R ESEARCH APPROACH OF THE STUDY

The research methodology approach is based on a socio-technical research study and uses the concepts of Critical Realism Theory to provide a deeper consideration of the complexities involved in system development from a social and technical

perspective. The study is based on the premise that in developing and using business model innovation, both social and technical aspects need to be taken into account.

In order to increase the credibility and validity of the results, the Delphi research method was applied. This involves an iterative process of collecting and filtering the anonymous judgements of experts by using a series of data-collection and analysis techniques interspersed with feedback. This fed into the multi-factorial strategy model which would lead mobile application development SMEs from the traditional to the agile approach and in so doing improve their ability to respond to disruptive innovation.

This applied research study would specifically present a multi-factorial strategy model for enhanced mobile application development. It postulates that business model innovation can be used for business success by allowing people to collaborate. The focus of the research is about small business success and sustainability which ultimately contributes to the development of the SA economy.

The study would make use of current international studies but be limited to mobile application development within the Western Cape.

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Table 1.1: Overview of research problem and research questions

Research Problem Not much attention has been given in literature to the synergistic effects of disruptive innovation, business model innovation and development agencies for mobile app development SME success.

The purpose of this study is, therefore, to explore the evolution of a multi-factorial strategy model to enable development agency to be an augmenter in the commercialisation of the mobile

applications development SME sector through business model innovation in response to disruptive innovation.

Research Question How can a multi-factorial strategy model be evolved to enable development agency to be an augmenter in the commercialisation of the mobile applications development SME sector through business model innovation in response to disruptive innovation?

Research Sub-Questions

Research method(s) Objectives What are the dimensions

of business model

To formulate a set of assertions concerning the dimensions of business model innovation.

What is the nature of

To formulate a set of assertions concerning the nature of disruptive innovation.

What are the roles of development agencies?

Literature analysis Case studies Interviews

Focused interviews

To formulate a set of assertions concerning development agencies and their functions.

What is the landscape for Mobile Applications

To articulate the size and shape of the mobile applications

development industry in the Western Cape, SA.

To formulate a set of assertions concerning business model innovation, based on empirical studies relating to disruptive innovation, and the development agency. To develop a strategy model for development agencies to assist mobile application

development SMEs based on the above-mentioned assertions in their business modelling efforts.

19 1.11 Thesis structure²

I. Introduction: This section presents a lucid statement of the topic under

investigation and presents the general context for the research. It also presents the theoretical background, elucidation of the methodology and contribution of the research. This section unequivocally rationalises the need for the study, and states its purpose and rationale.

II. Review of the Literature: This section provides a critical review of extant literature and pertinent earlier research in this field. It illustrates how knowledge has been accrued in the research field and presents an unambiguous justification for the research project. The apparent gap in the field of research is presented by not only demonstrating the attainment and progress of previous contributions to the existing body of knowledge, but also the limitations of earlier research.

III. Methodology – Research Design: This section considers the fact that the thesis presents an argument which is supported by scientific evidence. This evidence comes in different forms and it can be gathered in a variety of methods. Ultimately this section indicates how the research was conducted and justification for why it was conducted in that way. Its scope is not only the data collection and analysis methods, but also the theoretical framework that informs the selection of methods as well as the approach to interpreting the data. This is all tied directly to the research questions and guided by ethical considerations of the study.

IV. Data Analysis and Reporting Results: In this section the data that forms the basis of the research investigation is presented, shaped by the research philosophy.

This is where the results of the enquiry that have emerged from the findings are reported on.

V. Discussion: This section discusses the findings of the research and is an exposé of the data in such a way that links between the data analysis and the extant literature are established. It should reveal several interpretations of the findings, within the context of the research questions, in order to make a meaningful contribution.

VI. Conclusion: This section fuses all the academic essentials which have been established in the thesis and shows how the aims of the research have been fulfilled. This includes the extant literature, a summary of the research findings and in particular their importance to and implications for the existing body of knowledge. This section illustrates the relationship between the current findings

2 http://www.monash.edu.au/lls/hdr/write/5.10.html

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and earlier research with practice, with current theory, with opportunities for future research, and how theory has been developed through the study.

1.12 Summary of the study

This study explores the evolution of a multi-factorial strategy model to enable development agency to be an augmenter in the commercialisation of the mobile applications development SME sector through business model innovation in response to disruptive innovation. The academic arena of this research study is the focus on mobile apps. Key to this study is the notion of technology transfer and technology commercialisation, where through a multi-factorial approach to business model innovation, development agencies are equipped with a strategy model that will assist them in supporting mobile application development SMEs towards enhanced

competiveness.

In proposing that development agency is an augmenter in the commercialisation of the mobile applications development SME sector in the Western Cape through business model innovation in response to disruptive innovation, the golden thread of this study is the quest to epitomise three tenets:

I. the dimensions of business model innovation;

II. the nature of disruption; and

III. the potential role of the development agency in supporting SMEs in the technology sector.

The value of the study is to assist development agencies to, in turn, assist SA mobile app development SMEs to conduct business in the twenty-first century and in so doing remove barriers to success. Various factors contribute to the demise of SMEs and this study focuses particularly on the lack of business model innovation within mobile app development SMEs as a contributory factor. The purpose of this study is to develop a multi-factorial strategy model to assist development agencies in

supporting mobile application development SMEs. The significance of the research lies in the contribution the models will make to SMEs’ success and sustainability, which ultimately contributes to the development of the SA economy.

21 CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

The background to the study seemed to suggest that the mobile application development industry could play a significant role in the development of the SA economy. In order to address some of their challenges, SMEs in this sector would have to gear their business models to take advantage of the innovation in the mobile applications industry. These SMEs would need support from government and could benefit from a strategy for business model innovation to promote efficacy

enhancement of mobile application development.

In essence then, the study proposed that a multi-factorial strategy model could be evolved to enable development agency to be an augmenter in the commercialisation of the mobile applications development SME sector through business model

innovation in response to disruptive innovation.

The purpose of this literature review was to establish an integrated platform for the key tenets of the research. Consequently, the objectives were to establish the dimensions of business model innovation that might inform the research proposition;

establish the relationships between the key tenets of the research; and finally, to establish an a priori framework linking business model innovation and disruptive innovation based on a critical realist underpinning. The literature review would attempt to evolve the logic justified in the context of the research by creating an

understanding of the extant body of knowledge. It would not attempt to portray the literature as procedural links between elements within it because the disciplines covered in this review were wide and the literature was deep.

In light of this then, the route of enquiry of this literature study would be the quest to represent the conceptual framework for the literature study, within the three tenets, namely:

i. the dimensions of business model innovation, ii. the nature of disruption; and

iii. the potential role of the development agency in supporting SMEs in the technology sector.

At the end of this chapter, the study wished to emerge with a centralised idea of the synergy between three concepts. The central idea is a framework for development agency to be able to impact the sector around disruptive innovation and how it can

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support business model innovation. Certain discreet understandings of the three tenets would be arrived at and together they would provide a theoretical framework for the research. The study would mainly review the information technology and business literature, and where opportunity existed, it would look beyond these to inform the three tenets. Each of these three would be unpacked individually to

understand the state of the thinking and a proposition would be made as to how these three would come together at a theoretical level.

2.2 The conceptual framework of the literature study

Conceptual frameworks are convenient to organise the extant literature of the study.

They can be used to create conceptual discrepancies, identify synergistic views and shape accepted wisdom around the research topic.

The literature in the field of study of this thesis is overwhelmed with marketing hype as suggested by McManus and Scornavacca (2005), and in order to ensure the scientific value of the study, the literature study was framed around an established framework based on the seminal works of Locke and Golden-Biddle (Locke & Golden Biddle,1997; Golden-Biddle & Locke, 2007). Alvesson and Sandberg (2013) regard the works of Locke and Golden-Biddle to be appropriate for interdisciplinary research in the fields of sociology, psychology, information systems education, political

science, etc. In their strategic management research Golsorkhi et al. (2010) relied on the works of Locke and Golden-Biddle (Locke & Golden-Biddle,1997; Golden-Biddle

& Locke, 2007) to produce a systematic introduction to the various epistemological, methodological and theoretical aspects of the strategy-as-practice approach. Their approach breaks down many of the traditional paradigmatic boundaries in strategy to investigate who the strategists are, what they do, how they do it, and what the

consequences or outcomes of their actions are. In consideration of the views of Golsorkhi et al. (2010) and Alvesson and Sandberg (2013), this study regards the works of Locke and Golden-Biddle (Locke & Golden-Biddle, 1997; Golden-Biddle &

Locke, 2007) to be very appropriate. In opposition to the work of Locke and Golden-Biddle, Shields and Tajalli (2006) present some forms of conceptual frameworks, but because of their focus on constructing and problematising the literature, the approach of Locke and Golden-Biddle (Locke & Golden-Biddle, 1997; Golden-Biddle & Locke, 2007) was again preferred for the analysis of the extant literature in this study.

This study aimed to fill the gap that appears to exist for development agencies in addressing the benefit that business model innovation presents in response to

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disruptive innovation for the commercialisation of mobile application development to SMEs.

The purpose of this literature study was to provide context and guidance to this study.

With this in mind, the literature would elucidate scholarly enquiry into the sub-discipline by providing (1) key terminology with which to frame the narrative discourse; (2) perspectives on the state of the art; (3) prevailing challenges and emerging conceptions; (4) validation for the proposed study; and most importantly, (5) specific lines of enquiry to inform the focus (and delineation) of the study.

The literature study should be regarded as a creative endeavour and should, as far as possible, avoid simplistic quotations from the literature or paraphrasing text to provide snippets of insight into the literature.

The science of this literature study has extensively been dealt with by Locke and Golden-Biddle (1997) and Golden-Biddle and Locke (2007) who suggest a structured approach to the literature study. The authors contend that it is important to launch the study by drawing from the literature to firstly indicate the significance of the

study. Secondly, the scope of the body of knowledge relevant to the study is established, in which regard the authors introduce the notion of ‘intertextual

coherences’. The authors introduce the notion of three forms of coherence, namely, (1) synthesised coherence, i.e., the linking of literature contributions from seemingly unrelated sources; (2) progressive coherence, i.e., the linking of literature

contributions within a specific focus area that reflect the development of knowledge over time; and (3) non-coherence, i.e., contested knowledge. The authors refer to this process of establishing the coherences as "constructing the literature". They refer to the third step in the process as "problematizing the literature", which is about

uncovering "gaps" in the literature. Locke and Golden-Biddle (1997, p. 31) and Golden-Biddle and Lock (2007) suggest three ways of categorising literature gaps, namely, (1) incomplete, which may or may not be so indicated by the relevant

authors; (2) inadequate, owing to oversight, lack of application or relevant perspective by the relevant authors; and (3) incommensurate, where the conception has been incorrectly dealt with by the relevant authors. Finally, this study declared the

"opportunity for contribution". The challenge of this study was, therefore, to propose theoretical and methodological insights that might close the gaps in the extant literature.

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At the outset, the literature study required a plan to depict what this study wanted to achieve and how it would go about doing so.

Pragmatically, the literature study identified the key tenets of this study as formally declared in Chapter 1. The literature study was constructed in categories consistent with the key tenets by means of information gathered from journal articles and related sources to inform each one of the key tenets. Furthermore, this study identified the essential knowledge contributions drawn from each article or resource. This is

presented in tabular format followed by more detailed analysis in later discussion. The knowledge contributions per category were evaluated and consideration given to whether they constituted a scenario indicative of synthesised, progressive or non-coherence as recommended by Locke and Golden-Biddle (1997) and Golden-Biddle and Locke (2007). Furthermore, I then extended the evaluation of literature

(intertextual) coherences by identifying gaps and potential for contribution to this study.

In order to "construct opportunities for contribution" in this study, various tools of logic and argument as recommended by Meyer and Lunnay (2013) were used. These are namely, (1) deductive logic, where specific conclusions or inferences are drawn from a general principle or established premises to inform my own related context; (2) inductive logic, where general principles or inferences are drawn from specific observations or related observations (in the literature) to establish a new

generalisation or new principle; (3) retroductive logic, where inferences are drawn from related observations that explain the mechanisms of an already commonly held position; and (4) abductive logic, where inferences are drawn from unrelated

observations that stimulate intuitive and creative realisation of a new idea.

This study suggested that knowledge is never value free and is always underpinned by philosophy, something to be considered when engaging in this literature study.

Positivists, interpretivists, and pragmatists will not view data and information in the same way. The epistemological approach of Positivists is essentially objective;

Pragmatists are both subjective and objective in solving problems of utility; Critical Interpretivists are subjective but are most considerate of the manifestation of social powers; and Critical Realists

are focused on uncovering the causal powers that explain reality. Since the study is required to develop inferences about the literature and contribute to the ‘body of knowledge’, all of these are based on the philosophical stance declared in Chapter 1.

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Further detailing of this study’s ontological and epistemological approaches are declared in the methodology section in Chapter 3, where the data–information–

knowledge cycle in support of the research is comprehensively articulated. This literature study axiomatically formed an essential aspect of this cycle in this study.

2.3 Establishment of a state–response model for the study

The central thesis of this study is that a multi-factorial strategy model can be evolved to enable development agency to be an augmenter in the commercialisation of the mobile applications development SME sector through business model innovation in response to disruptive innovation.

A multi-factorial strategy model in this context is regarded as a method or plan having or stemming from a number of different causes or influences detailing the logic and the key considerations on the path to defining an organisation’s strategy. The

development agency can utilise it to determine the state of the business and what the appropriate response should be by way of business model innovation in response to disruptive innovation.

In their study, Sidora-Arcoleo, Feldman, Serebrisky and Spray (2012) make use of a multi-factorial model for ethnic differences in children’s acute asthma appointments through parental illness representations. The authors explored the association of parental asthma illness representations, sociodemographic characteristics, health care provider factors and social–environmental context with children’s acute asthma appointments. Sidora-Arcoleo et al. (2012) propose a multi-factorial model indicating that health and illness are a function of multiple factors involving biological,

psychological and cultural domains, and their interactions.

Beyond the field of pure science studies like that of Gauthier and Lardic (2003), Sidora-Arcoleo et al. (2012) adopt a multi-factorial approach in their social science study of credit risks in banks. The authors suggest that scientific methods for

analysing and quantifying this category of risk have transpired only lately. Their multi-factorial model proposes a tool for analysing and forecasting credit spreads to assist managers in their portfolio choices.

Fundamental to the thesis of this study is the development of a multi-factorial strategy model. The extant body of knowledge reveals that such models have been utilised in the pure sciences as indicated by Sidora-Arcoleo et al. (2012), as well as in the social sciences as indicated by Gauthier and Lardic (2003) when a method had to be

adopted to deal with a number of different causes or influences. Shoemaker et al.

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(2004) provide practical advice on how such a conceptual model can be developed

(2004) provide practical advice on how such a conceptual model can be developed