Chapter 3: Research Methodology
This chapter presents the research methods and techniques used in this study to evaluate internationalization strategies for Turkish clothing industry to enter UK market. The chapter also presents previously used research methods on similar topic as well as the limitations of research method.
3.1 Research method
Evaluation of a subject area requires empirical, systematic and controlled method which may guide researcher at every step for successful achievement of the result. There are several research methods developed by scholars and researchers; however objectives and aim of the research are considered carefully to identify the complexities associated with the research. Careful selection of research methodology is suggested by Mitchell & Jolley (2012) which may be according to the research area.
This research aims to investigate the effectiveness of different entry and investment strategies to suggest an appropriate strategy for Turkish textile industry to capture market of UK. Every market has its own dynamics which are important to evaluate. Different strategies are compared and analysed to obtain a suitable entry and investment strategy for Turkish textile industry to penetrate in UK market.
3.2 Research approach
Kumar (2008) defines two main research approaches in business management and social sciences subjects: Qualitative and Quantitative research approach. The approach selected for the research is qualitative. Both quantitative and qualitative approach of research has own advantages and disadvantages along with relevance. Quantitative approach provides statistical data which can be measured and calculated. Derivation of result is also convenient in quantitative approach; however this research is descriptive type and data from different reports and resources shall be collected. Thus qualitative approach is more relevant to this research. With the help of qualitative approach, attitudes, behaviours and personal trait of consumers is obtained. Critical evaluation of current strategy of Turkish textile industry is also done and comparison of Turkish market and UK market is conducted to understand the relevance of current strategy of Turkish textile industry in UK market.
3.3 Research Types
Research type or design refers to “the overall strategy that you choose to integrate the different components of the study in a coherent and logical way, thereby, ensuring you will effectively address the research problem; it constitutes the blueprint for the collection, measurement, and analysis of data”. There are three main types of research in social sciences: exploratory, descriptive and explanatory (Mitchell & Jolley, 2012). The exploratory research involves research on subject area which is not clearly defined and data and information is collected to define the problem first. Descriptive research on the other hand, focuses on current and existing problem and issue and collect data and information to evaluate those issues. Lastly, the explanatory research type evaluates the relationship between variables for the study and explains how one variable affects the other by analyzing or manipulating the available or collected data and information. However evaluation of investment and entry strategy require describing of market dynamics against entry and investment strategies. Moreover, the study does not require manipulation of any data collected and just requires evaluation of collected secondary data regarding Turkish and UK textile industry and country trade dynamics. Thus descriptive research is suitable to carry this research, as it tends to describe accurate sketch of situations, people and persons against an opinion. Thus appropriate presentation of UK market against different internationalisation strategies may be possible.
There are three main types of descriptive methods that can be used for conducting studies: Case Study, Field Study, Laboratory experiment and Field experiment. The case study method refers to research method where “little knowledge is available regarding the sample firms or entities and focused study is conducted on that sample to obtain more information related to topic under study” (winter, 2010). The field study design refers to “research design where results obtained from investigation on certain fields can be generalized to larger population”. Field experiment and laboratory experiments are not valid for most of the studies in social sciences and economics as they require controlling involves variables along with data manipulation on field. The case study method is very advantageous for studies that involve variables or sample that is limited yet represent greater population. This study is therefore, a descriptive case study design where data and information collected is evaluated in light of previous theories and information collected from both economies.
3.4 Sample and Data collection
The study is a descriptive research aimed at evaluating the internationalization strategies for Turkish textile firms and their expansion in UK. The sample for the case study method in this study therefore, includes UK and Turkey economy and data collected is regarding various economic variables including GDP (%), employment in industry, Industry production, exports and imports, total trade, FDI inflows, and Textile (% of manufacturing). These important variables are evaluated in terms of challenegs that both economies face in their respective countries and opportunities that other country provides in terms of internationalization.
Research is normally conducted using two main types of data, primary data and secondary data; where primary data is first hand data collected by the researcher and secondary data is the data collected by other resources or available data. This research requires analysis of Turkish market and UK market which is not possible to be evaluated single headedly. Thus only secondary data shall be collected through reports, research of other scholars, market evaluation reports, market evaluation by authentic sources, etc. to observe market dynamics of Turkey and UK and also to observe entry and investment strategy adapted by Turkish textile industry. The main website for data collection includes the database of World Bank where all economic and financial variables are available. Moreover, authentic sources for collection of reports on textile industry in Turkey and UK are also included like Statista and Trading Economies.
Apart from data from industry, work and research of other scholars is also accessed and evaluated to understand the concept of internationalisation including theories of Institutionalist approach, Transaction and Resource based approaches, and Eclectic approach. Market analysis of other countries is also done to understand effects of current entry and investment strategy on consumers. Primary resources is not required or related so no primary data is collected in current case.
3.5 Definition of Variables
The main variables included in the study to evaluate industry and economic side of Turkey and UK include variables of Textile (% of manufacturing), GDP growth, Employment in industry as percentage of total employment, Trade (% of GDP), FDI net inflows. The definition for each variable as presented by World Bank (2016) is presented below.
Textile (% of manufacturing)
“Value added in manufacturing is the sum of gross output less the value of intermediate inputs used in production for industries classified in ISIC major division D. Textiles and clothing correspond to ISIC divisions 17-19” (World Bank database, 2016).
“Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates are based on constant 2005 U.S. dollars. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources” (World Bank database, 2016).
Employment in industry
“Employment is defined as persons of working age who were engaged in any activity to produce goods or provide services for pay or profit, whether at work during the reference period or not at work due to temporary absence from a job, or to working-time arrangement” (World Bank database, 2016).
“Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments” (World Bank database, 2016).
“Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy” (World Bank database, 2016).
The study critically evaluates the internationalization strategies adopted by Turkish textile firms in the past and UK market analysis using quantitative economic data. However, there are few limitations associated with the research method selected. Firstly, the study is mostly based on mixture of secondary research and data as well as past studies. The selection bias element is presented in this study as selection of articles and studies is on researcher discretion and therefore, bias might exists in using conclusions from studies. For this purpose as many studies from authentic resources are included in this study as possible to avoid this limitation. Secondly, the study is descriptive in nature and evaluates various perspectives of economy; however, the policy framework for textile or trade industry is not included in this study due to limited scope and thus, can affect validity of results.
Validity and reliability are two significant factors that are evaluated for each research study for measuring the effectiveness and accuracy of study. Bordens (2006) define validity as “a research measure that evaluates the effectiveness of research methods in presenting useable results”. Validity is both internal and external and this study is highly valid for not only textile industry participants in UK and Turkey, but also for policy makers and fashion industry participants. The validity of this study is maintained by using as much concrete data on industry and economy as possible to cover for the low validity of reliance on secondary studies. The reliability factor refers to “consistency of results using similar data or information”. Since this study involves evaluation of internationalization strategies of Turkish firms on basis of variety of models and theories present, the reliability cannot be ensured as each researcher can evaluate the strategies of Turkish textile firms from different perspective or approach. Berg and Lune (2014) define generalizability as “the extent to which findings from a study can be generalized to larger population belonging to similar industry”. The generalizability of this study is limited to the case study countries i.e. UK and Turkey and data and analysis of this study are not applicable to other countries and thus, generalizability of this study is low.