Research sampling and data collection

Having discussed the method of data collection for this research, the following paragraphs analyze and explain the sampling and data collection strategies used. It was necessary to sample a range of businesses.

5.6.1 Research sampling

For most research projects, due to time and resource constraints, it was not feasible either to gather or to analyze all of the available data. Sampling techniques provide a range of methods that enable the researcher to reduce the amount of data needed, by considering only data from a sub-group rather than all possible cases or elements (Saunders et al., 2009). There are two essential types of sampling; probability sampling and non-probability sampling.

5.6.1.1 Probability sampling

Probability sampling or representative sampling is used when the number of the population is known and a sample is typically equal for all cases. In this case, it is probable to answer research questions and to achieve the objectives of the study. This type of sampling requires the researcher to approximate statistically the attributes of the population from the sample. It is most commonly associated with a survey and experimental research strategies (Saunders et al., 2009).

5.6.1.2 Non-probability sampling

Non-probability sampling offers a range of other techniques for selecting samples based on the research’s judgment. In this type of sampling the probability of each case is usually selected from an unknown population. In order to answer research questions and achieve research objectives, it requires the researcher to make statistical inferences about the attributes of the population (Saunders et al., 2009).

Sarandakos (2005) defined the characteristics of qualitative sampling as follows:

- qualitative sampling is often dependent on saturation and in most situations uses no statistics; and

- the size of a qualitative sample is not statistically determined.

The snowball technique was used during the interview process. Snowball sampling is usually used when it is problematic to identify members of the chosen population (Saunders et al., 2009).

Remenyi et al., (1998, p.194) described a snowball sample as “one where the researcher uses an informant to help him or her find the next informant”. In this study, data was collected from a small group of the target population or asks individuals to provide the information needed to locate other members of that population. Each located subject suggest other subjects.

In the present research, it was difficult to locate the SME owner-managers, and it was needed to interview twelve of them, divided across three categories of SMEs: those who were self-financed; those who sought finance from Islamic banks, and those which sought finance from special institutions that finance SMEs. However, the researcher had a good relationship with the Sharia boards and the bank managers because he had seven years’ work experience in the Islamic banking sector, so it was easy to access and interview the Sharia board members and bank managers. Snowball sampling was used to find the SME owner-managers.

To obtain these references, the interviewer asked at the end of each meeting: “Do you know anyone who owns or manages an SME who might want to discuss his/her experience of obtaining Islamic finance for an SME in Kuwait, and might be interested in meeting me?”

5.6.2 Sample selection

The semi-structured interviews were undertaken in Kuwait with twenty participants. The sample size was based on those used in past related studies carried out in this area (Ajlouni, 2006; Al-Kharusi, 2003) and sought to achieve data saturation. It included twelve SME owner-managers,

- Four of whom had obtained a loan from the first case (Islamic bank),(CIB),

- Four of whom had obtained a loan from the second case − a Specialized Institution

Financing SMEs (SIFS),

- Four SME owner-managers who were Self-Financing (SF).

It was hoped that the SME owners who had taken loans would help to explore the challenges that such SMEs face and those who were self-financing would explain the reasons why they had not chosen to use financial institutions.

In addition, four managers from the financial institutions (two from each case) were interviewed.

These participants, it was hoped, would help to address part of the first research question (problems that face financial institutions) and to answer the second question (how do Islamic financial institutions meet the needs of SMEs in Kuwait?).

The reason for choosing interviewees from the Kuwait Finance House and Boubyan Bank as a sample for the first case was because these were the first two, and are the largest, Islamic Banks in Kuwait. The reason for choosing the IBC and the KSPDC interviewees as a sample for the second case was because these are the only institution which specifically finances SMEs in Kuwait.

A further four individuals, who were members of the Sharia boards of the financial institutions, and who had experience with SMEs, were also interviewed.

Since the Sharia boards ‘moderate’ the activity of the institutions, their experience and

insight was expected to help the researcher to address the third question and to make policy recommendations.

The interviews were undertaken in October and November 2013. Overall, twenty interviews were undertaken that resulted in about 900 minutes interview time in total, 400 pages of transcripts.

5.6.3 The pilot study

Having discussed the sampling strategy in the previous section, the following section examines the pilot study and the method used to collect data; namely the interview.

The pilot interviews were designed to test the interview structure, the question design and any difficulties or misunderstandings relating to the interviews. Sarantakos (2005) recommended that the pilot study is considered as a rehearsal for the main study. Blessing and Chakrabarti (2009) said that “the aim of a pilot study is to try out the research approach to identify potential problems that may affect the quality and validity of the results.”

In order to identify whether there was any potential for confusion or misunderstanding in the questions, and prior to their translation from the English language into Arabic, the questions were distributed to several Arabic and English native speakers.

When it was finally felt that the meaning of all questions had the same sense in both languages, the researcher tested the questions with a number of PhD students who could understand both languages and had experience in this area of research.

The interview procedure was piloted on several persons before starting the interview process. The main pilot interviews were conducted in October 2013 and involved four participants.

1- The researcher had meetings and interviews with academic staff at Kuwaiti universities.

2- The researcher interviewed one SME owner-manager. 3- The researcher interviewed one manager from the bank. 4- The researcher interviewed one Sharia board member.

Daniel and Sam (2010) suggested some advantages of pilot studies:

1- A pilot study will permit a preliminary testing of the hypotheses and lead to testing of more precise hypotheses in the main study. It may lead to changes in some hypotheses, dropping some, and bringing in new ones.

2- It often provides the research worker with ideas, approaches, and clues, not foreseen prior to the pilot study.

3- It greatly reduces the number of treatment errors, because unforeseen problems revealed in the pilot study may be overcome in redesigning the main body.

4- It may save the research worker a major expenditure of time and money on a research project that will yield nothing. The pilot study usually provides enough data for the research worker to make a sound decision on the advisability of going ahead with the main study.

5- In the pilot study, the researcher may try out a number of alternative measures, and then select those that produce the best result for the main study.

In other words, the reasons for conducting this pilot study were as follows:

1- To check the clarity of the questionnaire items and to ensure that they were understood by the respondents.

2- To determine the length of time needed to complete the interviews. 3- To measure the reliability of the questions in the interview.

4- To identify whether any confusion or misunderstanding was introduced by the questions due to the translation from English to Arabic.

To check the validity of the translation for the interview questions the researcher follow the following step:

1-the researcher writes the questions in English languages.

2-then the questions were distributed the questions to several Arabic and English native speakers.

3-then the researcher translated the questions to Arabic languages.

4-then the researcher translated the Arabic to English again to check the validity of the translation.