Grounded Theory as a Methodology for Theory ... - Semantic Scholar

European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2887 Issue 15 (2009) © EuroJournals, Inc. 2009 http://www.eurojournals.com/EJEFAS.htm

Grounded Theory as a Methodology for Theory Generation in Information Systems Research Rifat O. Shannak Chairman of Department of MIS, Faculty of Business University of Jordan, Amman, Jordan Tel: +962777427177; Fax: +9625829977 E-mail: [email protected] Fairouz M. Aldhmour Department of Business Management & MIS, Faculty of Bus Adm University of Muta'h, Jordan Tel: +962799994240 E-mail: [email protected] Abstract The purpose of this paper is to understand and evaluate some basic concepts that are related to the Grounded Theory Method of investigation. The work is also extended to highlight how this method might be utilized to generate a theory. The data collection was based on a review of the relevant extant literature and some document analysis. A number of interviews were also carried out to shed further light on the issue. The findings are then used to provide an example that explains how the Grounded Theory Method can be utilized. Finally, the paper presents a theory about Information and communication technology (ICT) comprising five categories. Stemming directly from the developed theory and its categories, the paper presents four hypotheses (with their sub-hypotheses) that were formed.

Keywords: Grounded theory method, Grounded Theory Process, Information Systems, Information and Communication Technology, Research Methodology

1. Grounded Theory Background Grounded theory was first presented by Glaser and Strauss in their book, The Discovery of Grounded Theory (1967). The book presented a strong intellectual justification for using qualitative research to develop theoretical analysis. In addition, it was largely a resistance against a methodological temperature in which the role of qualitative research was viewed as introductory to the real methodologies of quantitative research (Charmaz, 1983). Strauss & Corbin (1990) defined grounded theory method (GTM) as a qualitative research method that uses a systematic set of procedures to develop an inductively derived GT about a phenomenon, emphasizing that GTM is an analytical approach based on grounding the analysis in the data that have been gathered and inductively reaching conclusions from these data. According to Glaser (1978), GTM requires an understanding of related theory and empirical work in order to enhance theoretical sensitivity. Also, Goulding (1998) defined GTM as a methodology that has been

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009)

used to generate theory where little is already known, or to provide a fresh slant on existing knowledge. Additionally, Strauss (1987) argued that GTM includes a number of distinct features, such as theoretical sampling, and certain methodological guidelines, such as the making of constant comparisons and the use of a coding paradigm, to ensure conceptual development and density. GT studies require the researchers to have a creative imagination, formed by significant personal and professional experience, in addition to technical knowledge and awareness of alternative paradigms. Strauss and Corbin (1990) argue that “good science” (good theory) is produced through this interplay of creativeness and the skills acquired through training. It is important to define grounded theory (GT) as opposed to GTM. Strauss & Corbin (1994) describe grounded theory as a set of relationships that offer a plausible explanation of the phenomenon under study, namely, the theory that is grounded in data which are systematically gathered and analyzed. The theory develops during the research process itself and is a product of continuous interplay between analysis and data collection (Glaser and Strauss, 1967; Glaser, 1978; Charmaz, 1983). Morse (1994: 123) proposes that: “A theory provides the best comprehensive, coherent and simplest model for linking diverse and unrelated facts in a useful and pragmatic way. Theorizing is the process of constructing alternative explanations until a “best fit” that explains the data simply is obtained”. Grounded theory which is inductively derived from the phenomena represents and must satisfy four central criteria: fit, understanding, generality and control (Strauss & Corbin, 1990). Fit (or relevance) entails that the theory fits substantive data in addition to validity, meaning that the naming of the category or its property fits the data. Understanding entails that the theory is comprehensible to all involved in the area of study. The researcher tries to achieve this criterion of credibility by presenting her/his theory in a clear and understandable way, particularly for those people in the same field of study. At the same time, during the research process the researcher always asks herself/himself these important questions: Are the concepts identified systematically related? Are the conceptual linkages and the categories well developed? Is there conceptual density? (Parker & Roffey, 1997). In addition, the researcher should be exceedingly concerned to present her/his theory and findings in an adequate manner and in a very reflective and deep way. Generality entails that the theory is applicable in a variety of contexts. Most GT studies are concluded at the “substantive” level (context specific) rather than developed to the general level (Strauss & Corbin, 1998). The researcher needs to be able to develop a substantive GT, and so leaves this issue (generality) to be confirmed perhaps by other researchers. In other words, the researcher postulates her/his theory and maybe later on somebody else will test if it is possible to apply it in another setting. Control implies that the theory should provide control with regard to action toward the phenomenon. Therefore, the researcher tries to have control over states and conditions; the researcher should do her/his best to modify and control these conditions positively to her/his research. Additionally, the researcher tries to focus and manage the huge amount of data in order to extract and show the significance of the theoretical finding and presents it in the most appropriate and relevant form. GTM provides a systematic method involving several stages. This is used to “ground” the theory, or relate it to the reality of the phenomenon under consideration (Scott, 1996). GT is derived from the phenomenon under study. This contrasts with the hypothetic-deductive method, where theories are generated from cyclical testing and refined from previously constructed hypotheses. In GT studies, theory emerges from the systematic examination of the phenomenon. Abduction plays an important role in GT research. Peirce introduced abduction in 1878 to offer a more logical system of research methodology. He claimed that abduction could be understood as an inference in the world with appropriate categories, which arise from the internal structure of meaning.

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In addition, the abduction process can render a direct service to suggesting common rules about the particularities of exacting conditions that diverge from the general structure of such kinds of conditions (Andreewsky & Bourcier, 2000; Danermark, 2001). Furthermore, Peirce referred to abductive reasoning, as the “first stage” of scientific inquiries and of any interpretive processes (Wirth, 1998). The goal of abductive reasoning stage is to explore data, find a pattern and suggest plausible hypotheses. Also, abductive reasoning starts at the point at which an observation in the empirical research does not match these prior theories, emphasizing the search for suitable theories to an empirical observation, which is called “theory matching” or “systematic combining”. In this process data is collected, simultaneously with theory building, which implies a learning loop, or at least a “back and forth” direction between theory and empirical study. Therefore, a creative iterative process of “theory matching” or “systematic combing” starts in an attempt to find a new matching framework or to extend the theory used prior to this observation (Taylor et al, 2002; Dubois & Gadde, 2002; Wigblad, 2003). Charmaz (2006: 186) defined abduction as: “A type of reasoning that begins by examining data after scrutiny of these data, entertains all possible explanations for the observed data, and then forms hypotheses to confirm or disconfirm until the researchers arrives at the most plausible interpretation of the observed data”. Abduction has been criticized for being too permissive to be of much use, as it seems to permit inferences to all sorts of wild hypotheses (Kovacs & Spens, 2005). Therefore, it might seem that the new idea is not really a result of abduction inference. However, abduction can be used in the assessment or evaluation of hypotheses that have already been discovered by some other means; in this sense abduction is often placed in the stage of activity which is carried out after original discovery but before final justification (Taylor et al, 2002; Yu, 1994). The following figure (1) summarizes the abduction process: Figure 1: The abductive research process (Kovacs & Spens, 2005). Part of the Research: Empirical/Theoretical

(0) Prior theoretical knowledge

(2)Theory Matching

(3) Theory suggestion (Final conclusions: Hypothesis/Proposition)

(1) Deviating real- life observations

(4) Application of conclusions

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2. Justification for GTM Utilization The following example serves to demonstrate the utilization of the GTM as a research methodology, following the GTM as suggested by Glaser and Strauss (1967), in order to generate a descriptive and explanatory theory of ICT. The following paragraphs present the researchers’ many reasons for adopting GTM. According to the initial investigation, the researchers found that most of the ICT studies were applied in developed countries. It was evident that there was a lack of theoretical foundation (literature) which could help as a basis for understanding the actual utilization of ICT in developing countries like Jordan, particularly in Jordanian manufacturing companies. ICT is considered as a relatively new field in Jordan. Therefore, the researchers believed there was enough ground and reason for applying GTM to explore the actual utilization of ICT. The researchers considered using GTM to investigate the ICT phenomenon within real-life contexts, especially when the boundaries between the phenomenon and its contexts were not seen as being clear, nor were they thought to be clearly defined between the practices of ICT and the Jordanian manufacturing companies. In addition, the researchers understood that GTM presents a single, unified, systematic method of analysis; in other words, how to analyze data, for example, by using line by line coding. Also, GTM includes processes such as open coding and selective coding, axial coding or theoretical coding, and so on; not as other qualitative methods which often rely upon the application of general principles without specifity. This was in line with Charmaz’s (2006) contention that the major strength of GTM is that it provides tools for analyzing processes which make it easier for the researchers to follow specific steps to develop the concepts, categories, hypotheses and theory. However, the GT approach allows a degree of flexibility in both the selection of instances for inclusion in the sample and the analysis of the data, both of which are well suited to the exploration of new topics and new ideas as ICT issues in Jordanian manufacturing companies, to discover the factors that influence ICT application in the context and to determine the extent of its application. This was done by using GTM which includes systematic procedures for selecting the sample and continues the analysis and comparison process, which has helped the researchers to make continuous modification according to the actual data. In addition, the GT approach includes the means of developing theoretical propositions from data which should increase the researcher’s confidence in the area of theorizing. They were looking for generating data about this new topic rather than evaluating or assessing something that had already been found. GTM allowed the researchers to enter the field of research without any specific concepts to be tested, especially when the researchers did not have adequate literature about the stage of ICT application in the context. The researchers started their research without any representative samples by interviewing people in Jordanian manufacturing companies without developing any specific hypotheses about ICT. The researchers could not use the survey or structured or semi-structured interviews at the beginning of this research because they did not have specific themes, so that they could not ask or design their questions or formulate their hypotheses. However, after the first stage of this research, the researchers were able to design their semi-structured interviews. Following that, the researchers built an initial theoretical account of the general requirement for ICT application and the challenges, including the degree of ICT application in the context. Moreover, after the second stage of this research the categories and hypotheses emerged, which were generated from the data that was collected via documents analysis and interviews. Also, in view of the complexities of the organizational context, the actual utilization of ICT in the context must be incorporated into an understanding rather than simplifying or ignoring the organization’s elements (Orlikowski, 1993). Therefore, the use of GTM allows the inclusion and investigation of key organizational elements, such as the impact of ICT on the employees’ and managers’ behaviors, skills, experiences, performance, organization structures, activities, and so on.

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3. Critique of the Grounded Theory Method The grounded theory approach can be criticized as being empiricist; that is, it relies too heavily on the empirical data, considers the fieldwork data as the source of its theories and sets itself against the use of preceding theories (Parker & Roffey 1997). Bryant (2002b: p.34) stated that: “GTM has some problems, in particular, the unproblematic conceptualization of data and a level of methodological flexibility that can degenerate into methodological indifference and result in superficial and ambiguous conclusions. Taken together, these criticisms stamp the method as positivist, while simultaneously locating it as qualitative and interpretive”. Also Selde’n (2005: p.126) purported that: “Theoretical sampling has the potential to uncover, in detail, similarities and differences in the group under investigation, and the fundamental weakness in GT is connected to theoretical sensitivity. Conceptualizations don’t emerge from data. Their source is within the researchers and is dependent on the extent to which he/she is widely read in scholarly matters”. In this research, the researchers have tried to avoid depending completely on the data that is generated from the interviews. They had done an initial literature review before they entered the initial fieldwork, including many of the available studies of ICT in developed countries. It can be said that the researchers started their interviews with a general picture, but not with a defined and fixed idea. Also, after each stage they undertook a literature review. The other way to avoid depending completely on the interview data was that they tried to use more than one method of data collection, including document analysis, to gain further information about ICT in the context. Goulding (2005) states that a common misconception is that the researcher is expected to enter the field, ignorant of any theory or associated literature relating to the phenomenon, and wait for the theory to emerge purely from the data; no sociologist can possibly erase from his mind all the theory he knows before he begins his research. Allan (2003) claims that some people have interpreted GTM to mean fieldwork before a literature search, but this is a misconception of the original premise put forward by Glaser & Strauss (1967), who encouraged researches to use any material bearing in the area, which is taken to include the writing of other authors. Also, Glaser (2002) stated that the literature review is considered as data and plays a vital role in GT generation. Furthermore, Strauss and Corbin saw the use of literature as a basis of professional knowledge and referred to it as literature sensitivity. Dey (1993) saw it as accumulated knowledge; components interact so that a new component may be implemented in the correct place and continue the harmony of the whole system. Nevertheless, GTM has been criticized by some qualitative researchers in that it fails to pay proper attention to both data collection techniques and to the quality of the gathered material (Charmaz, 1983). For this research, the researchers kept their interviews open at the beginning to give the interviewees the chance to express their opinions freely; at the same time, avoiding bias by keeping themselves from affecting their opinions, paying close attention to exactly what they said. The researchers used semi-structured questions (built on the first stage results, and concepts) at the later stage because they tried to give them some freedom and, at the same time, to be focused in data collection and control the information at this stage. Depending on the first stage results, they knew what they wanted at the second stage. Selde’n (2005) states that the GT approach does not provide specific planning; it applies theoretical sampling where it is not possible to progress the nature of the sample that will be used. Also, the theoretical saturation and interpretation of the data can make it difficult to anticipate an accurate time scale for the research. This, while being problematic in the general sense of planning research strategies, creates even greater difficulties when applying for research grants and completing a PhD on schedule (Goulding, 2002).

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In addition, other researchers have declared that GT differs, in some respects, from other qualitative methodologies. For example, most sampling is purposive and defined before data collection begins. However, in GT, sampling begins as a commonsense or rational process of talking to those informants who are most likely to provide early information. This information would be analyzed and would help to identify provisional explanatory concepts and direct the researcher to further “theoretically” identify samples, locations and forms of data. Sampling is determined by the type of coding procedures to be used, as well as by theoretical sensitivity. The researcher should only leave the field and stop sampling when saturation is reached, or when no additional information is found in the data, all elements of the theoretical paradigm are covered and relationships between categories have been validated (Glaser, 2002; Coyle, 1997; Glaser, 1978).

4. Analysis Process of Grounded Theory Method According to the details of the example given in this paper, at this stage the data collection and the analysis process were conducted simultaneously, because the researchers used GTM. In other words, the analysis process was started after the first interviews to determine the next theoretical sampling and provide information about the place to collect more focusing data. Detailed memos were made directly after data collection. This process was carried out for all subsequent interviews to keep the findings fresh and alive, which is considered a part of GTM. Furthermore, the researchers carefully translated everything from Arabic to English during the research stages which was a very difficult task, because it was not easy to find the same meaning or the nearest word to some Arabic words in English, as Charmaz (2006: pp.46-47) stated: “Language plays a crucial role in how and what we code, also our code arises from language, meaning, and perspectives through what we learn about the empirical world, including those of our participants as well as our own” The interviews were analyzed through the coding process which is defined as a vital link between data collection and developing an emergent theory to give an explanation to these data (Charmaz, 2006). In this research the coding process during this stage was kept open. Also, after the researchers finished these initial interviews they tried to make an initial comparison, trying to find a link between these concepts that were generated from the initial interviews, to group them into initial categories. In addition, memos were written immediately after the data collection so it was a continuous process during the entire research process. As Charmaz (2006) stated, writing memos was essential and vital for the researchers to analyze the data and codes promptly and punctually during the research process to help the researchers increase her/his abstraction of ideas and also to remind the researchers at the later stage. The codes were generated as will be shown next. 4.1. Open Coding Open coding was considered in the initial phase of analysis of the researchers’ interviews. Charmaz (2006) observed that openness of initial coding should help the researchers to think and allow new ideas to emerge. During this stage the interviews were analyzed by using line by line coding and, also, as Charmaz (2006) recommends, the data were broken into segments which are called incidents. An incident is found in a phrase, a sentence or two but infrequently in as many words as a paragraph (Glaser, 1998). The incidents were compared with other incidents and other data, to discover or develop the code. In other words, the researchers tried to find the actions in each segment of data and coded them by using simple, short and active words which reflect these actions (Charmaz, 2006). For example, in this incident the interviewee stated that “our company decided to use ICT tools to offer products that improve efficiency and cut costs for the customer”. This incident includes these actions: deciding, using, offering, improving and cost-cutting.

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Then the codes were analyzed and those relating to a common theme were collected together to give a higher commonality, called concepts. Finally, the concepts were grouped to find yet higher commonalities called categories. These categories reduced the number of concepts to be handled and provided a stronger conceptual basis to the themes discovered. The researchers recorded that their initial categories started to emerge after several interviews. Glaser & Strauss describe this review process as “constant comparison” and the phrase has come to be seen as a key feature of their analysis method. The initial concepts and categories created from this initial analysis were then applied to another in a circle of data to see if they fitted (Charmaz, 2006; Glaser & Strauss, 1967; Strauss & Corbin, 1990). For more details about this process the researchers present some examples to explain how concepts and initial categories were developed, and are considered as a foundation for the next stage. The following examples are key points from initial interviews and indicate the incidents that were identified and given a code. “At the beginning (1984) we used the mainframe then, let us say exactly from 1995 we started using a microcomputer, called a personal computer”. “The number of users increased from 30 in 1984 to 250 in 1995, but in 2003 the number of users increased to 500”. “Now the application of the computer is extended to include the financial activities, inventory system and payroll systems, accounting and book keeping project scheduling, mailing and correspondences”. “We have an intranet network that uses software and it is used by the firm as a private network just for internal use and all of our employees have an access to it”. “Every task requires the PC although not all of our employees have the ability to use a PC”. “Most workers use computers largely for common applications (word processing, spreadsheets, and databases)”. “40% of those with work place computers use them for electronic mail and using databases”. These incidents were given the code: developing ICT utilization. As was previously mentioned, memos were written immediately and continuously with data collection so that the researchers could present some of their memos or notes after coding their incidents; for example, after the researchers had given the conceptual name for some incidents as developing ICT utilization. Accordingly, they wrote their memos as follows: Box Memo 1 Company’s efforts to use ICT As the researchers have noted, based on interviewees’ experiences, there has been a growth of ICT utilization which provides a clear indication of the direction of the company’s efforts towards ICT utilization and an expansion of its utilization to include an increasing range of the company activities.

Another manager stated: “They found that the required skills and experiences with hardware and software systems were difficult, while some of them were absolutely aware of the potential benefits of using ICT tools like internet, PC, mobile, fax machine, database, and so on. They wanted to understand computer utilization”. Other employees stated that:

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) “Our company suffers from a lack of skills and proficiency in their employees; it is difficult to provide them with an updated technology. There are no experts available to the firm to develop a website on internet use and email”. “Hard learned skills and experiences with specific hardware and software systems”. “The lack of skills in the company causes the organization to miss out on the understanding of the ICT role”. One manager said “I think that skilled workers and highly educated employees are more flexible and facilitate the adoption of recent ICT”. “Lack of internal computing training and experts, and financial limitation and end user complexity”. These incidents were given the code: lack of skills and experience. Box Memo 2

Problems that face ICT utilization The researchers have noted, based on interviewees’ experiences, in which they complained about the inadequate training programs and absence of motivation systems, so that most of the employees suffer from a lack of skills and, to make matters worse, the experts were leaving for other countries because of low salaries.

Other employees stated that: “I don’t know how to use ICT tools”. “I don’t like using automation systems”. “I’m afraid of using the new system”. “I didn’t use it before”. “We didn’t find any body to show us how to use the PC”. “The workers always prefer to use manual systems”. “The utilization of ICT depends on managers’ personality and their styles”. “ICT successful factors are expectation of people, ease of use, abilities in using and individual motives”. These incidents were given the code: using ICT. Box Memo 3

ICT as an asset The researchers noted that there is a real utilization of ICT tools because some of these companies (as interviewees stated) deal with the ICT infrastructure as a main asset and some of them spend much money on training programs as shown in the companies’ budgets. Also, the ICT managers confirmed that there is an actual and important decision (they referred to some important documents and financial statements) for buying and determining the companies need for ICT tools in their work.

Other interviewees stated that: “I will not accept the new system that affects our position”. “I’m not quite satisfied with the way we work now”. “I think ICT has a negative impact on employment; for example, after the introduction of ICT our company asked some workers to leave because they don’t have any work to do now”. “People at the managerial level feel that they are at risk and they should refuse new ICT”. “Older employees and managers view ICT with doubt and hate, fearing replacement, because they have less experience and knowledge than younger employees and managers”. “I feel better able to use the manual system than the automatic system”.

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) One manager said that “to avoid causing organizational resistance it should structure its ICT systems to match with its overall directorial context variables”. The manager indicated that the successful application of ICT will demand changes in the management philosophy and organization structure”. Also, “Training programs and motivation are necessary for ICT”. These incidents were given the code: employees and managers’ resistance to use ICT tools. Box Memo 4

Culture gap The researchers have found that, based on the interviewees’ experiences, particularly ICT managers, a gap exists between cultural and educational level and ICT utilization, as ICT managers referred to the fact that most top managers or decision makers (senior, chief, executive) had finished their studies before1980. As a result, they claimed that ICT utilization faced resistance from the employees and managers because there were not enough lectures and courses to teach them about the importance of ICT utilization and to increase their consideration of its impact on both their company and themselves. Also, they complained about the lack of training programs and of a motivation policy. Recently, ICT managers and ICT employees have followed the strategy of asking top managers to contact them and the other departments electronically, which means using e-mail and other ICT tools. Moreover, this strategy also includes holding some training programs (most of them are internal programs given via ICT departments but some are external programs given by external trainers or by sending the managers to other companies or countries) for ICT utilization and some courses and lectures about ICT tools utilization.

The marketing manager indicated that: “by using ICT tools we are able to ensure that the company provides a high quality service so that we will be able to give the best price for all our products and services” (B: 1). “We seek to provide products and services unique and different from the competitors” (A: 35). “The company always focuses on diversification in its products and services” (G: 18). These incidents were given the code: quality strategy. Box Memo 5 ICT related to competitive advantage The researchers found (based on the interviewees’ claims) that there is a relationship between ICT utilization and quality of products and services. One interviewee stated that “the use of internet opens the doors in front of our eyes to find good materials, new suppliers, new forms and shapes for our product”. Furthermore, some of them stated that, after using advanced software and systems, their products became more acceptable and their profits and market share have been increased; also they can present additional services for their customers after sales.

Other interviewees stated that: “The company gives attention to the customers’ feedback and complaints”. “We are concerned with the quality of customer requirement for their preference on clothes and how they prefer the design and quick responses to them”. Another one said:" we immediately provide customers with a product (office tools) that is changed according to their demand”. These incidents were given the code: quick and flexible responsiveness to their customers.

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) Box Memo 6

Keeping customers The researchers noted, as the interviewees stated, that most companies give more consideration to their customers in terms of responding to their complaints quickly and modifying products according to customers’ requirements.

Some people also indicated that: “Saving time by using intranet can speed up employee’s communication through email transmission”. “I feel that email would overcome this problem with suppliers”. “I feel that intranet is the most appropriate tool for transfer of information, opinion ….etc to your employees”. “The use of direct lines of communication with our customers is helpful, not only for orders, but also for complaints”. These incidents were given the conceptual name: communication benefit. “Communication networks are powerful tools for improving the effectiveness of instruction”. “Earlier, the order had to be written and delivered by hand, so that the cost of the manual was high, but now, by using ICT, it makes that cheaper by using electronic tools for writing and delivering”. ‘We realize the ICT benefit via reducing time and increasing cost efficiency benefit”. The marketing manager stated that: “using ICT in offering products will improve efficiency and cut costs for the customer”. These incidents were given the conceptual name: ICT benefit for efficiency and cost. Other interviewees said that: “To gain competitive advantage we have to produce our products with advanced features by using advanced technology”. “We use ICT systems to achieve differentiation in our product performance”. “New ICT builds on existing product lines to help the customers have more satisfaction”. “New ICT has the possibility of moving the value for the customers which includes cost development with superior quality”. These incidents were given the code: ICT benefits for product. Box Memo 7 How ICT could be a source of data The researchers found that some of the interviewees indicated that ICT tools provide the source of marketing data. In other words, using the internet helps companies to obtain some published information about the competitors, their products and services, and the company situation, in comparison with other competitors in terms of market share and return on investment.

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) Figure 2: Some examples of initial concepts of ICT utilization category Examples of the Concepts at the First Stage

At the beginning the researchers found 123 concepts, but they minimized these concepts by grouping and labeling them by a continuous comparison analysis process to see the similarities and differences between them and then grouping them into initial categories. Before the researchers present the initial categories for this stage, they will present an example of how these initial categories emerged: Category (1): Effective Information The following example gives key points from initial interviews and indicates the incidents that were identified and given a code. Some examples of key points and codes from the data about the effective information which is gained via ICT tools in the context: note that A*, B*, C*, D*, E*, F*, G*, H…etc refers to the interview numbers; in other words, A* refers to the first interview, B* refers to the second interview, and so on. The numbers 1, 2, 3…etc refers to the number and arrangement of the key point; for example, A*1 means the key point number one, related to the effective information, is from the first interview which has been given the symbol A*, and so on.

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Table 1:

Id

Some examples of key points about effective information category Some Examples of Key Points, Incidents and Codes about Effective Information Key point and point out the incident

A*1

“At least 50% of our information is in electronic format”.

C*2 B*3 A*4

“Now we can obtain clear information”. “Our customers and suppliers gain accurate data…etc”. “Quick access to unique information source”. “Organizations publish most of their documents through internal web pages”. “We find the information when we need it”.

E*5 A*6 E*7

“The system presents all the information that employees need; they can select the appropriate information for their work”.

C*8

“Information no longer needs to pass via electronic network”.

B*9

“The data flow fast through the communication channel”.

C*10

“The intranet allows a large amount of information to be exchanged in a fast way”.

E*11

“Security of information is an important issue for ICT usage”.

F*12

“We have the right information at the right time”.

E*14

“ICT improved high level sharing of information, as also validity and reliability of source”. “The system offers up-dated information”.

A*15

“Usually we obtain complete information regularly”.

G*13

Code Putting information in electronic format Obtaining clear information Providing accurate data Accessing to information Publishing documents through web pages Offering information Presenting all information, offering an appropriate information Passing information electronically Flowing data quickly Offering large amounts of information, Offering information in fast way Saving the security of information Gaining right information at right time Sharing information Up-dating information Presenting information Regularly and completely

After the first stage the researchers revisited the data and analyzed and compared all the key points to see if similar codes occurred often and grouped them together under the related concept. Table 2:

Some examples of concepts from the labeled codes about the effective information in the context Examples of Concepts related to Effective Information in the Context

Labelled codes Offering information, quick passing electronic information, flowing data quickly, offering information in fast way, gaining information at right time, up-dating information, presenting information regularly Putting information in electronic format, publishing documents through web pages, putting information in electronic format, obtaining clear information, accessing to information, publishing documents through web pages, Offering large amounts of information, gaining right information, sharing information, presenting information completely, presenting all information, offering an appropriate information Saving the security of information

• • •

Concepts Currency

Availability

Security

Currency: information which is timely and up-to-date. Availability: information which is offered to all employees as accurate, relevant, adequate and complete. Security: information concerning safety and privacy to which other people have no access.

Finally, the concepts were grouped and regrouped to find higher commonalities called categories and the conclusion was that:

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) “Effective information: Data that have a particular meaning within a specific situation is necessary for the company and is described as current, secure and available”.

Figure 3: Diagrammatical emergence of the category of effective information Emergence of the Category of Effective Information

Effective Information

Currency

Security

Availability

The researchers applied the same process to form the other categories. Accordingly, they labeled all the concepts in figure 2 which were coded in the categories and their properties. 4.2. Selective Coding Selective coding is considered as the second stage of grounded theory method that includes an increased depth of focus. In the beginning the researchers’ aim was to generate a large number of categories related to the occurrence being studied to keep things as ‘open’ as possible early on and, for this reason, it was necessary to gather data on a wide range of relevant things. Thus, it can be said that open-ended interviews were used in order to discover what was relevant, but the selective coding stage, as Strauss & Corbin (1990) said, requires the selection of the focal core code; that is, the central phenomenon which has emerged from the axial coding process. All other core codes derived from that axial coding process must be related in some way to this focal core code, either directly or indirectly (Strauss & Corbin, 1990; Glaser, 1978). The most important point here is that after the first stage of this research the approach was centered on specific issues. At this stage the researchers prepared their interviews building on the initial field work results. This second stage was directed by emerging concepts, involving a more strategic selection of informants and a more structured interview protocol (Glaser & Strauss, 1967). The researchers then followed the theoretical process sampling; in other words, they started to analyze each interview immediately. Thus, the researchers could determine the next theoretical sampling and where information will be in preparation for the next interview which would facilitate collecting more focusing data from the relevant people to the related topic. The researchers contacted the companies that were considered to have the required information, who had rather professional people in ICT utilization who applied the competitive Advantage (CA) concept, while holding the appropriate qualification and who would be willing to share their useful information.

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) Figure 4: Initial grounded theory results (categories and their properties). Initial Categories

Restructuring Process “Change process and procedures”, “more efficient and flexible organization structure”, “increase decentralization”, “decrease centralization”, “increase employee participation”, “increase delegation”, “increase the power of managers”, “change managerial responsibilities”, “change from manual system to automation system”, “increase employee responsibilities”, “change role and power”, “hierarchical restructuring”, “self directed”, “increase the speed of internal and external communication”, “matching ICT application with compatible process structures”.

Effective Information “Pertinent”, “timely”, “up-to-date information”, “adequate and complete information”, “concise”, “accuracy”, “reduce uncertainty”, “information is available for every one”. “We are looking for the up-todate”. Information to compete effectively”

Development “High quality jobs”, “improving management to facilitate of internal and external communication processes”, “provide effective customer services”, “accomplish task more quickly”, “increase job performance”, “increase opportunity to creative and innovation, and productivity and competitive advantage”, “reduce time in average work”, “coordinate efforts”, “increase customer focus”, “we consider ICT as a support factor for the production”

Internal Factors “Organization culture”, “managerial facilities”, “telecommunication infrastructure”, “management factors”, “successful running of an ICT depends on successful management”, “financial situation”.

External Factors “Limited foreign collaboration”, “economical factors”, “social factors”, “cultural and political conditions”, “regulation of market”, “business structure”, “business environment”, “economic competition”, “marketing opportunities”, "international commerce”, “high competition”, “high tax rate”. Cost Benefit “Cost building”, “cost of maintaining”, “training budget”. “ICT as expenditure”, “ICT as investment”.

Human Behaviors “Highly educated workforce”, “employee resistance to change”, “management resistance”, “skills development”, “ we need training programs to be familiar with new ICT” , “lack of skills and expertise to design”, “get frustrated when using complex technology”, “refuse to learn and catch new technology”, “end user satisfaction”.

At this stage the researchers had completed seventeen semi-structured interviews. In these interviews questions were focused on the actual utilization of ICT, ICT challenges and factors that influence the ICT application in Jordanian manufacturing companies. Also included was the actual consideration of CA issues and the factors that are affected by its application in Jordanian manufacturing companies. In other words, as Charmaz (2006) said, in the initial field work the categories have been suggestive but not yet definitive. In the second stage, further data was collected to refine, strengthen and elaborate these categories that had emerged earlier. Here the researchers became more familiar with the area and could collect the data selectively and well focused according to the suggestive categories which were restructuring process, competitive advantage, development, effective information, external factors, internal factors, human behaviors and cost benefit. So, the sampling was purposeful that has been chosen according to these categories. Charmaz (2006: p.96) said that

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) “The purpose of theoretical sampling is to obtain data to help you explicate your categories, when your categories are full, they reflect qualities of your respondents’ experiences and provide useful analytic handle for understanding” An example of the relevant incidents that came from the interviews: “By using the internet we expect to find what we want”. “Most of our information is in electronic format and is available for our employees and customers”. “On line application form is good for the complete transaction between the company and its clients”. “Saving time by using intranet can speed up employee’s communications through email transmission”.

These quotations are related to ICT utilization. Box Memo 8 The extent of ICT utilization The researchers noted during their field work that there is an important difference in the degree of ICT utilization. For example, some of the companies use ICT tools (for example computers) just for typing, presenting information, Microsoft Office and for simple tasks, but other companies use ICT in all of their activities (for example using internet) to sell their products and service, advertise their products and services. Other companies used advanced software and systems for production, inventory, payment, and belonging own website, and so on. Furthermore, there is a difference between them in terms of the number of internet and intranet users (for example some of them do not use the internet connection) including a limited number of employees. Other companies offer internet connection and network and intranet for all of its employees.

Other people indicated that: “ICT helps employees to be ready with expected skills, critical thinking for problem solving”. “ICT utilization leads to increase the speed of existing operations”. “ICT reduces the number of activities in the company, leading to cost efficiency”. “ICT using improves product distribution and delivery to the customer”. These quotations are related to the development following ICT utilization. The initial framework has been changed because of new data that was collected and analyzed in the second stage. Some of the sub-category names have been changed; some of sub-categories have been combined with others. Moreover, new categories emerged and some sub-categories became clearer. These are now explained in detail. From the initial field work the core category was ICT utilization. In the second field work this continued as a core category with more tools added for ICT and it was called effective utilization of ICT tools because, as interviewees said, clearly there is actual utilization but not in effective ways. The human behavior and the cost benefit sub-categories have been combined with the category of internal factors, because the interviewees mentioned cost benefit as part of the financial situation which had been considered by them as internal factors. In other words, they considered it as a factor that is inside the company; also, they have considered human behaviors as internal factors that influence the ICT inside the companies. The external factors sub-category has been changed to be external challenges. The interviewees considered it as a factor that influences ICT application after the companies used these categories, including two main concepts: business environment and development of external

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technology. In addition, the development and effective information and restructured sub-categories have been combined with a new sub-category, communication improvement; to be called performance development as the interviewees considered it as reflections or reactions of ICT applications. In this section the researchers explain how the initial categories have been changed and developed, see figure 5: Figure 5: How initial categories have been changed How Initial Categories have been changed

ICT Utilization

Human behaviour & cost benefit External factors

Changed name to

Combined with

Changed to be

Development, effective information, restructured, communication improvement

Effective Utilization of ICT

Internal factors

External challenges

To be called

Performance development

4.3. Theoretical Coding The researchers followed Glaser (1998) by using theoretical coding, so that, when they had finished the second stage of this research, which was selective coding, they tried to connect and explore the relationship between categories and their properties in order to develop the hypotheses leading to a theory. This was done according to the collected data and its analysis, and the memos which were created continuously during field work. As Glaser mentioned in Charmaz’ book (2006) theoretical coding is a conceptualization of “how the substantive codes may be related to each other as hypotheses to be integrated into theory” (note that the substantive codes are already hypotheses, for more detail see the next section).

5. The Theory In this section the core category (effective utilization of ICT tools), sub-categories (internal factors, external challenges, performance development) and competitive advantage as a category, will be described and explained including the framework for the new theory. The core hypotheses which stemmed from the theory generation process are: Hypotheses 1: There is an effective utilization of ICT tools in Jordanian manufacturing companies. This hypothesis has three sub-hypotheses which are: • There is a relationship between the effective utilization of ICT and ICT level. • There is a relationship between the effective utilization of ICT tools and ability of utilization. • There is a relationship between the effective utilization of ICT tools and the purpose of ICT tools utilization.

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Hypothesis 2: There is a relationship between the effective utilization of ICT tools and internal factors. This hypothesis includes the following sub-hypotheses: • There is a relationship between the effective utilization of ICT tools and human factors (behavior, skills, experience, resistance, education level). • There is a relationship between the effective utilization of ICT tools and organization of financial situation. • There is a relationship between the effective utilization of ICT tools and organizational factories. Hypothesis 3: There is a relationship between the effective utilization of ICT tools and external challenges. This hypothesis includes the following sub-hypotheses: • There is a relationship between the effective utilization of ICT tools and business environment. • There is a relationship between the effective utilization of ICT tools and the development of external technology. Hypothesis 4: There is a relationship between the effective utilization of ICT tools and performance development. This hypothesis has three sub-hypotheses which are: • There is a relationship between the effective utilization of ICT tools and effective information. • There is a relationship between the effective utilization of ICT tools and communication improvement. • There is a relationship between the effective utilization of ICT tools and restructuring process. Figure 6: Theory Framework Grounded Theory Framework Grounded Theory Framework

External Challenges

Internal Factors

Influence

Influence

Effective utilization of Information and Communication Technology

Cause

Performance Development

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European Journal of Economics, Finance And Administrative Sciences - Issue 15 (2009) The four hypotheses stated earlier are from the five categories of this theory and are identified

as: • • • •

effective utilization of information and communication technology tools (core category) internal factors (sub-category) external challenges (sub-category) performance development (sub-category) The simple framework of this theory is shown in figure 6.

6. Conclusion The main aim of this paper was to explore the process of the emergence of a grounded theory about the effective utilization of information and communication technology. In addition, their categories and properties are used in the grounded theory method via the Glaser analysis method. The researchers passed through three stages: the first stage was open coding to discover the problem and the factors and to collect as much as possible every word because the researchers were looking for rich data, being unfamiliar with the area of ICT utilization. In this paper the researchers have presented a full example of how the research categories have emerged. Moreover, the researchers referred to the first stage sample and justified why they chose those interviewees, and the same applies for the stage the stage that followed. The second stage was selective coding which included seventeen interviews. During this stage the researchers became familiar with the area and they were able to choose the related data for their research. Finally, the researchers connected each core category to the sub-categories and their property which made it possible to submit the researchers’ hypotheses and their grounded theory framework. These findings are presented here with the hope of contributing to the body of knowledge due to the lack of similar studies in Jordan and other developing countries.

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