Research Methodology

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4.1 INTRODUCTION

This chapter describes the research philosophy, methods employed and its justification, and time horizons in the main empirical study. It begins by discussing a detailed description of the strategy which is guided by the aim and questions and then provides an appropriate choice of design.

This is followed by a detailed description of the research sample of 54 participants (18 MNCs’ managers and 36 owner-managers of local intermediaries), a sampling strategy employed and its justification of the size, as well as a discussion as to why and how primary data were collected using semi-structured in-depth interviews. Interviewing process and other issues involved will be discussed including a mono-cultural issue.

The chapter also discusses analyses techniques for this research and the evaluation of the methods, with a focus on the extent to which these methods are reliable and valid, and ends with ethical considerations and the summary.

4.2 RESEARCH PHILOSOPHY

This section emphasizes the philosophical thinking behind this research. There is an early debate in social sciences and business management regarding the most suitable philosophical underpinning from which methods should be derived. However, to achieve the aim and objectives of this research, the post-positivism position of research philosophy was followed. Post-positivism is a philosophical stance that believes that all observations are theory-laden and that scientist fundamentally influenced by their cultural experiences and worldviews (Popper, 1963).

According to Ryan (2006, p.19), post-positivist researchers “value problem-setting rather than problem-solving.” This is typical of this research as the approach does not suggest solving problem between MNCs and local intermediaries in the subsistence market of Ghana, but rather it is about problem setting which other investigators can set questions to solve.

This research opens the nature of problems existing in the market with regards to BoP theory and sticks with right questions. The nature of the problem in this research lies in empirical research because the idea of what is explored is a bit known by the researcher and even the researched people.  Since the formation of BoP theory, the research problem has been persisting, but it has not been clear to the researchers and has low representation in the literature.

As a post-positivist researcher, the expected conclusion should be valuable as it intends to have a learning role rather than testing one since it can be partial or reversible (Agar, 1988). In this study, the researchers positioned himself as a person who conducts a research among other individuals but then learns other than carrying out research on them (Wolcott, 1990). As argued by Ryan (2006), the post-positivist researcher takes up a learning role in conducting a research than taking a testing role.

In terms of epistemology, post-positivists contend the assumption that the investigator and the phenomenon being investigated are wholly independent of each other since the researcher’s theoretical background, knowledge and values can be essentially biased what is investigated (Robson, 2002).

The belief that business situations are complex and function in a set of circumstances and individuals, the researcher can be influenced by the theory, background, values, and knowledge of what s/he believes. This raises the question of what the positivist think is the objectivity (Guba and Lincoln, 1998). Post-positivist would argue that objectivity is not the characteristic of an individual; it is essentially a social phenomenon.

Also, this research did not keep separate the theory and practice as it is the characteristics of the post-positivist researcher (Ryan, 2006). The BoP theory and the BoP market are examined together with the view of investigating how the theory works in this context.

Post-positivists stance is also recommended for this study because it makes efforts to build theory. This is in line with the methods of analyzing this research as the approach is largely on concept/theory development and brings rigor in qualitative research (Corley and Gioia, 2004). Thus, Gioia method was used to develop theory, and it is largely a post-positive stance of philosophy.

Post-positivism also knows that all observation is fallible and has inaccuracy and that all theory is revisable (Hacking, 1983). Where positivist believes that the goal of science was to discover the truth, the post-positivist considers that the area of science is to hold steadily to the goal of attainment it right about reality, even though that goal can certainly not be attained (Creswell, 2013).

The line of argument on the philosophical stance of post-positivism is convincing in the case of business and management research, particularly in developing countries, making post-positivist philosophy more fit for this research.

The following sections provide a detailed of research methods and the description of the chosen one, research design and rationale for choosing case study in this area as well as the time horizons.

4.3 RESEARCH METHODS

The selection of research methods is an important issue.  Research methods in social science research are classified as either quantitative or qualitative. These two types of method are selected based on the type of data collected and how it is processed.

The qualitative research describes a broad range of research methods that use an interpretive, naturalistic approach to its subject matter (Denzin and Lincoln, 1994; Gephart, 2004). Qualitative methods are often referred to as field research, and it is frequently to describe logical observations of social behavior with no preconceived hypotheses to be tested (Rubin and Babbie, 1993).

It is often used as a synonym for any data collection technique such as interviews, or data analysis procedure such as categorizing data that generate or use non-numerical data. It provides a detailed, rich and extensive account that helps to understand and describe the complex, dynamic and multidimensional nature of phenomena, and aims to generate ideas and concepts (Ritchie and Lewis, 2003; Saunders et al., 2012).

Qualitative researchers seek to gain an in-depth understanding of human behavior and the reasons that govern such behavior. Also, it aims to build or extend theory and use inductive approaches. The qualitative approach selected for this research project is further detailed below.

4.3.1 The Choice of Research Method

Given the nature of the research questions, a qualitative research design was an appropriate methodological approach, which enabled the researcher to concentrate on the approach to build understanding for MNCs’ and local intermediaries’ business affairs in this context. The choice is also based on the idea that qualitative research addresses questions about how social experience is created and gives meaning (Denzin and Lincoln, 2000; Gephart, 2004). The main questions of this study are comprising on three statements:

(1) Do business models originate with MNCs or local intermediaries and how are MNCs entry affects the living standards of local intermediaries in the BoP market?

(2) How do MNCs co-opt and reinvent business models in the BoP market of Ghana?

(3) How do MNCs contribute to an increased inequality when engaging with BoP markets?

In understanding these all-embracing questions, some assumptions inherent to them were followed. These are concerning issues about how MNCs operate in the subsistence markets and who develop BoP business models – MNCs or local intermediaries? Also, other assumptions include the role of local intermediaries in this market and how or whether their living conditions have improved or not since MNCs entered the market.

Besides, the researcher was required to investigate whether inequality persisting in developing countries was created by MNCs or not.   The assumptions and research questions spell out about the realities of the nature of MNCs’ business with the local intermediaries in the BoP market. The study empirically brings out a divergent view on MNCs presence in host locations, particularly in the least developed countries. It is widely regarded as beneficial to host countries.

Furthermore, the nature of the research questions brings flexibility in the approach to qualitative research. Indeed, Gephart, (2004) pointed out that flexibility allows for bigger naturalness and adaptation of the interaction between the researcher and the study participants. Also, qualitative research provides insights that are difficult to produce with quantitative research. For this research, interviews in the form of face-to-face interactions were chosen.

Indeed, the nature and the context of this research require a thick, detailed description of the local intermediaries’ activities and the MNCs conduct in serving the entire subsistence market of Ghana. This requires qualitative research especially when this study is taking place in the sub-Saharan country like Ghana.

It also requires main participants (MNCs’ managers and local intermediaries’ micro business owners) to explain how they start and adapt business models, how they identify opportunity, and how local intermediaries develop their life in the subsistence market.

Qualitative methods are useful when the purpose of the research is to understand the participants’ point of view and experience (Kvale, 1996; King, 2004a), as was the case in this study. Given these considerations, the researcher selected a qualitative research strategy for this research, since the nature of the study was exploratory and thus fits with inductive approach stressing the generation of theory, somewhat than testing existing theories. The above justifies the use of qualitative rather than quantitative methods.

Moreover, in order to do good research, asking the right question and picking the most powerful method for answering the particular question is very important (Bouchard, 1976). In this research, the main question investigates how and why of participants introduced and copied business models.

Notwithstanding the above, this research also seeks to present insights into the way participants in the subsistence market understand the theory of BoP and also make sense of their business activities with the local intermediaries. For instance, the participants were asked to answer questions on how they do business with the local micro-businesses at the subsistence market, focusing on whether the companies adapt their business models or develop it themselves. In view of this, the researcher has chosen qualitative data collection, such as interviews, phone calls, and follow-up emails to gather required information for the study.

4.4 RESEARCH STRATEGIES

Saunders et al., (2007) emphasize that research strategy encompasses the broad plan of answering the research questions by the researcher. It stipulates the sources from which the data is proposed to be collected, the limitations which they intend to have such as time, access to the data, funds, and settings as well as ethical concerns.

The choice of this strategy, which is discussed below, is guided by the research questions and objectives as well as the extent of the existing knowledge and the philosophical foundations. This study is aimed at elaborating our understanding of MNCs and local intermediaries’ business affairs in the subsistence market of Ghana.

To answer the research question and satisfy the research aim and objectives, information on how business models are developed, business relationships, how the companies enter the market to do business, and others have to be collected from selected participants (local intermediaries and MNCs’ managers) from Ghana.

In this research after a careful consideration of the numerous research strategies, the researcher opted to use case study design. The case study was the most appropriate as it helps the researcher to gain a rich comprehension of the perspectives of the research as well as how the process has been enacted (Morris and Wood, 1991). According to Ghauri and Gronhaug (2002), case study design is the “common research strategy in business and community planning” (cited in Yin, 2003, p.1). The strategy is discussed below.

4.4.1 Case Study Design

This study adopts case study design, particularly multiple case studies because it involves more than one case. It also involves the use of empirical investigation for the phenomenon under investigation in its real-life context. The case study design fits well with this study as the aim was to explore the process of ‘how’ and ‘why’ business models are developed and how MNCs relate with the local intermediaries in Ghana, and this requires an in-depth description nature of the phenomenon (Yin, 2003, 2014).

Richardson and Montanheiro (1995) contend that case studies offer greater flexibility in the types of evidence they provide in qualitative or quantitative data and even with mixed data. Indeed, the strategy adopted was important as it explores the existing BoP theory with empirical evidence about the subject matter being investigated from the context.

The researchers used this design for the purpose of understanding the phenomenon under study, which is frequently associated with little or no existing database for reference. The multiple case study design was followed in line with Eisenhardt and Graenner (2007), and the essence is to allow greater exploring of research questions and theoretical development.

Given the focus on different companies and local intermediaries, the design will enable understanding in the differences and similarities concerning the cases (Baxter and Jack, 2008) and that will make the findings created from this study to be measured strongly and reliably.

The advantage is that the theory developed from this study will be more convincing especially when the findings are hugely grounded on empirical evidence. Apart from that, considering the philosophical base, research objectives, and method, multiple case study selection is suitable and justified for this study.

According to Yin (2003), the preferred strategy to answer the questions “how” and “why” is case study design. This research is also about specific companies and individual groups such as managers and owners of micro businesses, as well as specific context to answer the questions ‘what and how’, and ‘why’ in this study. Indeed, anchored in real-life situations, the case study presents a rich and holistic account of the phenomenon investigated. Each case presents valuable information to be learned, making the research design suitable for this study to be multiple case studies.

In addition, multiple case studies were also employed due to its diversity. As this study looked at the differences within and between the cases, the chosen design helps to denote the exact initiative strategies of each sector of the industries under investigation. Several studies pointed out that a multiple case study enables the researcher to explore differences within and between the cases (Yin, 2003; Eisenhardt, 1989; Eisenhardt and Graebner, 2007). The exploration of the differences within and between the cases elucidated clearly the engagement of MNCs and local intermediaries’ activities in the BoP market.

Further, the rationale behind the use of multiple case study design is that it provides the rigor which is essential to this study. Evidence suggests that multiple cases are frequently considered more compelling, making this study as more robust (Herriott and Firestone, 1983).

As it is, every case serves a specific purpose within the overall scope of inquiry and requires a comparative approach to the study. The choice of the multiple case studies enabled the researcher to create and validate the findings as replication and extension in the individual cases would be possible. The theoretical assumption derives from the cases can be replicated, and this can help to confirm or refute theoretical assumptions (Eisenhardt, 1989). Based on the above, the use of multiple case study design becomes a rational choice of this study.

4.5 TIME HORIZONS

The study adopts cross-sectional time horizon anchored in qualitative design.  The main idea of a cross-sectional research is that a certain phenomenon is studied at a particular point in time.  A cross-sectional time horizon fits this study because the purpose is to study MNCs and local intermediaries’ business affairs in the BoP market of Ghana. This implies that the study is not designed to address change and therefore longitudinal design could be misleading.

Robson (2002) argued that qualitative methods can also be adopted in cross-sectional studies by considering interviews carried out in a short span of time. As it is, the research interviews were carried out in Ghana within a three-month period which was based on the time frame and resources available to finish my Ph.D. This study involves special data collection from specific companies and their local intermediaries who deal with their goods and services, including questions about before and after the companies entered the market to do business with them. This study relies on data originally collected for the purpose of research and other purposes such as academic publications.

4.6 DATA COLLECTION METHOD

In management and business research, the method of data collection is a very significant stage and encompasses a lot of tasks. The main tasks are sample selection, justification of sample group and size, sources of data, and collection of primary data. These are discussed below:

4.6.1 Selection of Sample

The sample selection was divided into two stages. The first stage was theoretical sampling for selecting companies, and the second is the snowball sampling for selecting local intermediaries. Both are discussed below.

4.6.1.1 Theoretical Sampling

This research followed theoretical sampling to select participants in a strategic way in that those chosen are significant to the research question (Bryman and Bell, 2011). Glaser and Strauss (1967, p.45) explain theoretical sampling as “the process of data collection for generating theory whereby the analyst jointly collects, codes, and analyzes his data and decide what data to collect next and where to find them, in order