Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Wijesinghe J.C.
jcabraalwijesinghe@swin.edu.au
Foreman J.
jforeman@swin.edu.au
Elijido-Ten E.
Swinburne University of Technology, Melbourne, Australia
eelijidoten@swin.edu.au
Abstract
South Asia, comprising of more than eight emerging economies, is the second poorest region
in the world. Among the many challenges commonly found within this region, poverty is one of
the biggest. The literature reveals that Small and Medium Enterprises (SMEs) play a
significant role in achieving economic development. Recognising the importance of this
sector, the governments of the South Asian region, attempt to provide more SME support in
their quest to secure a sustainable growth particularly during this turbulent time.
Consequently, more researchers are studying the practices and activities of these enterprises.
The main objective of this paper is to propose suitable research methods for SME related
research projects based on Sri Lankan experience. Our study reveals that face-to-face surveys
are more suitable for collecting quantitative data while in-depth-interviews-based case studies
provide a useful way to capture qualitative data which help to improve the reliability and
validity of research.
Key words: Case studies, Face-to-face surveys, Research Methods, SMEs, South Asian
Economies
Introduction
Small and medium enterprises (SMEs) form the backbone of South Asian economies as they
have the power to generate more opportunities when these economies are faced with critical
challenges. Many researchers (e.g. Moktan, 2007; Agarwal, 2006; Bala Subramanya, 2005;
Mintoo, 2004; Amaratunge, 2003; Gamage, 2003) have revealed that the future economic
developments of these emerging economies depend mainly on improvement to their countries
SME sector. Therefore the governments of the emerging economies in the South Asian region
often provide more support in an attempt to secure sustainable growth during this current era
(e.g. Mahinda Chinthanaya in Sri Lanka).
Research into SMEs has grown during the last decade (Islam, Khan, Obaidullah, & Alam,
2011) especially in the emerging economies (e.g. Huang, 2009). Researchers are studying the
practices and activities of these enterprises with the aim of generating new knowledge and
enhancing the SMEs through economic policy changes. Such research needs to adopt the best
methodology and methods best suited to achieve the research objectives and capture important
insights from relevant data.
Even though there is no commonly accepted definition for SMEs in the South Asian region
(Gamage, 2003), such businesses so described show certain similarities (SAARC Chamber of
Commerce & Industry) generated through their similar macro environmental factors: political,
economic, socio-cultural and technology.
The main objective of this paper is to propose suitable research methods in conducting
research in South Asian SMEs based on our Sri Lankan experience. Our experience shows that
majority of the respondents in the SMEs-related research projects are owner-managers. South
Asian entrepreneurs and enterprises have similar characteristics that are not necessarily the
same as in the developed economies. Our study reveals that face-to-face surveys are more
suitable and reliable for collecting quantitative data, while in-depth interviews based case
studies provide a useful way to capture qualitative data. These methods help to get both the
researchers and the participants together thereby minimising crucial problems associated with
other research methods. Further as mixed method triangulation has increasingly become the
preferred method in social research (Johnson & Onwuegbuzie, 2004; Creswell, Vicki, &
Clark, 2007; & Bryman and Bell, 2007), the combination of these two data collection methods
enables researchers to improve the validity of research findings and outcomes.
Literature Review and Background to the Study
Importance of SMEs
SMEs play important roles in achieving economic development in countries all over the world
(OECD 2004). They provide emerging economies some relief from the vicious circle of poverty
(Hussain, Si & Wang, 2010; Amaratunge, 2003; Mintoo, 2004). This is because SMEs not only
provide employment opportunities to abundant labour forces but they also help to generate
dynamism by realising entrepreneurial capability (Hussain, Si, & Ahmed, 2010). SMEs
normally use locally made raw materials (Amaratunge, 2003). Thus they have the ability to give
value especially for neglected resources like coir and clay. Further, Davidson and Griffin (2003)
pointed out that small businesses have contributed many innovative ideas and technological
breakthroughs to society. Therefore, a strong SME sector is considered to be the backbone,
lifeblood or the engine of all economies irrespective of their level of development.
Recognising this importance, governments around the world increasingly promote and support
SMEs as part of their overall national development strategies (Abdullah & bin Bakar, 2000). For
example, current national development strategies in Sri Lanka, underpinning the Mahinda
Chinthanaya (Mahinda Vision) were introduced in 2005 by the current President Mahinda
Rajapaksha as his first election initiative. In this document, it was clearly mentioned that the Sri
Lankan government will be taking important decisions to strengthen the countrys SME sector.
Similarly, Agarwal (2006), Bala Subramanya (2005), Mintoo (2004) & Moktan (2007), revealed
that SMEs occupy a priority space in the industrial policies in Nepal, India, Bangladesh, Pakistan
as well as Bhutan respectively and several measures have been in place to promote and support
this important sector of the economy.
Despite the absence of a commonly accepted definition, the contribution of SMEs to overall
economic growth and Gross Domestic Production (GDP) is immensely significant in all the
countries in this region (Moktan, 2007). For example according to the economic survey of
Pakistan 2008-09, SMEs have contributed the most significant rate to the economic growth in
that year. It is estimated that SMEs contribute 50% of Bangladeshs industrial GDP and provide
employment to 82% of the total industrial sector employment. In Nepal, SMEs constitute more
than 98% of all establishments and contribute 63% of the value-added segment. In India, SMEs'
contribution to GDP is 30% (Economic Survey of Pakistan 2008-09). The globalisation of trade
and commerce, rapid technological changes, proliferation of new technologies and emergence of
a knowledge economy are bringing forth new challenges around the world in general, and in
South Asian region and their SMEs, in particular. Therefore, the SAARC Chamber of Commerce
& Industry has introduced SMEs policy to enhance and integrate SMEs in South Asia.
As noted earlier, South Asian entrepreneurs and enterprises are not the same as their counterparts
in the developed economies. For example, Matlay & Addis (2003) state that information
technology and e-commerce developments have taken place in the late 1990s among European
and British SMEs. As such, they are more capable with related technologies. Many of the
countries studied, particularly in the USA, UK, Sweden, Canada and to a lesser degree Northern
Italy, have cultural similarities and high level of education and these have a big impact on their
entrepreneurial activities (Dodd & Patra, 2000). These identified South Asian macro
environmental factors can hinder the collection of important information that researchers are
intending to investigate. It is in this regard that SMEs-related research projects in South Asian
countries must be designed in a manner that takes these factors into consideration.
According to Collis & Hussey (2009), research can be developed and improved by adopting a
suitable methodological approach that enhances the methodological rigour of the research
project. The appropriateness and intellectual soundness of the research design is dependent upon
the systematic application of the methods used. Thus, SMEs-related research projects have to be
designed more carefully in order to achieve reliable and valid results.
Research Paradigms
The examination of the research paradigms can be viewed as a good starting point (Creswell, Vicki, &
Clark, 2007) in identifying the appropriate methodology for a research project. This is because a research
philosophy or paradigm incorporates assumptions and stances about the social world and our ability to
know it. A paradigm also frames and guides (Collins & Hussey, 2009) a particular orientation to social
inquiry, including what questions to ask, what methods to use, what knowledge claims to strive for, and
what defines high-quality work (Patton, 1990). Since a philosophical paradigm influences the selection of
research methodology or research enquiry approach, it is crucial to identify which philosophical research
paradigm is more suitable for SMEs-related research projects in South Asian economies taking into
consideration their inherent characteristics. Although there is a continuum of paradigms (Morgan &
Smircich, 1980 cited in Collins & Hussey, 2009), positivism and interpretivism are the two main world
views and these are discussed next.
Positivism Paradigm
Positivism is a paradigm that originated in the natural sciences. It is based on the assumption that
social reality is objective and is not affected by the investigator. Positivistic research involves a
deductive process with a view to providing explanatory theories to understand social phenomena
(Collins & Hussey, 2009). This paradigm is typified by data collection using quantitative
techniques such as experiments, surveys and mathematical proof. As noted by Hill & McGowan
(1999), many researchers have entered the management arena or have approached management
research from a background in the traditional sciences, economics, and sociology. As such, they
tend to apply the same positivistic methodology for disciplines such as management, marketing
and entrepreneurship. The scientific methods which are associated with quantitative techniques
are widely used in social science research because these methods are useful to seek facts or
causal relationships (Denzin & Lincoln, 2000) between variables of interest. With the help of
computer packages, such as SPSS, the results can be presented using numbers, tables or
attractive graphs quickly. Therefore traditional researchers in small business management and
related disciplines have commonly used quantitative methods (Hill & McGowan, 1999). They
have mainly depended on large-scale or small-scale surveys with self administered structured
questionnaires.
Interpretivism Paradigm
Interpretivism or phenomenological paradigm is underpinned by the belief that social reality is
highly subjective because it is shaped by our perceptions. This method involves an inductive
process with a view to providing interpretive understanding of social phenomena within a
particular context. This paradigm is normally associated with qualitative research methods
namely action research, case studies and ethnography. These qualitative research methods help
researchers to capture detailed and complex form of data (Sarantakos, 2005) enabling an in-depth
examination of a social phenomenon that requires an understanding of human social behaviours
(Ching-Wei, 2006). Consequently, the methods used seek to describe, translate and come to
terms with the meaning not the frequency of certain more or less naturally occurring phenomena
in the social world (Green, 2002; Neuman, 2006; Collis & Hussey, 2009).
Table 1 presents a number of SMEs-related research projects undertaken in the South Asian
economies in the recent years. By perusing the above studies, it is clear that while all the
researchers have taken the necessary effort to contact non respondents in order to increase their
response rate, their usable response rates are mostly less than 30% for those who used survey
method via mail or e-mail. Additionally, some researchers have used case studies with in-depth
interviews to support the validity and reliability of their studies. Therefore, whether research
techniques such as e-mail/telephone/postal-based surveys are appropriate for SMEs-related
research projects is a crucial question for contemporary social researchers in South Asia.
Discussion of Sri Lankan Research Experience
As in other countries in the region, the manufacturing SMEs in Sri Lanka have a slow growth
rate for various reasons. A research project was undertaken to identify the challenges faced by
SMEs in relation to their management practices with the aim of making a significant contribution
to improve their sustainability via government policy changes.
It is important that the methodology and methods adopted are designed while considering the
context and the attributes of the intended participants. As such, our research does not reject the
offerings of the positivistic paradigm and its corresponding quantitative methods but we are open
to consider how contemporary SMEs management or entrepreneurship related research projects
in a South Asian country can be enhanced through the use of other appropriate methods
applicable to the Sri Lankan context. This is because, as mentioned earlier, the people in this
region have similar background and are affected by similar macro environmental forces.
When designing the methodology and methods for the Sri Lankan study three main challenges
have been addressed: (1) to cover a wide range of variables in order to investigate insights of
SMEs management practice; (2) to reduce the risk of not achieving the targeted sample and the
response rate (150 SMEs) in a short time frame; and (3) to minimise the impacts of the
participants inherent weaknesses such as low level of education, technological illiteracy and fear
of giving out information. Hill & McGowan (1999) mentioned that it is important for researchers
to recognise the individuality, personality and attributes of the participants involved in the
research process instead of concentrating only on the quality of their own empirical
investigation. Therefore, considering the investigative nature of the current study, a mixed
methods research approach (methodological triangulation) is applied in order to discover
management practices of the targeted group. The subsequent sections discuss the factors
impacting the findings of the pilot test of our Sri Lankan study.
Technological Barriers
Low technological capabilities are one of the major constraints (Hussain, Si, & Wang, 2010) in
SMEs development in developing countries in South Asia and Sri Lanka is no exception.
Consequently, high technology- based research methods, such as online surveys, would not help
to gain good response rate or acceptable results.
Recognising the importance of meeting all the challenges mentioned above as well as the
characteristics of the targeted group, the methodology and methods employed should aim to
minimise the distance between the researcher and the participants of the study. Fairoz, Hirobumi
and Tanaka (2010) suggest that interviewing method is the appropriate primary data collection
method due to the unwillingness of SMEs to provide information through other methods.
Quantitative or positivistic research methodologies are associated with experimental studies,
surveys, cross-sectional studies, longitudinal studies. Out of them surveys are more useful to
collect data from a sample with a view to analysing them statistically and generalising the results
to a population. There are several methods for collecting survey data in a positivistic study
including postal questionnaires, internet or e-mail questionnaires as well as telephone interviews,
and face-to-face interviews with a structured questionnaire (Creswell, Vicki & Clark, 2007).
In our Sri Lankan study, we use a structured survey method; the most commonly used
quantitative data collection technique. However, in order to achieve the target response rate and
minimise the problems associated with other survey methods, the survey was conducted via face-
to-face interviews with the aid of a structured questionnaire.
As mentioned by Kapuge & Smith (2007), scaled responses (structured questionnaires) do not
permit the receipt of detailed answers from the SMEs respondents, and therefore it might be
necessary to address this in subsequent follow-up interviews. Bryman and Bell (2007) confirm
this idea by pointing out that quantitative research along with its epistemological and ontological
foundations has been criticised over the years. Therefore, in addition to scaled or quantitative
data collection method, another qualitative method is needed in contemporary social research in
order to gather detailed answers from respondents. Some scholars (for example Wijewardena, De
Zoysa, Fonseka, & Perera, 2004) have suggested in-depth case studies of individual firms to
investigate and explore SMEs related issues. Following this suggestion, case study method is
used in many SMEs research projects in recent years (e.g. Sharma, & Bhagwat 2006; Huang,
2009).
Yin (1984, p. 23) defines the case study research method as an empirical inquiry that
investigates a contemporary phenomenon within its real-life context; when the boundaries
between the phenomenon and its context are not clearly evident; and in which multiple sources
of evidence are used. However, using case studies for research purposes remains one of the
most challenging methods in all social science endeavours. According to Yin (2009), well-
designed case studies help researchers to collect detailed information enabling more reliable
outcomes. In our study, eight firms are selected from the surveyed sample in the study and these
are used as the focus for the eight case studies. The information from these case studies are based
on the in-depth interviews conducted.
In an our attempt to minimise the distance between the researchers and the participants and in
consideration of the identified macro environmental factors, we have determined that face-to-
face interviews based survey and in-depth interview based case studies methods are the two most
effective methods to capture relevant information to enhance the validity and reliability of the
study. As a result, these two methods are successfully employed to investigate the management
practices of the Sri Lankan SMEs particularly in the manufacturing sector.
As noted in the literature review (also see Table 1), when traditional research techniques such as
mail surveys or very latest methods such as online surveys are used, only 30% response rate or
less in SMEs related research projects in the South Asian context are achieved. Using these
methods, there is no opportunity to check whether the respondents have understood the question
properly or whether the information provided is correct. Therefore the proposed methodology
and methods based on the Sri Lankan experience would help future researchers to gain more
valid information.
Finally, although some researchers argue that mixed methods research approach is time
consuming (Wood, Daly, Miller, & Roper, 1998), our Sri Lankan research experience suggest
that face-to face surveys help in establishing good rapport with the intended respondents who are
more willing to introduce other prospective participants for our survey as well as our case
studies. As such, we are able to conduct our data collection for both the quantitative and
qualitative analysis fairly quickly. It should, however, important to ensure that thorough
preparation is done in designing the structured and semi-structured questionnaire for both the
survey and in-depth interviews. The solicited answers can only be as good as the questions
asked. Having a good question guide and utilising sound interviewing skills are important pre-
requisites in conducting sound research.
Conclusion
A vibrant SME sector plays a pivotal role in the growth of South Asian economies. It is no
wonder that SMEs and SMEs related research projects have proliferated in the past decade or so.
Given this, it is important that research on this sector is conducted at a high level to gain more
benefits for the sector as well as economies. South Asian SMEs are faced with similar macro
environmental factors and as such, they have many similar characteristics and attributes. For
example, the educational background of the majority of small business entrepreneurs is at a very
basic level. This low level of education together with their socio-cultural behaviour and their
limited exposure to technology can act as a barrier to their willingness to provide correct and
reliable information to prospective researchers. Therefore in SMEs related research projects, it is
important that the methodology and methods are designed to minimise the possible negative
impacts of the participants lack of education, technological illiteracy and socio-cultural
behaviours, among others. The aim of this paper is to suggest appropriate research methods that
can help to overcome these possible barriers in order to capture more valid and reliable data from
target respondents.
As shown in our Sri Lankan research experience, developing good rapport and minimising the
distance between the researchers and the intended participants help to increase the response rate
and the quality of the data. Despite the inherent attributes among the Sri Lankan entrepreneurs,
they are very hospitable by nature. Since the literature suggests that many of these inherent
qualities are also common in the South Asian region and, by extension, among the South Asian
entrepreneurs, it appeals to intuition that our Sri Lankan SMEs related research experience can
be applied to the other neighbouring countries in the region.
Reference
Abdullah, M. A., & bin Bakar, M. I. (2000). Small and Medium Enterprise in Asian Pacific
Countries. Vol. 2: Linkages and policy support, Nova Science Publishers Inc, Huntington,
NY.
Agarwal, S.P. (2006). Technology Capacity Building of SMEs: Leveraging International
Networks and Resources. A paper presented in the workshop organised by United Nations
Economic and Social Commission for Asia and Pacific. Dec 21-22.
Agarwal, P. (2008). Privatisation and internationalisation of Higher Education in the Countries
of South Asia: An Empirical Analysis. Indian Council for Research on International Economic
Relations, New Delhi.
Amaratunge, S. (2003). Role of Small Industries in Economic Development of Sri Lanka: A
Quantitative Aspect. First International Symposium on Business Management of Developing
Countries, Faculty of Management Studies and Commerce, Sri Jayewardenepura University, Sri
Lanka.
Bala Subrahmanya, M.H. (2005). SMEs in India: Will they be able to join Global Chains?. The
Chartered Accountant, (September), 421-427.
Bryman, A. (2008). Social Research Methodology. Oxford University Press Inc., New York.
Bryman, A., & Bell,S . (2007). Business Research Methods, Oxford University Press, Oxford.
Ching- Wei, H. (2006). IPod Fever: An Exploratory Study of Negative Symbolic
Consumption
in MP3 Player Market. A dissertation nottingham.ac.uk/498/1/MA06lixcwh2.pdf (online
accessed on 20th March 2011).
Collis, J., & Hussey, R. (2009). Business Research 3rd edn. Palgrave Macmillan UK.
Cooray, M.N.R.,& De Silva, K.R. (2007). Facilitating the development of SMEs of Sri Lanka
through sustainable consumption and production. http://www.ncpcsrilanka.org/Rountable
(accessed on 28th November 2008)
Creswell, J.W. (2003). Research Design: Qualitative, Quantitative, and Mixed Methods
Approaches, 2nd edn. Sage, Thousand Oaks, CA.
Creswell, J.W., Vicki, L., & Clark, P. (2007). Designing and Conducting Mixed Methods
Research Sage, Thousand Oaks, CA.
Curran, J., & Blackburn, R.A. (2001). Researching the small enterprise. London: Sage
Publications.
Dash, K.C. (1996). Political Economy of Regional Cooperation in South Asia. Pacific Affairs,
69(2), 185-209.
Davidson, P. & Griffin, R.W. (2003) Management: An Australian Perspective (2nd Edn.), John
Wiley & Sons, Brisbane, Australia.
Denzin, N. (1978). The Research Act: A Theoretical Introduction to Sociological Methods.
New York: Adline Publishing Company
Denzin, N.K., & Lincoln, Y.S. (2000). Introduction: The Discipline and Practice of
Qualitative Research, Denzin, N.K & Lincoln, Y.S. (Eds.), Handbook of qualitative
Research, 2nd Ed., pp.1-28, Thousand Oaks, CA: Sage Publications.
Deshamukh, S.G. (2006). Strategy development by Indian SMEs in plastic sector: an empirical
study.
Singapore Management Review.http://www.allbusiness.com/sector-92-
publicadministration/national/1182284-1.html (accessed on 2nd December 2010).
Dodd, S. & Patra, E. (2000). National Differences in Entrepreneurial Networking, Working
Paper, The American College of Greece.
Dzisi, S. (2008). Women Entrepreneurs in Small and Medium Enterprises in Ghana. Doctoral
Dissertation Thesis, AGSE, Swinburne University of Technology, Melbourne.
Easterby-Smith, M., Thorpe, R., & Lowe, A. (1991). Management Research: An Introduction,
London, Sage.
Economic Survey of Pakistan (2008-09). www.pro-pakistan.com/.../download-economic
surveyof-pakistan-2008-09/(accessed on 1st February 2010).
Fairoz, F.M., Hirobumi, T., &Tanaka, Y. (2010). Innovativeness and Small Business
Performance of Southern Province of Sri Lanka, The Asian Conference on the Social Sciences
official Proceedings,1414-1426.
Gamage, A. S. (2003). Small and Medium Enterprise Development in Sri Lanka: A Review.
Green, P. (2002). Naturalistic Inquiry: A Method for Transforming Curiosity into Active
Inquiry in P Green, (ed.) Slices of life: Qualitative Research Snapshots, RMIT University
Press, Melbourne.
Hill, J. & McGowan, P. (1999). Small business and enterprise development: questions about
research methodology. International Journal of Entrepreneurial Behavior & Research, 5 (1),
5-18.
Huang, Xueli. (2009). Strategic decision making in Chinese SMEs. Chainese Management
Studies. 3 (2), 87-101