Chapter 4 Conceptual framework and research approach
4.5 Research Process
The basic purpose of research is to advance theory: to understand and explain phenomena, gaining solutions to problems or answers to unsolved or unresolved questions. Different methodologies can be used to design and execute research. There are two main schools of thought on how best to conduct research describing different and competing inquiry paradigms. The two leading paradigms generally adopted by researchers are the positivist and the interpretive paradigms (Blaikie 1993, Pawson and Tilley 1997).
The positivist paradigm is rooted in the natural sciences with an emphasis on experimental scientific observations to explain cause and effect relationships of an event or situation (Eisenhardt and Howe 1990, Babbie 2001). Positivism refers to approaches that consider scientific knowledge to be obtained only from data that can be directly experienced and verified by different observers. In this way it mainly uses quantitative and experimental methods to test hypothetical-deductive generalisations (Blaikie, 1993). Positivism searches for causal explanations and fundamental laws and usually reduces the whole to the simplest elements in order to facilitate analysis. The positivist school believes that society and people can be studied in a natural scientific manner; as a result this standpoint relies heavily on statistical evaluation of the phenomena being investigated.
On the other hand the interpretive paradigm is founded in the humanities with an emphasis on holistic and qualitative information to provide rich insights into components of a social phenomenon and is more concerned with observations and description, generating hypotheses (Husen 1988). The interpretive theorist views that the social world possesses an ‘uncertain
ontological status’ and that the truth is socially constructed (Ticehurst and Veal 2000) and therefore the best way to understand the social world is from the point of view of the participant investigated (Hassard 1993). In this view the interpretive approach is to understand meanings of particular situations (Schwandt 1994) thus acquiring a rich understanding of social life aspects and experiences (Yeung 1995). This form of enquiry uses mainly qualitative approaches to understand and explain the phenomenon. Miles and Huberman (1994) note that human activity is seen in interpretivism as ‘text’, i.e. a collection of symbols expressing layers of meaning and research is concerned with a deep understanding of such meanings. Furthermore it recognises the individual viewpoints of practitioners and researchers involved in the process.
The selection of the most appropriate paradigm should then be influenced by the nature of the investigation, the aim of the research, the nature of the research questions and the accessibility of research resources.
Thus the research methods applied should be appropriate within the context specific settings as well as the myriad factors that affect it. This research explores the little-known area of the decision-making processes used by transport companies when they are making a warehouse location decision. As we have seen earlier in this chapter the location decision- making process is a complex phenomenon very much shaped by the organisational context in which the decision is taken as well as the perspectives, beliefs and motivations of the individuals involved. The literature on decision-making shows a wide range of data collection methods being used in studies on decision-making and organizational processes. These range from interviews (Mintzberg et al. 1976), participant observation (Pinfield 1986), document analysis (Browne 1993) and protocols (Newell et al. 1958). A number of studies of organisational decision-making have also been undertaken using case studies, in particular work by Allison 1971; Anderson 1983; Heller 1984; Hicksonet al. 1986; Eisenhardt 1990; Van de Ven 1992 and Dawson 1994 & 2003.
Techniques such as mathematical modeling and controlled experimentation were eliminated at the preliminary stage of screening as they proved less capable of addressing the type of research questions involved. Survey techniques were considered but excluded mainly because they could not meet the required depth of analysis when investigating an area where existing theory seems inadequate (Barnes 2001; Stuart et al. 2002). Large-scale survey based methods have been criticized for their superficiality, rigidity and lack of rigour (Meredith, 1998) and appear to have been favoured mainly in confirmatory hypothesis testing studies (Forza 2002). These alternative methods of research have been rejected, as they were considered less useful or inappropriate for the complexity of the proposed research. An evaluation of these various methods led to the choice of the case study method, primarily because this method can be used to build and enhance theory development. A number of other researchers (Barnes, 2001, Voss et al. 2002) strongly support the use of the case study approach in investigating strategy processes and building theory.
The research problem ‘how do’ and the main questions ‘what are’ are descriptive rather than prescriptive and these require a theory building approach (inductive) rather than a theory testing approach (deductive) (Perry 1998). Accordingly the interpretive paradigm (inductive) is more suited than the positivist paradigm (deductive) because the research is concerned with the actual world of the investigated phenomena rather than providing statistical details about the cause-effect relationships between variables within the examined phenomena.
As noted earlier the location selection process of a transport firm is a multi- faceted process that contains numerous subjective and objective factors that are often hard to assess (Hayter 1997). For many companies the location decision is a complex, strategic one that is made in an environment of uncertainty involving a major resource commitment. Senior managers typically make this strategic decision and because of their reluctance to respond to questionnaire surveys the qualitative research method using interview techniques for data collection was considered the most suitable.
Additionally since the business location decision of a firm is strategic (Blair and Premus 1987; Hickson et al. 1986; Porter 1998, 2000) the best approach to examine the strategic decision process is to get inside the minds of the senior decision makers to unearth the decision details (Mintzberget al. 1976) to gain a holistic overview of the context under study (Miles and Huberman, 1994). This current research considers that the qualitative approach and method is the most useful way of gaining access to senior executives and their mindsets because it offers intensity and richness in the collected data. Such an approach avoids the common barriers of validity and reliability in a social and organisational study.
The aim of this research points to the development of a model of the decision process in an organisational context. As a consequence the option for this research is based on the interpretative school of thought. The research uses qualitative approaches to understand the human experience in context specific settings. As pointed out by Silverman (1998) a particular strength of qualitative research is its ability to focus on actual practice in situ, looking at how decisions are made in organisations. The researcher analysed the decision process with an emphasis on the meanings, facts and words to reach a broader understanding of making location decisions.
The qualitative approach enables a researcher to understand and explain the personal experiences of humans more deeply than does the positivist approach. Its use fitted the eight cases examined because the information collected in each case differed in complexity. Each of the case interviews was a complex story in its own right (Ticehurst and Veal 2000).
Consequently the current research was designed to gain a rich and comprehensive picture concerning the phases in the location decision- making process and the many factors considered by transport companies when making a warehouse location decision. The best way to recognise and uncover the complexity involved in such a decision making process was to ‘get inside’ the minds of the organisations’ decision makers and understand the process from their viewpoint and experience.
As there has been little research directed at transport companies location decision processes the current investigation is adding new understandings and concepts in the field and this necessitates the adoption of an interpretive paradigm (Yeung 1995).
From the material in the literature review it is noted that the interpretive paradigm using case studies has been widely used by scholars in the general area of strategic decision making in business (Eisenhardt 1989a, Eisenhardt and Bourgeois 1988, Mintzberget al. 1976, Papadakis, Lioukas and Chambers 1998), in location decision making in manufacturing and service industries (Haigh 1990, Townroe 1971,1991 and Schmenner 1994) and in logistics research (Ellram, 1996). By capturing detail and depth case studies are amongst the most effective methods of evaluating process, performance and outcomes. Case studies can evaluate the effectiveness of a WLD by highlighting the conditions, information gathering and evaluation and the decision-making process used in determining a new location.