Research approach and method

Two reasoning methods in research been widely identified and applied are deductive and inductive approaches. Using the deductive approach, scholars design research strategies to develop or test theories, hypotheses, propositions. Meanwhile, in the inductive approach, scholars would collect data, and then develop theory as a result of data analysis. To combine both of the methods within the same research is regarded as possible and often advantageous (Saunders et al. 2003). Thus, elements from both approaches can be identified in this master’s thesis.

It has been mentioned in the introduction and literature review chapters that there are not many studies on export barriers perceived by SMEs from the network perspective and thus there are relatively little data from this research area (See e.g. Freeman et al. 2006; Milanzi 2012, Ghauri et al. 2003). Different types of export barriers encountered by SMEs and roles of networks have been identified in these studies. However, there have been a call for more studies the relationship between networks and export barriers (Kahiya 2018).

Empirical data of this study is gathered to support or discredit the study propositions that have been deduced from previous studies. Therefore, this study uses mainly the deductive approach to test

these hypotheses upon empirical data. On the other hand, this master’s thesis strives to use the empirical data to create a new theory; then elements from inductive approach are adopted as well.

However, a theoretical framework of this master’s thesis has been created by combining previous findings of export barriers and network perspective, the deductive approach may contribute larger parts.

Regarding research paradigms, there are three known methods: quantitative, qualitative and mixed methods. Quantitative research is widely popular in social sciences by surveys, statistical tools, etc.

which brings to readers’ minds a more structured and standardized data collection and analysis.

Meanwhile, qualitative method is one common way to use in business research aiming to provide a better understanding of issues that have remained unclear in quantitative studies (Eriksson and Kovalainen 2016). As mentioned earlier, this thesis represents the qualitative method research.

Thus, the purpose of this study is to provide in-depth findings from cases that have numerous features that differ one from each other (e.g. size, age, type of business, etc.). The thesis shall focus on four separate cases thus it is a multiple-case study. About the case study research, Yin (2009) states that the method provides little basis for scientific generalization towards populations or universes, but it is generalizable to theoretical propositions. Thus, the upcoming empirical part and its study results will not aim at generalization; and the findings cannot be generalized to all firms, even in the same industry or business. Despite of that, the chosen methodology provides tools for testing current research propositions and finding answers for research questions, that might be more inappropriate to examine with other methods. Last but not least, the writer desires to have direct interactions with local enterprises to better understand their business backgrounds and international business activities via business cases that interviewees are more likely to share by in-person talks.

Accordingly, it expects to more solidly test the propositions and the framework under master thesis’s scale.

The empirical part with the four case examples aims at presenting valuable information for future studies. One identified advantage of the multiple case studies method is ability to provide more conclusive evidence thanks to possible comparations among cases that will influence on the credibility of the entire research. No specific rules are given regarding the minimum number of cases selected for a multiple-case research which is more influenced by study aims and research question (Eriksson and Kovalainen 2016). Under this master thesis scale, four cases are selected.

Though more resources are needed such as time and expenses when using multiple case studies method, it is important to understand the logic of the chosen research method: replication, not sampling logic. The replication logic requires a rich theoretical framework where the particular phenomenon is likely to be found (Yin 2003). Consequently, each case must be carefully selected to satisfy the possibility to either (1) predict similar results (a literal replication) or (2) predict contrasting results for predictable reasons (a theoretical replication). Thus, multiple-case studies support the possibility of direct replication.

The case firms shall be selected with different characteristics; the connective factors possibly found are Finnish manufacturing SMEs and exporters with some foreign experience. It would be interesting to see whether there are any similar behaviors among these case firms, and differences in how they interact and manage networks and export barriers in foreign markets. The research attempts to provide a general understanding of how four Finnish manufacturing firms using networks to manage export challenges in international business. The purpose of this study is to find answers to the research problem: How do Finnish manufacturing SMEs develop and learn from relationships to benefit overcoming export barriers in internationalization? This research problem has inspired to create two research questions that has guided the literature review and choosing the research methodology. The research questions are:

RQ1: How business relationships of a manufacturing small & medium-sized firm influence its knowledge learning & challenges after initial market entry? How these relationships have developed in time?

RQ2: How those business relationships play a role in overcoming export barriers in foreign markets?

Since the beginning of IB studies, the number of published qualitative method studies have been evidently lower in comparison with quantitative method studies (Doz, 2011, Marschan-Piekkari &

Welch 2004). There are two strong reasons for the low status of qualitative research: (1) qualitative methods are not accepted as “legitimate” science, and (2) the preference and strong demand for

“hard science” to deliver quantifiable data and immediate results sought by universities, practitioners, journals (Marschan-Piekkari & Welch 2004). In response, there are calls for qualification method studies due to (1) demands for theory development and theory-generating research, (2) benefits of deeper cross-cultural understanding generated from qualitative research,

and (3) that qualitative method can approach answers for “what” (observable behaviour), and understand the meaning and beliefs behind action for “why” and “How” (Wright 1996 and Osland

& Osland 2001, Buckley and Chapman 1996 in Marschan-Piekkari & Welch 2004).

Qualitative case-studies method has been selected and applied since it is a suitable approach for the nature of this master’s thesis. Yin (2009) states that using multiple cases is an applicable research approach for creating theories, and this study strives to generate new insights on the network approach in SMEs’ internationalization. Additionally, case study research is popularly known for its practicality and accessibility to present and embrace complex business problems (Eriksson and Kovalainen 2016).