explain further.
22. What are your recommendations in addressing this problem area? Please explain further.
Portfolio Analysis
23. How would you describe the operation of the different business units of the company? Please explain further.
24. How would you describe the
25. How would you describe the relationship between corporate headquarters and the business units? Please explain further.
26. How would you describe the extent of accomplishment of company objectives by the business units? Please explain further.
27. Are there any problems in the business units of the company? Please explain further.
28. What are your recommendations in addressing this problem area? Please explain further.
SWOT Analysis
29. How would you describe the internal strengths of the company? Please explain further.
30. How would you describe the internal weaknesses of the company? Please explain further.
31. How would you describe the external opportunities open to the company? Please explain further.
32. How would you describe the external threats faced by the company? Please explain further.
33. Are there problems in the development of the strengths, consideration of the weaknesses, recognition of the opportunities, and addressing of the threats by the company? Please explain further.
34. What are your recommendations in addressing these problem areas? Please explain further.
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