CHAPTER III
Chapter III Methodology
• Research Objective
• Research Strategy
METHODOLOGY
• Research Sample
o Data Collection
o Final Dataset
• Empirical Methodology
o Variables Measurement
• Model Specification
• Reliability
• Validity
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, 3. Research methodology
3.1 Research Objective
The research goal is to investigate how/why the institutional distance affects the
relationship between DCs and IP. To accomplish that, the similarities, and differences of GE
and IVR and their role in the association of DCs with IP need to be assessed since the current
literature somehow neglected or limited its analysis to general or only board involvement
effect, frequently omitting the role of IVR.
3.2 Research Strategy
As the literature mentioned, inductive reasoning can always be followed with the
deductive approach; thereby, in this paper, even though it is qualified for inductive reasoning,
the deductive approach will be used (Hyde, 2000; Patton, 1991). By theorising the deductive
findings in this paper, the researcher will be able to generalise the result. In other words, the
result will be discussed in terms of its representativeness of the whole population — in this
paper — the foreign subsidiaries (Yin, 2018). Moreover, to support the deductive approach,
the critical synthesis of existing papers and theory were completed in the previous chapter
(Chapter I), and several hypotheses were developed (Snieder & Larner, 2009). The causal
relationship will be examined in the set of developed hypotheses; such a relationship will be
identified if three conditions 7 are met. To determine whether the causal conditions are met, the
hypotheses will be tested in the next phase of this research, and the result will be discussed,
providing a better or completely new light on the study phenomena. In a situation when the
result reveals contrary and/or reverses relationships, or if the lack of causal relationships will
be identified, the most logical explanation of such results will be provided. To support the
7 Conditions to establish causation are: X and Y vary together, time of occurrence, and elimination of other possible causal
factors (Keller & Gaciu, 2019).
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Chapter III Methodology
• Research Objective
• Research Strategy
METHODOLOGY
• Research Sample
o Data Collection
o Final Dataset
• Empirical Methodology
o Variables Measurement
• Model Specification
• Reliability
• Validity
- 25 -
, 3. Research methodology
3.1 Research Objective
The research goal is to investigate how/why the institutional distance affects the
relationship between DCs and IP. To accomplish that, the similarities, and differences of GE
and IVR and their role in the association of DCs with IP need to be assessed since the current
literature somehow neglected or limited its analysis to general or only board involvement
effect, frequently omitting the role of IVR.
3.2 Research Strategy
As the literature mentioned, inductive reasoning can always be followed with the
deductive approach; thereby, in this paper, even though it is qualified for inductive reasoning,
the deductive approach will be used (Hyde, 2000; Patton, 1991). By theorising the deductive
findings in this paper, the researcher will be able to generalise the result. In other words, the
result will be discussed in terms of its representativeness of the whole population — in this
paper — the foreign subsidiaries (Yin, 2018). Moreover, to support the deductive approach,
the critical synthesis of existing papers and theory were completed in the previous chapter
(Chapter I), and several hypotheses were developed (Snieder & Larner, 2009). The causal
relationship will be examined in the set of developed hypotheses; such a relationship will be
identified if three conditions 7 are met. To determine whether the causal conditions are met, the
hypotheses will be tested in the next phase of this research, and the result will be discussed,
providing a better or completely new light on the study phenomena. In a situation when the
result reveals contrary and/or reverses relationships, or if the lack of causal relationships will
be identified, the most logical explanation of such results will be provided. To support the
7 Conditions to establish causation are: X and Y vary together, time of occurrence, and elimination of other possible causal
factors (Keller & Gaciu, 2019).
- 26 -
