2.6 Conclusion
This chapter not only reviews the concepts and theories relating to SME, human resource management (HRM), but also reviews many past studies focused on this research area to summarize findings from these past studies. The findings from the literature show that human resource management has become an increasingly important issue to influence the development of the enterprise not only in the western developed countries, but also in many developing countries like China. SMEs are experiencing rapid development in China and playing a more and more important role in national economy and the society of China, but they have to face many problems involved with their human resource management and HRM has become one of the most important factors to restrict the development of SMEs in China. Based on these findings summarized from the literature, this research will do a further investigation to examine the human resource management practices of SMEs in China.
Here you should provide what are the most important points from this chapter to remember when reading the following chapter. Do the information presented above contradict each other at some points? How can this be explained? Are there areas were information are still missing and how will you paper address one of these subjects? Which knowledge from the literature review was used in order to design and interpret the empirical study?
Chapter Three Research Methodology
3.1 Introduction
The purpose of this chapter is to provide the reader with an understanding of the methodology and relevant research approaches adopted in our research. In this chapter, we explain the research philosophy, approaches and strategies, and why the methodology has been adopted, at the same time, the constraints associated with data collection and the limitations to the work will also be discussed.
The research aim for this dissertation is to investigate the current human resource management practices of small and medium-sized enterprises (SMEs) in China. Obtaining effective data and information is of vital concern to build an accurate picture of the issue being studied. To a large extent, methodology determines the outcomes of any research. Therefore, it is crucial to choose appropriate research methods and conduct them effectively in order to answer the research question and meet the research objectives well.
3.2 Discussion of Methodology Theory
3.2.1 Research Philosophy
The first question that any researcher should raise before conducting a real research project is what research philosophy you will adopt, this is very fundamental step and generally speaking, there are three views about the research philosophy that dominate the literature: positivism, interpretivism and realism (Saunders et al., 2003).
The key idea of positivism is that the social world exists external, and its properties should be measured through objective methods, rather than being inferred subjectively through sensation, reflection or intuition (Smith et al, 1991). If your research philosophy is positivism, you will assume the role of an objective analyst, make detached interpretations about data collected in a value-free manner and emphasize on a highly structured methodology to facilitate replication (Gill and Johnson, 1997) and quantifiable observations that lead themselves to statistical analysis.
By contrast with positivism, interpretivism is often associated with the term social constructionism which is critical of positivism and argues that rich insights into this complex world are needed. The role of the interpretivist is to seek to understand the subjective reality of those that they study in order to be able to make sense of and understand their motives, actions and intention (Saunders et al., 2003). In other words, social constructionism offers that reality is subjective and it is socially constructed and given meaning by people (Seddighi, 2005).
Finally, realism recognizes the importance of understanding people’s socially constructed interpretations and meanings, or subjective reality, within the context of seeking to understand broader social forces, structures or processes that influence, and perhaps constrain, the nature of people’s views and behaviors (Saunders et al., 2003).
Based on the differences of three philosophies, this research is of an exploratory nature which is a kind of social constructionism. As Cooper and Schindler (1998, p. 131) state that, “exploratory studies tend toward loose structure with objective of discovering future research tasks”. Besides, MacDaniel and Gates (1999, p.63) claim that “exploratory research is usually small-scale research undertaken to define the exact nature of the problem and gain a better understanding of the environment within which the problem occurred”. All of these fit well with the objectives and other conditions of my research project. Therefore, we adopt the interpretivism philosophy of an exploratory nature in this study.
3.2.2 Research Approach
Inductive and deductive approaches
There are two basic research approaches available when conducting business research including deductive and inductive methods (Saunders et al., 2000). Their characteristics are described in the following table:
Table 3.1 Comparison of Deductive and Inductive Research Approach
Induction emphasizes Deduction emphasizes
-gaining an understanding of the meanings humans attach to events -scientific principles
-a close understanding of the research context -moving from theory to data
-the collection of qualitative data -the need to explain causal relationships between variables
-a more flexible structure to permit changes of research emphasis as the research progresses -the collection of quantitative data
researcher independence of what is being researched
-a realization that the researcher is part of the research process the application of controls to ensure validity of data
-less concern with the need to generalize -the operationalisation of concepts to ensure clarity of definition
-a highly structured approach
-the necessity to select samples of sufficient size in order to generalize conclusions
