Methodology Chapter: Foreign investments Risks in Saudi Arabia and Middle East Countries

Methodology

This chapter describes in detail how the research will be accomplished especially the manner with which the study will be carried out. In addition, the issue of qualitative and quantitative methods employed in the study is brought out clearly, the entire mechanisms used to identify the sample of the data, mechanisms of data collection, analysis of the data collected and finally the interpretation of results from the analyzed data. The study sought to explain the role of foreign direct investment (FDI) in the global business using many methods and resources that are derived from multiple information sources (Breakwell et al 1995).
Additionally, the research was interested in looking at number of risks that are associated with foreign investments in international setting. The research will also bring forth the advantages as well as disadvantages associated foreign investment especially in the region under study. The study will put forward recommendations that will help organizations that are in need of how to integrate successfully foreign investment. This provided the research group with an opportunity to come up with suitable information that one can bring forth relevant recommendation.
The research will seek to obtain the necessary data that will be very informative in trying to answer the research questions and find out more about foreign investments characteristics, its advantages and disadvantages, and establish the logistics in which it is best implemented. A theoretical study and a research approach will be carried out in order to make comprehensive findings. This method was chosen due to the ability to implement it easily and effectively with few error; it is practical and suited for the study. A theoretical study lays its basis on various studies that have been done by others and an understanding of the past and current information from literature (Adèr, 2008). The data required will be needed in order to support the research questions.

Methodology Chapter: Research design

The research design that was used for the research was qualitative research methods. Use of this method was important because it enabled the research to be broad and cover all the requirements of the research. Use of qualitative research enabled the research done to obtain an in-depth understanding of behavioral characteristics of all stakeholders in development of Foreign Investments Risks in Saudi Arabia and Middle East Countries. The main stakeholders whom were involved in the research were the officials from Saudi Arabia’s government, proprietors of the business especially international foreign investment and financial institutions including local Saudi Arabia nationals with investments abroad (Keman, 2008). Each of the stakeholders has a role to play in the Foreign Investments Risks in Saudi Arabia and Middle East Countries.
Use of qualitative research method concentrated mainly on how the decisions of Foreign Investments Risks in Saudi Arabia and Middle East Countries. It did not take care of where, what or when the event took place. While use of quantitative research was used for research that required statistical, analysis and it used mathematical models to analyze its finding. The entire population would not be used for the research in India and Middle East countries; therefore, population samples were obtained to present the entire investment firms to preset the country (White, 2000). The sample population that was used for the research was selected in unbiased manner to ensure it is will provide a better presentation of the entire population.

Methodology Chapter: Sampling Strategy

There are different sampling strategies that were used to obtain the sample population these included; random sampling and stratified sampling strategies. Use of random sampling ensured that a group of the entire population is selected to represent it in the research being done. Stratified sampling strategies is the one which was used it first subdivide the population to identifiable sectors such as entrepreneurs, government bodies and ministries, and financiers. The subdivided sectors were further divided to identifiable groupings such as local entrepreneurs who have invested abroad, officials from Saudi Arabia government and international foreign investors of sizeable division. They were further divided to different regions that were used for the research. Each of these subdivided sectors is known as stratum it is in this stratum that the participants of the research were selected randomly.

Methodology Chapter: Ethical consideration

Since the research involves human subjects, there is need of high level of ethical considerations to be maintained. As indicated by Keman 2008, some of the ethical considerations include the following; the targeted sample populations that will be involved in the study to provide relevant information are to be informed about the same in advance. The reasons for carrying out the survey as well as how they stand to gain from the study will also be brought out clearly.
As well, research ethics demands that the information sought by the researcher will be provided in good faith, and voluntarily without any influence e.g. monetary or otherwise giving of incentives, rewards, and gifts. It is important to note here that the rights and welfare of the participants involved in the study is protected and guaranteed. To do this, their identities will be kept confidential. Moreover, the information collected while soliciting for data is to be kept confidential and not to be used for any other purpose apart from what was initially intended for (2008, Adèr). It is expected that the interviewees/respondents will be ethical and provide accurate information to the best of their knowledge. This means that they should not knowingly give false information.
More importantly, one tries to be ethical in providing the participant with especially the respondent’s guidelines and necessary information that are correct. Similarly, the group will not be judgmental on the information provided during the course of the analysis of the studies and therefore they will be as neutral as possible during the entire process.
Methodology Chapter: Data Collection
The main source of data was primary sources through interview method. Primary source was chosen because, in the process, the researcher will be having lots of control over the process. As a result, the researcher will be allowed to determine the method to use in the process of collecting and time duration that the data collection process will take. Hence, have chance of only focusing on specific aspects of his/her study. This implies that, the researcher will only set out to dig for more information that concerns specific aspects “that matters to the; what’s more they have different methodologies to use, ranging from focus groups to email.” another thing is that, primary data source provides one with original and unbiased data, as compared to secondary data, the researcher will have to interact with information sources to get original data that has not been analyzed with the aim of suiting a particular premise, (Keman, 2008).
On the other hand, primary sources consumes lots of time, as the researcher will have to make lots of preparations with the aim of meeting the different processes demands and manage time effectively. Apart from time consumption, the sources entail collection of large volumes of primary data. This is based on the fact that, since it entails interacting with different people, will also prove much tedious when going through them when analyzing and evaluating their findings.
Having such like advantages and disadvantages, primary sources of data were chosen as they are much reliable and concentrate only on specific areas of interest, hence much easy for the researcher to control the type of data that is being collected, (Breakwell, Hammond & Chris, 1995).
Amongst the primary data collection methods, interview was chosen because, it will allow the researcher to adapt questions as required, clarify points as well as ensuring that the respondents have clearly understood the question. This is because, the researcher has the chance to repeat or even rephrase the questions. In addition, the researcher has a chance of picking up nonverbal cues from the respondents. As a result, any form of stress, discomforts or any form of problem can all be detected through frowns, nervous, taping, sound tones and other forms of body language can be expressed by a person unknowingly. This is much impossible when using questionnaires. Therefore, in general, interviews will enable the researcher to get desired results.
However, interviews do not only face geographical limitations during the survey, but also requires vast resources for it to cover a larger area or population. The costs incurred during interviewer training, which aims at reducing interviewer’s biasness, as if questioning techniques, as well as interpretation of responses are also very high. Another limitation for using interviews is the fear of anonymity of respondents, who might feel much unease when they interact with interviewers or even talking to them, (Bynner 1979).
The interview questionnaire will be divided into two major parts. In the first part, demographic items will be included with the aim of obtaining information, which concerns the respondent’s sex, age, education as well as income. These demographic variables will be much helpful in the process of explaining different behaviours of different types of investors. In the second part, the items that will be asked will be aiming at getting information that concerns the risks associated with foreign investment and highlight some avenues of reconciling the negative impacts with the positive contributions of FDI so that foreign investment in future can be environmentally friendly. This section will also view the case that investors are driven by either baseless or exaggerated fears, or for lack of adequate information, or that host governments have grown too hostile, untrustworthy and unnecessarily overprotective. This research undertakes to find answers to some of these puzzling questions. The respondents will be from various age groups, as well as income levels.
Going with the advice given by Adèr, Mellenbergh, & Hand, (2008), during interview questions formulation, the following parameters will be very significant if considered
· The questions will be prepared and asked with nonprofessional’s understanding level.
· Questions will be brief and crisp.
· The layout will be friendly to the respondents.
The pilot study will be performed with three interviewees to formulate the questions for the structured interview, and even help in finding the time required for the interview per person. However, though they are not supposed to be included in the analysis, but they will be added, as they not have any effect on the total analysis but will only add more value to it (White 2000). Pilot studies have been helpful in the process of designing the questionnaire for the interviews.

Methodology Chapter: Conducting the Interviews

The interviews will be carried out in the following ways:
Participation: This method will aim at the involvement foreign-based investors, workers and customers. In this process, the subjects will be active research participants, other than remaining passive objects of research. The research process will include; identification of research questions, designing and planning the research. Research subjects will share their information based on experience, hence, the creation of relevant research knowledge on them. However, the participation will be voluntarily other than being compulsory. In this process, interviewers will be sent to the field to interview participants. The respondent would be interviewed through telephone and through physical contact. The interview guide to be used will include both open ended and closed due to the educational level of the respondent and due to the acquaintance of the respondent knowledge on the topic, (Weller, 1988).
Focus Groups: This will involve the invitation of prominent persons in the field of investment, having the idea of foreign investments risks in Saudi Arabia and other Arab countries. In addition, they will be called upon to generate other projects for further research in the field. They will help in exploring hypothesis, and even in the development of research questions. However, focus groups are limited in their ability to generalize findings to the whole population, as they are just a few, hence not representing a larger population. This research will draw upon respondents’ feelings, views, and even reactions; which might be independent of a group partially, but more likely to be depicted through social gathering and interactions, that being in a focus group entails.

The group will clarify on power full differences that have existed between the participants and decision makers. The method is time consuming and very costly as compared to other methods. It will also be very difficult to assemble to focus group, (Gibbs, 1997).
In-depth Interview: This will be conducted on one to one technique. This technique will be used to elicit vivid pictures of the perception of the participants on the topic of research. The researcher’s techniques of interviewing in this method will be motivated by the need to lean everything shared by the participants. This method will be much useful for learning about individuals perspectives. They are also effective method for individuals to talk about their individual experience, perspective and even opinions. Nevertheless, they provide appropriate conditions to address sensitive topics that may seem to be reluctant to discuss in a group setting.

Methodology Chapter: Data analysis

The data from the case study will be given as it is since it is the findings of the study. However, after collection, data will be carefully analyzed to minimize errors and disparity. The most common analysis of qualitative data is just observation impression. Data will then be collated and presented using statistical tools such as the mean and averages, percentages, tables and graphs.
The data from the interview will also be analyzed using non parametric statistics. The data will first be filtered to remove unwanted and bloated information. The data will then be analyzed to expose useful information in drawing of conclusion and recommendation. Descriptive statistics will also be employed in analyzing the research hypothesis “foreign investment in the world today faces great risks”. T-test will also be used to test research questions. Statistical Program for Social Science (SPSS Version 17.0) package will aid in data analysis. To find out what are the significant factors affecting foreign investment in Saudi Arabia and other Arabic countries. Data will then be collated and presented using statistical tools such as the mean and averages, percentages, tables and graphs. At this point the research hypothesis “foreign investment in the world today faces great risks” will be tested then conclusions and recommendations drawn from the findings of the exercise. Use tables, graphs and charts, (Korn, & Graubard, 1999), will present the data.

References

Adèr, J., Mellenbergh, G. & Hand, D. 2008, Advising on research methods: A consultant’s companion.Huizen, The Netherlands: Johannes van Kessel Publishing
Breakwell, G., Hammond, S. & Chris, F. 1995, Research Methods in Psychology. London: Sage
Bynner, J. 1979, Data collection procedures. New York: Open University Press
Gibbs, A. 1997, Focus Groups. Available from: http://sru.soc.surrey.ac.uk/SRU19.html. [Accessed on July 28, 2011]
Keman, H. 2008, ‘Comparative research methods’, in: D. Caramani (ed.), Comparative politics. Oxford: Oxford University Press: 63-83
Korn, E. & Graubard, B. 1999, Analysis of Health Surveys. New York: Wiley
Weller, Romney. 1988, Systematic Data Collection (Qualitative Research Methods Series 10). Thousand Oaks, Califonia: SAGE Publications
White, Brian 2000. Dissertation Skills for Business and Management Students. London: Thomson Learning