J
Ö N K Ö P I N GI
N T E R N A T I O N A LB
U S I N E S SS
C H O O LJÖNKÖPING UNIVERSITY
‘A Valuable Link’:
The Opportunities for Swedish SMEs by Incorporating
Diasporas into the Process of Internationalization
Master Thesis within
BUSINESS ADMINISTRATION
Authors: KSENIA STARTSEVA
VAIDA VYSNIAUSKAITE
Tutor: TOMAS MŰLLERN
Acknowledgements
We would like to express gratitude to professor Tomas Müllern, our master thesis tutor who deliberately guided us throughout this project, for his support, ideas and constructive comments, as well as for challenging us and urging to push the envelope.
We would also like to thank Quang Vinh Evans-Luong for his inspiration and help in pro-viding important information sources and our fellow students for their valuable remarks which made us improve our work.
Finally, we would like to express appreciation to our research respondents for their warm welcome and valuable time that they have devoted to us. Your contribution is of high value for us.
Jönköping, Sweden 2nd of June, 2009
Master thesis within Business Administration
Title: ‘A Valuable link’: the opportunities for Swedish SMEs by in-corporating Diasporas into the process of internationalization Authors: Ksenia Startseva
Vaida Vysniauskaite
Tutor: Tomas Müllern
Date: 2009-06-02
Subject terms: Knowledge-based economy, internationalization, Diaspora po-tential, employment in foreign countries, ‘brain circulation’, Swedish SMEs
Abstract
With the conditions of new economy such tendencies as internationalization of firms, mi-gration of high skilled workers, growing importance of the knowledge and others become relevant. Having these contextual matters in mind, the authors of this thesis identify the beneficial aspects that are related to Diasporas’ inclusion into the process of internationali-zation. In broad outline, this thesis is about the competitive advantage achieved by a firm which employs foreigners to work with the process of business expansion to foreigners` countries of origin. This competitive advantage is proved to manifest itself through the knowledge and competences embedded in those employed foreigners.
The purpose of this thesis is to answer ‘in what ways can Swedish SMEs benefit from Di-asporas’ inclusion into the process of internationalization?’ and thus fill the theoretical gap in the existent studies. In order to address the purpose of the research, a theoretical model which merges the research field of internationalization and Diaspora studies, considered the conditions of new economy, was constructed. With the help of this model, the role of Diasporas in the process of internationalization has been explored and explained.
For the empirical study, the qualitative method was applied and semi-structured interviews were conducted in five different Swedish SMEs. The interview guide, which was based on the theoretical model and on the main research objectives, was used when conducting in-terviews with a number of management positions fulfilling participants, as well as Diaspora. The results of an empirical study showed that Diasporas can be efficiently used for compa-ny’s expansion strategies and significantly benefit due to several reasons. First of all, fo-reigners, or Diasporas, can be considered as holding relevant knowledge base in regards to their home countries, such as language, culture, personal contacts, etc. At the same time, while staying in Sweden, they get to familiarize with the Swedish culture, social structures, and business opportunities, and establish diversified contacts. With regards to international business expansion, this knowledge of two-fold nature is proved to be highly valuable.
Table of Contents
1
Introduction ... 5
1.1 Problem ... 7 1.2 Purpose ... 7 1.3 Delimitations ... 8 1.4 Definitions ... 82
Methodology and Method ... 9
2.1 Research Philosophy ... 9
2.1.1 Interpretive research paradigm ... 12
2.1.2 Research approach: induction, deduction, or in between? ... 13
2.2 Research design ... 14 2.2.1 Research strategy ... 14 2.2.2 Qualitative researching ... 14 2.2.3 Research method ... 15 2.2.4 Data collection ... 17 2.2.5 Data analysis ... 22
2.2.6 Validity and Reliability ... 23
3
Frame of reference ... 25
3.1.1 Knowledge-based economy and knowledge-based theory ... 26
3.1.1.1 Shift in perceptions... 26
3.1.1.3 Knowledge and the competitive advantage of a firm ... 27
3.1.2 Internationalization of SMEs ... 30
3.1.2.1 Definition of Internationalization ... 30
3.1.2.2 Internationalization models and their relevance ... 31
3.1.2.3 Market economy model ... 32
3.1.2.4 Sources of “country specific” information... 33
3.1.2.5 The role of an intermediate as trust facilitator ... 34
3.1.3 Diasporas as links between two countries and between firms ... 35
3.1.3.1 The evolution of Diaspora studies ... 36
3.1.3.2 Diasporas in the context of home and receiving country ... 37
3.1.3.3 The potential of Diasporas related to business affairs ... 37
3.1.3.4 Why not employing? ... 39
3.2 Concluding remarks from the theory ... 41
4
Empirical findings ... 42
4.1.1 Establishing the contact ... 42
4.1.2 Incorporating Diasporas into the process of internationalization ... 48
4.1.3 Further/continuous utilization of Diasporas’ knowledge ... 59
4.2 The analysis of empirical findings ... 65
4.2.1 Establishing the contact ... 65
4.2.2 Potential possessed by Diasporas ... 67
4.2.3 The importance of personal contacts ... 69
4.2.4 The importance of trust ... 70
4.2.5 Further/Continuous utilization of Diasporas’ knowledge ... 71
5
Conclusions and implications for further research ... 76
References ... 78
Appendix 1 ... 83
Table of Figures
Figure 2.1 A visualization of our research methodology. Source: compiled by the authors based on Saunders et al. (2007, p. 102). ... 16 Figure 3.1 A primary visualization of our theoretical framework. Source: compiled by the
authors. ... 25 Figure 3.2 Organizational attributes: a comparison. Source: Bahrami (1992, p. 46). ... 29 Figure 3.3 Visualization of contextual matters introduced by the knowledge-based
economy. Source: compiled by the authors. ... 30 Figure 3.4 Model of internationalization of SMEs in market economies. Source: Dana et al. (2008, p. 751). ... 32 Figure 3.5 A complete visualization of our theoretical framework. Source: compiled by the authors. ... 41 Figure 4.1 General model of establishing the contact between Diasporas and SMEs.
Source: compiled by the authors. ... 65 Figure 4.2 The summary of potential possessed by Diasporas. Source: compiled by the
authors. ... 71 Figure 4.3 Basic decision-making with regards to further/continuous application of
foreigner engagement practice. Source: compiled by the authors. ... 73 Figure 4.4 Organizational structure transformation when practice is applied repeatedly
1
Introduction
In this chapter, we introduce the reader with the topic of this thesis. Here, we also state the problem that we are addressing and the purpose of this paper. In addition, delimitation and important definitions are pre-sented.
When explaining the economical transformations that have happened during several last decades, Castells (2000) adopts the term ‘new economy’ in order to define today’s econom-ic situation. Castells (2000) focuses on the advent of information technologies wheconom-ich are considered to give rise to the network society, and the increasing role of knowledge. In-formation and communication technologies are given considerable attention because they are believed to have influenced the formation of the new economy. At the same time, to-gether with the rise of information and communication technologies which are based on knowledge, the role of the latter becomes salient.
Together with the rise of new economic conditions, certain firm theories, such as neoclas-sical economics, complexity economics, transaction cost theory or principal-agent theory, have been challenged, meaning that they bypass such concerns as dynamic behavior, as well as the exploitation of knowledge (Liebeskind, 1996; Nonaka, Toyama, & Nagata, 2000; Py-ka & Hanusch, 2006). Importantly, theories tend to compete or complement, rather than displace each other (Grant, 1996a). While traditional economic theories build on perfect ra-tionality and linearity, knowledge oriented theories introduce the aspects neglected by tradi-tional economic theories, such as bounded ratradi-tionality, complexity, uncertainty, dynamism, learning, and trust (Pyka & Hanusch, 2006).
Since relevant economic changes have been taking place for several decades, they are ade-quately mirrored in economics and business literature. It has been noticed that, while inves-tigating significant changes in the economy, researchers naturally arrive at a popular term – ‘globalization’. In the context of knowledge-based economy, the process of globalization is directly linked to structural transformation of nations, as well as their increased intercon-nectedness. In this regard, internationalization of firms is enriched by increased cross-border interdependencies. (Dunning, 2002) Fletcher (2001, p. 28) points to a two-fold change in the international business environment, that is, the increasing irrelevancy of na-tional borders and the formation of strategic alliances by firms across nana-tional boundaries, the latter being stimulated by ‘<…> information revolution, rising fixed costs, the need for increasing R&D expenditures, rapid dispersion of technology, shorter product life-cycles, converging consumer tastes, and increasing value placed on brand equity <…>’. In this context, firms need to acquire a more dynamic posture which would allow changes in in-ternational involvement when market conditions change (Fletcher, 2001). In the environ-ment supporting higher liberalization of trade, especially in Europe, big local companies, as well as small and medium-size enterprises (SMEs) are under the threat of being replaced by more powerful international competitors (Dana, Welpe, Han, & Ratten, 2008). New trends and conditions of the knowledge-based economy dictate the companies to start looking more intensively for the ways of continuous growth and development. The term “being competitive” is not longer applicable only to domestic market, but should also involve in-ternational or global market (Dana et al., 2008).
More specifically, it has been noted that new economy calls for the new business strategies, prompts companies to change their business models and address the issue of value crea-tion, rather than narrowly focus on business processes and how to control costs. Among a number of new economy related themes, networking and knowledge are given a significant attention. In this regard, networking creates a potential for new possibilities to arise, while
knowledge generation and efficient use of it describes successful organizations in the new economy. (Tapscott, 1997; Castells, 2000) With relation to networking, Chetty and Blan-kenberg (2000) point out that business is a process that is based on the network setting where various business actors are interconnected via direct and indirect business relation-ships. More specifically, business networks can be defined as ‘long/standing relationships between legally independent firms that exploit mutual complementaries and exchange in-formation’ (Meyer, Tind, & Jacobsen, 2000, p. 7). The strength of business relationship can be estimated due to such criteria as intensity, duration, trust and degree of commitment be-tween the parties (Thilenius & Hadjikhani, 2005). Considering business contacts in foreign countries, the further the firm is in the process of network establishing abroad, the stronger becomes its position in this network and with that the more access it has to the resources and knowledge that the foreign market offers (Chetty & Blankenburg, 2000).
Using the connections of network based on trust is believed to be more beneficial and at the same time cost-efficient. It is caused by the fact that the expenses for new partner search are lower in the case of establishing new contacts via the trustable parties of net-work than in the case for searching for them via other sources (Kviselius, 2008). Neverthe-less, integrating trust into relations is a complicated process, where according to Kviselius (2008), cultural and social barriers can make the process even more difficult. It can be said from this that the less cultural differences exist between the parties, the less of the misun-derstandings occur, with that triggering faster establishment of trust.
It has been stated that in the 21st century organizational problems are solved by looking at
the practice of others, rather than managing hierarchy. Therefore, the ultimate challenge for organizations is ‘constructing the search networks that allow us to find and collaborate with those who are already learning what we need to know’ (Kuznetsov & Sabel, 2008, p. 85). On the 3rd of June, 2008, while visiting Jönköping International Business School (JIBS), the
Minister of Migration, Tobias Billström noted that Sweden’s policy is directed towards at-tracting people from abroad to obtain their higher education in Sweden. However, a lack of efforts exists in order to retain those people in the country after they have graduated from higher education institution in Sweden. Tobias Billström emphasized that this policy of Sweden is inadequate, meaning that the country loses the added value that it could benefit from if international students would stay in Sweden after graduation. For this purpose, as addressed by the Minister, proper conditions to be employed during or after graduation should be established. (Wågenberg, 2008, p. 19) The latter could be seen as one of the indi-cators which implies considering foreign human intellectual capital for Swedish companies. From this, we come to a relatively new field of research that is Diaspora studies. Research field considering Diasporas is scarce, majority of which is theoretical and subjective (Rid-dle, 2008).
The definition of what is understood to be ‘Diaspora’ developed with time. One of the most recent definitions of what refers to “Diasporas’ is proposed by Shain (2007, p. 11) who suggests that ‘Diasporas’ are individuals who:
‘<…> reside outside of their perceived homeland, whether independent or not. They regard themselves or are regarded by others, as members or potential members of the national community of their homeland, a standing retained regardless of the actual status of their citizenship inside or outside their homeland’.
Whereas ‘Diaspora networks’ are ‘the locus of concerted action by expatriates to promote their collective interests or to help them engage in their home countries’ (Kuznetsov & Sa-bel, 2008, p. 84).
A number of academic studies are pointing to the role of Diasporas at the international level (Saxenian, 2006; Todaro & Smith, 2006; Shain, 2007; Kuznetsov & Sabel, 2008), among which such themes as Diaspora remittances and entrepreneurship clearly evolve. As stated by Solimano (2008), higher levels of migration are noticed for those with tertiary education, compared to lower levels of education. In addition, richer countries are stronger magnets for immigration. Based on Solimano (2008), it is very important to know the type of talent that is migrating, as well as the reasons behind the migration. In more detailed, the migration of entrepreneurs, engineers (directly productive talent), students and scientists (academic talent) is considered more beneficial than detrimental for source country’s eco-nomic growth, compared to the migration of medical doctors, nurses, writers, painters, or musicians, which represent talent in social and cultural sectors, respectively.
Kuznetsov and Sabel (2008, p. 95) argue that ‘expatriates abroad can serve as an entry point to new markets’. In relation to this, Riddle (2008) recognizes the knowledge of dual nature that is possessed by Diasporas, i.e. regarding both home-country and the country-of-residence.
In general, while such occurrences as the expansion of company’s business to another country or business establishment by immigrants in the host country are relatively apparent in the academic research, there is a lack of it regarding the facilitation of internationaliza-tion process by the absorpinternationaliza-tion of the knowledge possessed by Diasporas. It can be stated that, like a ‘litmus paper’, Diasporas as social groups hold tacit knowledge about the differ-ence of two cultures and therefore are likely to be helpful in the process of internationaliza-tion and at the same time increase the competitive advantage of a firm.
1.1 Problem
The problem that we are attempting to address in this paper was crystallized with the help of preliminary foreigner incorporation into the process of business expansion observations. It urged us to explore two research fields: international business expansion and Diaspora activities in the countries of residence. The exploration showed that specifically the practice of foreigner inclusion into the process of internationalization has not been reflected in the literature. In each of the mentioned research fields only implicit and sporadic symptoms of their interconnectedness were tracked. Therefore, a considerable gap exists in the literature when it comes to merging the field of internationalization and migrant potential which calls for a reflective research to be made.
Based on these missing moments, several questions need to be answered, such as: ‘Through which sources can this foreign human capital be internalized?, ‘What is the ratio-nale behind foreigner incorporation into the process of internationalization and where ex-actly the potential lies related to this practice?’ and ‘What roles in the organizational struc-ture of a firm do the employed foreigners fulfill?’.
1.2 Purpose
The purpose of this thesis is to provide the answers to the above stated questions and therefore to address the general focus research question, namely, ‘in what ways can Swe-dish companies benefit from Diasporas’ inclusion into the process of internationalization?’.
For this specific purpose of our research, we aim to adapt the existent theory in the related research fields, namely internationalization and Diaspora studies, to examine the aspects re-lated to foreigner incorporation into the process of internationalization, and to fill the exis-tent theoretical gap by providing explanations and elaborations on those aspects.
In relation to the above, these are our research objectives:
To identify how the contacts with the foreigners have been established by the Swe-dish companies.
To examine the benefits of Diasporas’ inclusion into the process of internationali-zation of a firm.
To indicate the positions given to Diasporas in the organizational structure of a firm.
1.3 Delimitations
In this study, we focus exclusively on what benefits Swedish companies receive from in-corporating foreigners into the process of firm’s international business expansion, leaving aside possible benefits and/or downsides for the foreigners who work in the Swedish companies. Therefore, the thesis will only take into account those aspects that lie on the side of a firm without to touch upon the side of the employed foreigners. It is for the pur-pose to retain attention explicitly on the business-related affairs and therefore avoid engag-ing into discussions regardengag-ing personal motives to work abroad, experiences, and perceived outcomes. Although the latter aspects are considered to contribute well to the general sub-ject matter of ‘brain circulation’, it is not the purpose of this thesis to cover both sides. Therefore, a single-minded approach is adopted in order to reveal potential advantages that companies would get from the implicit knowledge possessed by the foreigners, rather than from their individual personality and motivations.
Furthermore, although we consider that internationalization is a process in its own sense, we tend to focus on the benefits that foreigners might bring into the company with regards to the process of internationalization, in general. In this sense, rather than attempting to hold to a specific internationalization process theory, our focus is on different themes that comprise our research – the establishment of contact between a firm and the foreigners, the potential possessed by them in relation to business expansion, and responsibilities and positions given to those foreigners while being incorporated into a firm.
1.4 Definitions
Small and medium-sized enterprises – enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an an-nual balance sheet total not exceeding 43 million euro.
Diasporas – a totality of individuals living abroad.
2
Methodology and Method
This chapter introduces with the research philosophy that we represent in our master thesis, as well as with the strategy, the method employed, and the process of data collection and analysis. In the end of this chapter, elaborations are made on reliability and validity.
2.1 Research Philosophy
With regards to research philosophy, Gomm (2004, p. 2) proposes the following:
‘There is a widespread agreement about the policy of improving perception in order to learn about reality.
But pursuing it means making prior assumptions as to what reality is like. Without knowing what you are looking for, you can’t devise appropriate means for finding it, and without having appropriate means of finding it, you can’t find out what there is to look for’.
In broad outline, it tells us that interconnectedness exists between the perceptions of reality and what is to be found out. More specifically, it can be said that our perception of reality defines our considerations regarding what is worth to look for, the latter being related to the choice of means for doing it.
A considerably broad notion with regards to research philosophy is proposed by Saunders, Lewis, and Thornhill (2007, p. 101); they state that ‘the research philosophy you adopt con-tains important assumptions about the way in which you view the world’. Further, although philosophical standpoints tend to be implicit in research (Slife &Williams, 1995, cited in Creswell, 1998), they need to be identified, as research practice is thought to be influenced by them (Creswell, 1998). More specifically, as addressed by Hughes and Sharrock (1997, p. 5), ‘<…> it is common for philosophical, especially epistemological, issues to be regarded as the first, preliminary ones that need to be addressed in order that sound methods for enquiry can be laid down in advance of the empirical research itself’. Based on Hughes and Sharrock (1997), methods generate specific research results and the criticism of the latter is based on underlying philosophical conceptions. In broad outline, philosophical questions tend to ask whether certain methods have a capability to give knowledge of what there is. More specifically, philosophical issues manifest themselves through questioning ‘why these methods and not others?’. At the same time, as addressed by Saunders et al. (2007), re-search philosophy informs about the way the rere-search question will be answered. There-fore, with regards to our research, we consider the purpose of it to point to an adoption of certain philosophical positions over others.
Firstly, we consider that contributions of employed foreigners to the process of internatio-nalization are not physical reality objects seen with a ‘naked eye’ and therefore are difficult to measure. On the other hand, the outcomes of internationalization efforts are more visi-ble and measuravisi-ble, such as a number of subsidiaries or partnerships established abroad. Although these are important quantitative aspects of internationalization, it is not a primary focus of our research. Instead we focus on qualitative aspects brought in by Diasporas in the process of international business expansion. In order to bring those aspects to the sur-face, we will rely on the impressions of both the employers and the employed Diasporas. With regards to this, we perceive ourselves as a part of data collection process which we in-fluence by formulating specific questions for different respondents and by interpreting res-pondents’ answers in a subjective manner.
Much of what has been discussed above implies the representation of an interpretive philo-sophical standpoint. It is argued by some authors that interpretivism is very much suitable
for business and management research, especially when the research considers organiza-tional behavior, marketing, or human resource management (Saunders et al., 2007). It leads to the case of our research which is aimed at understanding business situations which are complicated, unique, and therefore of limited generalisability.
In relation to the above, we adopt the view that the phenomenon that we are aiming to re-search becomes visible through social structures, yet these are only a part of a bigger pic-ture (Saunders et al., 2007). In other words, simply looking at the strucpic-ture of the company and people employed says little about a firm’s internationalization strategy. Yet, these struc-tures are thought to give rise to the phenomenon that our research presents (Bhaskar, 1989) and which is thought to be best conveyed through the impressions of those involved. We believe that without the latter this phenomenon would be highly implicit.
Here, we arrive to the idea of ‘meaning’ and its relationship to the knowledge that we need in order to understand the phenomenon (Hughes & Sharrock, 1997) which constitutes our research. From the perspective of us as researchers, it can be said that firstly we came to familiarize with an observation that Diasporas have been employed by Swedish companies for the process of internationalization. This is in alignment with the saying that ‘the starting point for empirical social science research is the observation of what the members of socie-ty do or have done, say or have said’ (Hughes & Sharrock, 1997, p. 104). In relation to this, we came up with an assumption that strategic motives lie beyond the action of Diasporas’ inclusion into the process of internationalization, the latter is known to be taken by the rul-ing bodies of a company. At the same time, representrul-ing Diasporas in our present personal lives gave a particular meaning to this phenomenon, as it is related to our own social roles in the Swedish society. In other words, it can be said that the same observation might be differently articulated by different social actors, i.e. representing Diasporas ourselves brought up our interest in the phenomena and its specific consideration. All of it can be well illustrated by the notion that ‘<…> social actors give meaning to themselves, to oth-ers, and to the social environment that they live’ (Hughes & Sharrock, 1997, p. 104). In this regard, meanings given by us as researchers can differ from meanings that are given by those researched. Thus, it is seen challenging to understand the point of views of the re-search subjects.
In relation to the above, Creswell (1998, p. 8) describes the social constructivist worldview as representing assumptions that:
‘<…> individuals develop subjective meanings of their experiences – meanings directed toward certain ob-jects or things. These meanings are varied and multiple, leading the researcher to look for the complexity of views rather than narrowing meanings into a few categories or ideas. The goal of the research is to rely as much as possible on the participants’ views of the situation being studied.’
Here it is seen beneficial to introduce with the perspective of constructionism which ‘<…> seems to have [in some areas] replaced objectivism as the dominant paradigm’ (Crotty, 1998, p. 42), whereas interpretivism is considered critical of the positivist tradition (Saund-ers et al., 2007). In this sense, they may appear to have commonalities. Constructionism is defined by Crotty (1998, p. 42) as representing ‘the view that all knowledge, and therefore all meaningful reality as such, is contingent upon human practices, being constructed in and out of interaction between human beings and their world, and developed and transmitted within an essentially social context’. Interpretivism represents the view that social world is complex and therefore cannot be explored in the same way as the physical sciences (Saund-ers et al., 2007). In general, it can be said that the former p(Saund-erspective deals with construc-tion of meaning, whereas the latter deals with the understanding of those meanings. It can
be therefore implied that these are two complementary perspectives and both of them are visible in the nature of our research. Reflecting upon the latter, we aim with our research at revealing the beneficial aspects of foreigner inclusion into the process of internationaliza-tion. At the same time, as the motive behind this research is to increase awareness of the advantages brought by Diasporas into the process of internationalization, it has a potential to promote this as an applicable practice to other firms which are in international business environment. By promotion we do not mean generalization, considered that the level of applicability varies from one firm to another. That is, each firm is subject to varied needs when it comes to the process of internationalization or the resources possessed, regardless other variables, whereby our research is not directed towards establishing parameters of a firm with regards to applicability of this practice. Thus, generalization is not considered to be a significant part of our research goal. Regarding generalization, an interesting point is made by Gomm (2004, p. 14) regarding qualitative research: ‘Here it is not the researcher who does the generalizing, but the readers. The research is presented as a resource for readers to extend their understanding of themselves and other people’.
Moving deeper into these matters, it is seen worth to discuss social action, as both rule-governed and motivated (Hughes & Sharrock, 1997). More specifically, two groups of fac-tors form the basis for explaining action, that is, dispositional (attitudes, motives, feelings, beliefs, personality) and sanctioned expectations or role expectations. In case of our re-search, we see Diasporas’ employment as an action based on certain expectations towards Diasporas by their employers, that is, to make the process of business expansion more effi-cient and therefore properly perform the role. It is with relation to the notion made by Hughes and Sharrock (1997, p. 107) that ‘motives are <…> produced by the social struc-ture’. In other words, social position leads to certain motives which accordingly results in particular behavior. In this regard, we consider Diasporas’ occupancy of particular posi-tions to give rise to certain motivaposi-tions and behavior that is expected by the employers. However, we also infer that the same actions can have different motives behind them; therefore, one of our tasks is to reveal the context of the action. In more detail, we see it necessary to understand different motives and beliefs behind the inclusion of Diasporas’ into the process of internationalization. It can be concluded from the above that the action per se is uninformative, alike the social structure; therefore the underlying beliefs, motives, as well as behaviors, are to be researched in order to deepen the knowledge about the process of internationalization in a specific context. Important is to note in this regard that we have narrowed the scope of the research by identifying the broad motive, i.e. Diasporas are employed in a company for a purpose to deal with business expansion in order to facili-tate and benefit it. What lies in these frames is the focus of our research which is thought to give meaning to the phenomenon.
Further, it is important to clarify that we see decisions made by employers with regards to Diasporas’ inclusion into the process of internationalization as conscious and having an important effect. Hence, we perceive our research as attempting to elucidate the benefits brought in by Diasporas that are fully perceived within the boundaries of a firm, rather than attempting to uncover something that is implicit to those that are researched. At the same time, by bringing the beneficial aspects to the surface, we believe to affect inter-firm arena, meaning that research results might stimulate inter-firm awareness with regards to benefits of Diasporas’ inclusion. In this context, our aim is to detect the assumptions that managers possess towards the potential contributions of Diasporas to the process of inter-nationalization, as well as assumptions of Diasporas themselves. We suppose in this regard that our research represents a multi-level approach, i.e. it is thought to bring the results that are relevant at individual, group, and the organizational level.
As we in our research have taken in the interpretive methodology, meaningful is to address its advantages. Fearfull (2005) has demonstrated how fresh insights can be generated by in-terpretive methodology. It is seen worthwhile to take a look at her findings, having noticed that the author draws on a research which aimed at exploring clerical skills and knowledge, as well as the role of its function in organizations and this is thought to have similarities with our research. In addition, it is concluded that the interpretive methodology adopted enabled to see a considerably different picture of clerical work compared to how it was generally seen. More specifically, it allowed discovering the finer points of clerical function, its involvement in a web-like structure of interaction, as well as the relation to organiza-tional effectiveness. Furthermore, the author expresses certainty that ‘there is considerable value in adopting interpretive methodology for the analysis of workplace skill and know-ledge in order to explore more fully where such opportunities [for knowknow-ledge retention and development which can serve to increase the potential for true worker empowerment] might lie’ (Fearfull, 2005, p. 148). Finally, the author draws attention upon the use of lan-guage and its impact on picturing the phenomenon. With regards to this, by introducing the relation between interpretivism and hermeneutics, Crotty (1998, p. 87) states that be-sides written texts, ‘<…> hermeneutics has been brought to bear on unwritten resources also – human practices, human events, human situations – in an attempt to ‘read’ these in ways that bring understanding’. The author also implies that hermeneutics takes into ac-count intentions of authors or the relationship between author and interpreter, instead of simply grounding the meaning of texts on their semantics. In this context, the practical ap-plicability of textual meanings and sharing of them between communities or individuals are addressed.
Regarding the ontology, which deals with the nature of reality (Saunders et al., 2007), sub-jectivism is an apparent philosophical standpoint that is adopted in answering our research question. Fearfull (2005, p. 141) states that ‘explicating subjectivity is an important objec-tive of interpretivism”. More specifically, it manifests itself more extensively in our research study through explanations why this particular practice was adopted in the process of in-ternationalization, revelations of its practical benefits or, in other words, opinions towards the effectiveness of this practice, as well as to identifications of barriers for the establish-ment of the link between foreigners and companies in this regard. We consider that this practice can be manipulated to a certain extent. At the same time, we consider the role of social interactions and the fact that knowledge possessed by an employed foreigner should not be treated in a simplistic manner and therefore its utilization depends on interactions among individuals and firms involved in the process of internationalization. In addition, this social phenomenon is attempted to be understood through social actors involved and the meanings they give to this phenomena. In general, we support the notion that the phe-nomenon would not exist if actors involved would not be conscious of it and give meaning to it.
2.1.1 Interpretive research paradigm
Having established the epistemological and ontological connections regarding our re-search, it is easy to trace to the research paradigm it represents. Besides the terms presented in the parts about epistemology and ontology, research paradigms also include the terms of radical change and regulatory perspectives. In this regard, ‘regulatory dimension seeks to work within the existing state of affairs’, while ‘radical change dimension approaches orga-nizational problems from the viewpoint of overturning the existing state of affairs’ (Saund-ers et al., 2007, p. 112).
Based on the quadrant of paradigms provided by Burrell and Morgan (1979, cited in Saunders et al., 2007) and what each of them stand for, it can be stated that our research leans toward the regulatory dimension, while also referring to the sphere of subjectivist, as noted earlier. Hence, our research concerns interpretive paradigm. Importantly, reflecting upon the distinction between radical change and regulatory dimensions, we argue that re-searching a number of Swedish companies we aim to reveal the positive aspects of affairs present in those companies, rather than change the current state of affairs within them. However, radical change dimension is partly visible in our attempt to show to the business society that this practice has a potential for successful international expansion. Therefore, we assume that our research may have some sort of radical future repercussions in business society, at least at the local level.
2.1.2 Research approach: induction, deduction, or in between?
It is important here to take into account that the specific phenomenon that we are at-tempting to research has barely been reflected in the literature. In particular, the issue re-garding internationalization facilitated by the inclusion of Diasporas has not been ad-dressed in the academic research. Each of the relevant research fields in our case, namely internationalization of SMEs and migrant studies, have ‘symptoms’ which point to a poten-tial in merging specific layers in these fields, a result of which would be stating that Diaspo-ras possess a potential from which firms can benefit in their attempts to internationalize. Induction considers the way different people interpret the same situation, as well as allows for alternative explanations, whereas deduction deals with testing the existent theory (Saunders et al., 2007). Through answering our research questions we believe to fill the ex-istent theoretical gap and build theory; this is associable with induction. At the same time, mentioned ‘symptoms’ need to be tested and this is pointing to the deductive nature of the study. (Saunders et al., 2007) In other words, theoretical gap in merging the two fields in a way that is mentioned above informed our research questions. Accordingly, specific aspects from both research fields are embedded in our research questions. These are important as-pects that point to the adoption of both induction and deduction in our research.
All the important layers regarding research philosophy have been touched upon. It is com-forting to know that ‘the practical reality is that research rarely falls neatly into only one philosophical domain’ (Saunders et al., 2007, p. 116). Thus, this allows our research to be understood in the frames of coupled philosophies, rather than falsely attempting to fit one particular philosophy.
2.2 Research design
In this section, research strategy, choice of method, and time horizon, which were informed by our research questions, are presented. In the end of the section, the issues of reliability and validity are discussed.
2.2.1 Research strategy
For a start, as Crotty (1998) states, the purpose of the research, which lies in the research question, justifies the choice and use of methodologies and methods. To remind, the pur-pose of our study is to reveal, in the context of a firm, the beneficial aspects of Diasporas’ inclusion into the process of internationalization. Such relevant literature sources as Saund-ers et al. (2007) state that there are three basic types of research purpose, that is, explorato-ry, descriptive and explanatory study. It is not our intent here to present and discuss their differences, rather elaborate on the choice of our research strategy. With relation to this, our study places interest on the understanding of a phenomenon which is hardly reflected in the relevant literature. More specifically, we are attempting to understand the benefits that employed Diasporas bring into a firm while being incorporated into the process of in-ternationalization. In order to strengthen our belief in the exploratory nature of our study, Maxwell (1998, p. 80) suggests that exploratory studies serve well in order to test ideas and explore implications and ‘provides you with an understanding of the meaning that these phenomena and events have for the actors who are involved in them, and the perspectives that inform their actions’. We therefore claim that our study is exploratory and that it is best suited for answering our general research question, that is, ‘in what ways can Swedish companies benefit from the inclusion of Diasporas in the process of internationalization?’ and meeting our research objectives.What particularly informs us here about the explora-tory nature of our study is the way the research question is formulated, i.e. it asks “what”, which leans toward exploring the process. In general, by answering our research question we attempt to portray the potential embedded in Diasporas with regards to firm internatio-nalization.
In relation to the above, we adopt the strategy of a grounded theory. The reason for that is mainly because grounded theory is thought to combine induction and deduction (Saunders, et al., 2007) which is exactly what our research purpose calls for. Furthermore, ‘the center-piece of grounded theory research is the development or generation of a theory closely re-lated to the context of the phenomenon being studied’ (Creswell, 1998, p. 56). More specif-ically, grounded theory is ‘particularly helpful for research to predict and explain behavior, the emphasis being upon developing and building theory’ (Goulding, 2002, cited in Saund-ers, Lewis, & Thornhill, 2007, p. 142). In relation to our research, we can safely admit that grounded theory is well applicable to our case, since we aim to explain what benefits urged managers to incorporate Diasporas into the process of internationalization and predict rea-sons for a possible continuous application of this practice, if any.
2.2.2 Qualitative researching
When summarizing recent economic changes, Pyka and Hanusch (2006) point out that with those changes, methodological developments also took place, that is, new empirical methods evolved which allowed analyzing the qualitative dimension of economic change. It is proposed by Crotty (1998, p. 14) that ‘<…> the distinction between qualitative re-search and quantitative rere-search occurs at the level of methods. It does not occur at the
level of epistemology or theoretical perspective’. In other words, there is no causal relation-ship between the philosophical stance and the form of either qualitative or quantitative re-search. It means that we have an option to adopt either qualitative or quantitative stance in addressing our research questions. However, considerable differences lie between qualita-tive and quantitaqualita-tive research, as, for example, suggested by Powell (1990) who points out that there is a threat for qualitative data to be ‘selectively presented’, yet materials that are gathered through qualitative researching are of high value for theory generation. The latter is also related to induction as one of our research approaches. In addition, such reasons that urged us to use qualitative researching as the nature of our research questions which ask ‘how’ and ‘what’, the exploratory nature of the study, a commitment to present ‘a de-tailed view of the topic’ and ‘to study individuals in their natural setting’ (Creswell, 1998, p. 17). Basing the point of view on a number of sources, Maxwell (1998, p. 95) summarizes that in qualitative studies generalizability is achieved by the ‘development of a theory that can be extended to other cases’. This also adds up to the choice of carrying out a qualitative research, as our research questions propose exploration of qualitative issues, rather than call for extensive generalization based on popularity of the phenomenon. In other words, our research objectives are considered to be best fulfilled by investigating opinions and ref-lections with regards to the topic. Therefore, with the above mentioned conditions, estab-lishing preferences towards qualitative researching is considered to be the most appropriate and fruitful for the study.
Taking a closer look at the characteristics of qualitative researching, Maxwell (1998, p. 70) criticizes the linear view towards the design of qualitative research and argues that ‘qualita-tive research simply requires a broader and less restric‘qualita-tive concept of “design” ’. According to the author, it means that a number of activities, such as data collection and analysis, theory development, restructuring the research questions and identifying validity threats are usually carried out simultaneously; therefore they affect each other. This is considered in alignment with the inductive/deductive nature of our research.
2.2.3 Research method
An appropriate point of departure in regards to research methods is considered to be the notion that research questions are related to the strategy of the research, as well as with the choice of methods; this can be illustrated by the following statement by Mason (2002, p. 27):
‘<…> [one] will start to make strategic choices about which methods and sources are the most appropriate for answering your research questions. It is useful to engage directly with questions about how and why par-ticular methods and sources might yield data which will help you to answer your questions <…>’.
Hughes and Sharrock (1997) suggest that although methods can be merely treated as in-struments, they are influenced by certain assumptions. For example, interviews ‘<…> de-pend for their use on ‘theoretical’ claims about how the interview encounter can be ma-naged in order to maximize the validity of the respondent’s answers. The order of ques-tions on an interview schedule or a questionnaire is justified in terms of presumpques-tions about the best ways to gain the trust of respondents so that they will answer more intimate questions without too much concern’ (Hughes & Sharrock, 1997, p. 12). Therefore, the au-thors suggest that no method is self-validating, meaning that its effectiveness is dependent on instrumental assumptions that it carries.
In our study, we employ a mono-method approach in order to address our research ques-tions and related objectives. It means that ‘a single data collection technique and corres-ponding analysis procedures’ are used in order to address our research questions (Saunders et al., 2007, p. 145). In order to justify this choice, it can be said that the purpose of this study is of solid and integral nature. Our research questions propose to focus on percep-tions of benefits that are associated to Diasporas in relation to firm internationalization. The latter notion, together with an understanding that answers to our research questions are unlikely to be ‘documented’ within and accessible through diverse sources, make the adoption of sole method seem well justifiable.
Further, having perceived the time constrains for this project that we are bound to in rela-tion to the timeliness of academic courses, the empirical study of this paper is understood to be of a cross-sectional nature, rather than corresponding to longitudinal studies. As noted by Saunders et al. (2007, p. 148), it is therefore a ‘study of a particular phenomenon (or phenomena) at a particular time’. This also points to a limitation of this study in terms sufficient sample acquisition within a time frame imposed to us.
In general, having in mind what has been discussed so far, we have chosen to carry out a qualitative interview study. Referring to axiology as a branch of philosophy (Saunders et al., 2007), our choice of method points to the values that we as researchers possess, namely, social interaction and depth, rather than breadth, of the phenomenon. Characteristics asso-ciated to this type of method, as well as more detailed explanations for this choice are pre-sented in the following sections.
The summary of our philosophical stance represented in the research, as well as strategy, choice of methods and techniques are pictured in the following figure, whereas data collec-tion and analysis are presented in the further seccollec-tions:
Figure 2.1 A visualization of our research methodology. Source: compiled by the authors based on Saunders et al. (2007, p. 102).
2.2.4 Data collection
In order to collect empirical data, an interview guide has to be constructed, the respondent sample to be acquired, and interviews to be conducted. We address each of these issues separately further in this section.
Sampling of participants
Sampling techniques are noted to be irrespective of the type of research (Saunders et al., 2007); included our case as well. Considering sampling for our empirical study, we initially face a constraint in terms of undefined population of possible cases that might be applica-ble. This constraint arises from the fact that firms usually do not publicly share the specific information about incorporating Diaspora into the process of internationalization. It was therefore a matter of our level of ambition to detect and explore a reasonable amount of cases. At the same time, it is taken into account that for answering our research questions ‘it would be impracticable for [us] to survey the entire population’ even if it would be known and our ‘time constraints prevent [us] from surveying the entire population’ (Saunders et al., 2007, p. 206). All of this point to non-probability sampling which also in-fluences the ability to generalize (Saunders et al., 2007).
Overall, consideration that people are different in the skills and knowledge that they pos-sess, as well as are firms in their needs and available resources, whereas different structures and procedures shape the capability of a firm to benefit from those skills and knowledge, urged us to incorporate multiple cases in our study with an intention to get a richer picture of the phenomenon, rather than achieve a higher level of generalization. At the same time, we do not discount the importance of data collection and analysis skills which are consi-dered more influential than the size of our sample (Patton, 2004).
In the case of our empirical study, we adopted purposive sampling. Considering purposive sampling as the most appropriate was based on answering questions whether ‘individual cases are difficult to identify’ and whether ‘the sample to be selected is very small’; they led us to heterogeneous sampling which is associated with the focus on key themes (Saunders et al., 2007, p. 227). In other words, we saw our empirical study to be based on three re-search questions, each of them representing a certain theme within the topic of this thesis. Since the phenomenon that we are attempting to research is not reflected in existent stu-dies, it is natural that research questions are of thematic nature (contact establishment, ben-efits received by firms, and positions given to employed foreigners), rather than based on a narrow aspect. In relation to this, heterogeneous sampling is thought to allow considerable space for uncovering wealthy characteristics of these themes. At the same time, maximum variation feature is thought to serve well for our empirical study in order to avoid com-pletely different cases. According to this type of sampling, the following sampling criteria were set before we actually selected the cases for our empirical study (Patton, 2004):
Small and medium-size enterprises;
Market that they operate in and are rooted in is Sweden;
Have applied the practice of foreigner incorporation for the purpose of interna-tional business expansion;
Participants: both management and Diaspora representatives who are working with international business expansion in a firm;
Availability of participants: residing in Sweden;
Accessibility of participants: balance between the time-frame constraint imposed by us and the availability of participants based on their own schedules.
In the case of our study, the features of snowball sampling were also visible. This is in rela-tion to that popularela-tion of cases that might be applicable for our study is considered ‘hid-den’ (Browne, 2002), since related information is usually not shared openly. In snowball sampling, personal networks and friendships can be employed (Browne, 2002). Thus, in re-lation to our empirical study, we used our personal networks, mostly from local academic milieu, in order to identify potential cases and this proved to serve the overall sampling purpose well. In addition to that, such formal channels as Trade Councils and Chambers of Commerce were contacted assuming that they might possess this type of information. These channels have proved to be the least useful.
Further, Kammen and Stouthamer-Loeber (1997, p. 386) state that ‘the magnitude of the potential bias in sample acquisition is often difficult to evaluate because very little or no in-formation may be available for the researcher to use in comparing participants with non-participants’. Having in mind that some of the potential participants refused to participate, the sample that we have acquired may be biased to an extent that is difficult for us to esti-mate. Yet, as our empirical study does not deal with sensitive subjects, refusal to participate is considered an issue that is of little importance to our study. In general, for the purpose to strengthen the acquisition and retention of participants a set of practices that ease the par-ticipation are proposed, such as flexible times and locations for the empirical study to be carried out (Kammen & Stouthamer-Loeber, 1997).
Taken all the mentioned aspects into account, our empirical study sample resulted in the acquisition of 5 participant SMEs, each of them representing different business types and different stages with regards to internationalization (see Table 2-1. which summarizes the characteristics of participant SMEs). It means that some of the firms in the sample were only at the outset of foreigner incorporation for the purpose of business expansion to his/her home-country and accordingly have no presence established in a particular foreign market yet, whereas in other participant firms a repeated practice of foreigner incorpora-tion was clearly visible and proved by an established foreign subsidiary. We strongly believe that this variety of firms, in terms of business type and extent of international expansion, favored uncovering of beneficial potential possessed by Diasporas who were incorporated into expansion activities of a firm in more depth.
Table 2.1 A summary of participant SMEs characteristics. Source: compiled by the authors.
Number of employees and
turnover
Industry type and business
characteristics Foreigner incorporation practice and establishment at the interna-tional level
Company 1 < 50 employees; data about turno-ver is not pub-lished
Electronics: provides a solution which helps safeguard transports from intrusion and theft.
At the outset of foreigner incorporation for business expansion and attempts to be established internationally.
Company 2 < 10 employees; data about turno-ver is not pub-lished
Design: offers complete solutions for shop fittings and product displays.
At the outset of foreigner incorporation for business expansion and attempts to be established internationally.
Company 3 < 50 employees; turnover 10 to 25 million EUR
Chemical surface treatment: spe-cializes in the field of high-tech painting of plastic products.
A repeated application of the practice and a visible establishment at the interna-tional level.
Company 4 < 50 employees; turnover 10 to 25 million EUR
Trade of industrial goods: sup-plies a complete platform of small parts for the furniture in-dustry and the construction sec-tor.
A repeated application of the practice and a visible establishment at the interna-tional level.
Company 5 < 50 employees; turnover 500 000 to 1 million EUR
Farming: specializes in machinery
for large scale farming activities. Have applied the practice of foreigner incorporation for business expansion and has established subsidiaries abroad.
For the purpose to increase the reliability of data we originally aimed at selecting 2 or more employees in a firm representing both top management and lower positions who were well familiar with the process of internationalization in a firm. The latter was a particularly im-portant aspect to be considered in terms of reliability and validity of the study since those employers who are not working with the process of business expansion within a firm are unlikely to possess rich reflections that would benefit the study. In addition, we aimed to keep the balance and acquire the same amount of Diasporas. However, in each of the re-searched firm only one foreigner was employed. Therefore, it was below our efforts to ac-quire more Diaspora participants in those companies. In total, we have interviewed 10 in-dividuals who fulfill the positions of top and lower level management and 4 Diasporas (see Table 2-2. below), each interview being around 1 hour length. One of Diaspora representa-tives who was originally agreed to make an interview with, was later unavailable because of reasons that are unknown for us. However, since the interview with the top management representative from the same firm proceeded and revealed important aspects, it was in-cluded into the whole study. With this person, telephone interview was conducted as a re-sult of significant distance and the unpredictable availability of the respondent.
Table 2.2 A summary of respondent sample characteristics. Source: compiled by the authors.
Number and type of respondents interviewed
Company 1 Top and lower management (3): Chief Executive Officer, Vice President in Marketing and Sales, Business Developer; Diaspora (1): incorporated under internship conditions.
Company 2 Top and lower management (2): Sales Manager, Coordinator of Orders; Diaspora (1): incorporated under internship conditions.
Company 3 Top and lower management (2): Active owner of a firm, Managing Director; Diaspora (1) incorpo-rated under internship conditions.
Company 4 Top and lower management (2): Managing Director, Area Sales Manager. Diaspora (1) incorporated under trainee program conditions.
Company 5 Top and lower management (1): Active owner of a firm (reflected upon Diaspora who works in a firm as a service engineer responsible for a number of Eastern Europe markets).
In general, we recognize that because the greatest part of SMEs was reached via personal networks, all the interviewed Diasporas resulted to be students. In turn, it might be some bias ingrained in the sample which reveals the specifics of beneficial pattern of young well-educated Diasporas. This provides space for further research to focus on benefits that elder and/or more established in Swedish society Diasporas might bring into a company with re-gards to its international business expansion. Having in mind the size of the sample and its characteristics, together with all that has been discussed, we believe that it is sufficient and therefore credible for the purpose of the study to be achieved or, more specifically, for the explanations to our research questions to be obtained. Together with other relevant aspects that has been discussed, we base this argument on noticing that with a sample size pos-sessed we achieved such saturation levels of data that significant points were unlikely to be additionally found (Creswell, 1998) with regards to our main research question.
Semi-structured interviews
For our research, we consider interviews to be a more appropriate and useful method than any other in order to obtain the information required to answer our main research ques-tion, that is – ‘how can Swedish companies benefit from the knowledge possessed by fo-reigners in the process of business expansion?’. In our research, we used interviews as a sole data collection technique. Because the topic that is researched is considered a new phenomenon in nature and no sufficient documented data exist, interview technique was chosen as a tool with which a considerable amount of data could be collected for further discussion and analysis.
It has been noted in relevant literature sources that interviews range from semi-structured to open-ended (Creswell, 1998). Having in mind that our research questions are relatively specific and therefore assumed to call for some degree of guidance during an interview, we have chosen to use semi-structured interviews. They were seen the most appropriate in or-der to get in-depth answers to our research questions, to adapt depending on the flow of an interview, and at the same time to not loose the focus. It means that when conducting a semi-structure interview, respondents are given a chance to express their opinions with re-gards to purposeful questions. At the same time, if there is a need for more precise answers and more informative comments on the related topics, additional questions can be asked. (Saunders et al., 2007)
Another, more specific characteristic that is associable with semi-structured interviews is that data gathered through them ‘are likely to be used not only to reveal and understand the ‘what’ and the ‘how’ but also place more emphasis on exploring the ‘why’ ’ (Saunders et al, 2007, p. 313). It is considered a useful trait in our case, since answers to, for example, such question as ‘why Diasporas were incorporated into the process of internationalization?’ have a potential to reveal additional aspects related to benefits that firms receive from this practice and therefore add ‘flavor’ to the answers.
Since the interconnection between the two research fields – internationalization and Dias-pora – is barely addressed in an explicit manner, the interview guide (see Appendix 1 and Appendix 2) that we have constructed was authentic from top to bottom, meaning that it was not adapted from previous research in the corresponding fields. The interview guide constitutes of three major blocks of questions which correspond to three research objec-tives. In each of those blocks, questions were split into more general ones which served as an introduction into a certain theme within the topic, the most relevant and straightforward questions which were supposed to uncover the core elements, and less important related questions which were considered to supplement the most relevant questions. This has proved to help to manage the time that is devoted for an interview in case time constraints occurred from the respondent side. In general, the interview guide was designed in a way that it would take about an hour for all interview questions to be covered.
Furthermore, the basic interview guide was to a certain extent adapted separately for man-agement representatives and for Diaspora representatives in order to question them from their perspective. More specifically, some of the questions that were designed for Diasporas differed from those that were destined to be answered by the representatives of top manag-ing staff and Diasporas’ work colleagues (see Appendix 1 and Appendix 2). However, two versions of the interview guide retain the focus on the same themes within the research topic. Finally, questions were structured assuming that the international presence in a spe-cific country has been achieved. Hence, in case a company is at the earlier stage, questions can be adapted to the specific situation during the interview.
Further, it is important to touch upon the process of interviewing. Creswell (1998, p. 121) presents several approaches towards information collection through interviews; among those, semi-structured interviews are associated with the following sequence: ‘conduct a semi-structured interview, audiotape the interview, and transcribe the interview’. This is the sequence that we have applied to our empirical study. Further, Gomm (2004, p. 184) states that ‘most of the important analytical decisions are made while the data are being collected and after the data have been collected’, meaning that the interviewer makes decisions what questions to ask next, when to speak and when to listen while conducting an interview. It is a valuable remark for our study since it influences the quality of information to be ob-tained.
Further, according to Dean, Caspar, McAvinchey, Reed, and Quiroz (2007), when inter-viewing takes place in a multicultural environment, problems might arise related to cultural and linguistic issues. In our case, interviews were conducted in English, which is not a mother-tongue language for the respondents and for the authors of this thesis. It means that possible grammar and other linguistic mistakes needed to be addressed and clarified in order to avoid including mal-structured answers into analysis. Every interview was record-ed with a permission of each respondent. At the end of an interview respondents were asked whether they would prefer their name and the name of the company to be published in this paper or not when providing the list of interviews made. One of the interviewees proffered to remain anonymous. In order to be consistent, we do not mention any names,
neither of companies, nor individuals interviewed. The next step was to transcribe the in-terviews and this aspect is addressed more extensively in the following section.
2.2.5 Data analysis
Before analyzing data, every interview had to be transcribed. We believe that transcriptions added to the quality of further analysis since it did not allow any detail to be lost.
The issue of anonymity was also considered in the transcriptions of interviews (Corden & Sainsbury, 2006). More specifically, in the part of this thesis where we present the empirical findings, we do not use names of individuals or companies’ titles. Since research partici-pants are potential readers of this paper, it as done in order to secure the anonymity of swers and therefore avoid associating certain interviewed individuals with particular an-swers, which involve comments about other parties.
For the presentation and analysis of empirical findings we have mainly used the tool of verbal quotations’ inclusion. Corden and Sainsbury (2006, p. 97) claim that ‘presentation of extracts of original data is an indication of clarity of links between data, interpretation and conclusion’. The authors assure that spoken words might certainly contribute in a positive way to the reporting and interpretation of information.
Differently from the written form, records of conducted interviews as a form of keeping information holds the potential to reflect the emotions of interviewees. The latter are seen as being ‘important in the production of knowledge and add power in understanding,
anal-ysis and interpretation’. (Holland, 2007, p. 195) However, since our research is considered
to deal more with ‘what is said’, rather than ‘how it is said’, analyzing the emotional side of expressed opinions is beyond our research purpose. Rather, we analyzed interviews ‘as re-ports on states of affairs’ (Gomm, 2004). This type of approach towards interview analysis involves matters which can be verified and matters which cannot be verified because they ‘include opinions, attitudes, beliefs, understandings, and so on’ (Gomm, 2004, p. 185). Fur-thermore, Mason (2002, p. 149) states that a researcher needs ‘to consider to what extent [he/she] will want to make an interpretive reading of <…> data’ that was acquired. In this case, while presenting and analyzing data we have placed more emphasis on interviewee’s understandings and interpretations of the phenomenon than on our own interpretations (Mason, 2002).
With regards to grounded theory, Strauss and Corbin (1990, cited in Creswell, 1998, p. 150) propose ‘a procedure for developing categories of information <…>, interconnecting the categories <…>, building a “story” that connects the categories <…>, and ending with discursive set of theoretical propositions’. Since we the stance of a grounded theory, we followed the logic of this proposed procedure and examined the texts of transcribed inter-views first, tried to ‘saturate the categories’ of information, and address multiple perspec-tives towards the categories. This is visible in the part where we present our empirical find-ings. Then we explored the interrelationship of categories, having selected a single category as central and attempted to build theoretical model in order to visualize the interrelation-ship. (Strauss & Corbin, 1990, cited in Creswell, 1998) The latter constitutes the analysis part. Within this sequential procedure, we move ‘back and forth between data analysis and the process of explanation or theory construction’ which is in alignment with the ‘abduc-tive research strategy’ (combination of induction and deduction) and the interpre‘abduc-tive ap-proach, in general (Mason, 2002, p. 180).
