W ithin the ontological view of MRT, this research acknowledges that real ity exists in actuality but on ly skeletal generalisations about real ity are possible. In this regard, this research maintains that the development of analyses in social settings will always require skeletal theory to be located in an empirical and contextual investigation, in that the theory is complemented by empirical detai l. W ithin the MRT epistemological view, this research examines the phenomena (for example, performance reporting and accountability of Malaysian local authorities) through the eyes of participants rather than completely through those of the researcher. This recognises a subj ective interpretation of reality, in that real ity can also be understood through human experience.
This research seeks to be descriptive, critical and normative in nature as suggested by Cooper and Sherer ( 1 984 ). Incorporation of these three aspects provides a broad framework for analysing annual reports and understand ing the phenomena. In this
regard, MRT is believed to be appropriate for this research. As emphasised by Laughlin ( l 995a, p.80), in MRT "[the data should be] heavily descriptive but also analytical".
The descriptive element of t he research involves determining and reporting on the extent of differences and similarities in stakeholders' informational expectations, the accountabi l ity perceptions and characteristics of key stakeholder groups, as well as the extent and q ual ity of performance information disclosure. Critical, as wel l as analytical elements, i nvolve analysing and reporting infonnational expectations of stakeholders within the context of accountabi l ity. The normative element is reflected in the recommendations for annual report i ng i ncluding performance reporting as indicated by stakeholders. An MRT perspective provides for these three aspects in the research because it al lows flexibility and diversity in the research process, encouraging both the employment of quantitative and q ualitative methods to data collection and analysis. Importantly, both methods are incorporated in the research process because of their relevance to the purpose and objectives of the research. The recommendations made for annual reporting, including performance reporting as expected by stakeholders, may provide the impetus for change especially if current practice is found to be inadequate. Therefore, M RT, which has some emphasis on the need for change of the status quo, is seen as consistent with the purpose of this current research and thus appropriate as a methodology.
The appl ication of MRT in this research is shown m Figure 3.2 which outlines the research process. By adopting M RT, the skeletal theory in its incomplete nature provides gu idance for examining the empirical situation with the aim of developing understandi ng. With this in mind, the research process (as shown in Figure 3 .2, phase one) com mences with the sketching of a theoretical scheme or 'skeleton' from the literature review in relation to the accountability - to whom accountabi lity is rendered and for w hat.
Figure 3.2 : Research Process - Application of Middle-Range Thinking
Theory Position Methodological Position Change Position
PHASE 1 PHASE 2 PHASE 3
Empirical Investigation
Theoretical Recommendation
'skeletal '!draft Stage 1 Stage 2 Stage 3 I
for performance I I I reporting. I I - - - -- - - --- '
: Exploration of I Reconci I iati on Evaluation I
I I
Skeletal theory of : stakeholders' I and validation of the extent I
I I
accountability - : understanding of I I I of information and quality of I I
I I
Accountability to I : accountability. I necessary for the practice I
I I
assessing :
whom and for what. I - - - -- - - -- - -I of performance
I .- - --- - - --- --- -- , performance and reporting.
I I
I : Identification of I I weightings I
I I
Dratilskeletal list I : stakeholders' for importance for I E
I I
of stakeholders' I : informational and I disclosure index I N
I I I
informational : disclosure expectations. : development. I
R I I I expectations. � - - - • I c H
Questionnaire survey Delphi exercise Annual report
(quantitative method). (quantitative and analysis
qualitative methods). (quantitative method. )
I I I I I I Research method
L iterature outlining stakeholders' or users' information needs, performance annual reporting for the discharge of accountabil ity and disclosure indices provide the basis for, and guidance to, selecting a draft l ist of potential information items for respondents to assess, for developing a draft disclosure index and for evaluating the current practice of annual performance reporting of one sector of public organisations in a developing country such as Malaysian local authorities. As shown in Figure 3 .2, the initial process (phase one) is then fol lowed by empirical investigations at phase two that involve three stages in order to achieve the objectives of the research.
Objectives one, two and three:
• To explore the concept of accountabi lity from the perspective of Malaysian
stakeholders and the stakeholders' understanding of their relationship with local authorities.
• To identify the type of information that a broad group of stakeholders expect to enable them to assess and monitor the performance of Malaysian local authorities.
• To identify the stakeholders' perceptions of the importance of information items for disclosure.
Stage one: Exploring stakeholders' understanding of accountabil ity and identifying
the stakeholders' informational expectations to assess and monitor performance of local authorities and their perceptions of the importance of information for disclosure.
Objectives four and five:
• To identify experts' perceptions of and agreement on the information necessary for assessing and monitoring the performance of Malaysian local authorities and the importance of such information for disclosure.
• To develop a special purpose disclosure index to assess the extent and quality of
performance information published in annual reports of Malaysian local authorities.
Stage two: Reconci ling and validating the information necessary for assessing and monitoring the performance of local authorities and the relative importance weightings of disclosure of such infonnation.
Objectives six, seven a n d eight:
• To evaluate the extent and quality of disclosure of performance reporting within
the annual reports by applying the developed disclosure index.
• To ascertain whether the informational and disclosure e xpectations of stakeholders are being met.
• To ascertain the e xtent to which accountability 1s being discharged through performance report ing.
Stage three: Evaluating the extent and qual ity of the information disclosure.
Final ly, as shown at phase three of Figure 3 .2, the research process was concluded by providing recommendations for performance reporting of Malaysian local authorities based on the stakeholders' expectations.
The findings obtained fro m the empirical investigations, in relation to the Malaysian stakeholders' understanding of accountabi l ity and their informational expectations, may enrich the skeletal theory developed m phase one m terms of the understanding/knowledge of accountabi l ity and stakeholders' informational requirements for accountabi l ity purposes in the context of a developing country.