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THE THESIS STRUCTURE

CHAPTER 6: DATA ANALYSIS II: STRUCTURAL EQUATION MODELLING

4 Chapter Four: Methodology

4.3 Research Approach

Researchers have emphasised that for any research, it is important for a researcher to decide on the research approach at the beginning of the study as it affects the subsequent stages of research design and research strategy (Saunders et al. 2012; Creswell 2003;

Bryman & Bell 2015). According to Saunders et al. (2015) identifying the research approach at the beginning is the first main step for research design and strategy. Creswell (2014) argues that research approach for a study would pave the way for detailed research methods, design, and data collection and analysis techniques. The way the researcher chooses to address the main research objective will influence the research philosophical paradigm and the research approach. Table 4.1 briefly summarises the differences between philosophical paradigms to help researcher to choose the most appropriate philosophical paradigm to follow and thus will further influence the approach and the following three layers of the research onion in Figure 4-1 (methodological choice, research strategy and time horizon).

104 According to Saunders et al. (2015) the two most commonly adopted choices of research approaches are deductive and inductive; also some researchers have adopted a combined of these two research approaches. Researchers have stressed the importance of identifying the most appropriate research approach and any lack of knowledge on the choice of research approach would create problems during research and lead to wrong conclusions.

The two main research approaches which are deductive and inductive will guide the researchers to examine the study in the most appropriate way (Bryman 2008). The following section will explore these two research approaches to enable a rationale understanding on selecting the most appropriate research approach for this study.

4.3.1 Deductive and Inductive approach

In deductive approach, the researcher is aimed to develop a conceptual framework which is driven by the theory, this is followed by examining the framework by using an appropriate research approach and methodology before collecting and analysing data (Bryman 2008).

On the contrary, in inductive approach, the researcher is involved in exploring the data first and then use the data to develop a theory or framework, and then further relate this to extend the literature (Bryman 2008).

Both Inductive and deductive approaches are differing to each other where deductive approach moves from theory to data in its research process and the opposite of data to theory with inductive approach (Bryman 2008). A number of other contrasting

105 characteristics are associated with the two main approaches such as in deductive approach, highly structured research process is maintained and mainly deals with methods related to quantitative data collection, however inductive approach is much more flexible and deals with qualitative data collection methods (Saunders et al. 2012). However time required for data collection and analysis is normally longer in inductive type than compared to deductive types of approach (Saunders et al. 2012). Next section will discuss more about quantitative and qualitative methods.

In spite of risks associated with both deductive and inductive approaches, where the deductive approach is seen to be associated with a risk of low response rates and the main risk associated with inductive approach is to do with not being able to find the appropriate pattern of themes from the data. However both these approaches are widely adopted in various research settings. Other differing characteristics of the two strategies are seen in the generalisability of the study outcome which is based on the sample size. This is highly sensitive and requires a larger sample for deductive approach and is not so concerned for the inductive approach types.

In inductive approach, the researcher’s opinions and experience is part of the research process however in deductive approach, researcher opinion is not so important and is detached from the respondents view in study (Bryman 2008). Furthermore to this, several stages of deductive approach has been described by previous researchers (Saunders et al.

2012; Lancaster 2005) which involves reviewing theories for hypothesis formulation, clearly defining variables and developing hypotheses, collecting and analysing data, verifying for

106 confirmation or rejection of hypotheses using quantitative methods and sometimes studies may propose modifications in the theory based on their findings.

Summary of the major differences in the deductive and inductive approaches are gathered in the table shown below.

Table 4:2 Inductive and deductive approach

Inductive Deductive

Derived from data to theory - iterative research process involved

Derived from theory to data – involves sequential research process.

Flexible structure and higher risk strategy Very structured and lower risk strategy Researchers are highly involved during the data

collection process and during data analysis stages.

Researcher is not involved highly during data collection process and during data analysis stages. Research is free from researcher’s interference

Not focused on generalizing Usually study outcomes are generalized Not much concerned with sample size Usually requires large sample size

Normally involves qualitative approach Normally involves quantitative approach Source: Created by the author of this thesis

In the current study, based on the purpose of the research, this study adopts a deductive approach to understand the relevance and effect of hypothesised variables and their relationship’s significance. This is because the research is involved in developing a conceptual framework which is driven by the theory and followed by examining the relationships between the variables in the framework. As discussed in previous section, this

107 research holds positivism type of philosophy where the existence of truth is independent of researcher and the knowledge is purely based on respondent’s experiences, and thus deductive type of enquiry is well suited to determine the outcome using strategic statistical analysis to either support or reject the derived hypothesis.