“The theory of how research should be carried out, including the theory and philosophy on which research is based and the impacts of these for the method or approach adopted (Saunders & Lewis, 1997).” Because the the-sis is based upon analyzing subcontract risk of the third party logistics in China, so to get information such as some figures and situations about TPL and its application is very important, the author will do some surveys in China for collecting data in this dissertation. This chapter is the research methodology in the whole dissertation. In order to get the correct data of relevant data and information, library research is used for the author to get data and correct useful information.
3.2.1 Research philosophy
Accoding to Bass (1993), the researcher’s aim is research phenomenon, research phenomenon turns it into science, and the science law can be ob-tained by concluding phnomenon, so researchers mix the philosophy into the science.
Walsham (1993) considers that people just interpret science from the sit-uation of knowledge of reality, including the domain of human action, which is a social construction by human actors and applies equally to searchers. But the objective reality cannot indicate itself in front of re-searchers, so researchers have to discover it and show it, in contrast to the assumptions of positivist science. Bass (1993) indicates that, the reality is based on external and real thing researched, the researches have to suit to the reality. In the author’s view, the research philosophy has to suit to the research phenomenon. Because Bass (1993) emphasizes that the theory must be validate by the experience, and the science is based on the science.
The author needs to analyze the data to obtain the conclusion.
Saunder, (2003: 85) considers that “Research philosophy are ‘better’at doing different things. As always, which is ‘better’ depends on the re-search question(s) you are seeking to answer…” this is agreed by the au-thor. For this reason the author would like truly to know the current situa-tion of subcontract risk of TPL in China; the related issues of it; discuss the development of strategies.
Positivism is a philosophy that holds that the only authentic knowledge is that which is based on actural sense experience. Metaphysical speculation is avoided. Max Horkheimer and other critical theorists criticized positiv-ism on two grounds. Firstly, positivpositiv-ism ignored the role of the ‘observer’
in the constitution of social reality and thereby failed to consider the his-torical and social conditions affecting the representation of social ideas.
Positivism showed falsely the object of study by reifying social reality as existing objectively and independently of those whose action and labor ac-tually produced those conditions. Second, he argued that representation of social reality produced by positivism was inherently and artificially con-servative, helping to support the status quo, rather than challenging it (Hacking, 1981).
“Phnomenology” comes from the Greek words phnomenon, meaning “that which appears”, and logos, meaning “study”. In Husserl’s and Willard (2003) conception, phenomenology is primarily concerned with making the structures of consciousness, and the phenomena appearing in acts of consciousness, objects of systematic reflection and analysis. Daniel Den-nett has criticized phenomenology on the basis that it is explicitly first-person approach is incompatible with the scientific third-first-person approach.
As part of an ongoing debate with Dreyfus and Warthall (2006) has argued that much of the work done by ‘phenomenological lllusion ’which is the mistake of assuming that what is not phenomenological present is not real, and that what is phnomenology present is an adequate description of how things really are (Smith, 2007).
In this research, phenomenology will be used as research philosophy. The focus of this research will be put on the subjective understanding of 3PL outsourcing risks. Therefore, the research philosophy of phenomenology is much more suitable rather than positivism. Findings will be derived from participants based on their factual experiences on this subject.
3.2.2 Quantitative versus Qualitative
Jobber, D. (2004) indicates that the quantitative research is sample to col-lect real data, analysis the data after colcol-lection expediently. In author’s view, the quantitative is very convenience to collect data, and analyze data easily. According to Creswell, J. (1998), the value of this approach allows standardizing the questioning to such an extent that a more numerate, sta-tistically-based analysis is possible and permits you to test out hypotheses more explicitly, always assuming the standardized. The quantitative ap-proach is usually applied to scientific inquiry. It is characterized by
deduc-tive reasoning, objecdeduc-tive investigation and precise and statistical meas-urement.
The qualitative approach is defined as a systematic collection and analysis of subjective narrative material. Inductive reasoning, subjectivity, discov-ery and subjective description characterize this approach (Creswell, J., 1998). It is more complex and difficult to evaluate ‘results’than those gained from the quantitative approach because the study usually involves people and formulation of conclusions based upon their attitudes, opinions, experences, emotions, recollections and understanding.
Table 3.1 Differences between quantitative and qualitative
Quantitative Qualitative
Focus on meanings obtained from numbers
Focused on meanings analysed from words
Numerical and standardised data are collected
Non-standardised data are collected and require for categorisation
Statistics and diagrams are conducted for analysis
Conceptualisation are conducted for analysis
Source: Minocha (2006)
In this study, the author uses the qualitative method to collect data because the author uses interviews to do the research, which is also because the formulation of the conclusion based on people’s attitudes, opinions, expe-riences, emotions, recollections and understanding. In comparison to quantitative research, qualitative needs more time and money to get the answers and these answers may be different from various people.
3.2.3 Deductive versus Inductive
Induction and deduction have been used as two different ways to establish theories and draw conclusions; induction is focused on evidence while de-duction is based on logic (Ghauri & Gronhaug, 2005). It is usual to associ-ate a positivism paradigm with deductive process and a phenomenology paradigm with inductive process (Hussey & Hussey, 1997). In inductive process, conclusion are drawn from practical observation and then used to improve theories; by deduction, researchers draw conclusions through log-ical reasoning (Ghauri & Gronhaug, 2005). The main difference is in in-duction the conclusions acquired lead to build theories and hypothesises, while with deduction, the conclusions are used to test these theories and hypothesises (Clough & Nutbrown, 2007).
Due to phenomenology chosen as research philosophy, induction is appro-priate for research methodology. The researches of third party logistics subcontract risks are in infancy (Lau & Zhang, 2006). Therefore, it is aimed to explore how third party subcontract risks in China could be eval-uated and managed effectively in this research, thus it is hoped to bridge the gap between theory and practice in inductive process.
Table 3.2 Differences between deductive and inductive approaches to re-search
Deductive approaches Inductive approaches
Scientific standards
From theory to data
Require to explain causal relation-ships among variables
Quantitative data
Needs to ensure data validity
Needs to clarify definition
Researcher is independent during research process
Consideration in conclusion gen-eralisation with sufficient samples
Obtain a deep understanding
A close study within the research
Less consideration with generali-sation
(Source: Saunders et al., 2000, p.91)