The Four Tests

Construct validity incorporates multiple sources of evidence. In this particular instance, the researcher did a case study on five different organisations, thus increasing the pool of evidence and creating triangulation of the data (Yin, 2009: 41). The second test of validity is referred to as internal validity. Yin (2009: 42) states that internal validity is only relevant in causal or explanatory studies, in which the investigator is trying to determine whether one event led to another event. Since the nature of this study deals with exploratory issues, internal validity is not applicable here.

External validity reflects the extent to which the findings that result from a study are generalisable beyond the immediate case (Yin, 2009: 43). Scholfield (2002: 173) states that “the heart of external validity is replicability”. The question is whether or not the results obtained in one study would be reproducible in those target instances to which one intends to generalise. These target instances could be different populations, situations, times, measures, study designs or procedures (Scholfield, 2002: 173). After conducting the case study research, the researcher created a framework for subsidiary entrepreneurial culture in a post-acquisition environment. By creating this framework, the researcher is suggesting that other studies could replicate such research using a similar target group and could map their research onto this framework. Analytical generalisation is used as a template to test the results of the case study against some previously developed theory (Yin, 2009). If two or more cases support the same theory, then replication can be claimed. This type of generalisation is known as Level Two Inference (Yin, 2009: 44).

5.3.1.2 Reliability

The objective of this test is to ensure that if a later investigator were to conduct the same case study in a similar environment, he or she should arrive at the same findings and conclusions. “The goal of reliability is to minimise the errors and biases in a study” (Yin, 2009: 45). This study aimed to ensure that any form of bias was excluded by formulating an interview guide that was objective and transparent, while being replicable at the same time. A prerequisite for allowing future researchers to repeat a study is the documentation of the procedures that have been followed. One method of improving the reliability of case studies is to generate a case study protocol (Yin, 2009: 45).

Newman & Benz (1998: 39) state that if validity is established, reliability is implicit; but that it is possible to have reliability without validity. The basic assumption behind reliability is that it either supports or improves validity. Reliability therefore reflects consistency (Newman & Benz, 1998: 39). Validity refers to the extent to which a study or a set of instruments measure what they are supposed to measure, while reliability estimates may indicate whether the outcomes will remain stable over time or whether these outcomes are consistent among independent observers (Newman & Benz, 1998: 41).

5.4 CONCLUSION

The chapter began with a description of Libstar and each of the study’s chosen subsidiaries. Due to the exploratory nature of this study, a qualitative approach was adopted, and a case study methodology was employed as the primary means of data collection. The research objectives were outlined and the reasons for the selection of a case study approach were provided. Yin’s (2009) case study process was adopted as the research design. This process included planning the case study and the research design, conducting the sampling process, developing the research instrument, collecting the data, analysing the data, and the sharing of the results. The chapter ends with a discussion on the procedures put in place to ensure the quality of the case study. This included construct validity, internal validity, external validity and reliability. The following chapter will address the data analysis process, and address each of the study’s objectives.

CHAPTER SIX FINDINGS

6.1 INTRODUCTION

This chapter presents the findings of the empirical investigation based on the primary and secondary research that has been conducted. The chapter discusses a review of the sample profile used for this study. The subsidiaries that were involved in the study are discussed, and a brief overview of the participants is provided. Thereafter, each objective is discussed in relation to the themes according to which it was addressed. Within each theme, separate categories and subcategories emerged during the data analysis process. The empirical findings are further substantiated with supporting literature that was presented in chapters 2 and 4 of this study. The chapter concludes with the presentation of a framework developed for managers to use as guideline in the acquisition integration process.

6.2 SAMPLE PROFILE

The following section provides a brief profile of each sampling unit that was interviewed for this study.

Libstar was founded in 2005. It is a company with interests in enterprises that manufacture and distribute products in the food and beverage, household and personal care segments of the market. The group concentrates on supplying the needs of private-label segments of larger retailers, the manufacturing of products for brand owners as well as its own branded products, and the food service industry (Libstar, 2013). Libstar’s primary focus is the acquisition of controlling equity stakes in existing businesses, which demonstrate sound management and high growth potential. Libstar provides financial security, access to development capital, and high-level management input (Libstar, 2013).

For the purpose of this study, five of Libstar’s subsidiaries were chosen for analysis. The five subsidiaries chosen for this study were Rialto Foods, Lancewood, Cape Herb and Spice, Montagu Foods, and Amaro Bakery.

of European and Far Eastern food manufacturers. Rialto Foods’ primary customer is Woolworths. Two interviews were conducted at their Head Office in Montague Gardens in Cape Town; one with the Chief Executive Officer (CEO) and one with the Operations Director.

Lancewood manufactures an extensive range of cheeses and dips, as well as whey powder products, under the Lancewood brand and as private-label products for retailers. One joint interview took place at their Sales Office in Plattekloof in Cape Town, with the CEO and the Financial Manager.

Cape Herb & Spice produces a wide range of herbs and spices as private-label and branded products to foreign and local retailers. Two interviews were conducted at their head office in Westlake in Cape Town; one with the Product Development Director and one with the CEO.

Montagu Foods produces and markets a wide range of wet condiments under private label for all major retailers. Two interviews were conducted at Libstar’s office in Plattekloof, Cape Town; one with the Managing Director (MD) and one with the Operations Manager.

Amaro Foods produces an extensive range of bakery products for Woolworths in the Western Cape and Eastern Cape in South Africa. Two interviews took place at the bakery’s manufacturing facilities in Epping in Cape Town; one with the MD and one with the Chief Financial Officer (CFO).

6.3 FINDINGS

A key objective of this study was to explore the characteristics of subsidiary entrepreneurial culture in a post-acquisition environment. This section of the chapter presents the key findings from the semi-structured interviews held with the ten aforementioned interviewees from the five different subsidiaries of the Libstar Group. The names of each subsidiary have been revealed in the findings. However, the researcher assigned a number (1-10) to the names of each respondent for the sake of anonymity. All interviews were recorded and transcribed verbatim. ATLAS.ti was used to examine the data from the interviews. ATLAS.ti is a qualitative data analysis software package that is used as a data management and analysis tool.

The findings are presented according to each specific objective, as laid out by the interview guide (see Appendix B). Each finding is described in detail and broken down into the various themes, categories and subcategories that emerged from the data obtained during the interviews. Where relevant, direct quotes from the participants are used to clarify the results and literature is provided to supplement the findings. The final product is a framework drawn up from the primary and secondary research gathered throughout this study.

The tables presented under each theme below represent an overview of the research objectives of this study, as well as the different themes and categories that were employed in order to determine the objectives. These tables also include the subcategories which emerged in relation to the relevant themes and categories. Each category represents a question or prompt presented to the interviewee, and each subcategory represents the outcomes that emerged from different interviewees’ responses.

The remainder of this chapter will address each research objective and their respective questions accordingly.