Qualitative case studies require the selection of cases on the basis of theoretical significance, unlike hypothesis-testing studies that rely on statistical sampling (Yin, 2009). Theoretical sampling allows researchers to replicate and test the findings under a different set of conditions. This logic is analogous to that used in multiple experiments and it is important for case study research (Yin, 2009: 54). Based on the theoretical scope in this research project, the seven cases are Australian professional services firms that are undergoing a process to internationalise their operations.
The selected cases have used different foreign market entry modes and therefore have a varying degree of foreign market commitment (see Chapter 4). The four market entry modes (occasional export, independent sales agent, joint-venture, wholly owned subsidiary) indicate an increasing degree of foreign market commitment (as was discussed in Chapter 2). The selection of cases of firms that are at different stages of internationalisation helps to maximise the variance in the sample. This selection allows us to examine the current assumption regarding the positive relationship between experiential knowledge and modes of entry/foreign market commitment (discussed in Section 2.2.1).
This research project considers seven cases, which is sufficient to ensure literal replication and demonstrate contrasting patterns (Yin, 2009). This number is also sufficient for analytical generalisation of the outcomes of internationalisation processes to a broader theory. This study will not generalise the results to a particular population. Therefore, statistical generalisation is not necessary as long as theoretical saturation can be achieved.
Data gathering methods
Potential participants for the case study research were selected from the ACT Exporters’ Network, Australian Trade Commission, ACT Economic Development Directorate, Canberra Business Council as well as other ACT, NSW and Federal Government sources. The scope of the research project covers only professional services firms initially located in the Australian Capital Territory, New South Wales and Victoria.
Multiple interviews were conducted with key decision-makers within each firm who influenced the internationalisation path. Data gathering methods included desk research,
102 semi-structured interviews and the study of relevant archival documents. The comparative analysis of the internationalisation process was conducted for the seven firms (discussed in Section 3.4.3).
To start, a letter was sent to the potential participants explaining the main aims of the study and the reason why their company was selected for this research. Eight Australian professional services firms responded positively to this initial approach and were contacted for further discussion about their participation in this study. Seven out of eight firms agreed to participate in this research. Most of these companies used multiple entry modes in the internationalisation of their operations, and they internationalised into psychically close as well as psychically distant markets (for a detailed description of the cases see Chapter 4). Most importantly, the seven case studies were sufficient in number to be able to draw meaningful conclusions from the analysis of their experiences.
The comparative case study research is based on a well-balanced set of participants that offer an optimal variety of characteristics that influence internationalisation market commitment and selection of entry mode. Such variation helps to sharpen the analysis of the differences in firm internationalisation in relation to micro-processes of experiential knowledge accumulation. For the purpose of this research, participants were encouraged to not only focus their responses on the positive outcomes of the internationalisation of their companies, but also recount any negative consequences of internationalisation decisions. Interviewees were not required to disclose very specific details of their experiential knowledge/learning experiences that may have caused them to breach any commercial-in-confidence commitments.
This research project incorporates a longitudinal approach; interviews were collected at two points in time to capture relevant changes in experiential knowledge and the internationalisation process of each firm. Six of the cases where followed up within a 2 to 3 months timeframe and one case, which was also examined as part of the pilot study, was reinterviewed within 2.5 years. Aspects of longitudinal research were also captured in this project through the study of archival data, which also served the purpose of placing the reasons behind internationalisation changes in a broader context of change in the relevant industry and economies in home and host countries.
103 Furthermore, to minimise problems associated with the respondents’ memory recall, the sampling process targeted firms that are still undergoing the internationalisation process and/or were in the process of targeting new, previously untapped markets.
Semi-structured interviews were conducted with key decision-makers within each firm (in line with Johanson & Vahlne, 2003; Middleton et al., 2011). This included representatives of senior management, owners of the firm and/or other individuals with relevant decision-making authority. In some cases, a single individual would represent the whole firm due to a small size of the business. An interview protocol was developed for this research. The protocol queries the themes related to foreign market opportunity recognition, the reasoning behind the internationalisation initiatives, difficulties experienced during the internationalisation process and relevant resolution strategies, clarification of the key individuals involved in the decision-making process as well as their personal qualities and learning patterns/preferences. The interviews were very much focused on identifying the processes, behaviour and events that were critical to the formation of experiential knowledge and the recognition of foreign market opportunities. Appendix E contains the interview protocol used for the main part of this research project.
All interviews were digitally audio recorded and transcribed for coding and further data analysis. The length of the interviews varied between 40 minutes and 130 minutes. The first round of interviews was conducted during September-December 2013, with follow- up interviews within a 2-3 months period. One case dates back to May 2012 which is when the initial pilot study had been conducted. This case provided rich data on the role of knowledge in the internationalisation process, which guided the further design of this research project. In this case, follow-up enquiry was conducted in 2014 and included in the analysis.
For the purpose of this project, efforts were made to access secondary data sources, conduct field observations, and study relevant archival data to triangulate responses from the interviews. Memos were collected during the interview and throughout the data analysis to capture important themes or ideas that emerged during the research process. The memos helped with the writing of each case analysis, served as a useful sense-
104 making tool during the research process, and were part of a triangulation to enhance the validity of the study (Chandra, 2007; Miles & Huberman, 1994). Internal archival documents, that illustrate the commitment of a firm to the internationalisation process, were only made available for one case study. Due to the dynamism of the internationalisation processes and the relatively small size of the participating firms most of them were unable to share internal documentation relevant to their internationalisation processes.