The relation between Marketing & Supply Chain Management ( O )

Chapter 3 research methodology

3.1 Introduction 

After exploring the theoretical framework underpinning this study in chapter two above, this chapter now presents the research methodology employed in order to provide answers for the research questions. First the research design is presented, followed by the research model in which the research philosophy, approach, and the data collection methods employed are discussed with justifications in each choice made. Further, the data analysis techniques employed, validity and reliability issues, and ethical considerations are presented as the chapter concludes. 

3.2 Research Design 

There are three main research designs as suggested by Mitchell & Jolley (2012), which include exploratory, descriptive, and casual researches. Based on the nature of the research problem, this research selected a combination betweenDescriptive (more in depth) and Causal (relationship between cause and effect). Descriptive research design was selected because it enables the researcher to get more insightful ideas, which have been collected (Vaus, 2001). On the other hand casual research was considered to be suitable because it establishes the causal relationship between the research variables (Marczyk et al, 2010). In this regard combining both descriptive and casual research designs was preferred in order to explain in depth the relationship between the research variables which include supply chain management and marketing also evolving the integration between marketing and supply chain management on a strategic level, with regard to the changing marketing environment characterized by rapid change of customers perception and highly dynamic consumer needs, as well as the importance of the local marketing talent in global supply chain management design and strategies for the Multinational firms. 

3.3 The Research Model 

(Saunders et al 2009) established a standard research model in terms of a research onion (as shown in figure 3.3 below). While some of the outer layers in the research onion may not be considered necessary, (Crowther & Lancaster 2012) suggested that the research philosophy, approach and the strategy (methods) are the most fundamental because they help in defining the nature of the research problem deeper and more explicitly. 

Figure 3.3 – The Research onion 

3.3.1 Research Philosophy

Deciding the nature of research philosophy is considered by (Bryman and Bell ,2007) to be fundamental because it determines the nature of knowledge to be incorporated into the study. This study is based on epistemology philosophy because the ultimate focus is to study what is acceptable knowledge in a field of study (Cooper and Schindler, 2010); and thus adopting this research philosophy enabled the researcher to study how supply chain can be linked to marketing with respect to exiting concepts underpinning the research variables. Under the epistemology philosophy, combination of positivism and interpretivism research paradigms was considered to be the most suitable for this study.  This was guided by the nature of the research problem where positivism enabled the researcher to empirically the underlying relationship between the research variables (marketing and supply chain management) through scientific verifications (Lodico and Spaulding, 2010); whereas interpretivism enabled the researcher to establish social influences of how marketing and supply chain ought to be aligned with each other on a strategic level. 

3.3.2 Research Approach

The two main research approaches as suggested by (Saunders et al, 2009) are deduction and induction. Induction approach involves building of theories while deduction is used in testing theories (Wiersma, W. (2002; McBurney & White, 2009). In this study, the researcher has considered a combination of both inductive and deductive research approaches. This was guided by the nature of the research problem where successful achievement of the research aim necessitated testing of hypotheses based on the existing theories (using deduction); while also necessitating an in-depth examination of the research problem (using induction). This involved testing of the relationship between supply chain management and marketing, while also gaining deeper insights on the role of supply chain management in marketing. This involved testing of the relationship between supply chain management and marketing, while also gaining deeper insights on the role of supply chain management in marketing and the role of marketing in supply chain as well as the role of the strategic integration between both with the importance of integrating local marketing talent on the global supply chain management design for the Multinational firms on more strategic level. So on the data and analysis section on the next chapter, which will represent the findings gained from data collection about the integration between marketing and supply chain management also represent the strategy development in supply chain management based on the recognition that diverse types of capabilities organizational process as well as systems needs to be taken in consideration for the Multinational firms in the formulation and implementation of their global marketing and SCM strategies ((Varadarajan, 1999), and their way of thinking when integrating marketing and supply chain management on a strategic level within the global market  as we gained a valuable information from the literature review chapter it will be testing and analyzing within the finding - data and analysis chapter.

3.3.3 Data Collection Method/Strategy 

With regard to the research onion established by Saunders et al (2009), there are various research strategies that researchers must choose from. In this study the researcher considered data collection from different perspectives for different authors about the relation between marketing and supply chain management with interviews with MNC directors and employee, also using questionnaires and case analysis in order to develop the theory and move it into more strategic level, to be the most suitable on this research. This was guided by the need of triangulation, which is necessary in providing comprehensive data on a research problem (Crowther & Lancaster, 2012). Survey research strategy was considered in this study because it enables the research to collect data from multiple participants simultaneously; and thus enhancing time saving while facilitating diversity in the research findings (Creswell, 2014). Questionnaires and case analysis was considered in this research because it enables in-depth investigation of the research problem by focusing on few subjects within the research phenomena (Bynner & Stribley, 2010). 

In this research, semi-structured interviews were conducted with supply chain management, legal and marketing department teams, sales teams, and H/R directors and others of three multinational firms (Coca Cola, Pepsi and Nestle) also with Almaraie that did a joint venture with PepsiCo in Egypt to understand and realize the way marketing and supply chain management are collaboratively conducted. Semi-structured interviews were preferred in collecting data from the selected people because it enabled the researcher to get deeper insights on how global supply chains influence local marketing talent and strategies of the selected case study organizations (Simon, 2011). Almost of the interviews conducted using phone interviews. The marketing directors and the supply chain management directors from the three organizations were asked similar questions. The rationale of asking both the marketing directors and supply chain directors the same questions was to establish whether there is common view-point and perspectives from both the sides; and hence help in establishing if there is any link between supply chain management and marketing activities and the importance of local marketing talent in global supply chain management for the multinational firms. However, the legal practitioners for the companies were asked different questions. Before the actual study, the researcher had to get permission from the companies’ management bodies; and subsequently from the specific individuals being interviewed. About Almaraie Company the questions had some differences according to the joint venture with PepsiCo. 

The selected case study organizations were in the fast moving consumer goods (FMCG) industry. The researcher see this industry is the best that can represent the research idea which is “the global supply chain with the local marketing talent”, so the marketing talent could be highly suitable on FMCG also considered this industry to be the most appropriate for investigation In Egypt because a study conducted by Oxford Business Group (2013) indicated that FMCG in Egypt industry has shown consistent growth as reinforced by the rapidly expanding middle class population in the country.  With regard to a study conducted by The Statistics Portal (2010), Pepsi is currently the market leader in the Egyptian soft drink sector (34.9%), followed by Coca Cola Company (32%) – as shown in figure 3.4 below.

Figure 3.4 – Market share of the soft drink companies in Egypt 

Questionnaires data collection tool was conducted on customers of FMCG in Egypt to assess and evaluate their opinions on the effectiveness of the marketing activities employed by the four case study organizations in Egypt. (Pepsi, Coca-Cola, Nestle and Amlaraie) Systematic random sampling strategy was employed in which every 20th customer to enter in Hyper One Supermarket chain in which the store located at Central Axis Extension – El-Shikh Zaied – Giza 1142 road in Cairo, was selected to participate. A total of 120 participants were selected in which 40 participants were selected in each store selected. Systematic random sampling method was preferred due to its usefulness in ensuring unbiased research sample (Fisher, 2010). Since questionnaires are easy to administer, while saving the researcher a lot of time, they were also preferred because they provide the participants with ample time to respond to the questions in a relaxed environment (Gill & Johnson, 2010). 

 With regard to supply chain management at the Coca Cola Company in Egypt, a study conducted by (Business Excellence, 2012) revealed that the synergy of operations along its supply chain through collaborating with all the stakeholders within its value chain is a key pillar of its success across the world. Similarly, PepsiCo’s strategic alliances with distributors across the country enable it to achieve coherence in its supply chain with regard to the market needs. This clearly shows that, there is direct link between supply chain activities and marketing in these organizations. 

On the other hand, Nestle Egypt is currently the market leader in bottled water with volume share of 28% (Euromonitor, 2014), while remaining third in the chocolate industry with market share of 6.1% (Nieburg, 2014). With regard to supply chain management at Nestle, all the operations in its highly sophisticated supply chain of the country are entirely focused on customer orientation (Nestle, 2014). In particular, the company puts the customers at the heart in everything that they do along the supply chain. From this, it is clearly evident the importance of the integration between supply chain operations and marketing activities in order to enable the company achieve competitive advantage. Which will be clear on the data and analysis section.

3.4 Data description 

Since both quantitative and qualitative data were collected in this study, a comprehensive data analysis procedure was conducted. For the data collected using interviews (qualitative), content analysis technique was employed; due to its accuracy and effectiveness in analyzing scripts from multiple interviews (Merriam, 2009). On the other hand, qualitative data from the self -fulfilling questionnaires was analyzed using SPSS 17.0 software in which regression and correlation analysis tools were adopted.

3.5 Validity, Reliability and Generalizability Issues 

Research reliability assesses whether the research instruments are able to produce consistent results after multiple repetitions on the research process (Neuman, 2007). By using systematic sampling strategy in selecting the participants, the researcher ensured that the research findings were reliable. On the other hand, validity is concerned with ability of a research instrument to measure the true phenomena in the context of the study; and hence enhances the generalizability of the findings obtained (Wilson, 2010). In this study, the researcher ensured that the research findings were valid by incorporating triangulation in the entire research process where more than one organization were investigated, while incorporating diverse research population comprising of customers, supply chain teams and marketing teams into the study. As a result, the researcher considers the research findings to be easily generalizable.

3.6 Ethical Considerations 

Research ethics are considered by (Vaus ,2001) to be fundamental for a credible research process. It is therefore necessary for researchers to adopt effective research ethics practices throughout the study. Among the key ethical issues that are necessary to be considered when involving human participation in a study include informed consent of the participants, confidentiality issues, and safety (physical, emotional and psychological) of the participants (Bryman & Bell, 2011). In this study, the researcher ensured that the participants were informed of their rights (to withdraw from the study at any time they wish to), while informing them on the aim and objectives of the study. Further, confidential information of the participants was not disclosed to third parties. The researcher also ensured that there were no children participants in the study. By doing so, the researcher believes that a high degree of research ethics was upheld in this study.