CHAPTER 3 - RESEARCH METHODOLOGY [PDF]

In order to measure the variables, it needs to be operationalized with measurable indicators. Table 3.1 and Table 3.2 il

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CHAPTER 3 - RESEARCH METHODOLOGY

3.1

General

This chapter rationalizes the methodology of the research. The literature survey is the main source of information used to identify the relevant parameters for the complexity of ERP by the researcher. Research methodology process is shown in Figure 3.1.Combination of quantitative and qualitative approach has been used as the data collection mechanism. Also it has been considered discussion with ERP consultants, users, and employee comments when identifying relevant main and sub parameters and for the questionnaire design in the research methodology. It elaborates the main parameters identified for the complexity of ERP systems in medium sized companies, sample selection and composition, Data gathering mechanism. Last chapters discuss about the preparation of the draft questionnaire, brief introduction to data analysis, limitations and chapter summary.

Literature

Identify Factors

Questionnaire & Secondary Data

Data for Analysis

Figure 3.1: Research Methodology Process

3.2

Theoretical Back Ground for Developed Framework of Parameters

In identifying the key factors influenced for complexities of ERP the research mainly relied on the studies and software development and implementation carried out by (Levent, 2009) ,(Wang & Shao, 2003), (Pressmen, 2005), (Halstead, 1997), (Abramowicz & Fensel, 2008).Acccording to the literature survey it has been identified there are 4 main key variables affecting the influence of complexities of

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ERP. The product dimension, people factor, project dimension and business processes. Figure 3.2 summarizes the identified parameters for the analysis.

Figure 3.2: High Level Parameters for the complexity of ERP

In order to measure the variables, it needs to be operationalized with measurable indicators. Table 3.1 and Table 3.2 illustrate operationalization of four key main variables identified. Further in the operationalization the model it illustrates what are the subvariables under the main key variables for the measurable elements and it descibes what it measures. Also it descibes scale of measurment.A scale is a tool or a mechanism which individuals are distinguished as to how they differ from another variable of the study. (Sekaran, 2006).Researcher uses Likert scale as the main scale of measurment one of a popular measuring technique use in many researches.

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Table 3.1: Operationalization of key Variables Concept

Variable Supplier Cooperate Image Functionality Usability Compatibility with Product Dimension components/subsystems Installation Size Technology Market Price

People Factor

Measure Supplier image in the industry Overall product functionality Usability of the product

Scale Likert Likert Likert

Question No Q17,Q47 Q44,Q51 Q12,Q40,

Compatible with other exsisting systems

Likert

Q13

Likert Likert Likert Nominal Likert Likert Likert Likert Likert Likert Likert Likert Likert Likert Likert Nominal

Q14 Q15 Q16 Q54 Q18 Q38 Q39 Q43 Q42,Q52 Q19,Q20 Q48 Q53 Q21 Q22 Q23 Q08

Installation easiness Size of the ERP Technology use by ERP Average per user cost of ERP Overall view with regard to ERP system User friendliness of the ERP User Comments User satisfaction Flexibility of the System Work performance Number of user inquiries External support seek when work with the system Communication Overall communication with regard to ERP User Skill Employee skill to the system Team Complexity Mixture of ERP implementation team Social/Cultural effect Social/Culture/Organizational politics effect of users Diversification Employee diversification to ERP system No of operators required to do a task No of people required to perform a specific function

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Table 3.2: Operationalization of key Variables Concept

Project Dimension

Legacy Systems Integration

Measure Project Management practices used in implementation Tailoring the ERP system Vendor/consultants and support Vendor/consultants skill and flexibility Quality of ERP training received No of training sessions Average Time taken for ERP implementation Quality of overall Project Resource utilization Affordability of hardware/software in the project Data migration from legacy systems ERP Integration with business processors

Accuracy Information

Accuracy and Reliability of the information Up to date information

Likert Likert

Q35 Q36

Adaptable

Adaptability with businesses processors

Q37

Platform

Manage common platform to the organization ERP alignment with Business Processes

Likert Likert Likert

Q46

Variable Project Management Practices Tailoring the system Consultation Vendor/consultants Skill Training and Education Time Quality Resources Affordability

Business Processes’

Alignment Source: Complied by Author

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Scale

Question No

Likert

Q24

Likert Likert Likert Likert Likert Likert Likert Likert

Q41 Q25 Q26 Q27,Q28 Q49 Q29 Q30 Q31

Likert

Q32

Likert Likert

Q33,50 Q34

Q45

3.3

Sample Selection and Composition

In order to establish a sample it was decided to seek options from medium sized companies in Sri Lanka who use ERP systems and IT experts who are having ERP knowledge and experience which can gather information. The recipients’ were selected through convenient sampling technique. Questionnaire was distributed among 120 people as a printed version and sent emails to target groups as requesting to give their consent through online the survey. Out of 103 responses 12 were incomplete resulting in 91 usable responses. This sample size is considered adequate for the analysis and is comparable to response rates for ERP systems available in mid sized organizations in Sri Lanka. Following Organizations, who are currently use ERP system, has been selected for sample data collection. Table 3.3: Name of Organizations Kelani Cables (pvt) Ltd Loadstar (pvt) Ltd Orange Electronics ACL Cables PLC DSI Samson AR Project Management Services (Pvt) Ltd Dialog Broadband (Pvt) Ltd Lanka Tiles Limited Elephant House Litro Gas Akbar Brothers (Pvt) Ltd Toyota Lanka (Pvt) Ltd

3.4

ODEL PLC Hameedias IESL (Institute of Enginees Sri Lanka) Samson Rubber Products (Pvt) Ltd Jinasena Sinhagiri Ltd Dialog TV (Pvt) Ltd Commercial Bank (Pvt) Ltd LOLC (Lanka Orix Leasing Company) Koggla Garments (Pvt) Ltd Hutchison Telecommunications Lanka (Pvt) Ltd IWMI Water Management Services

Data Gathering Mechanism

Data collections methods are intrigue part of research (Sekaran, 2006).To assess the influence of complexities of ERP, multimethods approaches has used as the data

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gathering mechanism. The methodology used for this study is predominantly quantitative. 3.5

Primary Data Sources

Focus groups members were mainly selected from industry sectors of manufacturing, service, retail and construction sectors. As the primary data collection it has been selected ERP users from medium sized companies who are presently using an ERP system. Further it has been considered feedbacks from ERP expertise in IT industry in Sri Lanka. Focus group were included categories such as management staff, executives, technical, clerical staff that is having ERP experience and data had been collected from following methods.

3.5.1

Questionnaire

Questionnaire was selected as the main data collection method in the survey research. Based on the literature survey and conceptual framework drafted questionnair was designed considering mainly, 1. Classification data 2. Work Practices 3. Cultural/social/political impacts Draft

questionnair

was

designed

as

a

web

based

online

survey

http://edu.surveygizmo.com. Then a pilot survey was done using drafted questionnair to get an idea of how to finetune the drafted version to the final questionnair.The review of the drafted questionnair revealed some important points and all of those were considered when designing the final questionnair.One of a main comment was to bring the final questionnar to one scale as much as possible.This was considered since it would easy to use analytical tool with single range of values.Another important review comment was to reduce the legth of the questionnar.Also it had more focus on appropriateness of the content of the questions,sequence of questions,language,general appearance of the questionnar.Also it had focus on the appreance of the online survey form with selecting an appropriate templates.Also printed Questionnaire was distributed to the

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users who are having ERP experience in medium sized companies and ERP experts. Questionnaire was distributed covering with functional areas mainly marketing and sales, supply chain management (SCM), accounting and finance and human resource (HR), Information Technology (IT).

3.5.2

Computer Aided Survey

The responses for the drafted questions were gathered through publishing the question on the web. Drafted questionnaire was published in online survey site of http://edu.surveygizmo.com.And the URL of the questionnaire was distributed via Email. According to the comment given drafted questionnaire was modified. Then final questionnaire was published in the same the online survey site of http://edu.surveygizmo.com. Then the target audience was invited via telephone and emails with the link required to access for the participation for the online survey. Most of the ERP users preferred computer aided survey method, because internet accessibility is available in most organizations. It was identified as one of an easiest and success method of data collection.

3.5.3

Interviews

Interviews were carried out as face to face interviews and some telephone interviews. Data gathered from face to face interviews were from some management staff who, deal with ERP systems. Some telephone interviews were carried out based on their preference and difficult to access. 3.6

Secondary Data Sources

Secondary data obtained from the information gathered other than to the current research. 

World Wide Web



Company annual reports



Company databases

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3.7



Books written on ERP Systems



Periodicals



Previous researches



Statistical data

Methods of Data analysis

The data analysis was done using SPSS version 16.0 statistical package and Microsoft Excel. First descriptive statistics were analyzed in order to understand the characteristics of samples. The output data are presented using tables, pie charts and bar charts. Pearson correlation method is used to identify the co-relation between independent variables such as people factor variable and Project dimension variable in connection to the complexity to ERP.

3.8

Limitations

Even though the research have attempted to reach a wide cross section of ERP types used in different organizations lack of responses from certain ERP users the sample responses was limited..The other limiting factor was that the responses had been based on the perceptions of the respondents and may not be a realistic measure in certain cases. Interviews conducted by the researchers may have got the most appropriate answers but difficulties arise due to the inability of conducting interviews with all respondents. Also some users reluctant to give their feedback they point out the ERP system is confidential the company and they consider it contains sensitivity data.

3.9

Chapter Summary

This chapter covered the methodology to be adopted in collecting data. The conceptual framework was presented, describing with variables. Next sub section it described the operationalization of variables. Then it discussed Sample selection and composition and data gathering mechanisms which was done through questionnaires,

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computer aided Survey, interviews and from secondary data sources. A short description of data analysis method is described. Finally this chapter outlines the limitations associated with the research as experienced by the researcher.

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