Chapter 3 Research Methodology Sample - Qualitative Research

Introduction

Having undergone through induction, background and literature review of study search, third chapter now unravel methods that were applied when obtaining the research. Much focus is on research design used, which is explanation of how questionnaires were administered to get required data. More focus is also on how this search was conducted by analyzing sources used, information capturing techniques, sampling procedures, study population, size of sample among others. The research methodology is part of the crucial section of the investigation as it provides space for data conversion into useful information and thus fosters effective communication.

Research Design

Research design is the blueprint that enables the researcher in coming up with solutions for problems and guides in the various stages of the research. This research applied descriptive search design. The descriptive design was also deemed fit for the research since it provides a multifaceted approach to information collection which can provide statistics about an event while also illustrative how people experienced that event. This descriptive search design was found suitable for this research because it allowed for researcher data picking qualitatively questionnaires. This indicate that the researcher gathered data based on perceptions, opinions and attitudes from the stakeholders of MFIs, that is management staff (credit risk managers, branch managers) and shop floor workers (loan/credit officers) about socio-economic factors affecting borrowers’ ability to repay MFIs in Zimbabwe. The major reason for choosing the design was to minimize systematic errors and to maximize accuracy. This design also enabled the researcher to present and analyze quantitatively through the use of charts (for gender of respondents, respondents’ consideration of income when advancing loans and the extent age affects loan repayment), graphs (level of academic qualification of respondents, consideration of education when advancing to individual borrowers, extend to which education affects repayment process and finally respondents’ thoughts on clients likely to default) and tables (some of the major operations of MFIs in Zim, sample size, age bracket, work experience, mean and standard deviation for [income, education qualification, age and loan repayment]).

Research Population

Target population is that population to which the researcher wants to generalize the results of the study. Target population is also defined by Bryman, as a universal set of the study of all members of real or hypothetical set of people, events or objects to which an investigator wishes to generalize the result. The study targeted registered MFIs in Gweru Zimbabwe. Target population is limited to only registered and operational MFIs in Zimbabwe as at the time of the study and these were extracted from the EBZ registers and ZAMFI website. There are 209 registered MFIs in Zimbabwe, 6 of which are Deposit Taking MFIs. The research population of this study was focusing on the MFIs’ stakeholders, that is; branch managers, credit risk managers and loan officers. Branch managers and credit risk managers were of paramount importance since they acquire overall knowledge concerning organization’s loan defaults. Shop floor workers as loan officers were also crucial as they know a lot of what’s on the ground compared to top managers. They interact with clients on a daily basis. Target population is limited to only registered and operational MFIs in Zimbabwe as at the time of the study and these were extracted from the EBZ registers and ZAMFI website.

Research Sample

According to the ZAMFI, there are 203 credit providing and 6 deposit taking MFIs across Zimbabwe. That would stipulate that there are more than 10 MFIs in Midlands province (much focus is on Gweru). The researcher used non-probability sampling through the use of judgmental sampling technique to come up with a proper research sample that answers the research questions raised by the study. Moreover, since the objectives, operations and strategies used by MFIs differs with the institution it is of paramount importance to have large number of respondents.

Judgmental sampling is a clear measure that researcher will find elements representative of total population in pursuit of meeting study objectives. Since it was going to be a colossal task to conduct a nation-wide survey, the case of this search targeted 9 registered MFIs particularly to represent MFIs in Gweru and generally in Zimbabwe. The researcher chose to target the management staff and the credit officers since the management are in a strategic position to analyze and tell what affects the loan repayments in the institution while the loan/credit officers carry out the daily operation the credit department which include helping clients fill the loan applications, appraising and approving loans; hence they can give credible information on how socio-economic issues affect loan repayment in MFIs.

Sample population consisted of 18 management members in credit department (2 from each institution) and 187 loan and credit officers as collected from their Human Resource Departments Of the selected 9 MFIs, the researcher grouped population in two stratus, senior management and loan/credit officers. From each stratum, a 30% sample was taken. This is guided by Mugenda and Mugenda, who revealed that a sample of between 10% and 30% would be a representative sample size of the target population. The sample size was then 62 respondents. This particular sample size was selected because it was not only easier to manage but also sufficient in providing the required material in the research. 

Data Collection Methods and Instruments

With the main objective of research objectives satisfaction, this research was based on both primary and secondary data as sources. Raw data was obtained through close and open-ended questionnaires. Second hand data was extracted from previous sources for example the numbers of registered yet operational MFIs were obtained from ZAMFI website, also from EBZ registers.

Primary Data

First-hand data was collected through self-administered questionnaires to a selected sample from the total population. Primary data was used with the justification that it is the most current and meaningful data which is up to date and never used before.

Questionnaires

The study collected primary data through use of a questionnaire that had both closed and open-ended questions. The study employed the use of questionnaire as the main tool for data collection because it can allow wider coverage within a short period of time by emailing, and also enhance confidentiality of information. The questionnaire was also convenient to the respondents as they can fill the questionnaire at their own free and convenient time. The researcher personally administered the questionnaire to the respondents so that he could interpret each of the sections of the questionnaires to the respondents to ensure that they fully understood the questions before answering.

To obtain the data the questionnaire was structured into subsections which are the respondents’ profile (gender, age, academic qualification and work experience), income level (consideration of income when advancing loans, income aspects considered, income sources among others), education qualification ( consideration of education when advancing, education aspects (literacy level, training levels, skills attained among others) and finally the age section which focuses on consideration of age, extend of effect of age to respondents among others

Secondary Data

Secondary information was used for analysis satisfying knowledge claims for own objectives. Extensive analyzing of secondary data from both sources (internal, external) was made, number of registered yet operational MFIs, the MFIs in the targeted city was obtained from such sources like the Monetary Policy Statements by the Reserve Bank of Zimbabwe and publications made by authorities such as, the Zimbabwe Association of Microfinance (ZAMFI), as well as Zimbabwe Ministry of Finance and Economic Development.

Questionnaire Validity

Ranjit and Kumar define validity as quality of measurement methods/ways which provide respectability and accuracy. In this study the questionnaire was shared with the supervisor, also some professionals in the field for validity ascertainment. This ensured questionnaires’ collection of reliable information as well as improvement in response rate.

Reliability Test

Research instrument’s ability to consistently judge characteristics of interest over time. It’s a degree at which a research instrument yields consistent results or data after repeated trials. Reliability was calculated with SPSS (Statistical Package for Social Sciences). Cronbach’s alpha tsts was conducted to test for reliability whereby a co-efficient of above 0.8 was achieved which implies that this instrument was sufficiently in range.

Data Presentation and Analysis

Data analysis is the process of bringing order, structure and meaning to the mass of information collected. Qualitative and quantitative methods were used to present and analyze the data collected. Qualitative data was analyzed in systematic way so as to arrive to a helpful conclusion and recommendations. After the data was collected, it was cleaned, coded into the computer and analyzed with the aid of Statistical Package for Social Sciences (SPSS) version 16.0. Statistical Package for Social Sciences (SPSS) and Microsoft Excel were presented in form of graphs, charts, tables and narratives, which will provide the reader with clear and better understanding of the results.

Summary

This chapter provided the background on how the research was conducted, it outlined the research design, the sources of data, as well as techniques used in collecting data among important aspects. There was an in-depth analysis of the instruments used in the research process and the validity of each, helped to justify the findings. The strengths and weaknesses of research instruments were explained. Data analysis and presentation procedure were also explained, which is one of the most important aspects that helped to provide meaningful raw data to the users of findings.