CHAPTER 3: RESEARCH DESIGN
3.4 Research Methodology
Research is commonly regarded as a technical process of finding information that enhances the researcher‟s knowledge. According to Bryman and Bell (2007), research design pro- vides a structure required to collect and analyse data. The nature of the research question determines the research methodology that would be appropriate.
This study focused on a single organisation, following a combination of exploratory and case study approach. The case study approach entails the detailed and intensive analysis of a single case, such as a single organisation, location, person or single event (Bryman and Bell, 2007), whilst the exploratory approach as defined by Yin (2003), is interpretative in nature and will enable the exploration of findings in an inductive manner in order to build a more robust, strategic framework, offering a better understanding with respect to the im- pact of pay increases on company performance. Exploratory research is thus a method of
“finding out what is happening and to seek new insights” (Lewis et al, 2003: 96).
Page | 82 The case study method is one of many exploratory research techniques that can be used to obtain information and knowledge from one particular situation. It is best put by Yin (2003:7) who defined the case study approach as a research methodology which encom- passes studying a specific occurrence within its actual setting utilising numerous sources of evidence. The case study approach is thus used where one wants to cover a contextual con- dition, which is the case in this study. A case study research design is appropriate because it is focussed on one company and the survey data collection technique is preferred to compute the “what” questions which are central to this study because it is suited for the
“what” question (Yin, 2003:6).
For the purpose of this study, the use of multi-methods to gather data was adopted, ena- bling triangulation to take place. Triangulation involves the utilisation of disparate data gathering techniques within the same research project with a view to ascertaining whether the data are telling what one think they are telling (Leedy and Ormrod, 2005; Saunders, Lewis & Thornhill, 2003:99).
The advantage of triangulation is that it affords the researcher more than one method of investigating or gathering data with the eventual hope that these multiple sources of data will all support the problem under investigation (Leedy and Ormrod, 2005). The use of tri- angulation will also help to overcome the potential problems associated with research reli- ability, bias, rigour and validity (Yin, 2003). Further statistical analysis allow for opportu- nities to gain richer insight as to whether a correlation exist between participants‟ per- ceived impact of increases on company performance and actual corporate performance.
Yin (2003) suggests that the major strength of case study research design lies in the oppor- tunity to use many different sources of data. It allows for one to cancel out the limitations of one method through utilisation of other methods to cross-check the findings (Bryman and Bell, 2007: 59). This has both epistemological and ontological importance on the re- search outcome.
The triangulated research model that was adopted comprised of two parts, Part 1 being the Primary Data study and Part 2 being the Secondary Data study.
Page | 83 3.4.1 Part 1: Primary Data Study
The quantitative approach was adopted, making use of a self-administered online survey in order to determine factors that drive pay increases and their impact on corporate perfor- mance in the Namibian Ports Authority.
The research variables for the primary data study were defined as follows:
Primary independent variable: “perceived pay increase in remuneration components”
Secondary independent variable: “perceived pay increase drivers”
Dependent variable: “perceived impact on corporate performance”
Both variables were operationalized by listing pay increase drivers, remuneration package components and gauging the extent of both the increase and impact via a five-point ordinal likert scale on a continuum of no extent to a very large extent and extremely negative im- pact to extremely positive impact respectively. All major variables were obtained through a comprehensive review of the literature.
3.4.2 Part 2: Secondary Data Study
The quantitative approach was also adopted, but making use of the company‟s annual re- ports and payroll data in order to determine the actual increases granted in Namport as well as the actual company performance over the past three years, so as to quantify the impact of pay increases on Namport‟s corporate performance. A financial analysis of the second- ary data was specifically adopted in order to cross-check the findings.
The major variables for the secondary data study were defined as follows:
Primary independent variable: “remuneration increase”
Dependent variable: “corporate performance”
All variables were obtained through a comprehensive review of the company‟s annual re- ports and payroll data for the past three years and were and operationalized through de-
Page | 84 scriptive statistics and financial analysis of quantitative measures / key performance indi- cators.
Corporate performance is determined through the use of internal (accounting) and external (market) measures. Although researchers in the remuneration field generally argue that ex- ternal measures are in many ways superior to internal (accounting) measures (Velleman, 1996), this study shall only focus on internal measures. This is accounted for by the fact that external measures are inappropriate for Namport given that the company is not listed.
The following internal measures were used to determine the extent of Namport‟s corporate performance over the past three years:
(a) Profitability ratios: Revenue growth; net profit growth; Gross Profit Margin, Operat- ing Profit Margin; Net Profit Margin; Return on Investment (ROI); Return on Equity (ROE); Return on total assets and Return on Capital
(b) Liquidity ratios: Current ratio
(c) Solvency Ratios: Debt Ratio; Debt Equity ratio and Interest Coverage
(d) Operational Efficiency (Activity) Ratios: Total Asset Turnover; Fixed Asset Turno- ver and Equity Turnover
(e) Growth Ratios: Sustainable Growth Rate and Retention Rate