Influence of Trust on Competition in E-Commerce - Literature review Example

Research Methodologies of a Dissertation 3.0. Research methodologies 3 Introduction to research methodologies Since the introduction of the computer and the internet, the terms of trade has changed immensely, with e-commerce becoming a major type of trade in use today. Like other types of trades, e-commerce is characterized by stiff competition among different companies offering e-commerce services. Taobao in China is one of the e-commerce marketplaces, which offers online shopping and delivery of services and products for various companies. Due to the nature of e-commerce, where buyers and sellers are not physically present, establishment and upholding of trust is crucial in ensuring the continuity of trade. Competition in e-commerce is defined by trust. Very few research studies have looked into the influence of trust on competition in e-commerce. Taobao offers a case where the influence of trust on competition in e-commerce trading can be studied and evaluated. 3.2. Approach of the research The research subject expresses a desire to get more information about the nature of trust in e-commerce and how it influences competition in the trade. Due to the scarcity of research studies into the research subject, the research will utilize an inductive approach. An inductive approach will yield more information about the aspect of trust in e-commerce, which will explain its influence on the trade. Using scientific means and reasoning, the research will hope to generalize and draw particular causes of trust and the associated influence. The approach will utilize both qualitative and quantitative research methodologies in an attempt to gain more information and arrive at a conclusion (Saunders, Lewis & Thornhill, 2007, p.117). Interviews, questionnaires and observations will be used to model the trust theory and its influence on competition in e-commerce. To meet the research objectives, both qualitative and quantitative approaches will also be utilized in the research. In addition, few other alternative approaches will be considered for the research. 3.2.1. Qualitative approach The qualitative approach in the research will be utilized to get qualitative data that will be used to answer why trust in influential in competition in e-commerce. The approach will be ideal for collecting and analyzing data that is particular and not general. In order to realize the research objectives, the research will employ qualitative methods of data collection and analysis. Qualitative approach will yield data from various sources that will enhance credibility and reliability of the research outcomes. The research will use interviews to collect qualitative data that will be analyzed qualitatively. Secondary research will also yield qualitative data that will aid in realization of the research objectives. Open-ended questionnaires will be utilized to enhance the collection and analysis of qualitative data. One-on-one interviews will be conducted to guide the research into the realizations of its objectives as well as answering the research question. Secondary sources like printed sources and websites will also yield qualitative data. 3.2.2. Quantitative approach Quantitative approach will also be used to ensure that the research meets its objectives and responds to the research question. The research investigates the relationship between trust and competition in e-commerce. This relationship can only be explained using a quantitative approach, which will provide a hypothesis of the relationship between trust and competition in e-commerce. Further, the research will attempt to measure the levels of trust that can cause certain level of competitiveness in e-commerce. This will be possible using a quantitative approach in the research. This causal relationship between trust and competition, especially where higher levels of trust infer higher competitive ability to companies in e-commerce will require a quantitative approach. Quantitative methods of data collection will be used to inform the approach. Questionnaires will be designed to collect quantitative data that will be analyzed quantitatively to yield scientific correlation between the two research variables; trust and competition in e-commerce. The correlation will explain the relative levels of each variable that can trigger certain levels of the other variable. 3.3. Research philosophy According to Hughes (1994, p.43), understanding of philosophy is crucial in understanding the general philosophical issues that underlie human intellectual affairs. The research philosophy is based on the assumption that trust is influential in determining the competition tide in e-commerce. However, the only way to clarify these assumptions is to conduct an analysis of the existing companies in e-commerce and how their competitive ability has been hindered or enhanced by trust. According to Easterby-Smith et.al (1997, pp. 26-28), philosophical exploration in research is crucial in setting the research methodologies, research strategy, and types of data to be collected and how it will be analyzed. Further, research philosophy enhances evaluation of different methodologies based on their limitations and thus helps in identification of an ideal methodology. Philosophical exploration also induces creativity and innovative use of methodologies. The research philosophy will target the qualitative and quantitative methodologies in relation to their usefulness in the research. According to Proctor (1998), research philosophy enhances the consistency in finding the relationship between the research questions, methodologies, analysis and the conclusions. 3.3.1. Interpretivism Myers (2008, p.13) states that interpretivism is the interpretive acumen of research that involves understanding realities through the lens of social construction of existing realities, which is expressed by the language, shared meanings and other instruments that define their interactions. The research will use interpretivism to understand the social construction of trust and how trust is translated into competitive ability by e-commerce companies. The goal of the research is to understand the relationship between trust and competition in e-commerce, which is in the interpretivism domain. The subject-researcher relationship in the research will entail interactive and cooperative participation in data collection (Pizam & Mansfield, 2009, pp. 22-27). The research problem seeks to explain the meaning of trust to competition in e-commerce. Trust is a social construction that cannot be analyzed in statistical terminologies, and will require interpretation to understand the relationship between the two variables. 3.3.2. Positivitism Collins (2011, p.35) states that positivism philosophy emphasizes that knowledge comes from human experience. It relies on discrete and observable elements that are quantifiable and can be measured by an independent observer (Collins, 2011, p.38). Positivism paradigm of research relies on facts deduced from observed phenomenon. The research will collect data that can be relied on to produce facts about the relationship between trust and competition in e-commerce. China competitive environment in e-commerce, especially between Taobao marketplace and eBay provides a rationale for having facts about the two variables. The research will utilize quantitative research methodology, and questionnaires to enhance positivist philosophical approach in the research. The research will also utilize other positivist related concepts like sampling. The research will demonstrate the trust influence hypotheses of competition in e-commerce through drawing causality (Crowther & Lancaster, 2008, p.28). 3.3.3. Subjectivity The research like any other is prone to subjective notions of the researcher. The research will utilize qualitative methodologies in evaluating the relationship between the two variables. It will be crucial for the researcher to be aware of their own values and objectives that may affect the research. Subjectivity will affect the study topic, hypotheses, choice of methodologies and data interpretation (Ratner, 2002). Subjectivity can bias the researcher and thus affects the research outcomes. Subjectivity is the end product of qualitative methodology and thus, the research will have to embrace it. The ability of the researcher to understand the phenomenon under study will be aided by the subjective reasoning applied in the research. Due to the subjective nature of qualitative methodology, it will be important to establish criteria for assessing the accuracy of data collected and observations from the subjects. 3.3.4. Objectivity Where there is subjectivity, objectivity is utilized to counter the effects of subjectivity. Objectivity is used by researchers in myriads of ways to mitigate the researcher’s subjective position on the outcomes of the study. Objectivity also refers to the positivism principle that researchers should maintain a distance to reduce their influence on the study. This is aimed at ensuring that personal beliefs, values, preferences, predictions and other prejudices do not contaminate the collection and analysis of data. Researcher must establish ways of dealing with their subjective notions about the research problem. Objectivity in the research will be achieved through triangulation. Triangulation will involve collecting data from multiple sources to enable confirmation of the reliability of the data or inter-rater reliability where conclusion drawn from the research will be assessed against other outcomes from other researchers to confirm whether the conclusions are the same. Data will be collected using multiple methods to check biasness and reduce researcher influences on data collection and analysis. 3.4. Research methods Data collection will rely on methods that will be utilized. Research methods are the ways and means that are employed in research to collect and analyze data. The research will utilize several methods of data collection as well as data analysis. The methods to be used will depend on the type of data to be collected and the type of analysis that is intended for the research. The research will utilize both qualitative and quantitative research methods. The research problem and objectives will inform the type of data to be collected. In turn, data collected will inform the process to be used in data analysis. Research methods will form the basis of conducting investigations into the relationship between the two variables proposed in the research problem. The research methods will inform data collection and data analysis, thus influencing the outcome of the research. It will be crucial to consider the reliability of data to be collected in relation to the methods used to collect and analyze the data 3.4.1. Data collection Data collection is defined as the process of gathering and establishing information on elements under study in an organized manner that enables the researcher to answer the research question, test developed hypotheses and assess research findings. Data collection methods may vary but they work to ensure accuracy and reliability of data is maintained. Data collection will involve both qualitative and quantitative data collection, which will be analyzed to refute or back the research problem. Use of multiple methods of data collection will enhance data validity and reliability. Collection of data will target trust in e-commerce processes by customers and the leverage that it gives to competitive ability of companies in the trade (Kvale, 1996, p. 23). 3.4.1.1. Interviews Interviews will form a crucial part of data collection, which will yield qualitative data. Interviews will be conducted one-on-one with selected customers and Taobao company staff. In qualitative research, interviews seek to describe the meanings of phenomena as seen from the interviewee’s perspective (Kvale, 1996, pp. 33-35). The research hopes to understand the relationship between trust, which is a social construction and liable to human interpretations, and competition in e-commerce. Interviews will provide crucial and extensive information about the experiences of customers on trust in e-commerce processes in companies. The interview will also offer great flexibility on data collection as they will provide myriads customer experiences of trust in companies and their e-commerce processes. In particular, the research will target both Taobao customers and other customers from other e-commerce companies who will ensure that data gained can be analyzed to reveal the nature of consumer trust in different companies’ e-commerce processes. To enhance data reliability, both structured and semi-structured interviews will be conducted. For respondents who cannot be physically reached, telephone interviews will be conducted. In-depth interviews will be used to collect data from Taobao and other companies’ staff so as to understand the process of trust creation in e-commerce companies (Campion & Hudson, 1994, pp. 17-19). 3.4.1.2. Questionnaires Questionnaires are another data collection tool that can generate both qualitative and quantitative data depending on the questions contained in the questionnaires. Questionnaires are ideal tools that can be used alongside interviews to enhance data reliability and validity. Several types of questionnaires will be used to enhance data collection. The research will utilize self-completed questionnaires with different types of questions to enable collection of qualitative and quantitative data. Open questions will be used to generate qualitative data while closed questions will generate quantitative data. Mailed questionnaires will be used on respondents who are not physically accessible. To ensure that respondents give quality and reliable information, questionnaires will be used to corroborate data gathered using interviews. E-commerce is an internet-based trade and thus, email and web surveys will also be utilized. This aims at enhancing representativeness and ensuring that data gathered is reliable and accurate (Seale, 2011, pp.183-187). 3.4.1.3. Secondary data Secondary data can be defined as already collected and readily obtainable data from other sources that covers the same research problem as the intended research (Koziol & Arthur, 2011, p. 31). Vartanian (2010, pp. 56-57) defines secondary data as inclusive of any data, which is examined to answer another research question other than the current research question at hand. Secondary data will also be used to inform the research. Secondary data will be collected from secondary sources like printed materials like journals, books and magazines among other secondary sources. Secondary data will also be collected from websites of companies like eBay, Taobao and other e-commerce companies. Secondary data will be crucial in augmenting as well as corroborating the data obtained from primary sources like interviews and questionnaires (Boslaugh, 2007, pp. 16-21). Secondary data will act as the lead generator of other data sets. Secondary sources will be assessed on their relevance to the research question. The relevant ones will be chosen and analyzed to generate data, which will be used to inform the research study. Secondary data may yield quality data (Enders, 2010, p.45). 3.4.1. Sampling Sampling is the process of picking a representative sample or a part of population for the reasons of assessing parameters or characteristics of the whole population. Sampling is establishing a statistical aggregate of a total population. Webster (1985) defined a sample as part of a statistical population whose characteristics represent that of the whole population. Sampling enables researchers to draw conclusions based on observation of small samples that have the same characteristics as that of the whole population. It is impossible to observe the whole population. Sampling reduces the costs involved in collecting data from the population. Sampling also saves time that could be used in data collection and analysis (Thomas and Heck, 2001, pp. 524-530). However, sampling must ensure that it is representative of the whole population by reducing biasness in picking or selection. Sampling in the research will utilize several methods. The nature of population required for sampling will entail use of several sampling methods to enhance representativeness. Selection of respondents will be assessed on availability and proximity. The research will utilize both probability and non-probability sampling methods to allow for the samples to be representative. Before sampling, definition of the population to mark boundaries will be established. Probability sampling will involve; simple random, stratified random and systematic random, while non-probability sampling will only involve convenience sampling. All the sampling methods will be utilized to pick population representatives for different populations that will be involved in the research. Convenience sample will be used to sample the respondents for telephone interviews (Lohr, 2010, p.32). 3.5. Limitations of the methodology The methodology may not be adequate to capture the needed data that could lead to the understanding of creation of trust by the customers in e-commerce processes of different companies. As a social construction, trust is an aspect that may require extensive observation and research to understand how it works. Further, trust may be influenced by other factors in the operations of e-commerce. There is no way of establishing a standard definition of trust, which may influence the outcomes of the research. It will be impossible to quantify trust and competition per see. Thus quantitative data may be biased in assessing the relationship between the two variables. As an online form of trading, e-commerce processes may involve customers who are far away areas that are not accessible. If sampled, and questionnaires are sent, there exists very low probability of them coming back. Based on the number of non-returned questionnaires, representativeness may not be achieved. Interviews will consume a lot of time and money. One-on-one interviews will require the researcher to access the respondent. For telephone conversations, it will be difficult to ascertain a lot of information and respondents may lack time to remain on call for long hours. Another limitation is the application of subjectivity in data collection and data gathering. Interviews are prone to subjectivity, which is difficult to eradicate. 3.6. Summary The research methodology provides the steps and processes that a researcher will use in carrying out research on the influence of trust on competition in e-commerce. The methodology outlines the methods, data analysis and sampling techniques that can be utilized in collection and analysis of data regarding the extent of influence trust has on competition in e-commerce. The research methodology borrows from the e-commerce markets of China namely Taobao and eBay and the results in consumer preferences based on the companies abilities to develop and foster trust in its e-commerce web transactions. The methodology also offers the philosophical explanation behind the research and the paradigms informing the whole research. As a statistical research generating both quantitative and qualitative data, the methodology proves useful in giving directions on how data obtained can be analyzed. The methodology pays attention to data reliability and validity, which can greatly affect, validate of recant the research outcomes. Bibliography Boslaugh, S. 2007. Secondary data sources for public health: A practical guide. New York, NY: Cambridge. Campion, A., Campion, E., and Hudson, P. 1994. Structured interviewing: a note on incremental validity and alternative question types. Journal of Applied Psychology, 79, 998-1002. Collins, H. 2011. Creative research: the theory and practice of research for the creative industries. New York: AVA Publications. Crowther, D., and Lancaster, G. 2008. Research methods: a concise introduction to research in management and business consultancy. London: Butterworth-Heinemann. Easterby-Smith, M., et.al. 1997. Management research: an introduction. London: Sage Publications. Enders, K. 2010. Applied missing data analysis. New York, NY: Guilford. Hughes, J. 1994. The philosophy of social research. Essex: Longman Publishers. Koziol, N., and Arthur, A. 2011. An introduction to secondary data analysis. Research Methodology Series. [Pdf]. Available at [Accessed 28 March 2014]. Kvale, S. 1996. Interviews: an introduction to qualitative research interviewing. Thousands Oak, California: Sage Publications, Inc. Lohr, S. 2010. Sampling: Design and analysis (2nd Ed.). Boston, MA: Brooks/Cole. Myers, D. 2008. Qualitative research in business and management. London: SAGE Publications. Pizam, A. and Mansfield, Y. 1999. Consumer behavior in travel and tourism. Thousand Oaks, California: Routledge. Proctor, S. 1998. Linking philosophy and the method in the research process: the case for realism. Nurse researcher, 5(4): 73-90. Ratner, C. 2002. Subjectivity and objectivity in qualitative methodology. Forum: Qualitative Social Research, 3(3), Art 16. [Online]. Available at [Accessed 28 March 2014]. Sapsford, R., and Jupp, V. 2006. Data collection and analysis. (2nd ed). London: SAGE Publications Ltd. Saunders, M., Lewis, P. and Thornhill, A. 2006. Research Methods for Business Students. 4th Ed. New Jersey: Prentice Hall Inc. Seale, C. 2011. Researching society and culture. 3rd Ed. London: SAGE Publications Ltd. Thomas, L., and Heck, H. 2001. Analysis of large-scale secondary data in higher education research: Potential perils associated with complex sampling designs. Research in Higher Education, 42, 517-540. Vartanian, P. 2011. Secondary data analysis. Oxford: Oxford University Press. Webster, M. 1985. Webster’s ninth new collegiate dictionary. Springfield, Massachusetts: Meriam-Webster Inc. Read More