CHAPTER -3 RESEARCH METHODOLOGY Banasthali University, Rajasthan, India Page 41
3.1 RESEARCH - DEFINITION 14 The word research is composed of two syllables Re and Search. Re is the prefix meaning Again or over again or a new and Search is the latter meaning to examine closely and carefully or to test and try. Together they form a careful, systematic, patient study and investigation in some field of knowledge undertaken to establish principles / policies. Research can also be defined as: Search for Knowledge. Systematic and scientific research for getting relevant answers on any taken up specific topic. Scientific enquiry into a subject. Research is movement from unknown to known. It is a voyage of discovery. According to Bulmer 15 Research is primarily committed to establishing systematic, reliable and valid knowledge about the social world. According to Clifford woody 16 Research comprises of: Defining and redefining problems. Formulating hypothesis (basic idea) Collecting Organizing Evaluating data Making decisions 14 http://www.slideshare.net/anilkumarkhadka/research-methodology-notes 15 http://www.slideshare.net/anilkumarkhadka/research-methodology-notes 16 http://www.slideshare.net/anilkumarkhadka/research-methodology-notes Banasthali University, Rajasthan, India Page 42
Suggesting solutions Reaching conclusions Finally carefully testing the conclusions 3.2 Research Methodology 17 The definition of research methodology is the process used to collect data and other types of information for use in making business decisions. Examples of this type of methodology include interviews, surveys, and research of publications. All of these types include the use of present and historical information. When someone is doing theoretical work, paradigms can be used to satisfy most of the criteria that are set forth for methodology. The use of paradigms works because they are a constructive frame work. Research Methods :- Refers to the methods / techniques that are used to carry out or conducting a research. Following are the research methods:- Library Research: - Comprises of arriving on conclusion by analyzing the historical / old records, journals, papers and documents. Field Research: - Comprises of questionnaires, group interviews on personal basis or by telephone, observations, case studies etc. Laboratory Research :- Study by a team /group/researchers, use of audio visual tools Types of Research :- Application Objective Inquiry Mode Pure Research Descriptive Quantitative Research Applied Research Correlative Qualitative Research Exploratory Explanatory 17 http://www.ask.com/question/research-methodology-definition Banasthali University, Rajasthan, India Page 43
In case of proposed research quantitative research design is selected. In quantitative research, the objectives, design, sample and the factors influencing the research are predetermined. Statistical and economic data analysis approach is opted in this type of research after data collection and the final result is expressed in terms of quantity. The proposed study comprises of both types of data i.e., primary data and secondary data. Primary Research Questionnaire Interview Secondary Research Internet Journals Text Books The source of information was books, journals and internet. A quantitative approach was followed and data were obtained through a structured questionnaire completed by the executives/managers of the manufacturing companies. 3.3 Research Objective / Hypothesis Enterprise Resource Planning integrates/ links all the Departments and functions of an organization on a single computer : H 1 Enterprise Resource Planning runs off a single database so that various Departments can more easily share information : H 2 Enterprise Resource Planning leads to the avoidance of data redundancy : H 3 Banasthali University, Rajasthan, India Page 44
Enterprise Resource Planning maintains accuracy and latest updations of data : H 4 There is a significant interrelationship between ERP enables to share data from any Department to be immediately synchronized across all Departments and sites ERP software : H 5 There is a significant interrelationship between efficient working of Finance Department and ERP software : H 6 There is a significant interrelationship between efficient working of Manufacturing Department and ERP software : H 7 There is a significant interrelationship between efficient working of Plant Maintenance Department and ERP software : H 8 There is a significant interrelationship between efficient working of Human Resource Department and ERP software : H 9 There is a significant interrelationship between efficient working of Material Management Department and ERP software : H 10 There is a significant interrelationship between efficient working of Quality Management Department and ERP software : H 11 There is a significant interrelationship between efficient working of Marketing Department and ERP software : H 12 There is a significant interrelationship between efficient working of Sales and Distribution Department and ERP software : H 13 Banasthali University, Rajasthan, India Page 45
3.4 Research Design 18 According to Burns and Grove (1997:225), the design of a study is the end result of a series of decisions made by the researcher concerning how the study will be conducted. The design is closely associated with the framework of the study and guides planning for implementing the study. It is a blueprint for conducting the study that maximizes control over factors that could interfere with the validity of the findings. According to Polit and Hungler (1995:160), research designs vary with regard to how much structure the researcher imposes on the research situation and how much flexibility is allowed once the study is under way. The research designs of most quantitative studies are highly structured. A method that is often used to obtain information on certain variables and the relationships between these variables is survey research; the researcher selects a sample or subgroup of people and asks them questions about issues related to the research. The answers to these questions are then regarded as a description identifying the opinions and attitudes of the whole population of the sample (Unisa 2000:133). Surveys are conducted for the general purpose of obtaining information about practices, opinions, attitudes and other characteristics of people. According to Knapp (1998:67), the most basic function of a survey is description, although an explanation of why people believe or behave as they do, comparison, and prediction of responses with regard to the variables of interest may be additional objectives. It is also possible to do research using more open techniques, known as qualitative research. Qualitative research focuses on meaning, experience and understanding and therefore these designs give the researcher the opportunity to interact with the individuals or groups whose experiences the researcher wants to understand. 18 http://www.ebookspdf.org/view/ahr0cdovl3d3dy5xdwvlbnn1lmnhl3nhbxavc2ftchjlc291cmnlcy9tawdyyxrpb25kb2n1b WVudHMvZG9jdW1lbnRzL29vc3RodWl6ZW4vMDRjaGFwdGVyMy5wZGY=/Q2hhcHRlciAz Banasthali University, Rajasthan, India Page 46
3.5 Sampling Method In case of proposed study, manufacturing company s managers / executives / professionals of various Departments i.e., Manufacturing, Finance, HR, Marketing, Sales, Distribution and Plant maintenance Departments, using Enterprise Resource Planning (ERP) package were interviewed for a set of questions i.e. questionnaire and to some professionals questionnaire was distributed either via e-mail or personally. The reply was sought from the respondents on the Likert scale. 3.6 Questionnaire development and Pilot testing In this research, the sample of data was collected from the managers/ executives of the Manufacturing companies using ERP (Enterprise Resource Planning). The data from the 25 manufacturing companies was collected by using a Research Questionnaire. The questionnaire comprises of two parts: First part of the questionnaire comprises of: 1.) 3 questions related to details of ERP installed by the company Second part of the questionnaire comprises of: 2.) 39 questions related to the performance of ERP installed by the company to prove the hypothesis of this research. Along with questionnaire, a covering note and description of ERP is also circulated to all the respondents of the manufacturing companies. For receiving the replies/answer of all the 39 questions mentioned above at serial number:-2, Likert scale was used. The format of a typical five-level Likert scale was:- 1. Strongly disagree 2. Disagree 3. Neither agree nor disagree (i.e. neutral) 4. Agree 5. Strongly agree Banasthali University, Rajasthan, India Page 47
As this is quantitative research, statistical and logical data analysis is required in this research. Hence, data needs to be collected for this proposed research. Data can be collected for a set of questions so that similar type of data collection is done that can be analyzed. Hence, questionnaire is used as an instrument for this research. This generally includes sources of items for the instrument as well as description of the instrument itself (e.g. number of items on the instrument, response format of the items, etc.). First questionnaire was developed for the proposed research, then it was floated to experts for pilot testing. As an outcome of pilot testing, experts have suggested some amendments like it was suggested by experts to incorporate Likert scale to collect logical replies from the manufacturing companies for logical statistical data analysis to achieve better, logical and accurate results. After making amendments, final questionnaire was developed and floated to manufacturing companies for replies of questionnaire. In this study, questionnaire is used as an instrument to gather the details of effectiveness of ERP in manufacturing companies. Following are the two parts of questionnaire comprises of following questions:- 1.) Part -1 comprises of three questions 2.) Part-2 comprises of 39 questions 3.7 Data Collection Questionnaire distributed to manufacturing companies for data collection comprises of following documents and even some company s executives were interviewed face-to-face. Respondents were assured of their anonymity and freedom to decide whether to participate in the study or not. Hard copy was distributed to most of the respondents and only in 2-3 cases e-mail was sent as per the convenience of respondent. Questionnaire was designed in such a format that the data could be easily entered into the computer. Respondents have to fill up the questionnaire just by ticking the options on their choice on Likert scale. Responses were ob- Banasthali University, Rajasthan, India Page 48
tained only in the form of ticked answer and descriptive answers were not required from the respondents. Following companies participated in filling the questionnaire:- i) Essar Steel Ltd. ii) LG Electronics India Pvt. Ltd. iii) BSBK Group of Companies iv) Anjani Technoplast Ltd. v) Kortek Electronics(I) Ltd. vi) Caparo Engineering India Ltd. vii) Britannia Industries Ltd. viii) IBM ix) Steel Authority of India Ltd. x) Bhushan Steel Ltd. xi) Uflex Ltd. xii) Sheela Foams Pvt. Ltd. xiii) Jindal Steel and Power Ltd. xiv) Larsen & Toubro Ltd. xv) Intex Technologies India Ltd. xvi) J.K.Lakshmi Cement Ltd. xvii) Gail India Limited xviii) Apollo tyres limited xix) Relaxo Footwears Ltd. xx) Nestle India Limited xxi) Greenply Industries Limited xxii) Mother Dairy xxiii) Dabur India Limited xxiv) Maruti Suzuki Limited xxv) ONGC Limited Banasthali University, Rajasthan, India Page 49
3.8 Difficulties faced in data collection Some respondents have difficulty in filling the reply of questions. Some respondents have difficulty in understanding the questions. Some people have problems in understanding the concept. Some respondents were not responding properly. In some cases, where manufacturing plant was visited, being a female, it was very difficult to approach people because of awkward feeling. 3.9 Data Analysis Data analysis refers to a process which entails an effort to formally identify themes and to construct hypothesis as they are suggested by data and an attempt to demonstrate support for those themes and hypothesis (Bogdan & Taylor 1975,cited in tesch 1990) 19 Another definition of analysis by Miles and Huberman (1994:10) 20 refers to analysis as consisting of three concurrent flows of activity, namely data reduction, data display and conclusion drawing. Data reduction refers to the process of selecting, simplifying and transforming data that appear in the original documents. It is part of analysis. The second major analysis activity is data display. As with data reduction, the creation and use of displays is not separate from analysis but part of it. The third activity in analysis is conclusion drawing and verification. According to this view qualitative data analysis is a continuous process. 3.10 Methods of Data Analysis Methods of data analysis are primarily determined by the hypothesis to be tested or research questions to be answered (that also determine the format of the instrument and how the data was gathered). The most commonly used descriptive statistics include means, standard deviation, frequency counts and percentages. Amongst the most commonly used inferential statistics are chi-square, t-test, analysis of variance (ANOVA) and vari- 19 http://umkn-dsp01.unisa.ac.za/bitstream/handle/10500/2273/04chapter3.pdf?sequence=9 20 http://umkn-dsp01.unisa.ac.za/bitstream/handle/10500/2273/04chapter3.pdf?sequence=9 Banasthali University, Rajasthan, India Page 50
ous correlation coefficients. More complex statistical procedures include factor analysis, regression analysis, discriminant analysis, multivariate analysis of variance (MANOVA) etc. i. Reliability Test :- Cronbach s Alpha Reliability test Cronbach s Alpha is conducted on the data in the above mentioned literature review / study. Likewise, in this proposed study also, by using SPSS software, we have conducted this test on our data collected from manufacturing companies. Alpha was developed by Lee Cronbach in 1951 to provide a measure of the internal consistency of a test or scale; it is expressed as a number between 0 and 1. Internal consistency describes the extent to which all the items in a test measure the same concept or construct and hence it is necessary but not sufficient condition for measuring homogeneity in a sample of test items. Reliability is the extent to which a list of scale items would produce a consistent result if the data collection was repeated and is assessed by determining the proportion of systematic variation in scale. Calculating cronbach alpha coefficient of a scale is the most commonly practiced indicator of internal consistency with the ideal cronbach alpha coefficient being over.07. ii. Exploratory Factor Analysis As per the above mentioned literature review, factor analysis is used as a statistical technique for data reduction. Similarly, in our study also, factor analysis is used as a data reduction statistical technique that allows simplifying the corelational relationships between numbers of continuous variables. Exploratory factor analysis is a general name denoting a class of procedures used for data reduction and summarization. Exploratory factor analysis allows researchers to condense a large set of variables or scale items down into a smaller, more manageable number of factors or components. Banasthali University, Rajasthan, India Page 51
Principal Component Analysis (PCA) is a key method in the exploratory factor analysis process used to explore the underlying structure of the ERP implementation and their correlations in the data obtained. Data Factorability As per the study mentioned above, Kaiser Normalization is used as the rotation method; eight critical factors were identified based on the eigen value criterion. In this proposed study also, Kaiser Normalization is used as the first data analysis in the exploratory factor analysis process (Pallant, 2007) 21, is the assessment of its suitability (factorability). Finally, following two statistical measures are used to investigate the factorability of the data: a.) Bartlett s Test of Sphericity b.) Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) iii. iv. Test of normality First, normality of each item would be assessed using : Standard deviation Skewness Kurtosis. One-sample T-Test A one-sample t-test is a hypothesis test for answering questions about the mean where the data is from a random sample of independent observations from an underlying normal distribution. The sample is drawn from a population of given mean and unknown variance (which therefore is estimated from the sample). One-sample t-test is conducted to compare the means score of a sample to a population mean. A one-sample t-test was conducted by using What is your level of satisfaction of duration of ERP usage as a variable. 21 Pallant, J. (2007), SPSS survival manual: a step by step guide to data analysis using SPSS for Windows (version 16), Maidenhead: Open University Press. Banasthali University, Rajasthan, India Page 52
vi. Chi-Square Test v. One-way ANOVA (F-Test) A one-way analysis of variance (ANOVA) is used when you have a categorical independent variable (with two or more categories) and a normally distributed inthe means of the terval dependent variable and you wish to test for differences in dependent variable broken down by the levels of the independent variable. Analysis of variance (ANOVA) is the technique used to determine whether more than two population means are equal. One-way ANOVA is used for completely randomized, one-way designs. The ANOVA F-statistic compares variation due to specific sources (levels of the factor) with variation among st individuals who should be similar (individuals in the same sample). F-test proves the rating given by all the respondents is different. In other words the rating given by the respon- dents are significantly different from each other. A Chi-squared test, also referred to as Chi-square test or test, is any statistest statistic is a tical hypothesis test in which the sampling distribution of the Chi-squared distribution when the null hypothesis is true. Also considered a chi- that the sam- squared test is a test in which this is asymptotically true, meaning pling distribution (if the null hypothesis is true) can be made to approximate a chi-squared distribution as closely as desired by making the sample size large enough. In case of proposed research, chi-square test was conducted to analyze the data on the basis of modular approach. As an ERP for manufacturing organization comprises of various modules like Finance, HR, Plant Maintenance, Material Management, Manufacturing, Sales and Distribution, Marketing etc., hence, to analyze the performance / effectiveness of a specific module of ERP, chi-square test is used. Chi-square test was able to give the reports of specific modules of ERP (i.e., modular approach) with respect to a particular ERP and in comparison with other ERPs. Banasthali University, Rajasthan, India Page 53