Chapter 3 Research Methodology

3.1 Importance of Research Methodology

The research methodology employed by the researchers to solve the research’s main questions. The methodology is intended to set the outline for the research and describe how the research should be passed out. According to Rajasekar et al (2013, p. 5) “Principally, the techniques, which researchers deal withS their work of unfolding, clarifying and forecasting occurrences are the processes of research methodology”. Some researcher describes the research as the systems by which the research gains the information about the study. It’s very significant for the researcher to apply a research methodology in their study paper and select the way, as which best suits their research requirements.

The part of the study is highlighting on applying and improving the research plan which are directly related to the concepts and outlines which have been accomplished by the earlier studies. This chapter is offerings several research approaches that can be applied in the study (Littler, 2003). Saunders et al., (2012) recommends that a good construction intend to be used in the study which covers with the philosophy of the research paper, method, research strategy, data collecting and limitations.

3.2 Research Philosophy

In this paper the positivism philosophy of research method will employ and the positivism philosophy supports to classify the connection between the independent and the dependent variables and assistances to illuminate the realities or things happening in the real world. This research philosophy also reliefs to set the consistencies for the research and looks to search for the truth accessible (Burrell and Morgan, (2011). Some researchers believe that positivism research supports to examine the realism of an objective which can be restrained. Consequently, this research displays that the results produced from the positivism philosophy are reliable and not subjective. Therefore, the positivism research philosophy is the most suitable one to employ in this paper will employ.

3.3 Research Methodology

As the research applies the positivism philosophy, the researcher of this study needs to amount the objective and the deductive research methodology. The deductive research method offers techniques to extent the hypothesis testes in an experimental way. The deductive research methods contains the method for gaining the data, to measure the gathered data, which supports in calculating the hypothesis and supports to determine whether the hypotheses is accepted or rejected. Bryman & Bell (2011) states, the system of deductive research can be described as “the most general view of the connection between theories and researches” (pp. 11). An additional study also contains the opinion of the quantitative research system is connected to the view of deductive research method.

Inductive research method is also known as another research methodology that the researcher can apply in their research papers. The deductive method and inductive research approaches are offered with diverse methods to create the outcome. In contrast, the inductive method uses the qualitative technique to collect the data. According to Bryman & Bell (2011), for a study to be more detailed and specific with smaller sets the inductive research method is better option compared to larger groups where the deductive research approach is a better option. In this paper the researcher will use the deductive approach as the study includes variables and features that will be verified using foundation of the hypothesis testing. Quantitative research method is also a portion of the deductive stystem. Therefore the researcher decided to apply the deductive research method in this paper.

This study will involves the quantitative research method to collect primary data to answer the researcher’s questions and it will be used to discover the demand and supply of micro financing in . This research will use a survey method in the form of questionnaires to collect data from Kamayut Township in , which is the capital city of Myanmar. Collecting data from all parts of Myanmar will be time consuming and cost money and as the researcher have very limited time and budget, the researcher plans to collect the data viaan off-line survey method by asking questions to people in the Kamayut area. According tothe researcher the Kamayut area is as a good area to find people who are willing to take loans because most of them can be considered as poor or earning a low income.

In addition, when all the information is gathered the researcher will apply the SPSS (Statistical Package for Social Science) to analyse all the data collection by using the questionnaire. For this study the basic research method will be used which will include surveys using different forms of questionnaires. This approach can provide the researcher with the most effective and fastest way to collect the information from the respondents.

3.3.1 Data Collection Technique

3.3.2 Primary Data

There are two ways can collect the primary data for the research study, which are quantitative and qualitative. According to Saunders et al., (2012), primary data can describe as the research data that have been mainly collected for the present research study. It has been explained that the difference between qualitative research and quantitative research can be accepted by the data which is developed mostly being mathematical for quantitative and non-numerical for qualitative. Quantitative research is a research approach which offers the data that can be examined. On the other hand, the qualitative research offers data with more detail in depth examination, however, it is not presented in numerical data. This paper will use primary data as the method to assemble and examine the data. The study will apply the deductive method which can lead to the choice of quantitative data as it is best matched for the objective of the study.

3.3.3 Secondary data

Secondary data can be accessible with large quantity and various ways from previous studies for the researcher to gather the information from the research title and theoretically the research does not have to even make the primary data to prove the study. The secondary research is similar with the primary data which have been collected by the previous researchers and it was applied for their studies. The previous research study offered with the conceptual frameworks and other variable data which is able be to use for a new primary research study. The secondary data is also can avoid the time consuming and higher cost in compare to do a new primary research data. On the other hand, secondary data was made with some certain weaknesses as the research was focused in the past and consumer’s awareness towards the study may not be the same with nowadays, therefore it is very important to run primary data to collect a new data that will reflect the current consumers’ perceptions (Zikmund, 2010). The secondary data have been though used for the persistence of literature review and consist of studies from well-known educational papers. The literature review offer the study which reflect the demand and supply for micro loan and micro saving in Myanmar.

3.4 Research Design

The design of the research segment covers with the information about the form of surveys used to collect the data. In this study the offline questionnaire approach will be apply for the survey, as the people in the low income category do not have the access to the internet. The offline method will also be used and that will be distributed to the households, poor people and microfinance clients.

The type of the questionnaire would contain of closed questions and fixed-choice questions in its format, which includes constraining “the participants to a greater extent” compared to using open-end questions, where the participants can openly write down their answers. The Multiple-choice question method falls under the usage of fixed and closed-end types of questions in its layout, and by this method the researcher can limit the responses of participants and make it easier to accumulate the valuable data, and also it better to examine the data. An open-end question leaves the research with several variables, therefore, making it harder to anticipate the outcome of the study. Since the researcher intended to discover the relationship of the study based on the current hypothesis, it is easier to operate the technique recommended by Constantinos et al., (2011) and Mills et al., (1994) using the close-ended questionnaires as a way to gather data.

This system have been confirmed to be actual by many researchers as the data accomplished is in numerical arrangement and strong expectations can be completed (Nichols and Childs, 2009; Potter, 2003; Smith, 2008; Mills et al., 1994). Interviewing method would be more effective if the research was concentrating in certain non- quantifiable data and research objectives, on the other hand as that is not the case with this research, the researcher have confidence in that bringing the quantitative data through questionnaire as the implement for gathering this data will be more effective.

The questionnaires format for this study will be separated into three sections. The first section is demographic section which collects the data by age, gender, education and income. The second section highlighting on micro loans and the last section in the questionnaires is handling micro saving.

3.4.1 Target population

Target population is one the most important portion of the research paper. It is essential for the researcher to make sure the group of participants, to whom the survey is based on. In this research, the target population is the one, who has the most important impact on Microfinance Institutions in Myanmar. This search will measure the microfinance users in Myanmar, the intention of the respondents is shown in the way they answers the questionnaires. Therefore, the target population for this study is 84,569 people in Kamayut Township, Yangon.

Kamaryut Township is located in the north central part of Yangon. The township comprises ten wards, and shares borders with in the north, Hlaing Township and in the west, the Inya Lake, and in the east, and in the south. The name Kamayut roughly means Khmer Region, which may be an indicator of the possibility of the existence of a Mon settlement earlier.

One of the most flourishing areas in Yangon, Kamayut is also known as the "college town" of the Yangon. Pyay Road which go across the township is lined with many education centers and media related institutions such as Myanmar Radio and Television headquarters. Yangon University, the University of Medicine (1), Yangon, the Yangon Institute of Economics, the Yangon Institute of Education and affiliated TTC and University of Distance Education, Yangon are all situated in the Kamayut township. The township has twelve primary schools, two middle schools and five high schools.

Table 3.1: List of West Yangon District’s Name

Population

Name Status Census 2014-03-29

West Yangon District 969,650

Ahlon (Ahlone) Township 55,482

Bahan Township 96,732

Dagon Township 25,082

Hlaing Township 160,307

Kamayut Township 84,569

Kyauktada Township 29,853

Kyimyindaing (Kyimyindine) Township 111,514

Lanmadaw Township 47,160

Latha Township 25,057

Mayangon (Mayangone) Township 198,113

Pabedan Township 33,336

Sanchaung Township 99,619

Seikkan Township 2,826 (http://www.citypopulation.de/php/myanmar-admin.php?adm1id=1204)

Sample:

This research will apply the Yamane Taro (Israel, Glenn D, University of Florida, 2009) formula to calculate the sample size for this study:

n=N/(1+(e)2)

Where “n” represents the sample size, “N” represents underlying population size and “e” is determined from the confidence level which is seeking from the research. If the level of precision is 95% sure about the respondent results (e=0.05).

The sample size calculation method for this research as follow: n = 84,569/(1+(0.05)2) n = 398.11

Therefore; the researcher will use 398 respondents as sample size of this study.

Figure 3.2: Location of Kamayut Township

3.4.2 Method of Sampling

The method of sampling describes suppliers would be employed the analysis of this method and that suitable to the main point of the people. The techniques of sampling would be applied in this research is the target sampling method, quota and convenience sampling. The target sampling method is impossibility sampling method that can be applied in this research. The researcher would have certain purpose of main group who will have the skill of access of the services of microfinance in Yangon Area and the people have a straight understanding with microfinance.

The method of quota sampling is when the sample size is selected from a particular group of people that are similar characteristics to the vital population. The sample questionnaires will separate and distribute by offline approach.

Furthermore, this study will use the convenience sampling method in the survey, which is depend on the availability of the sample population group to offer the proper information. In this study the convenient sampling method will be used in data collection by distributing the question papers to participants from simple population size to cover the objective of target area.

Therefore, this research paper collects the data from respondents, who are living in Kamayut, Yangon and to be collected between 12.00-13.00 hours, as the population in the region is more willing to answer the question at time (As it’s break time for most labour workers and office staff).

3.5 Research Ethics

The research will consist of the detail about the secrecy of the study in this research. This research is no purpose to hurt even a single person for the supporting in this study. The collection of all data from several individuals would be asked for the intent of the study of this research and the collection data will be saved personal for the privacy of the participants. The questionnaire will deliver brief evidence about the study and the purpose of leading the study. It would be useful for the participants in accepting the persistence behind this research.

3.6 Pilot Test According to Polite and Hunger (2001), A pilot study can be used as a “small scale version or an experimental run in preparation for a major study and prior to initiating the complete research”. The pilot study for Micro-finance was conducted. Ten volunteers were engaged for this pilot study, all ten volunteers had past experience in micro-loans and had borrowed the loan from microfinance institutions, and all ten volunteers were Myanmar citizens. Five volunteers were male and the rest five were female. Eight were in the age group of 25-45 years and the rest were in the age group over 45 years, seven of the volunteers had an income of less than 20,000 kyats per month and three had more than 20,000 kyats per month. The contributors had either not finished high school or they had high school as their highest form of education. The data collected during the pilot study will not be included in the final analysis of this study. All the ten volunteers did the survey in the same place at the same time. The finding recommends that the income section should have more options not just two, be more detailed on the education level like what degree they have. The age should have more options and the spacing, text used in the survey shall be in a clearer language and in several languages. As result several changes was made to the survey project and advent of the survey, as suggested by the volunteers, more options were provided in the first section of the survey and improved the formatting style and language.

3.7 Reliability and Validity

Reliability is well-known by Bryman & Bell (2011) mentioned that consistent form of measurement. Data reliability could be vulnerable by mistake of contributors in providing prejudice responses and the other hand that unknown the requests. This is significant in survey to be good gathering in a method that would be evade the system of prejudice and erroneous reply from the contributors (Robson, 2011). By Coates (2008,pp.140) “ a work could be valid but unreliable, that is to say the research could adopt a research strategy that is appropriate to the research.”

The validity of this study indicates that the researcher could be wanted to accumulate and analyse the facts which reliability of this study likes suggestion that the investigator initiated in the study in a better method. This is significant of making to extent for providing facts composed to be effective and that could be avoided erroneous and unprejudiced inquires. Having of reliable research is legitimacy of this study (Coates & Sloan,2008).