3.1 Research Approach: Deductive
This research applies deductive approach, for which, the reasoning works from the more general to the more specific as “Top-down” waterfall. The researcher begins with THEORY; based on past experience, literatures and theories study, HYPOSIS is generated as theoretical frame of logistic strategy, supply chain management and forecast system. Afterwards, OBSERVATIONS are carried out during the researching process to verify the premises, and to draw CONFIRMATION.
Hisense GmbH launches AC business on oversea market, the theoretical frame suggests to involve investigations of international market management, e.g. Porter’s five force theory defining the competition background, Product management theory describing the features of slow moving AC products. The hypothesis is that “Oversea branch operation and AC products supply chain characteristics would influence the later launching of CPFR model”. Furthermore, previous researches proved that CPFR post positive impact on the S&OP efficiency, customer satisfaction and risk control. In the interviews, every aspect would be confirmed or better explained by the interviewees when answering related questions. By the end of the thesis, researcher would conclude the most influential factors that Hisense GmbH has to take measures to comply with, or else, to accept the possible failure of the project.
3.2 Research methodology
Longitudinal single embedded case study
Rather than using samples and following a rigid protocol to examine limited number of variables, case study methods involve an in-depth, longitudinal examination of a single instance or event: a case. They provide a systematic way of looking at events, collecting data, analyzing information, and reporting the results. As a result the researcher may gain a sharpened understanding of why the instance happened as it did, and what might become important to look at more extensively in future research. (Bent Flyvbjerg )
The research will concentrate on the affect elements of Hisense GmbH Aircon Business unit’s operation with its local distributors. The desired CPFR model from both parties will be a main research context.
Besides, it will involve multiple analysis of the business operation platform such as product specification, unique distribution channels, and logistic strategy etc.
The research questions involved are mainly “how” and “why” questions, aiming for investigating the causes and reasons to the existing difficulties within the case company; therefore, as suggested Yin (1981) and Collin (2010) in different ways that case study as the preferred research strategy for the study of this single Case Company. Single case study research strategy is chosen as it develops detailed analysis of a program or event. Case study is best for investigating a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident. (Yin, 1981a, 1981b)
Qualitative Research
This research is designed to disclose the essences of a topic and to figure out answers towards research questions by the end of the research; besides, Qualitative approach is concerned with the opinions, behaviors or attitudes of the subjective assessment (Creswell, 2007); therefore, the researcher applies qualitative research.
As defined in the first chapter, the main research question (MRQ) is What are the critical elements that decide an effective CPFR model application in Hisense GmbH in order to improve S&OP efficiency of slow moving/technical featured AC products?
Sub questions reside on 3 stages (1) what are the features of AC S&OP, (2) what elements in supply chain are relate to collaboration between distributors and suppliers, and (3) how does the collaborative elements impact S&OP efficiency.
The survey has been carried out in the form of individual and group interviews as semi-structured questionnaire guidelines during business development meetings. Each interviewee was well selected for answering the most suitable questions according to his professional experience in field (appendix II). The purpose is to collect sufficient data supporting the upcoming arguments answering the MRQ.
3.4 Research population: sampling frame
The research applies Non-Probability Sampling because Hisense GmbH in the single case study selected only those who would become Hisense’ distributors, that their answers and reacts are more conducive to the research questions. Besides, the researcher prefers this sampling method for the limitation of time and money resources. More importantly, the hypothesis development requires constant observations and verifications till results have been concluded with specific customers’ projects.
Based on above criteria, the researcher locates target interviewees of two groups, a. internal employees and managers from Hisense GmbH and Hisense Group, and b. external distributors of potential
partnerships on local markets. Seen from the appendix, the researcher has conducted 40 person/time interviews from 15 external companies, and 23 person/time interviews from 3 internal organizations of Hisense group. i.e. Hisense factory(R&D), Hisense Subsidiary in Germany and in Italy, among which, the last organization has had one year experience launching the CPFR model in AC business operation.
The internal interviews mean to discover the current S&OP platform and available resources cross divisions in the group, as well as to interpret the desired platform with embedded CPFR model better serving the customers in AC business field. By sort-out primary data collected from frequent questions & answers, the researcher could draw a list of bottom lines for various commercial terms, and take them into consideration before customizing questionnaires for the external ones.
External interviews have been carried out during the commercial meeting, where both supplier and buyer raise requests for their own benefits, as well as negotiate for drawing agreements of long-term partnership.
Preferably, the interviews cover broader dimension than CPFR related topics, which would bring back deeper interpretation of market phenomenon. For instance, the companies that have been selected for interviews are mostly professional AC distributors of long presence on the market, who have sufficient experiences with top AC manufacturers from Japan and Korean, and who have had insight of European branding business in AC industry. They also take the meeting as a chance to match their expectations of Hardware, software and corporate strategy from potential new supplier, i.e.Hisense GmbH.
Both external and internal data collection has been guided by the practical framework (Primary Data Collected from case company) illustrated in Chapter 2. By thorough analysis of the interview results, the research expect to read some common goals from supplier and distributor, i.e. long-term partnership and sustainable growth, brand building and final customer satisfaction, etc. At meantime, to achieve the common goals, they both have to face the gap from what supplier could provide and what buyer would request. Both parties would explain why and how to achieve a compromise; while these points of compromise are exactly the critical answers to the main research question.
3.5 Date collection and Analysis method
This research relies on qualified data collection and effective analysis of the primary and secondary data. Primary Data collected for this single case study come from different data sources. Primary data mainly come from open interviews and group interviews both internal and external groups. Besides, sources include field observations and participant observations, company documents, archival records, and
physical artifacts. Secondary Data are also collected and used to support the thesis. The sources of those secondary data are mainly from Industrial reports (GFK, JARN), books of literature, academic articles, and company reports.
The researcher apples the most common Data analysis method as used in qualitative research, i.e.
Taxonomy and Logical Analysis/Matrix Analysis. The sub research questions extend to multiple dimensions in supply chain management, e.g. Particular product & distribution channel management, brand building on oversea market, etc. Taxonomy method works well for sorting out data into a complex classification of multiple levels of conceptions. Shown in the appendix III Interview results, the interviewees are given multiple choices or open questions to reflect sub research questions. The research respects to 3 principles when analyses the data: i. rank according to companies’ credibility score, ii. Most frequently repeated answers weigh the top importance, iii. Higher total scores (sum of all individuals) taken as more relevant.
E.g. companies with longer history in professional channel (for SQ2) provide trustworthy answers than the others; highly repetitive factors (for SQ3) with higher total scores can be concluded as answers to the questions.
Matrix Analysis is also applied for deriving the recommendation of proper CPFR process, because it is an outline of generalized causation, in the format of flow charts. In other words, the external interviewees elaborates a series of requests from buyer perspective, hence, the buyer has to transform all the underlying causes into its new process to fulfill the requests.
3.6 Limitations
There might be limitations of the research, i. Biased response of the interviewees, ii. Difficulties in generalization, iii. Assumptions & calculations, iv. Access to detailed information, and so on.
i. The external interviewees are potential business partners; hence, they respond the questions under the condition of business negotiation rather than objective comments. Each of the interviewee might highlight the points of their own benefits and overlook those for general proficiency; hence, there might be additional factors missed in the final results.
ii. This case study bases on limited interviews, from which, findings have been analysed for the practical application in the case company. The critical factors for collaborative programs might not be generalized for the case of other companies with various situations. There should be consistent dialogues with potential partners to verify the findings.
iii. The questionnaires contain assumptions of researcher, e.g. interviewed companies with longer history in AC professional channel are assumed as more credible than the others. Calculations in data analysis meant to draw qualitative conclusion, therefore, data statistics are limited.
iv. The external data is mainly collected from dialogues; the researcher could hardly get the original information in details, such as financial statement from the distributors.