Methodological Options Available for this Research

To shed light on the motivations that drove the researcher to select the case study

methodology for this research, this section presents the different methodologies131

available: the quantitative, combined and qualitative (case study) methodologies. Each one tackles the research problem differently depending on the nature of the research questions and the purpose of the research. Thus, the same research problem can be studied from different angles and for different purposes using different methodologies. However, one of them might be more suitable than the others, depending on where the research emphasis lies (Saunders et al, 2007). The next section explains each methodology and its most important characteristics.

131 _{Methodology refers to the theory of how research is undertaken (Saunders et al, 2007). It entails the} combination of different techniques used to enquire into a particular situation (Easterby-Smith et al, 1991).

5.2.1 Quantitative and Combined Methodologies

Through the analysis of the literature review, it was noticed that some studies dealing with issues related to the internationalization of SMEs are based on quantitative and combined methodologies. In particular, most of the studies about SMEs and the role of governments in the internationalization of SMEs132 are based on the quantitative methodology. They include a large number of participants and rely on econometric and statistical analyses. In such studies, questionnaires and surveys are the main methods used to collect the data. These studies aim to find the causal relationships among different variables that affect the performance of SMEs in international markets and measure their impact without paying attention to the analysis of the context.

However, among the disadvantages of the quantitative methodology is the problem that most of the real meaning of the context is lost. This is because in order to identify and test the causal relationships, the scope becomes very narrow (Easterby-Smith et al, 1991; Hogan and Sinclair, 1996; Punnett and Shenkar, 2004; Yin, 2003). Moreover, the generalization of the results is questionable when there are particular cases that do not match the general findings (Johnson and Duberley, 1995). Therefore, if the researcher aims to look at the context and particular cases, other more appropriate methodologies, such as the qualitative methodology, might be used since an advantage of qualitative research is the enormous amount of information that is discovered (King et al, 1994).

Other researchers who have also studied issues concerning the internationalization of SMEs have used the combined qualitative/quantitative methodology. For example, Kaiser (1998) based his research on a combined methodology to study the internationalization strategies (joint venture) for UK and German SMEs. Similarly, Lashley (2001) followed a mixed methodology, specifically a questionnaire survey and two company case studies, to investigate the internationalization of SMEs.

132 _{Alvarez (2004); Camino and Cazorla (1998); De Chiara and Minguzzi (2002); Holmlund and Kock} (1998); Julien et al (1994); Katsikeas (1996); Lages and Montgomery (2004); Lee and Yang (1990); Li et al (2004); Nummela et al (2004); Pedersen and Petersen (2004); Pollard and Jemicz (2006); Sriram and Manu (1995); Stottinger and Schlegelmilch (1998); Wilkinson and Brouthers (2006).

The combined methodology is seen as a methodology that is complementary to and advantageous over either the quantitative or the qualitative methodology. This is because quantitative analysis does not capture the overall context or address the mechanism behind the predicted events. However, qualitative research does address the context in which the events take place. Therefore, the combination of the two analyses represents an advantage over a single methodology (Easterby-Smith et al, 1991:p.37; Saunders et al, 2007). Nonetheless, according to some authors (Alvesson and Deetz, 2000), the results of the combined methodology will not always be consistent since the quantitative and qualitative methodologies are ontologically and epistemologically different.133

Therefore, there are advantages and disadvantages of both the combined and the quantitative methodology that need to be considered in order to select a research methodology. Both of them aim to measure the impact of the research problem. Nonetheless, when the researcher addresses a topic for which little is known and measurement is difficult, other methodological options need to be considered, such as the case study methodology (qualitative methodology), which is analysed in the next section.

5.2.2 Qualitative Methodology (Case Study)

A case study is a methodology frequently used in qualitative research. The latter is typically oriented to the inductive study of the reality and pays attention to meanings, ideas or practices; it also takes the local point of view seriously (Alvesson and Deetz, 2000; Hesse-Biber and Leavy, 2004). That is why a case study focuses on a small participant group, drawing conclusions only about them and only in that specific context. Thus, the techniques used in a case study to gather information include interviews, observations and secondary data analysis (George and Bennett, 2005; Ghauri and Gronhaug, 2005; Yin, 2003).

The case study methodology is frequently used to explore, describe and search for explanations of the phenomenon under study rather than the discovery of a universal,

133 _{It means that qualitative and quantitative research are different because they are based on different} paradigms that make different assumptions about the social world, how science should be concluded and what constitutes legitimate problems, solutions and criteria of proof (Kuhn, 1970).

generalizable truth. Thus, it can involve either single or multiple cases and numerous levels of analysis134 _{(Einsenhardt, 1989; George and Bennett, 2005; Gummesson, 2000;}

Yin, 1981; Yin, 1984; Yin, 2003). However, single case studies are considered more appropriate only when they involve rare, critical or revelatory cases (Ghauri and Gronhaug, 2005).

The most powerful advantage of a case study over a quantitative methodology is the

holistic view of a specific situation, i.e. a full, in-depth analysis of the phenomenon under

study that enables the researcher to study many different aspects, examine them in relation to each other and view the process within its total environment (Easterby-Smith et al, 1991; George and Bennett, 2005; Gummesson, 2000; King et al, 1994; Punnett and Shenkar, 2004; Yin, 2003). Moreover, a case study can also include quantitative methods in its methodology (Ghauri and Gronhaug, 2005). Thus, its results can be based on just qualitative or a mix of quantitative and qualitative evidence (George and Bennett, 2005; Ghauri and Gronhaug, 2005; Yin, 2003).

Case Studies and Qualitative Interviews Regarding the Internationalization of SMEs Through the literature review undertaken in this research, qualitative interviews135 _and

case studies were the qualitative methods most frequently identified to study issues relating to the internationalization of SMEs. For example, the studies about SMEs’ internationalization based on interviews include that by Lindmark (1995), whose research is a project financed by the Nordic Government to study the importance of internal and external resources for the internationalization of Nordic SMEs. It pays significant attention to the local environment (the context) and is based on detailed interviews with entrepreneurs.

Fonfara and Collins (1990) studied the internationalization of businesses in Poland; their research is also based on in-depth interviews. Calof and Beamish (1995) also conducted

134 _{For example, there is evidence of case studies conducted at two levels of analysis: industry and firm} (Eisenhardt, 1989).

135 _{Qualitative interviews, either semi-structured or unstructured, provide the basic data for the development} of an understanding of the relationships between the social actors and their situations (Alvesson and Deetz, 2000; Hesse-Biber and Leavy, 2004).

interviews, specifically asking open questions, so as not to bias the study in the direction of any particular theory. The empirical study by Neupert et al (2006), which examines the exporting challenges of SMEs from transitional, developing and developed countries, is also based on interviews. In this study, the participants were asked to tell the story of the biggest challenge in conducting international business, its nature and its consequences.

Among the case studies addressing issues related to the internationalization of SMEs is that by Chetty and Blankenburg-Holm (2000), who analysed the importance of networks in the internationalization of manufacturing SMEs in New Zealand; their results are based on a multiple case study in which the firm is the unit of analysis and the data were collected through structured interviews. In addition, Hutchinson et al (2006) carried out multiple case studies to analyse the internationalization of British SME retailers. The data collection included face-to-face in-depth interviews with senior managers and consultancy companies, as well as interviews with the Government to provide a macro- level perspective of the phenomena. Secondary data were also used to triangulate the results.

Haar et al (2004) also conducted a case study based on Mexican SMEs to analyse the dynamics and links of the macro policy (the impact of the NAFTA) to the competitiveness of SMEs. This study pays special attention to the managerial and organizational features and capabilities of SMEs. The data collection relied on interviews with executives of SMEs. Lastly, Lashley (2001) undertook a case study to research the structures and relationships causing and affecting the internationalization of SMEs.

As explained above, a case study is a powerful qualitative methodology that offers a number of advantages, pays attention to the context and includes various levels of analysis, as does this thesis. Specifically, when the researcher aims to explore and explain topics that have received little research attention, as this researcher does, the most appropriate methodology is the qualitative case study methodology.