Impact of E-Marketing on Success of SMEs Free Essay Example

RESEARCH METHODOLOGY

Introduction

Research methodology refers to the systematic, focused and orderly collection of data for the purpose of obtaining information in order to solve research questions (Ghauri & Gronhouag, 2005). This chapter therefore describes the way the research project has been carried out giving detail to the design and methodologies used to collect, analyze and present the research data. The study population, sampling techniques, research instruments, data collection methods, reliability and validity of the instruments and data processing, analysis and presentation procedures are also discussed.

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Research design

The goal of this research was to develop an in-depth understanding of the impact of e-marketing on the success of SMEs. Therefore the researcher applied both qualitative and quantitative approaches in gathering data. The qualitative approach was meant to give an insight into the respondents` opinions, ideas and experiences while the quantitative approach was used to quantify the defined variables and thereby allowing for generalisability of results obtained. The use of several data collection methods such as interviews, observations, archives, and questionnaires enables researchers to gain a holistic understanding of a complex phenomenon (Ali and Yusof, 2011).

To ensure the quality of the findings, information was gathered through data collection techniques which are questionnaires and interviews.

Population of the study

Population according to Laws et al (2009) refers to the entities set of objectives or subjects of interest in a statistical survey. Population refers to any group of people or objects which are similar in one or more ways and which forms the subject of study in a particular survey.

Therefore target population studied includes employees and management of SMEs based in Bulawayo.
The qualifying criteria for participants will be:

1. 18 years old plus
2. Currently employed or owning a Bulawayo based business with six to seventy-five employees
3. Uses e-marketing to promote products or services.

Small businesses are heterogeneous, with diversity in activities and operations (Valadez, 2011).
To gain a broader view of the state of e-marketing, the researcher will select different SMEs that operate in different industries.

Sampling

Sampling procedure

Sampling is a procedure, process or technique of choosing a sub-group from a population to participate in the study Ogula (2005). It is the process of selecting a number of individuals for a study in such a way that the individuals selected represent the large group from which they were selected. In this investigation, the researcher uses a combination of probability and non-probability sampling methods.

In probability sampling every element has a known nonzero probability of being sampled. The researcher adopted stratified random sampling which is the division of a population into smaller groups known as the strata and are then randomly selected to be part of the sample. SMEs were grouped in eight different strata based on their industry / sector. The strata consisted of the manufacturing sector, retailing sector, construction sector, engineering sector, professional services sector, computers and information technology (IT) sector, food and beverages sector, and the tourism and hospitality sector. Stratified sampling allowed for the true representative of the population of the study.

Therefore the researcher picked SMEs from each stratum through the use of the simple random sampling technique. Simple random sampling is whereby every member of the target population had an equal chance of being included in the sample. According to Gravetter and Forzano (2015) the logic behind simple random sampling is that it removes bias from the selection procedure and should result in representative samples. This method will be used in the selection of respondents to the questionnaire to be handed out by the researcher.

On the other hand, owing to the fact that Bulawayo has a relatively large number of SMEs in different sectors the researcher also used the non-probability sampling method which is purposive sampling. Non probability sampling is any sampling method where some elements of the population have no chance of selection while purposive sampling which is also referred to as judgment, selective or subjective sampling is a sampling technique in which researcher relies on his or her own judgment when choosing members of population to participate in the study. Researchers often believe that they can obtain a representative sample by using a sound judgment, which will result in saving time and money (Black, 2010). Thus this method was used in selection of the respondents to the interviews because it provides the researcher with the justification to make generalisations from the sample.

Sample size

A sample is a subgroup of population examined and from which the characteristics of the population will be drawn from (Kumar, 2011). With a record of 2600 registered SMEs in Bulawayo (Chronicle, 5 February 2015), the researcher uses the Raosoft sample size calculator accepting 5% margin of error at 95% confidence level to determine the appropriate sample size.

Raosoft sample size calculation

However Neuman (2000) argues that the main factors considered in determining the sample size is the need to keep it manageable enough. With an obligation to assure that the sample is large enough to serve as a fair representation of the population upon which generalization will be made while considering expenses in both time and financial resources, the researcher uses a sample size of 100 SMEs which has been used and is supported by many other researchers such as Khong (2005), Eid (2007) and Garson (2009).

Sampling error

Polgar and Thomas (2011) define a sampling error as the difference between sample statistics and the actual state of the population. This research was prone to some unavoidable errors such as systematic errors which result from non-responses, self-selected bias and response bias. In trying to rectify the problem of non-response errors, the researcher distributed the questionnaires to various respondents personally. The researcher constantly contacted and reminded the respondent to complete the questionnaires through personal visits and telephones.

Sources of data and Data collection method

Drucker (2009) points out that data are those facts made available in a research study. Data is mainly categorised into two, which is, primary data and secondary data. Primary data which is the only one used in this research, is data observed or collected directly from first-hand experience. It is in this context data which has been collected to assess the impact of e-marketing on the success of SMEs. Complementing each other schedules of questionnaires distributed within the samples and face-to-face group interviews were used in the collection of the primary data.

Questionnaires

Zikmund (2000) defined a questionnaire as an instrument for collecting data through carefully laid down questions. Questionnaires are the most suitable instruments for data collection because they allow researchers reach many respondents (or large samples) within limited time (Mugenda & Mugenda, 2003). Kothari (2003) on the other hand, observed that questionnaires enable the person administering them to explain the purpose of the study and to give meaning of the items that may not be clear. Therefore the researcher used questionnaires to solicit information from employees and managers of SMEs.

The questionnaires were preferred by the researcher because the interviewer bias was eliminated since the questionnaires were filled in the absence of the researcher. It also ensured confidentiality, anonymity and privacy thus helping to gather more candid and objective answers. Respondents were to fill in the questionnaires at their own times and this literally meant that the respondents had enough time to think and evaluate their responses.
The questionnaire was designed with mainly closed-ended questions rather than open-ended questions. Open-ended questions were undesirable due to the risk they bear, which is the risk of diversion from the study concept by respondents.

Furthermore, open-ended questions are difficult to analyse and interpret. It is therefore that closed-ended questions were preferred eliminating ambiguity from all questions as much as possible. A Likert scale question design was also used in the same questionnaire. This design was chosen due to its ability to measure the respondents` opinion, attitude and agreement to a variety of statements. This enhanced the ease of classification and quantification of the responses. The main drawback of self-completed questionnaires was that the study had to rely solely on respondents to give honest descriptions. Therefore, anonymity and confidentiality were duly granted to all respondents in this study to counter this drawback.

Interviews

According to Rubin and Rubin (2012), there are four main types of qualitative interviews: Internet interviews, unstructured or semi-structured interviews, group interviews, and casual conversations. Group interviews can be either structured or unstructured, but two or more people participate at once. Unstructured or semi-structured interviews allow researchers to ask questions prepared beforehand and to ask additional probing and clarifying questions to garner additional data. Therefore the researcher uses both face-to-face group and semi-structured interviews because they allow her to inquire about decision-making processes and opinions of participants, as well as the ability to ask probing questions when necessary.

Data collection procedures and techniques

The data collection procedure entails how the data was collected. Therefore the researcher will physically distribute the questionnaires to respondents who have been purposively elected. The questionnaires were distributed to employees and to some managers. The questionnaires would be left with the respondent and collected by the researcher after two days. It may however take a longer time to collect the questionnaires to analyse the results and present findings.

Appointment bookings for face to face interviews will be made with managers of these SMEs. Having confirmed appointment slots, the researcher will conduct the interview within time limits using interview questions guidelines and maintaining professionalism throughout the interview. Open-ended questions will be asked during the interview such that much of the information collected from the interview is qualitative.

Reliability and Validity issues

Reliability of the research instruments

Reliability refers to the degree to which a research instrument yields consistent results or data after repeated trials. If a researcher administers a test to a subject twice and gets the same score on the second administration as the first test, then there is reliability of the instrument (Mugenda and Mugenda, 1999). The researcher measures the reliability through the test re-test technique which involves administering the same test twice to the same group of respondents.

Validity of the research instruments

Borg and Gall (2003) point out that a research instrument is said to be valid if it measures what it is supposed to measure. The researcher submitted a draft of the questionnaire to a selected person, the university supervisor, who is knowledgeable in research and was to ascertain the items suitability in obtaining information according to research objectives of the study. This was done to measure the validity of the instrument and it assisted in avoiding any problems that could arise from the research instrument.

Data Analysis Plan

Statistical procedures to test the research hypotheses will include descriptive statistics, factor analyses, analyses of variance and measures of association. Factor analysis will be used to compare and find correlations between these factors. To collate and analyse quantitative data obtained, the researcher will use the Statistical Package for the Social Sciences (SPSS) a statistical analysis software. To help facilitate collation and analysis of qualitative data to be collected, the researcher will use NVivo 10, a computer-assisted qualitative data analysis (CAQDAS) software. NVivo software is a tool that can assist researchers in coding and categorization of large volumes of narrative text (Yin, 2014). The software enables the user to upload and organize transcripts, uncover themes and trends, search for the exact query, organize data into categories, and display data using visualization tools such as charts, graphs, and maps (Edwards-Jones, 2014).

Ethical considerations

Burton and Steane (2004) postulate that devising ethical protocols and research processes is a necessity in building the researcher’s credibility and balancing the divergent demands of multiple stakeholders. To attend to this problem, the researcher has set principles which will be explained to the respondents about the research also emphasizing the fact that the study is for academic purposes only.

The ethical issues are:

• Informed Consent – The participants will have informed consent, making the choice to participate in the study or not. Each participant must be willing to be part of this research and they had a right to decline or discontinue participating in the research at any time.
• Anonymity and confidentiality – Participants will have a right to conceal information that they feel would be private and confidential. To ensure privacy the researcher will not use specific names, consent forms will be withheld and data will be listed using number codes.
• Data Protection – The researcher will explain and give assurance to the participants that the information given in the study would be used for academic purposes only. Each and every participant’s information will be safeguarded to conceal it from reaching any unauthorized populace.
• Appropriate language – There will be no use of offensive, discriminatory and unacceptable language in the formulation of the questionnaire and interview questions.
• Nonmaleficence – The researcher`s obligation is to avoid harming anyone in this study promoting beneficence, which is, fostering greater good than harm.

Chapter Summary

A clear and concise description of how the study was conducted has been given in this section. The chapter managed to look into the research design used by the researcher in carrying out the study. The target population and sampling procedure were also defined in the chapter together with the sampling techniques employed in gathering the data. Sources of data and research instruments which aided the research were also outlined in the chapter. The researcher was fully convinced that if the above methodology was used, it was going to yield unbiased results all other factors held constant the reliability and validity of the data presented.