The research design is an essential tool as it shapes the research methodology. The research design is a tool that provides the framework that the researcher uses to collect data, sort the data, analyse the data, interpret and present information that gives solutions to research problems (Bryman and Bell, 2007). It is the plan that guides the researcher on how to find
44 solutions to a research problem, how to achieve objectives, how to identify data sources, how to collect data as well as identifying constraints and deal with ethical issues (Saunders, Lewis and Thornhill, 2009). There are five types of designs namely comparative design, experimental design, case study design, cross-sectional or social survey design and longitudinal design (Bryman and Bell, 2007). A case study research design was used to carry out research in FBC Holdings Limited.
3.3.1 RESEARCH ONION
The research onion by Saunders, Lewis and Thornhill (2009) attempts to assist the researcher in understanding the various research philosophies and approaches by categorising the research process according to research philosophies, research strategies, research approaches, research choices, time horizons, techniques and procedures used in the research process.
These are as shown in figure 3.1.
Figure 3.1 The Research Onion
Adopted from Saunders, Lewis and Thornhill (2009).
45 From the research onion in figure 3.1, it is clear that the study is guided by the Positivist Paradigm because the researcher used a survey method to collect data about e-commerce from FBC Holdings Limited. The study will be deductive given that the concepts surrounding the study are well developed.
A case study research strategy was used because the research focused on FBC. The research methodology was predominantly quantitative in nature.
The study followed a cross-sectional design because quantitative and qualitative data about e-commerce was collected from respondents with 14 departments in FBC.
3.3.2 Research Purpose
A good research should have an aim, purpose or rationale so as to achieve the set objectives. There are mainly three types of classifications of research purposes, which are exploratory, descriptive and explanatory although a researcher can use any combination of the three classifications depending on the nature of the research (Saunders et al., 2009). The research purpose for this study was predominantly descriptive as well as explanatory in nature.
According to Saunders et al. (2009) this is known as a descripto-explanatory study. This is because the researcher sought to describe the trends that have been happening at FBC since the dollarization of the economy. While many banking institutions aggressively advertise e-commerce products such as emali by Tetrad, cell card by Kingdom (AfrAsia Kingdom), visa cards by Barclays and CBZ Bank, MasterCard by MetBank, FBC and Kingdom as well as automated teller machines, internet banking and mobile banking this research sought to explain whether electronic banking products and services contributed to profitability of FBC Holdings Limited.
Robson (2002) argued that the rationale for descriptive research is to show a precise profile of situations, objects, subjects, events, phenomena or situations. This study sought to describe how the adoption of the e-commerce driven strategy by FBC Holdings Limited has contributed towards the profitability, which seemed to be on an increasing trend. Salkind (2012) also suggests that descriptive research helps the researcher in describing the
46 characteristic features of an existing phenomenon as well as in trying to understand how current events relate to other factors. A combination of descriptive and explanatory research were used to investigate the impact of e-commerce on the profitability of FBC Holdings Limited. This combination was also essential in data evaluation and fusion of ideas.
An explanatory study is a research study that establishes causal relationships among various factors (Saunders et al, 2009). The researcher studied why there was an increase in profitability after the adoption of an e-commerce driven business model by FBC Holdings Limited, and came up with an explanation about the correlation amongst variables such as increase in competitiveness and improvements in the ICT sector. Similarly the researcher explained the extent to which the adoption of electronic commerce contributed towards the fees, commissions and profitability of FBC using the results from the survey conducted.
3.3.3 RESEARCH APPROACHES
Saunders et al. (2009) identified two major research approaches namely the inductive approach as well as the deductive approach. The research approach for this research project was more inclined to the deductive approach. This was because of the nature of the research, which required the researcher to study literature about e-commerce first before coming up with hypotheses, collecting data within FBC and examining the collected data and analysed data using SPSS and Excel in order to come up with conclusions and recommendations. Saunders et al. (2009) argues against the issue that the deductive approach is more biased towards positivism whilst the inductive approach is more inclined to interpretivism. The current research approach was mostly deductive in nature whilst the philosophy was positivism.
3.3.4 Deductive Approach
This approach involves first identifying and developing a theoretical or conceptual framework and ideas that are then subsequently tested through the use of research data (Saunders et al., 2009). Bryman and Bell (2007) suggest that this approach involves the researcher deducing hypotheses on the basis of what is known about a particular domain and theoretical
47 considerations that subsequently subject the hypotheses to empirical scrutiny.
The research was conducted in such a way that a proposition about the impact of e-commerce on profitability of FBC was made after noticing improvements in profitability. Literature about e-commerce was researched in relation to the research question and research objectives.
3.3.5 RESEARCH STRATEGY
A research strategy refers to a plan of action of how the researcher will go about the process of trying to find answers to research questions (Saunders et al. (2009). The main types of research strategies include case studies, surveys, experiments, grounded theory, ethnography, archival research and action research. The research was mainly focused on a single organisation, FBC Holdings Limited; hence a case study research strategy was adopted.
3.3.6 Case Study Research Strategy
Yin (2009) defined a case study as a pragmatic inquiry that probes an existing phenomenon in depth and within its actual context, particularly in cases where the distinction between the phenomenon and context is not clear-cut. A case study may also be referred to as the method used to study an individual or an institution in a unique setting or situation intensely and in a detailed manner possible (Salkind, 2012). This research used a single case study as it focused on how the adoption of the e-commerce driven strategy has impacted on the profitability of FBC Holdings Limited.
A single case study design was more appropriate because the research problem is unique and peculiar to FBC (Saunders et al., 2009). FBC adopted an e-commerce driven strategy as its main business model in order to reduce costs, improve competitiveness and increase profitability. This research used a single case study design to come up with conclusions and recommendations that may help FBC to evaluate the e-commerce driven strategies in light of profitability and competitiveness. The e-commerce strategy under study was peculiar to FBC.
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