CHAPTER 4: RESEARCH METHODOLOGY
4.1 Research Method
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CHAPTER 4: RESEARCH METHODOLOGY
4.1 Research Method
This study is the result of a research effort focused on IT-enabled collaboration and proactivity using literature and dictionary reviews. These reviews assisted with the development of research questions and a research framework, which includes several hypotheses. To explore the proposed research model in more detail, we conducted a case study that examines the causes and effects in the analysis using detailed interviews. Our completed research roadmap is shown in Figure 4-1.
Figure 4-1-The Research Roadmap
Find some possible interesting factors about IT-enabled collaboration and proactivity in the relevant literature and
dictionaries
Identify research questions and develop a research framework with hypotheses performance
Analyze cases
Framework assessment and verification Identify cases as research subjects
Interview case companies to collect data
Research conclusion and discussion
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4.2 Case Background
The tourism and leisure industry has emerged because individuals regard travel as a necessary component of their lifestyle, rather than a luxury (Kandampully, 2000).
According to the literature, the tourism and leisure industry is largely dominated by SME organizations (Gammack et al., 2004; Philips and Louvieris, 2005). Because of resource limitations within these SMEs, it is difficult to predict or realize the future of the tourism and leisure industry market and implement changes to meet potential customer expectations.
IT-enabled collaboration platforms such as blogs, guest books, and social networks are integrated service systems that enable SMEs to deliver better service quality by utilizing two significant features: (1) the formation of an SME network alliance with business partners and, (2) travel information or recommendations for customers’ tour planning. Using these platforms, SMEs are able to share information related to business operations and analyze cooperative opportunities with their
potential SME partners; customers have the ability to share comments with the public and create customized trips in conjunction with the SME. In summary, the platforms are typical in IT-enabled collaboration for both SME partners and their customers.
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A multiple-case study is used to test our research framework developed in the last chapter. The Mt. Pillow Leisure Agricultural Area in Yilan County, where is located on the northern-east part of Taiwan, was selected as our research participant.
Several firms were contacted; eight agreed to participate in the study with the assurance that all interview content would remain anonymous. The firms, which all belong to SMEs in this leisure agricultural area, include bed and breakfasts (B&B), farms, restaurants, and orchards. For identification purposes, we refer to the eight companies as firms A1 to A8. A summary description is presented in Table 4-1.
Table 4-1 Description of the Organizations in the Sample
Firm
Kind Major Products & Services IT-enabled collaboration involvedA1
B&B Accommodations Some homemade products
Blog
Guest book
A2
Orchard Fruit Adoption of trees
DIY experience for children
Drama & commercial filming(CF) shooting
Guest book
A5
B&B Accommodations DIY experience in backyard orchard
White champak -related product
Blog
A8
Farm Bamboo shoot dishes Bamboo shoot DIY experience
Blog
Firm A1 is a B&B that was built in 2003 in Yuanshan Township, Yilan County.
The SME provides customers with comfortable accommodations and homemade products. It has two members, and for this study, the owner was interviewed. She uses
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Facebook, a blog, and a guest book to communicate with partners and customers. The owner of A1 has run her business very actively in the past, but recently, she has been focusing less on operations and more on her other responsibilities. In addition, her B&B is not yet an officially licensed business.
Firm A2 is an orchard that primarily cultivates pears. It offers customers many types of pears and fruits, the adoption of fruit trees, and “do it yourself (DIY)”
activities. The host of A2 has accounts in blog, Facebook, and a guest book, but he seldom uses these tools due to his lack of computer skills.
Firm A3 is a restaurant and snack factory owned and operated by the former host of a five-star hotel’s restaurant. He offers Chinese-themed snacks to his customers and also supplies nearby restaurants with meals. The DIY activities offered by A3 are also popular with customers. The owner recently considered expansion. Although the host spends most of his time making snacks, he expressed that he may concentrate more on collaboration at a later date.
Firm A4 is the most famous and popular B&B in our study because the Taiwanese celebrities stay here when in many Taiwanese trendy dramas and
advertisements. It is also popular for its first-class facilities and beautiful views of Mt.
Pillow. The interactions and message exchanges between staff and customers on the B&B’s Facebook and the official guest book add to its high visibility and revenue.
Firm A5 is a B&B owned by an enthusiastic retired couple. The beautiful setting of the B&B, combined with its comfortable accommodations, helps it retain loyal customers. This couple uses Facebook, a blog, and a guest book to communicate with their customers and partners; they utilize feedback for business improvement.
Firm A6 is another B&B; it has outstanding views and is located at the top of Mt.
Pillow. The host occasionally uses Facebook and email to interact with customers and partners; however, her lack of IT skills prevents her from more advanced
collaboration using these platforms.
Firm A7 is a farm that primarily plants “white champak”, a type of flower belonging to the magnolia family, which has a pleasant smell. The farm sells the flowers and flower-related products, such as herbal tea. The original host of this farm had physical issues that made continuous operation difficult; therefore, the farm is now rented to an individual who was interviewed for this study. The new holder has
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struggled with promotion of the farm since he took control; he utilizes Facebook and a blog to interact with people to retain business.
Firm A8 is a famous farm offering bamboo shoot dishes and related DIY experiences. The primary host uses an official blog to communicate with customers.
She does not consider using other platforms for more advanced collaboration because the firm is currently successful.
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4.2.2 Data CollectionThe primary data sources were face-to-face interviews conducted in April and May of 2012. Each interview was approximately 60 minutes. All of the interviews were tape recorded, and all sessions were transcribed before the data were analyzed.
We summarized the major findings from all interviews; the summaries were verified by the participants to enhance the validity of their answers (see Appendix C for details). Furthermore, to ensure the construct validity, internal validity, external validity and reliability, we applied Yin’s (2003) recommended tactics to our case studies, as Table 4-2.
Table 4-2 Validities and Reliability Tests Tests Case Study Tactic and the phase
in which tactic occurs (Yin, 2003) Implementation in this study
Construct validity
Use multiple sources of evidence in the data collection phase
The primary data sources were collected through several face-to-face interviews. Other information was gathered from each firm’s official blog, personal page in social networks, or website.
Internal validity
Conduct explanation-building in the data analysis phase
Regular and iterative work was conducted to examine the framework application and at the same time lead to a cross-case analysis in our multiple-case study.
External validity
Use replication logic in multiple-case studies in the research design phase
A theoretical framework was developed to process the eight case studies (see Figure 3-1). Replication logic was used as the theoretical framework and later became the vehicle for generalizing to new cases.
Reliability Use case-study protocol in the data collection phase
A semi-structured interview guide was used for all the interviews.
Several open-format questions were included in the interview guide to allow the participants flexibility in their responses.
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CHAPTER 5: RESEARCH ANALYSIS AND DISCUSSION
In this section we will analyze these cases according to the research framework proposed in Chapter 3.
5.1 Case Results
IT-enabled collaboration
IT-enabled collaboration with partners. IT-enabled collaboration with partners is
defined as the degree of SME interactions using IT platforms. The case companies were categorized as having low, medium, or high rankings for IT-enabledcollaboration if they had the following respective traits: no interaction or low interaction with other SMEs using IT platforms; basic interactions with SMEs using IT platforms; or coordination with partners using IT platforms.
Through our interviews and analyses, it was determined that A2, A3, A6, and A8 do not interact with other SMEs through IT, but they do have face-to-face interactions or communicate using phone calls. “We (SMEs) exchange information with our
partners, for example, we talk about awkward customers. However, we always communicate face-to-face; we seldom go through the Internet,” stated the owner of
A6. In contrast, the other four companies (A1, A4, A5 and A7) have basic interactions, such as leaving messages and sharing pictures with other SMEs via Facebook, to maintain relationships. For instance, “I sometimes interact with other SMEs onFacebook. I give them a ‘Like’ or leave messages, just like what we used to do with our friends,” stated the owner of A5. Based on our interviews, none of these scenarios
achieves high levels of IT-enabled collaboration.IT-enabled collaboration with customers. We define IT-enabled collaboration
platforms, such as social network websites, blogs, and guest books, as common integrated service systems that allow firms to communicate with their existing and potential customers. The company owners work together with customers to generate new ideas. Hence, to determine the co-creation of value through IT platforms, the frequency of each firm’s communication with customers using IT-enabledcollaboration was measured.
The first case, firm A1, had a special situation: the holder had changed her business approach. Previously, she had communicated with her customers diligently and actively. “In the past, I often interacted with customers. For example, I took some
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photos for my customers, uploaded these to my blog, and also emailed them,” the
B&B holder said. She often communicated with customers using the firm’s guest book and sent greeting cards for Chinese New Year or other festivals. However, because of her personal situation, she no longer focuses on IT-enabled collaboration.This special case therefore received an average ranking.
The other three companies (A2, A5, and A7) showed similar characteristics that produce medium frequency interactions. They occasionally interact with their
customers and feel that the IT-enabled collaboration platforms work well. “Just like
the guest book, it really works. If someone tells us that there are too many mosquitoes, I need to handle the situation, or if someone says that the floor is dirty, I will sweep immediately,” the holder of A7 said. Because of their medium frequency of
interactions with customers using IT platforms, we ranked these three cases as medium.
Firms A3, A6, and A8 rarely use information technology to support their business operations and minimally utilize collaboration opportunities on IT-enabled platforms.
In contrast, company A4 ranked at a high level for IT-enabled collaboration with customers due to its daily Internet interactions using various platforms. The owner of A4 regards the different platforms not only as a valuable way to promote his business but also as a way to help him learn more about his customers. This is a model
example of utilizing information technology to communicate with customers.
Proactivity
Foresight. Instead of gazing into a crystal ball to just guess the future, the capability
of foresight allows the organization to focus on possible future scenarios and then make decisions to create the best future for the company (Horton, 1999). To understand the level of foresight at each firm, we measured each firm’s ability to predict possible trends of both customers and competitors by examining its collaboration on IT-enabled platforms.The three companies (A1, A4, and A5) that ranked as medium on foresight have the ability to examine industry trends and the traits of their potential customers. For example, the owner of A1 found that the introduction of smart phones and tablet personal computers has changed the behaviors of customers. She predicts that televisions will not be needed at hotels or B&Bs because of new information technologies. The owner of A4 simultaneously got the trend of watching trendy dramas online and hopes to translate this activity into profit for his organization by
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advertising that the dramas were filmed on site. “A vast number of people watch
dramas on the Internet; however, people may not know that the dramas were filmed in my house,” he said.
Aside from examining market trends and the characteristics of customers, A7 observes its competitors and business partners to see how they utilize IT-enabled collaboration. “They sometimes promote themselves by accident,” the holder of A7 commented. “For example, A1 is in our area. She often takes customers on outings,
and if these are successful, I can plan similar outings in the future.” He further
realizes that future trends concerning travel, as well as the potential to enticebackpackers, may contribute to his future business opportunities owed to IT-enabled platforms. We ranked A7 as a company with a high market foresight capability.
After carefully evaluating the interviews, we ranked the rest of the cases at low levels for foresight capability. A2 and A6 have the capability to find potential traits in customers or partners, but not in the local market, and A3 and A8 indicate no interest in predicting the future through IT-enabled interactions.
Desire for change. To measure each firm’s desire for change, we asked all eight firms
whether they were willing to adopt changes after utilizing IT-enabled collaborations.Only two companies, A5 and A7, responded positively. The other firms had no desire to make changes after using IT-enabled collaboration. For instance, the owner of A4 stated that “the information platform is just a convenient and accurate way to provide
my information online for customer’s reference; therefore, I won’t change my business operations.” He views the information platform as a bridge to connect customers with
the firm and to promote the firm to customers. A2 has received constructive criticism through IT-enabled collaboration, but the owner is unwilling to improve based on those comments. Moreover, A3 has a strong desire to change his business, and he has a succinct plan for the change; nevertheless, his high desire for change is derived from face-to-face contact and his knowledge of the industry rather than IT-enabledcollaboration. Therefore, we regarded A3 as a company with no desire for change related to IT-enabled platforms.
Readiness for change. We define readiness for change as the degree to which the
firm is ready to implement change or innovations after IT-enabled collaboration has been measured. A company with a high readiness to initiate change must be willing to use IT-enabled collaboration and initiate changes via IT-enabled platforms.‧ 國
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Three companies, A4, A5, and A7, ranked as having a high readiness for change. The owner of A4 uses the Internet daily to interact with customers and to analyze customer behavior patterns utilizing various platforms; he ranks high on the readiness to change scale. A5 and A7 also ranked high: both analyze IT-enabled collaboration when it occurs and then initiate changes based on their interactions.
A6 is the only firm that ranked as medium regarding readiness for change. The owner of A6 stated, “Unlike the others, I’ll understand when something enhances my
business.” She has the ability to utilize IT-enabled collaborations and learn from the
results; however, she is not adept at making changes within IT-enabled platforms. For this reason we gave the case a medium ranking.The other cases, A1, A2, A3, and A8, rank as having a low readiness for change. They have similar characteristics and either have difficulty with using technology devices or have issues with understanding how to initiate change. Hence, their rankings of readiness for change were low.
SME performance
We assessed the SMEs' performance based on growth in income, relationships with customers, and relationships with partners. Accordingly, we ranked their performance as "Low", "Low-to-Medium", "Medium", or "High". The interviews revealed that A1 increased its income by selling its product and had better
relationships with customers through interactions. A5 did not increase its income, but it has maintained good relationships with its partners and customers. The owner of A5 commented: “Through Facebook, I recognize some SMEs in other areas, and we
interact. Also, on Facebook, customers ask me to recommend restaurants for the Chinese New Year; afterwards, they thank me on Facebook because the ones I recommended are really good and cheap.”
A7 just started operating recently, so it only has good relationships with its partners. “I have a good relationship with some SMEs,” the holder of A7 said,
“Though I am not currently connected to their friends, I do try to add them as friends on Facebook.”
The other companies are either low or high in their performance rating,
representing two extremes. A4 has successfully reduced advertising costs, increased its income, and achieved an excellent relationship with customers and partners. “I use
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information technology to market my business for free. I also have 900 friends on
Facebook, both SMEs and customers; most of them are active friends. I think this type
of interaction is pretty good, not too commercial, but it unobtrusively promotes our
B&B,” the owner of A4 remarked. Unlike A4, the remaining four firms did not
achieve income growth or increase relationships with customers and partners. In summary, we ranked A4 at the highest level of performance; A1 and A5 at the medium level; A7 at the low-to-medium level; and A2, A3, A6 and A8 at the lowest level.‧
Table 5-1 Cross-case Analysis Results
Factor Item Definition / Evidence Result
A1 A2 A3 A4 A5 A6 A7 A8
Independent Variables IT-enabled collaboration with
partners
How extensively the firm communicates with other firms through IT-enabled collaboration.
Medium Low Low Medium Medium Low Medium Low
IT-enabled collaboration with
customers
The frequency of the firm’s communication with customers through IT-enabled collaboration.
Medium Medium Low High Medium Low Medium Low
Mediating Variables
Foresight The degree of the firm’s ability to predict the trends and the traits of its customers and competitors.
Medium Low Low Medium Medium Low High Low
Desire for change Yes/No answer that defines the firm’s willingness to adopt changes after IT-enabled collaboration.
No No No No Yes No Yes No
Readiness for change
The degree to which the firm is able to conceptualize and initiate innovation or changes after IT-enabled collaboration. partners and customers, and the maintenance of better and longer relationships with partners and customers.
Medium Medium Low High Medium Low
Low-to-Medium
Low
‧ 5.2 Cross-Case Analysis Results
In this section, we will verify each proposed hypothesis by examining the
relationships among the eight cases. As presented in our research framework, the three capabilities of proactivity, ‘foresight’, ‘desire for change’, and ‘readiness for change’, should be evaluated using the two types of IT-enabled collaboration and the SMEs’
performance. Figure 5-1 represents the results. The linear lines in Figure 5-1 are derived from the levels of each component using regression analysis.
We observed that with more IT-enabled collaborations with partners, the firm generates a higher foresight capability. The relationship between the desire for change and IT-enabled collaboration with partners can also be evaluated as positive, except in two special cases. The two cases ranked at a medium level for IT-enabled
collaboration with partners; however, their ‘desire for change’ capabilities were still ranked as low because of personal factors. The owner of the first case, A1, said that she is too tired to run the business; in other words, the firm faces a situation in which there is no willingness to change because of insufficient holder motivation rather than because of the impact of IT-enabled collaboration. Another case, A4, faces a similar situation; the owner resists his own belief on running business, so he is unwilling to initiate change even if he receives significant information via IT-enabled collaboration.
The cooperation mechanism using IT can be further proven as enhancing the
‘readiness for change’ capability. The only case with a non-standard result, A1,
presented no willingness, no confidence, and no readiness to initiate change; therefore, the company ranked low in the ‘readiness for change’ category even though it showed strong collaboration with its partners.
IT-enabled collaboration with customers has a positive effect on generating
‘foresight’, the ‘desire for change’, and ‘readiness for change’, with some exceptions.
As previously stated, the case of A1 involves a personal factor that inhibits both the willingness and the readiness of the owner to effect change. Similarly, the strong resistance of the owner of A4 supports his unwillingness to change. One exception is A2, whose owner has low willingness and low readiness to effect change. Although the owner of the firm occasionally collaborates with his customers on the Internet, he has developed no new ideas from the interactions owing to his low personal learning capability; he therefore lacks the two main capabilities of proactivity.
Finally, we evaluated the relationship between proactivity and the firms’
performance. It can be observed that the three capabilities of proactivity have a positive impact on performance, with some exceptions. The non-standard cases merit
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further examination. At a medium level of market foresight and a low level of desire for change, A4, with its high ranking on performance, is a special case. Its high frequency of communication with customers and its effective promotion of
advertisements, as well as the influence of well-loved trendy dramas, distinguished its performance from the other companies in the surrounding area; namely, the firm has
advertisements, as well as the influence of well-loved trendy dramas, distinguished its performance from the other companies in the surrounding area; namely, the firm has