The prim ary objective of this study is to investigate th e role and contribution of
public venture capital to th e subsequent perform ance of grow th-orientated
indigenous Irish firms over the period 1997- 2010. In addition this study will a tte m p t
to identify those factors - oth er than public venture capital - th a t are the driving
and restraining forces on indigenous firm grow th. This chapter explains the
research m ethodology em ployed to reach th e objectives set for the study.
This chapter is structured as follows: Section 4.1 explains the research philosophy
and strategy adopted in th e study. The research design and process is outlined in
Section 4.2. It also outlines the variables employed to investigate th e perform ance
o f th e firms in the study. Data sources are also discussed here. Section 4.3 explains
th e data generation and collection process whilst section 4.4 describes the choice of
case-study m ethodology and provides an overview o f th e case-study design and
cross-case analysis approach. Section 4.5 is a brief sum m ary o f the chapter.
4.1 Research philosophy and strategy
Johnson e t al. (2004) suggest th a t th ere are tw o opposing research philosophies
residing at eith er end of the research philosophy continuum . These are the
positivist and interpretivist approaches. Positivist is the classic science based
hypothetical- deductive approach - prim arily associated w ith quantitative data
analysis techniques. The diam etrically opposed approach is the interpretive or
inductive view which is traditionally associated w ith qualitative data analysis
techniques. Much debate has taken place over the years amongst the research
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com m unity on th e relative m erits and de-m erits o f both qualitative and quantitative
approaches (Ham m ersley, 2002). The emphasis in these 'paradigm wars' (Johnson &
Turner, 2003) is misplaced. The issue to be addressed is - w h at is th e most
appropriate research strategy and design to answer th e research question(s) posed
by th e researcher (Domegan & Fleming, 2009). In some cases quantitative
approaches may suffice, in others qualitative approaches alone may be most
appropriate. It is argued th a t both approaches can be integrated w ithin one study if
th e research problem requires m ethodological triangulation to increase the validity
and reliability o f the study (Patton, 2002). This can then maximise the 'knowledge
yield' of th e research study (McCall & Bobko, 1990). This m ethodologically
com bined approach has increased in popularity in recent years and is now term ed
'M ixed m ethods' research (Johnson & Onwvegbozie, 2004; Tashakkori & Teddlie,
2007; Plano Clark & Creswell, 2011). In sum, Johnson and Turner (2003) define the
principles of this approach as follows:
Methods should be mixed in a way that has complementary strengths and non overlapping weaknesses.... It involves the recognition that all methods have their limitations as well as their strengths. The fundamental principle is followed for at least three reasons: (a) to obtain convergence or corroboration of findings, (b) to eliminate or minimize key plausible alternative explanations for conclusions drawn from the research data, and (c) to elucidate the divergent aspects of a phenomenon.
The fundamental principle can be applied to all stages or components of the research process' (Pg. 297).
This study th erefo re adopts a mixed methods approach as th e most appropriate
approach to answer the research questions posed and th e research objectives set.
The approach taken in the study is best described as a sequential explanatory
research design (Saunders e t a!., 2012:167). Q uantitative analysis techniques will
be used in com bination w ith qualitative sem i-structured interviews and archival
data (com bined in case studies, cross-case analysis and contribution analysis) to
provide th e necessary m ethodological and data triangulation (Patton, 2002). This
com bining o f th e opposing positivist and interpretivist research approaches into
one study serves to highlight the overall research philosophy o f the researcher -
which can best be described in research philosophic term s as pragm atic (Shields,
2004; Feilzer, 2010). Saunders e t al. (2012) note that:
For pragmatists, the nature of the research question, the research context and likely research consequences are driving forces determining the most appropriate
methodological choice (Nastasi etal., 2010). Both quantitative and qualitative research are valued by pragmatists and the exact choice will be contingent on the particular nature of the research (p.164).
Q ualitative data is used to corroborate quantitative findings or vice versa in mixed
m ethods studies (Tashakkori & Teddlie, 2009; Bryman, 2012). Flence quantitative
and qualitative approaches can be viewed as com plem entary m ethods in the sense
th a t th ey use m ultiple measures to uncover variances or patterns in the data which
a single methodological approach may not have identified (Creswell, 2009). In this
study qualitative data is used to com plem ent the quantitative study results. The
aggregate quantitative results and analysis will be presented in Chapter five and the
cross-case analyses (incorporating semi-structured interviews w ith CEO's o f the
individual case firms) will be presented in Chapters six and seven. Chapter eight
concludes th e empirical section o f the study w ith a 'Contribution analysis' which
combines all th e empirical findings into a structured meta-analysis o f th e findings in
th e entire study. The analyses in Chapters six, seven and eight are underpinned by
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ten descriptive case studies which are included as Volum e tw o of this study. For
confidentiality reasons these case studies will only be available to examiners.
4.2 The research design and process
The research design can be exploratory a n d /o r descriptive a n d /o r causal (Saunders
e t a i , 2012). The design o f this study is causal or explanatory. It employs
quantitative data analytic techniques (Q uasi-experim ental), confirm atory qualitative
techniques (case studies, cross-case analysis) and contribution analysis (Structured
M e ta - analysis), in addition to a proprietary dataset to answer th e research
questions posed and reach the research objectives set.
4.2.1 Design rationale
The first empirical Chapter in the study - chapter five, employs quantitative
m ethods to model th e geo-dem ographic variables identified in the literature as
most likely to be the key observable determ inants or key influences on firm growth
perform ance (D elm ar e t a i , 2006). In particular this thesis investigates the role and
contribution o f public venture capital investm ent on firm perform ance - using the
geo-dem ographic variables as control variables. The empirical literature indicates
th a t, so far, th e firm growth phenom enon appears to be 'almost random ' (Coad,
2009), idiosyncratic (Dobbs & Flamilton, 2006) and m easurem ent dependent
(D elm ar e t a i , 2006). A ttem pting to evaluate th e effects of state investm ent
program m es on such an unstable dependent variable (Davidsson, 2004) is complex
and difficult as th ere are myriad influences on and determ inants o f the
perform ance o f an SME - other than th a t o f program m e participation. These factors
include th e characteristics of the entrepreneur, the characteristics o f the firm itself,