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EJTD
36,5 Critical issues in research design
in action research in an SME
development context
508
Helen McGrath
Department of Management and Marketing, University College Cork, Cork,
Received 7 July 2011
Revised 11 November 2011 Ireland, and
Accepted 2 February 2012 Thomas O’Toole
School of Business, Waterford Institute of Technology, Waterford, Ireland
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Abstract
Purpose – The main aim of this paper is to develop guidelines on the critical issues to consider in
research design in an action research (AR) environment for SME network capability development.
Design/methodology/approach – The issues in research design for AR studies are developed from
the authors’ experience in running learning sets but, in particular, by an SME owner-manager learning
set established to develop and test theory about network capability.
Findings – The authors present a comprehensive set of research design issues for AR across seven
areas – sampling; the facilitator; learning set interaction; set design; measurement; data collection
decisions; and data analysis.
Research limitations/implications – While action research is inherently situational in approach,
for those researchers wishing to use it to develop or test theory, the authors’ framework will provide a
benchmark for research design decisions.
Practical implications – The methodology is ideally suited to knowledge exchange settings and for
collecting research data in such contexts and, if used in this way, could be an incentive to encourage
more academic engagement with practice. Management and organisational development using AR is
often reported on, but rarely in an SME context. The paper provides an example of a study conducted
in this setting.
Originality/value – The main contribution of this article is to present an implementation framework
for research design using AR. In addition, given policy goals now often require firms to collaborate
with each other and in partnership with training organisations and universities, it makes sense to
develop a mechanism to enhance the understanding of research methodologies that can be used in
these contexts.
Keywords Action research (AR), Network capability, SMEs’ organisational development,
Research design, Action interventions, Research, Small to medium-sized enterprises
Paper type Research paper
Introduction
Action research (AR) is a methodology used to embed learning into practice as a core
objective. The methodology relies on an action-reflection cycle to achieve its learning
European Journal of Training and outcomes and is particularly suited to executive education. It is useful in business as it
Development links directly to action, involves self development, and can engage problems that
Vol. 36 No. 5, 2012
pp. 508-526 require significant change in organisations but also at an individual, “mindset”, level.
q Emerald Group Publishing Limited AR as a research methodology has the dual aim to embed learning into practice, to
2046-9012
DOI 10.1108/03090591211232075 enact change and improve a situation while formulating public knowledge
contributing to theories of action. The method was employed by the authors when they Critical issues in
were trying to develop a model for business-to-business network capability research design
enhancement for SMEs. As an action orientated methodology, AR’s application
mirrors the learning preferences of SMEs (Stewart and Alexander, 2006), that is, being
flexible (Van Gils, 2000), context-dependent and experientially based (Rae and
Carswell, 2000). However, as appropriate as the method is for both business
development training and research, the authors found no guidelines on the critical 509
issues to consider in research design in an AR environment for managerial capability
development. Therefore, the core contribution of this paper is to provide full detail on
the application of the methodology, in this context, that should be useful to both
researchers and to practice.
This study recognised the need to apply a research design process, a set of steps, to
ensure rigour within the learning set so that AR for capability building can be
systematic and replicable. While AR is inherently qualitative in approach, for those
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researchers wishing to use it to develop or test theory, our framework will provide a
benchmark for research design decisions. This paper recognises the many faces of
action research and will focus on a research process for more technically orientated
action research. The methodology is ideally suited to knowledge exchange settings and
for collecting research data in such contexts and, for example, if used in this way, could
be an incentive to encourage more academic engagement with practice. Providing a
road map of the steps involved in the AR process for SME network capability
development also has important implications for policy as many EU economic
development programmes incorporate an AR element into their design through
“learning sets”. These programmes, similar to this research, often commence with a
predetermined research problem that SMEs recognise within their own organisation
and thus wish to engage with the programme to assist them to solve these problems.
The framework provided in this paper may support the set-up and the evaluation of
such programmes. It may also impact executive education policy given AR’s
attractiveness as a development tool for SME learning, particularly as little has been
published on the implementation of the methodology as it applies to small firms.
the same time serving to improve practice”. Coghlan (2010) highlights the importance
of the selection of an appropriate action modality for research with the choice
dependent on context, researcher/member relationship, the structuring of the inquiry
and the dual outcomes of action research for practice and knowledge. On that basis,
this study employs the action research modality which comes with its own set of
“choice points” (Reason, 2006) which must be made explicit. Reason and Bradbury
(2001, p. 27) suggest “the primary ‘rule’ in AR practice is to be aware of the choices one
is making and their consequences” as “action research is a messy, somewhat
unpredictable process, and a key part of the inquiry is a recording of decisions made in
the face of this messiness” (Herr and Anderson, 2005: 78).
The degree to which researchers position themselves as “insiders” (Coghlan and
Brannick, 2010) or “friendly outsiders” (Greenwood and Levin, 1998) is an important
choice point and will determine how researchers frame epistemological,
methodological, and ethical issues in the research having massive implications for
research design. As can be seen in Table I, Cornwall (1996, p. 95) notes that action
methods may be used in a wide range of contexts according to quite different agendas.
Cornwall (1996) outlines six modes of participation ranging from cooption, which may
involve local people taking part in other people’s project, to collective action which is
research rooted in local knowledge, orientated at empowering local people to enact
their own solutions. This continuum requires different types of AR labeled A, B and C
in Table I which do not vary in methodologies, rather in the application of the
methodology as a result of underlying assumptions and worldviews of the participants
(Grundy, 1982). Table I examines the potential levels of involvement of the researcher
and participants in the design and implementation of AR.
Technical forms of AR (Type A) are essentially orientated towards functional
improvement and problem solving, measured in terms of its success in changing
particular outcomes of practices (Kemmis, 2006, p. 95). With this type of AR, the
researcher can conceive the research question and design an intervention with or for a
group who cooperate with the researcher, are involved in and contribute data to a
process which could have positive repercussions for them. The researcher is in charge
of the change process and is working to cultivate goodwill with the group. The
intention of the researcher is to test a particular intervention to see how effective it is to
solve a problem in a specific situation. The practitioners agree to facilitate with the
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Relationship of
research and
action to local
Mode of participation Involvement of local people people Action research types – A, B, C
Cooption Token; representatives are chosen, but no real On A – Technical (Grundy, 1982; Carr and Kemmis, 1986)
input or power The scientific-technical view of problem solving
(McKernan, 1991)
Compliance Tasks are assigned, with incentives; outsiders For The positive approach (McCutcheon and Jurg, 1990)
decide agenda and direct the process The technical collaborative approach (Holter and
Schwartz-Barcott, 1993)
Consultation Local opinions asked, outsiders analyse and For/with B. Practical (Grundy, 1982; Carr and Kemmis, 1986)
decide on a course of action Practical-deliberative action research (McKernan,
1991)
Cooperation Local people work together with outsiders to With Interpretive (McCutcheon and Jurg, 1990)
determine priorities, responsibility remains with Mutual collaborative approach (Holter and Schwartz-
outsiders for directing the process Barcott, 1993)
Co-learning Local people and outsider share their knowledge, With/by C. Emancipatory (Grundy, 1982; Carr and Kemmis,
to create new understanding, and work together to 1986)
form action plans, with outsider facilitation Critical-emancipatory action research (McKernan,
1991)
Critical Science (McCutcheon and Jurg, 1990)
Collective action Local people set their own agenda and mobilise to By Enhancement approach (Holter and Schwartz-Barcott,
carry it out, in the absence of outside initiators 1993)
and facilitators
Source: Adapted from Cornwall, 1996, p. 96
research design
AR types
511
Table I.
Critical issues in
EJTD implementation of the intervention (Holter and Schwartz-Barcott, 1993) with
36,5 communication flows primarily between the facilitator and the group. The
researcher is usually an expert and an outsider to the research situation with
change generally imposed after gaining the cooperation of practitioners (Clark, 2000, p.
194). This type of AR reflects Cornwall’s cooption and compliance modes of
participation whereby tasks and interventions are assigned with outsiders essentially
512 directing the process. It promotes efficient and effective practice and may be useful for
capability development. With interventions planned and outsiders directing the
process, it is possible to make knowledge claims that are generalisable or transferrable
beyond the immediate context/setting.
Practical or iterative AR (Type B) has the technical aspirations for change, but it
also aims to inform the practical decision making of practitioners (Kemmis, 2006: 95).
With this type of action research, the researcher and members collaborate together to
identify problems, determine solutions and evaluate outcomes. This working together
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approach leads to a better understanding of the underlying problems and their causes
with the researcher and the practitioners coming together to identify possible
interventions (Holter and Schwartz-Barcott, 1993, p. 301). This approach is descriptive
and can lead to the development of new theory (Clark, 2000, p. 194) as the problem is
defined after dialogue with the researcher and the practitioners and a mutual
understanding is reached. This form of AR seeks to improve practice through the
application of the personal wisdom of the participants (Grundy, 1982) allowing for a
more flexible approach in design and delivery. As McCutcheon and Jung (1990, p. 146)
state “indicative of this flexibility is the frequent use of ‘interpretive’ as an umbrella
term that comfortably accommodates interactive and phenomenological perspectives”.
Practical AR involves local people or practitioners where opinions are asked and the
research is carried out in consultation or cooperation with them (Cornwall, 1996).
Emancipatory AR aims not only at improving the self understanding of
practitioners, but also at assisting practitioners to arrive at a critique of their social
or educational work or work setting (Kemmis, 2006). This approach has two main
goals. It increases the closeness between the actual problems encountered by
practitioners in a specific setting and the theory used to explain and resolve the
problem (Holter and Schwartz-Barcott, 1993). It also raises corporate awareness in
practitioners regarding their underlying values and beliefs, both personal and
collective that are manifested within the organisational culture and may impact on the
problems identified (Clark, 2000). It promotes emancipatory praxis in the participating
practitioners; that is, it promotes a critical consciousness which exhibits itself in
political as well as practical action to promote change (Grundy, 1982). The
enhancement or emancipatory approach to AR is in line with Cornwall’s co-learning
and collective action modes of participation where knowledge is shared and agendas
and action plans are set together.
Recent research suggests that many action oriented modalities co-exist (Raelin,
2009; Coghlan, 2010). However, the core contribution of this research is to provide full
detail on the application of more technical forms of AR as indicated in Table I as we
were interested in research outcomes and had a predetermined research problem for
the participants. To date, the core issues in each stage of such a design have not been
specified as they will be here. The popularity of AR has been attributed to the
contextual relevance of the methodology and data stemming from its use and the
trustworthiness of the data collected with the goal of improving and changing a Critical issues in
situation with research participants actively involved in the knowledge production research design
process (Bray et al., 2000). Ironically its main critics cite the same points with action
orientated techniques regularly dismissing them as not been scientific. While this is a
common criticism of many more interpretive methodologies used for theory building,
AR with its interventions is usually seen for its change or consultancy capability and
not as a serious research methodology in the traditional scientific sense. Hopefully, this 513
paper will demonstrate its potential as a research method for theory building. We
believe that researchers using this method can increase its acceptability as such by
making clear the choices made at each stage of the design process. The reader of the
results can then judge, depending on his/her philosophical stance, the value of the new
knowledge created. The philosophic basis and justification for use of action oriented
methods is well articulated and not the focus of the current work (Susman and Evered,
1978; Reason and Bradbury, 2008; Ozanne and Saatcioglu, 2008). This paper concerns
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itself with research design and the delineation of choices, or making clear these choices,
at each stage of the process. In doing this, it should improve the use of the method
especially among non specialists, and enable first-time AR users with its guidelines.
individual SMEs that met the following key criteria: less than 50 employees, past
participants in an entrepreneurship program, non-competitors, and in operation for
more than 1 year. Each company had a knowledge-based, innovative component and
operated within the business-to-business sector in Information and Communications
Technology, electronics, consumer goods, or internationally traded services. Six 3-hour
network meetings were conducted over the course of a ten month period to analyse
network capability and assist the SME in their development of same. The setting
allowed for each case company to learn from and share experiences with others
allowing network capability building through iterative cycles best captured by the
authors through direct, longitudinal, involvement in the process enabling the authors
to obtain a sounder understanding about the content and process of network capability
development. Aspects of the data collection approach are presented in the next section
in addition to issues that could be addressed, in AR design, but were not foreseen by
the authors or arise from their experience in other projects.
issues
AR research design
515
Table II.
Critical issues in
EJTD such as skepticism and nerves. A further issue for technical AR that is trying to
36,5 develop or test new theory is to explain it to the participants as the researcher is going
to be bringing concepts and frameworks into the interaction. This becomes a bigger
challenge when theory is further developed into propositions as you are placing more
structure on what happens when the participants interact. The authors faced this
challenge and the idea of network capability was presented to the participants
516 including the potential value that would ensue through engaging with the group. It
was important that each participant took ownership of the problem, saw the link
between network capability and growth, and were willing to take risks, transform their
mindset, practices and processes through cooperation with each other to determine if
network capability could impact the growth of their business. This was not easy as the
businesses did not initially see how they could develop their businesses through
connecting to the right partners. In retrospect the challenge we presented went to the
heart of why they went into business in the first place – to be independent. Clearly,
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their preference towards independence posed issues for cooperation as did their limited
worldview of networks and the means through which they could connect with others.
The researchers had previous experience in the field of research and knew this was
going to be a major challenge so had to really “sell” the benefits in advance of a new
way of seeing a business. Time commitments are significant to business and it is
important to be upfront regarding the time group sessions will take including travel,
the time they will need to put into action to get benefits from the solution to the
problem and the time commitment if participant diaries were included. For this study,
the authors attained prior commitment to a ten month period with group meetings for
approximately three hours every month and a half.
In relation to the group sample-related issues, the prior knowledge needed of the
others’ business may be a key issue. AR participants do not need to have prior
knowledge of one another or to work in the same area or organisation, but they should
be of a broadly similar level and be able to understand one another’s worlds
(Grzybowski, 2008). Security can be an issue for participants but anonymity can be
assured and signed off. A more difficult issue is whether there is need for prior action
research experience by the participants as commitment to action is essential for AR
success. The authors used participants who had been on previous programmes that
would have elements of a similar design so it was not difficult to develop a readiness
for action learning. Potential concerns that the programme would be accompanied by a
relatively high level of personal and professional exposure (Bourner and Frost, 1996)
must be met, if appropriate, at this early stage. Action through interventions and
working in cooperation with others in a learning set environment requires participants
to take control of their own learning and growth and to take risks. Set members are
active participants in the process and must want to be part of it; compulsion does not
work as the success of the programme relies very much on learners being motivated to
learn for themselves (O’Hara et al., 1996). Clarity on the core choices made by the
researcher at this level will make the research visible and more replicable, and
strengthen the objectivity of the research.
between the researcher and business person due to age, experience, or perceived
expertise of academics which needs to be addressed by the researcher in advance.
Background research will help the facilitator to be aware of the business problems of
the group at a micro level which can feed into emotional empathy and in this case
highlighted that the authors were not out of touch with reality. Obviously, empathy
could easily lead to bias but, in this case, it is more linked to getting information
flowing freely. Other preparation strategies for facilitators which we employed
included having a dry run with experts.
In action, establishing credibility is helped by preparation combined with the
facilitator’s knowledge and expertise. Credibility was enhanced by the authors through
pre-programme interviews which established a baseline and interest in the topic. Many
tools exist for dealing with first day silence and ice breaking. Introductions and simple
tasks can be used and the facilitator has to set the ground rules and enable sharing
among group members and a receptive capacity for ideas. This receptive capacity is
about being open to question and challenge for change (Florén and Tell, 2004). In
addition to the session plan, if theory development is the objective of the research, any
interventions around the theory will need to be validated in advance – why these
interventions? How do these indicators uncover the concepts being addressed? Similar
to focus group data collection techniques, the facilitator has a toolkit of aids which rely
on interview experience which is developed over time – listening, probing, solicitating
input – but this should not bias the conversation. Classroom aids are available
including technology, visual aids and active short work assignments designed around
the problem. One of the early classroom aids we used was asking participants to draw
network maps to illustrate their connections and through this process create other
access points for action before the next session. When any group of business people are
together the interaction can wander to immediate and general issues not of concern to
the research. While this is a part of the ebb and flow of the session, continual focus
back on the problem must be made by the facilitator.
participants for open problem sharing as it is only through airing problems that they
can be worked on and discussed by the group. Thus, a careful negotiating and
establishing of trusted relationships is probably the key ingredient in building a
research endeavour that works for all involved (Herr and Anderson, 2005). The authors
developed some trust in advance through the interviews where they were able to spell
out the ground rules and develop a confidence in the process.
Each participant must understand early that they face similar issues in their
businesses to facilitate the feeling of shared problems and an elimination of isolation.
This enhances group cohesion and the building of mutual and complementary levels of
respect which are important for knowledge sharing within the group. Debriefing was a
feature of the authors’ approach as some of the sessions challenged what the SMEs
were doing (their assumptions about how business operates) and gave an alternative
way of structuring how the business could be run. Some of these debates got quite
heated among the group. Some ethical issues are prevalent among participants
including respect for each other’s views, prevention of harm and assurances of
confidentiality or anonymity. Managing interaction in the learning set can seem
obvious but is hard to do in practice.
embeddedness of ties. To gauge the degree to which awareness was present for each
SME, we analysed the findings using the indicators such as network composition,
density and diversity (Granovetter, 1973, 1985; Dubini and Aldrich, 1991)
characterising different embedded relationships. The SMEs also analysed each
other’s maps and reflected on the types of connections that they deemed important.
They altered their maps post reflection and through this and other interventions both
the SMEs and the authors were able to develop a picture of the process of network
capability development. However, this process is complex so we can only claim to have
made a start. The research did not lead to any rapid change which implies the
measurement was appropriate. Getting the participants to action change at a mindset
level is very difficult and led us to continue to question the value of our underlying
research question.
The fact that the researcher is involved as facilitator also brings a chance of bias
therefore, it is important to address how one’s bias is dealt with in the research. We
enter research with a perspective drawn from our own unique experiences and so we
articulate to the best of our ability these perspectives or biases and build a critical
reflexivity into the research process. Hence bias and subjectivity are natural and
acceptable but must be critically examined rather than ignored (Herr and Anderson,
2005). Methods used for dealing with this is the researcher keeping a diary of what they
thought happened during sessions and comparing this to the taped transcripts. If there
is a major difference then the researcher may be over-influenced by his/her worldview.
The very fact of having a group makes a group measurement error possible. Being
involved in a group and being chosen for same can bias participants’ reaction and lead
the results to be attributed to belonging to the group rather than by the intervention.
This effect is reduced somewhat in a longitudinal study which may even out this effect
as it wears off. The field experimental nature of AR can lead to additional issues with
measurement. If the researcher decides to benchmark the firms in the beginning, this
measurement can lead the firms to take action around the theme and again take away
from the intervention. Each firm in the group making inter-firm comparisons can also
have a biasing effect and may speed up the effect of a change that would not be
matched in another situation. Separating out complex measurement interdependencies
may be a challenge with AR depending on the problem. For example, trying to
establish the association between the development of a process and the change taking
place in an organisation may be overlapping and intertwined in an AR setting and Critical issues in
might require subsequent research to sort out how they were related. The richness of research design
AR is its case context but is this always a special case? We believe that if a rigorous
design is followed then the learning from an AR study is applicable to other situations.
data analysis with data collection and the freedom to make adjustments during the
data collection process the researcher can be in a position to clarify issues with the
participants as the study progresses. Action research data can be analysed in a
multitude of ways and at many different levels. Each individual participant can be
analysed in isolation, the problems they dealt with and the learning that stemmed for
them throughout the process. Group development can be analysed; the effects of being
within the set and the collective achievement of the set. In addition, the programme can
be evaluated as a whole, its value, its high and low points. Longitudinal organisational
analysis may gauge the effects of the programme and its long-term effect opening up
many questions for researchers to ask themselves prior to analysis. Suitable
technology may make data analysis more efficient for both qualitative and quantitative
data, particularly where vast volumes of raw data exist. Computer packages can
facilitate the development of categories and codes to organise the data and develop
theory frameworks. The authors used the NVivo computer software programme in the
research process as a support system to assist the managing and analysing of the large
volume of complex data attained during the course of the study. All documents,
including transcripts, field notes and any other relevant written materials, were
imported to NVivo software. These documents formed a document system providing
the basis for the processing and maintenance of all data where appropriate (Richards
and Richards, 1994). Initial lists of codes/themes were developed based on the
predetermined conceptual framework which were then honed through the continued
data collection and analysis. All data were classified under a theme for further analysis
further tracing evidence right through the data set and, to ensure reliability, the critical
friend followed the trail of evidence established by the authors during the data
collection and analysis phases of the research study. The current study started with
finding that AR is used more for learning than for research and we, of course, as
educators are interested in the learning process but had other over-riding objectives in
theory building to guide the research.
Conclusion
The use of AR in business research is attractive given its link to practice and the way it
can bridge the perceived gap between academic writing and practice. Its use has been
confined to interventions to aid management and organisational development and to
solve business problems rather than research for theory building perhaps because of Critical issues in
its action nature it is seen as unscientific. The core contribution of this paper is to research design
address this problem through the provision of guidelines in the critical issues in
research design in a technical AR environment. This may act as a useful guide to
conduct action research for theory building given that design is crucial for success.
This paper addresses seven stages in AR research design – sampling; the facilitator;
learning set interaction; set design; measurement; data collection decisions; and, data 523
analysis, aiming to provide a benchmark for other AR studies. The authors realise the
list is not exhaustive and can be added to by other researchers. Critical design issues
were presented at each stage principally divided between issues outside the learning
set and those within it. While AR will always have its critics, detailing the process is
useful as a strong design will enhance its application and transferability of results. The
design guide presented in Table II will not appeal to researchers who believe design
should evolve with solving the practice problem but it will appeal to researchers who
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mix qualitative and quantitative methods and who are committed to sharing the logic
of design choices irrespective of their philosophic stance.
This study provides initial support that action research interventions can be effective
in developing the management competencies of owner managers of SMEs. AR is
effective at addressing issues that require both cognitive and behavioural change. For
the SME much capacity for change and development rests with the owner/manager
which means use of AR for management development gets to the core of enabling such
enterprises to engage in real change. The problem posed in this paper was aimed at
developing a collaborative competence which was in conflict with the independence
rationale underlying the owner/manager’s decision to set-up the business in the first
place. AR’s successful use in this type of mindset and action scenario means that it is a
really effective tool for management development in the SME context. In addition to it
addressing the problems posed on day one, the longitudinal nature of the AR
implementation, in this case, also left its methodological reflective capacity embedded in
the participants which they can use to solve other problems.
Training programmes that aim to help firms address structural change or change in
the dynamics of how they operate can be demanding and difficult to run especially for
the outsider. AR is a highly involved method of training and requires good backup
support and therefore can be costly. Unless the programme is subsidised by a state or
EU agency, pricing has to be built around cost saving or increased profits generated by
the interventions. Individual trainers using the method need to be experienced and
have experience in the method for it to work. Any rush to solutions or what worked in
the past have to be resisted as the trainer aims to facilitate the groups and individuals
to use the action-reflection cycle of AR. Being cognisant of the time frame for change
may require any training programme to be scheduled over a longer time period with
time built in for ongoing interventions by the trainer. It can also make demands on
trainers due to its high involvement so they may need some mentor support over time.
Obviously, SMEs do not generally have human resource or organisational
development specialists which means that their exposure to the method may come
from advisory firms or from interventions by higher education. These third party
organizations would need to have AR as part of their tool kit. The developmental
potential of AR could be potentialised for SMEs if it was used as a methodology for
state or EU funded training programmes where “learning sets” play a pivotal role.
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Further reading
Coughlan, P. and Coghlan, D. (2011), Collaborative Strategic Improvement Through Network
Action Learning, Edward Elgar, Cheltenham.
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