Chapter 2 – research methodology Essay
Chapter 2 – research methodology
Aim and Objectives. The aim of the research is to undertake an analysis of the Chinese banking industry systems, processes and products through a case study of Bank of China and HSBC, London. Objectives. The research objectives are as follows :- 1. Assess the overall state of the Chinese banking systems, processes and products. 2. Evaluate implementation of systems, practices and processes of the modern banking industry. 3. Evaluate areas for further growth and development by Chinese banks. This chapter aims to illustrate the methodology of the research.
It describes; common research philosophies, research approaches and the research strategy. Veal (2000) has described research as “systematic and careful inquiry and search for the truth” or an investigation into a subject to discover facts. What is Research? Research is a well defined area of study of a particular problem or issue in its totality or in specific to a particular area of concern. (Veal, 2000). Research should entail the following characteristics, which will be kept in mind by the author while evaluating the subject (Morgan, 2000):- (a) Systematic collection of data. (b) Analytical interpretation of data.
(c) Developing a theory and conclusion. The Research Philosophy Modern research has three models; these are positivism, realism and interpretivism. (Cantrell, D. C. (n. d. )). Positivism Positivism entails a scientific stance for research and interpretation of data. Thus only those phenomenon which are observable and measurable are regarded as knowledge. Positivists maintain an independent and objective stance. (Cantrell, D. C. (n. d. )). Phenomenology (Interpretivism) This is opposite of the positivistic approach and is known as interpretivism or phenomenology. (Cantrell, D. C. (n. d. )).
Though positivistic and interpretivism paradigm are two extremes, most researchers use elements of both practices, which is implied in realism. This approach is considered the most appropriate for the project as the writer will be carrying out a comparative analysis of the Chinese and the British Banking system with a case study of the Bank of China vis a vis HSBC, London. Since banking systems are not just financial and economic systems but involve social issues in the context of a broader socio-political environment, a realistic approach to research is considered the most suitable.
Research Approach There are two strands, which can be adopted, deductive and inductive. The deductive approach is used when a hypothesis is developed and the research design has to test that hypothesis. The deductive approach is amplified by means of a diagram at Figure 1 (Trochim, 2000). – Figure 1 On the other hand the inductive approach is related to qualitative data, as a sample used in a case study as contrasting to the large quantum of data which is used in the deductive approach. A theory is said to be developed from data collection in this approach.
A diagram showing the inductive approach is at Figure 2 below (Trochim, 2000):-Figure 2 The dynamic nature of the research will entail application of both approaches by the author as in practice almost all the research projects have elements of both the approaches in view of the importance of including both qualitative and quantitative findings.
Research Data In general data contains information collected and recorded in note books, questionnaires, audiotapes, videotapes, models, photographs, films and test responses. (Veal, 2000). Research data in this case will be the response of selected customers and managers of Bank of China and HSBC, London. based on a questionnaire.