As explained in Section 3.3, two research methods, namely, the case study and the Delphi method, are selected to answer the research questions. This section describes these two methods in more detail.
3.4.1 Case study
A case study is used to investigate the current implementation of Islamic financing schemes in Indonesian infrastructure project financing. The findings from the studies are then used to support the Delphi method process in developing a framework for the implementation of Islamic project financing in Indonesian infrastructure projects. The main criterion for the selection of a project for the case study is that it is an infrastructure project that is using shariah scheme transactions. The project can be in the preparation, construction or operational phase.
Yin (2009) emphasised that the case study method is chosen based on the ‘how’
and ‘why’ research questions. However, the ‘what’ research question in the present research emphasises the need for an exploratory study in order to further investigate the
Exploratory Research
To identify the conditions necessary for the implementation of Islamic project financing in Indonesian infrastructure projects
current situation of Islamic financing implementation in Indonesian infrastructure projects. Therefore, in this research, an exploratory case study approach is implemented.
The main method of data collection in the case study is conducting interviews with the owners of the projects. The interviews use open-ended questions. In addition to the interviews, several project documents, such as the project feasibility studies and contracts, are used as the case study evidence (Gillham, 2010; Husain, Bais, Hussain &
Samad, 2012). The interviews and archival records are analysed by using content analysis (Flick, 2009; Robson, 2011).
3.4.2 Delphi method
The Delphi method combines the knowledge and opinions of experts (or panel members) (Singh & Schmidgall, 2000) to achieve consensus when dealing with uncertainty in an area of inadequate knowledge (Paliwoda, 1983). The present research uses the Delphi method as part of the methodology for a number of reasons. Firstly, the problem under investigation is complex and has no adequate documentation. Secondly, the panel members are from various stakeholder groups and this wide representation can help to assure the validity of the results. Thirdly, the alternative method of conducting focus group meetings is sometimes not feasible due to time and cost limitations (Linstone & Turoff, 1975; Singh & Schmidgall, 2000). Finally, the Delphi method is suitable when a problem has multiple dimensions (Paliwoda, 1983); in the present study, there are multiple dimensions of the problem related to the infrastructure investment framework, project financing issue and Islamic financing concept.
In the Delphi method, the panel members can make a contribution from anywhere and anytime including via electronic communication (Steurer, 2011). In addition, the Delphi method can maintain anonymity and can be conducted with limited contact among the research participants. As such, they can freely respond to the questions and express their opinions, beliefs and judgements without influence from the other participants (Rowe & Wright, 1999; Skulmoski, Hartman & Krahn, 2007; Steurer, 2011), and avoiding direct confrontation (Okoli & Pawlowski, 2004). Anonymity can protect the participants from embarrassment or discomfort if they have contrasting opinions (Steurer, 2011).
The Delphi method is an iterative process that consists of several rounds (usually two or three). Data from each round are analysed and used to generate questionnaires for the following round. The iterative rounds stop when consensus is reached on the factors
related to the topic (Azadeh, Keramati & Songhori, 2009). However, instead of reaching a convergence of opinion, the Delphi method usually stops at the third round because the panel members have begun to exhaust their interest and are less willing to continue (Azadeh, Keramati & Songhori, 2009; Baldwin-Morgan, 1993). Additional rounds also tend to yield redundancy and cause a significant withdrawal of returns for substantial additional effort (Azadeh, Keramati & Songhori, 2009). In the final round, the opinion may reflect agreement, disagreement or be in between (Pivo, 2008).
It is planned for at least two rounds of the Delphi method to be applied in this research. The first round (Delphi Round 1) involves face-to-face interviews which gather and explore the panel members’ knowledge and experiences. The complex information gathered from the literature review is then assembled. An interpretative theoretical framework of infrastructure project key stakeholders’ points of view is developed. The results of the face-to-face interviews are then used to develop the questionnaires for Delphi Round 2.
Traditionally, the Delphi technique uses written communication to facilitate the panel members’ input without face-to-face contact (Azadeh, Keramati & Songhori, 2009; Becker & Roberts, 2009; Hasson, Keeney & McKenna, 2000). However, this research conducted interviews in the first Delphi phase. Face-to-face interviews are conducted as the initial contact with the Delphi panel members in order to create a personal connection between the panel members and the research (Eberman & Cleary, 2011). The interviews can build relationships and remove barriers, which creates comfort between the panellists and the researcher. In the context of this research where panel members are identified as top level management, the use of face-to-face interviews is appropriate because their time may be limited (Rayens & Hahn, 2000). The face-to-face interview is also used to build interest and trust (Rowe & Crafford, 2003), hence panellists are more willing and able to continue to the next round of Delphi.
3.5. Summary
This chapter outlined the research approach and the research methods used. Through the application of the research strategy, it is expected that the research objectives can be achieved. As explained in this chapter, the case study and Delphi methods are used in this research to answer the research questions. It is envisaged that the use of these methods will lead to outcomes that can be applied in the implementation of Islamic
project financing in Indonesian infrastructure projects. The next chapter presents an overview of the case study procedure and results.