How Western Internet Banking Model Applies to Russia - Dissertation Example

?HOW DOES THE WESTERN MODEL OF INTERNET BANKING APPLY TO RUSSIA 3.0 Methodology The methodology chapter of the researcher paper seeks to make known the various processes and procedures the researcher went through as part of data collection for the study (Nicholson II, 2007). The research study is described as a process rather than an event to mean that in order for the researcher to successfully achieve the research aim that is set for the study, there are series of tasks that must be performed. There could not be a singular activity that could make the researcher achieve the research aim (Adams and Lamptey, 2009). This chapter of the study will therefore spell out the most important aspects of tasks that the researcher put in place as part of data collection. As much as area of the research such as the literature review holds a prospect for answering most of the research questions and by extension achieve some of the research objectives, undertaking primary data collection remains a very useful way of testing secondary data used for the study (Riketta, 2008). This is because with primary data collection, the researcher is offered the opportunity of collecting first hand data that is not distorted or biased. The chapter shall open with the research philosophy that the researcher employed for the primary data collection. This is because the research philosophy will give the reader a general overview of the perspective from which the researcher conducts the remaining parts of primary data collection, whether inductively or deductively. There shall also be other aspects of the chapter such as research design, qualitative design, research strategy, research scope, as well as data quality issues. By the close of the chapter therefore, the reader will have a vivid understanding of the entire approach that involved the conduct of the research. 3.1 Research Philosophy Saunders et al (2003) notes the research philosophy reflects the perception that the researcher holds about how knowledge is constructed. This is common with qualitative research of this nature because in qualitative research, the researcher seeks to explore knowledge about an ongoing situation, of which the research is being conducted (Ainin, Lim and Wee, 2005). In the current study, the ongoing situation can easily be referred to as internet banking in Russia and how this is influenced by western model of internet banking. Generally, there are two possible perceptive approaches to the study and thus two available research philosophies namely deductive and inductive philosophies. In relation to the structure of the current study and the research aim that the researcher seeks to achieve, the inductive philosophy is followed. Easterby-Smith (2002) explained an inductive research, stating that in inductive research, the researcher depends on data collected during the research to construct theory. Because the researcher is not bounded down to a research hypothesis that is tested for the creation of a theory as there exists in the use of deductive research, there is much flexibility with the general conduct of the research. Essentially, the researcher will go about the current study by modifying the research emphasis using accumulated findings that through both primary and secondary data collection. In effect, the theoretical conclusions to be made on the impact of the western model of internet banking on Russia will be highlighted from within the research data gathered by the researcher in this very research. This is indeed one major justification for the use of inductive research so that the research gains control over the usage of data rather than working around a static hypothesis to prove its authenticity (Adriana, 2006). The major justification for the use of inductive approach for this research is that the prevailing premise of research problem that the researcher is dealing with is an exploratory one, that demands that a new set of knowledge be developed about how the western model of internet banking can be applied to Russia. In effect, there is no existing philosophy or area of known that is being tested but a new set of knowledge needs to be constructed. Noting that the inductive approach is a bottom-up process that creates a hill climbing phenomenon, the researcher will be offered the opportunity of starting from the unknown by building a set of observations to the known, my drawing a theory (Mosadegh Rad and Yarmohammadian, 2006). The diagram below gives a vivid explanation of how the researcher went about the inductive approach of research. From the diagram above, it would be noted that the researcher approached the inductive research by first creating a pool of observations from which patterns of the data collection will be undertaken. The pull of observation shall be created by making use of existing data, commonly referred to as secondary data. these data are expected to come from sources such as academic journals, books, professional reports, newspaper articles, and websites of Russian and western banks. The pattern of data to be collected will be data on the use of internet banking, trends in internet banking, challenges associated with internet banking and how basic principles in the internet banking process as prevails in the western model can be replicated in the Russian banking market. Based on the resutls of data to be collected from the patter, a tentative hypothesis will then be constructed to give a knowledge foundation to the observations that were made. The importance of the tentative hypothsis is that before creating a hypothesis, the observations of the researcher lack any academic merit for decision making. This is why after the tentative hypothesis, a theory can eaasily be drawn. 3.2 Research Design Exploratory research has been explained to be the type of research design that is used for research setting where the problem has not been clearly defined (Porac et al, 2003). Indeed the justification for using the exploratory research design is directly linked to the fact that the researcher is using an inductive approach, where there is no specific hypothesis (problem) being tested. To this effect, it is expected that the process of exploration will bring about a clear identification and definition of the problem. The second justification for the use of exploratory research design is for the fact that the current research is conducted following the qualitative method. According to Richmond and McCroskey, 2000), exploratory research design is ideal for qualitative method as against quantitative method because it is enhanced by the use secondary research such as the review of existing literature. In some quarters of research application, the exploratory research design has been explained to be a non-conclusive research due to the fact that the theories that are developed after exploratory researches cannot become conclusions based on which new deductive researches can be started (Hilgerman, 1998). Exploratory research has often been compared with conclusive research in understanding how a researcher may go about the conduct of an exploratory research based on some key variables such as research purpose, data needs, data sources, data collection form, sample, data collection, data analysis, and inferences. In the table below, the researcher outlines how the exploratory research was conducted differently from a conclusive research by using the variables that have been listed earlier. Source: Research Methodology Net (2013) The table above represents a summary of exploratory research and conclusive research as given by Pride and Ferrell (2007). From the table it will be established that the researcher used a research purpose that was set out to generate insight into a specific situation, which in this case was the impact of western model of internet banking on Russia. The data needs for the research are described as vague because they are going to be very wide and diverse. Indeed it is only under such a situation that sufficient data can be generated to go through the observation pool to bring about the intended tentative hypothesis (Bradley and Stewart, 2003). The sources are also described as ill defined not because the researcher takes data from unspecified and unidentified sources but because the researcher shall not be limited to a specific pool of data. It has been explained earlier that the researcher is going to make use of secondary data and primary data from various sources and this is what does not make the data source well defined. The data collection form used for the research is defined as open-ended so as to lead to an exploratory venture. Studies have showed that when respondents to a research are asked structured and close ended questions, the need to generate insight into a particular topic area becomes defeated (Cheng, 2006). What is more, a relatively small sample size is going to be used because for the current research, there is a specific and well defined research size and setting, which is bankers in Russia. The data collection process will indeed be conducted in a flexible and friendly manner so as to ensure that respondents will not be under any pressure of feeling that they are being made to expose key and critical areas of their business operations. Not related to the table however, the researcher is not going to use an informal data analysis process but a well structured, though non-quantitative data analysis type. Thereafter, this exploratory research shall lead up to a tentative theory as stressed under the inductive approach already. 3.3 Qualitative Research The conduct of the current research follows the qualitative research method. A qualitative research method has been explained to be a research method that is directed towards gathering in-depth knowledge and understanding about general human behaviour and factors that bring about these human behaviours (Balachandher et al, 2001). In relation to the research problem that the researcher is considering, it will be seen that the research problem as expressed in the first chapter of the project has been structured around a definite human behavioural characteristic. This definite human behavioural characteristic is the perception and attitude of the public towards internet banking and how this attitude and perception affects the outcome of banking as a financial industry. The perceptions and attitudes will be measured by use of specific western models of internet banking and correlated with banking in Russia. As noted by Boateng (2006), qualitative researches are always committed to answering the questions of why and how decisions are made, rather than just looking into the what, where and when of decision making process. The justification for using the qualitative research method for the current research is actually rooted in this point given above. This is because literature has showed that the decision making process that influences the choice that people make to use internet banking is guided so much with these people finding out why internet banking is an appropriate option for them, as well as knowing how they can get the best out of the concept. With the qualitative research therefore, the researcher is going to be offered the opportunity of investigating precisely into the factors that lead to the patronage of internet banking in the western culture (why) and also have the opportunity of finding out ways in which internet banking can come to users in a more proactive, effective and beneficial way (Basel Committee on Banking Supervision, 2001). 3.4 Research Strategy 3.41 Semi-Structured Interview Research Method A semi-structured interview method was used by the researcher in the primary data collection exercise. The very first justification for the selection of a semi-structured interview was in relation to the qualitative research design that was used for the study. It has been established that interview method is one of the best methods for obtaining primary data in any qualitative study of which the researcher’s emphasis is on the collection human related behaviour such as the one being tested in this research work (Chorofas, 2008). As it will be noted in subsequent sub-headings, the validity of a qualitative research of this nature can be guaranteed only in an atmosphere where the respondents can be offered the opportunity of widening their scope of responses (Claessens et al, 2002). Meanwhile, a semi-structure interview makes use of open ended questions which do not place any limits on the scope for answering questions, even though the need to ensure that answers given; no matter how wide they are fall within the variable the test item seeks to examine. One other major advantage that the researcher had with the use of the interview was that there was the opportunity of asking follow up questions and giving immediate feedback to answers given. This is a practice that enriched the data collection process by ensuring that responses were thoroughly answered, backed by evidence, and dependent on empirical study. It must be said however that there were some few challenges with the interview, including the fact that in some cases the researcher was forced to cut down on other aspects of the research because interviewing twenty (20) respondents was very time consuming. 3.42 Research Scope and choosing Participants Sampling remains a very important aspect of the primary data collection exercise. This is because the sampling of the respondents and how they are subsequently used have a lot of role to play in ensuring internal validity for the results of the study (Heller, 2003). For example, the researcher ensured that there were no forms of bias and unfairness in the selection process. At the same time, the researcher was concerned about selecting a sample size that can best provide the kind of responses needed to attain the achievement of the researcher objectives. To this end, the researcher used combined approach made up of the use of purposive sampling and random sampling. The justification for the combined approach was to ensure that the two parameters that have just been outlined above were achieved. Random sampling technique was used because it has the tendency of ensuring that the researcher does not have any preferential hand in the selection of the respondents so as to avoid any forms of biases in the selection process. This avoids unfairness and guarantees internal validity because the researcher cannot manipulate his way through the responses that should be produced by using a line of preferred respondents (Galup, Klein and Jiang, 2008). The purposive sampling technique on the other hand requires the researcher to specifically determine who will be part of the research and who will be left out based on given variables and parameters. Yet again, the justification for including the purposive sampling technique was to ensure that all respondents who became part of the study had the needed knowledge and information on the research scope that was being used. The research scope touches on the western model of internet banking and how it can apply to the Russian retail banking system. In line with this, a purposive sampling was done to ensure that specific retail banking departments that used internet banking were identified in Russia. As started earlier, this was necessary so as not to include banks that did not have internet banking in the sample. Clearly, including such banks would have affected the validity of the results because such respondents would not have been in a position to give the researcher the kind of technical answers needed in answering the major thematic areas of the interview. In all, ten of such retail banks were identified through the purposive sampling. Ethical procedures were followed by seeking all necessary permissions from the management of the ten countries so as to begin the random sampling technique. The random sampling was undertaken using the fish-bowl method. This is a method of random sampling technique whereby the researcher gets the names of all people within the population into a bowl and randomly picks the desired number of names from the bowl (SG-SSB, 2007). Because the researcher wanted to have a very wide research setting to guarantee the validity of the results, the researcher targeted to have representatives from all ten banks included. To this end, the fish-bowl method was used independently in each of the banks. For each bank, only two possible respondents were selected, making a total of twenty (20) respondents for the whole research. 3.5 Data Quality Issues 3.51 Reliability The reliability of the research work is an important aspect of data quality issue for all research works, especially qualitative research works of this nature (Rose, 2009). The research qualitative research of this nature has been said to require more attention towards achieving reliability is that much of the data collection and data handling is conducted from a subjective perspective making use of discretional judgment by the researcher. Normally therefore, if guidelines such as reliability are not followed, the qualitative research ceases to be empirical in its conduct. Generally, reliability has been defined as the degree to which the assessment or data collection tool being used by the researcher can produce stable results and be consistent with results (Phelan and Wren, 2006). This means that much of the issue of reliability depends on how the assessment tool is structured and how the researcher uses it. In relation to the current research therefore, the researcher ensured reliability by following certain key reliability testing types. Particularly, the researcher made use of inter-rater reliability. It has been explained that “inter-rater reliability is a measure of reliability used to assess the degree to which different judges or raters agree in their assessment decisions” (Phelan and Wren, 2006). This means that instead of allowing only one line of judge to determine the scaling of variables given on the test instrument, which was an interview, the researcher actually made use of several of these judges in the form of respondents. The rational for using an inter-rater reliability was because of the subjective nature of the key variable of the research, which is perception of internet banking. Phelan and Wren (2006) opines that because human perceptions are different on the same construct of knowledge, using inter-rater actually helps in drawing line between all similar and contrasting opinions so that reliable conclusions can be drawn, not based on a personalized response to the test items but on a broadly tested rater of consistency of the results perceived (Liao and Cheung, 2002). 3.52 Validity Closely related to the subject of reliability is validity. Often times, these two are used interchangeably and even wrongly but they do not represent the same concept. Validity has been explained to be the degree to which a research instrument used by a researcher can measure the variable that it has been set out to measure (Kuzic, Fisher and Scollary, 2002). To this end, there must be a level of consistency with the variable of test whereby the measuring instrument must not be seen to be deviating from the core trend of variable that it has been tagged with. As far as the current research is concerned, there were a number of factors that were put in place to ensure the validity of the research was guaranteed. The very first of these factors was to ensure that there was a delimitation set for the data collection scope and for that matter the entire scope of the study. That is, instead of generalizing the research problem, the researcher narrowed the research problem to a very precise topic area under internet banking to ensure that whiles collecting data, there would be no deviation from the purported variable of measurement. This precise topic area was to interview retail managers in Russian banks on the applicability of the western model of internet banking in Russia. One other way the researcher ensured that the validity of the study was guaranteed was to employ the use of criterion-related validity as part of the primary data collection process. Phelan and Wren (2006) have stated that “criterion-related validity is used to predict future or current performance”. To achieve this, criterion-related validity tries to “correlate test results with another criterion of interest” (Phelan and Wren, 2006). Clearly, following the fact that the researcher had two major banking markets to deal with in the case analysis namely the western model and Russian banking, this type of validity was going to be the most appropriate in meeting the goals of the researcher. This is because the western model was used as one criterion, upon which the Russian banking model was to be tested. 3.53 Generalisability Collis and Hussey (2003) have explained that “Generalisation is concerned with the application of research results to cases or situations beyond those examined in the study.” The clearest indication and explanation to this is that the validity of the test results that is being conducted must not be applicable to only one setting of research. In effect, when the research work is reproduced at different research settings with the same variables, the same or very similar results must be produced. Considering the current research topic which touches on internet banking, it can be said that generalisability of research remains an important data quality issue because internet banking is fast becoming a global phenomenon, which follows key application of banking models and principles (Hwang, Yeh and Li, 2003). In effect, when tested in different settings, the outcome of the results must not be entirely different from what will be gathered in the current study. A number of procedures were followed in ensuring that the generalisability of the study was achieved. The very first area of priority was to ensure that there was a broad inclusion-criterion. This was a very necessary aspect of generalisability because studies have showed that the wider the inclusion criteria, the more likely that the results will apply to a larger researcher setting (Hughes, 2003). The second factor was that the sample size was maximized and widened to include respondents from as many different backgrounds and research settings as possible. For example the researcher was not limited to only one retail banking department but to as many banking experts in Russia with professional knowledge on retail banking as possible. 3.54 Limitations The limitations that were faced as part of the research were related to the general limitations of using qualitative research. For instance the researcher observed that the use of semi-structured interview in the data collection made data analysis quite unorganised and too broad. Unlike quantitative research where the researcher easily makes use of mathematical indexes and applications to simplify the data analysis process (Daniel and Storey, 1997), this not offered during the qualitative research, making the research work tedious and time consuming. On the actual data collection process, the researcher realised that most of the respondents were reluctant to reveal some key information and data relating to their work output, thinking it was going to be a way of exposing the weaknesses of their organisations to public domain. In most cases therefore, the researcher had to use very tactical means of getting confirmations to answers previously given by posing same questions in different manner. There was also a limitation with the secondary data collection, where there was not as many works of literature on the western model of internet banking as the researcher wanted to lay hands on in the setting where the research was being conducted. There was however the need for data collection to be conducted from that setting and so the researcher depended on internet sources where books and journals could not be used. 3.55 Research Ethics In the conduct of academic and professional researches of this nature, the observance and need to follow key ethical principles is very important. This is because ethical considerations go very long way in determining the level of adherence to laid down procedure and to a large effect the application of legal provisions were followed (Ibrahim, Joseph and Ibeh, 2006). There are several aspects of the research paper that were affected by the application of ethical considerations. The two major of these areas has to do with the collection of primary data and the usage of secondary data. As far as primary data collection is concerned, the researcher ensured that all respondents whose contributions and ideas were used in the work of research were first contacted for approval through the use of a consent form. The consent form spelt out the aims and objectives of the study as well as the roles expected to be played by respondents. All benefits and risks associated with participation in the research paper were also outlined in very clear terms. Furthermore, the procedures involved in the data collection exercise were also made known to the respondents include the method of data collection. For example the researcher made it clear to the respondents through the consent form that an interview was going to be used and that the views and opinions of the respondents were going to be tape recorded. Apart from the consent form, the researcher assured respondents and ensured that the privacy and identities of the respondents were protected to the largest extent. For example the respondents were not made to mention their names even to the researcher, let alone having their identities used in the analysis of the research. The data that were collected through the interview were also kept in safekeeping, known only by the researcher. At no point in time was a third party made to have access to the interview results. Right after the data analysis, the tape recordings were totally burnt to ensure that they did not leak out to any unauthorised persons. As far as secondary data usage was concerned, the researcher ensured that all sources that were used were appropriately referenced in both in-text and end of text, using the Harvard Referencing Style for University Projects. REFERENCE LIST Adams, A.N. & Lamptey, A.O. 2009. Customer perceived value in internet banking in Russia. Masters Thesis, Lulea University of Technology, Sweden and University of Education, Winneba, Russia. Adriana, C. 2006. Forms of electronic banking. 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