CHAPTER THREE

METHODOLOGY

3.1       Introduction

This chapter provides justifications for the methodology employed in the study. The research design and analytical approach of any research project should adhere to a specific methodological direction that aligns with its objectives and theoretical framework. It covers the research design, study approaches, study population, sample size determination, sampling techniques, data collection methods and instruments, validity and reliability, procedure for data collection, data analysis, ethical considerations, and limitations of the study. A systematic process was followed to ensure the generalisation of findings related to the study topic.

3.2       Research Design

The study adopted a descriptive survey design, which provided detailed descriptions of the variables necessary to answer the research questions, and was cross-sectional in nature. A mixed-methods approach was utilised, incorporating both qualitative and quantitative methodologies. According to Kothari (2004), quantitative design focuses on measuring quantity, which facilitated the calculation of simple percentages and the enumeration of respondents. This aspect of the study enabled the collection of numerical data that could be statistically analysed.

In contrast, the qualitative approach offered a narrative perspective on the events and processes within the organisation under study, particularly regarding microfinance institutions (MFIs). Key informants were interviewed to gather rich, contextual insights that complemented the quantitative data. This combination of methods allowed for a more comprehensive understanding of the research topic, bridging the gap between numerical analysis and descriptive context. Using both approaches, data was collected sequentially from respondents so that the qualitative data supplements on the quantitative data.

3.3       Study population

The study focused on the 178 employees of Pride Microfinance Institution. According to Trochim (2006), a study population is defined as the group from which a researcher selects a sample to make generalizations. In this case, the researcher targeted a total population of 178 respondents from various departments and units within the organisation. This approach aimed to ensure a diverse representation of perspectives, thereby enhancing the reliability and validity of the findings.

3.4       Sample Size Determination

Studying the entire targeted population posed challenges, prompting the researcher to select a sample. A sample size refers to the total number of sub-elements or individuals randomly selected from a given population (Amin, 2005). The researcher utilised Krejcie and Morgan’s (1970) table for sample size determination, resulting in a sample size of 118 respondents chosen from the total population of 178 staff at Pride Microfinance Limited. This selection aimed to ensure that the sample adequately represented the broader population while facilitating manageable data collection and analysis, as illustrated in Table 3.1 below.

Table 3.1: Sample Size determination

Source: PML Head Office Staff Records (2024)

3.5       Sampling Techniques

This study employed both probability and non-probability sampling techniques. Probability sampling involved the use of simple random sampling to select staff members from Pride Microfinance Limited, ensuring equal representation and providing all respondents with an equal chance of being selected. Simple random sampling was employed by preparing pieces of papers with markings, yes and no which were poured on the table for each member to pick, whoever picked a paper marked yes qualified to participate in the study. In contrast, non-probability sampling included purposive sampling, specifically targeting key informants who possessed particular information relevant to the study’s subject. This dual approach aimed to enhance the richness of the data collected while maintaining a representative sample for quantitative analysis.

3.6 Data Collection Methods

This section presented the data collection methods, which included a questionnaire survey and the interview method. The data collection was done concurrently for both interviews and questionnaires, Combining qualitative and quantitative methods improves the reliability of findings by cross-verifying data from multiple sources, Interviews provide rich, in-depth insights, while questionnaires offer measurable and generalizable data, the questionnaire survey allowed for the collection of quantitative data from a larger sample, enabling the researcher to gather standardized responses that could be easily analysed. This method was designed to assess various aspects of employee knowledge, skills, and the impact of information systems on performance.

In addition to the questionnaire, the interview method provided qualitative insights by facilitating in-depth conversations with key informants. This approach allowed the researcher to explore complex topics and gain a deeper understanding of the experiences and perspectives of employees at Pride Microfinance Limited. Combining these methods ensured a comprehensive data collection process, capturing both numerical data and rich qualitative information.

3.6.1    Questionnaire Survey Method

The Questionnaire survey method was used to obtain the opinions of respondents regarding the topic under study. According to Onen and Onen (2013), questionnaires are valuable in research because they allow respondents to take their time to think through their answers, reducing feelings of intimidation. This approach provides respondents with the opportunity to respond at their convenience and also allows for the collection of data that can be referenced in the future.

This method was specifically deployed to gather information from staff members of Pride Microfinance Limited. The structured format of the questionnaire facilitated the collection of standardized responses, which could be quantitatively analysed to assess the overall opinions and perceptions related to the impact of information systems on organizational performance.

3.6.2    Interview Method

Interviews were utilized as an effective qualitative method to elicit in-depth insights from participants regarding their feelings, opinions, and experiences. This approach provided an opportunity to gain a deeper understanding of how individuals interpret the contributions of ICT to the performance of Pride Microfinance Limited. The views expressed by respondents reflected their personal experiences related to the study topic.

To facilitate open expression and capture a wide range of information, open-ended questions were employed during the interviews. This method specifically targeted the Executive Director and managers, allowing for a rich exploration of their perspectives on the role of information systems in enhancing organizational performance. The qualitative data collected through interviews complemented the quantitative findings from the questionnaire, providing a holistic view of the research topic.

3.7       Data collection instrument

3.7.1    Self-Administered Questionnaire

Quantitative data was collected using a self-administered questionnaire, which was distributed among the selected sample. A questionnaire is a formalized framework consisting of a set of questions and scales designed to generate primary raw data (Hair et al., 2003). The questions were predominantly closed-ended to minimize response errors, prevent incorrect answers, and reduce bias during data coding by the researcher, which are common issues associated with open-ended questions (Churchill and Brown, 2004).

This instrument was primarily administered to the majority of staff at Pride Microfinance, particularly targeting lower cadre employees, as they represented the largest segment of the workforce. The structured nature of the questionnaire facilitated the collection of data from a larger population, ensuring that the research findings were representative and robust.

3.7.2    Interview Guide

Qualitative data was collected from key informants using an interview guide as the instrument. This guide comprised a set of open-ended questions designed to elicit in-depth insights into the topic and other relevant variables that guided the study. Interviews were conducted primarily with administrative staff, supervisors, and heads of units to gain a comprehensive understanding of the effect of ICT on the performance of Pride Microfinance Limited insights that may not have been captured through the questionnaire. This approach allowed for a richer exploration of participants’ experiences and perceptions, enhancing the overall depth of the research findings.

3.8       Quality Control of the Instruments (Validity and Reliability)

3.8.1    Validity

Validity is the extent to which an instrument measures what it is intended to measure. After developing the questionnaire, the researcher consulted with the supervisor and three other experts to ensure that the data collection tools were valid. The researcher used the expert judgment method to ensure the validity of the instruments. Following their feedback, the research instruments were refined, and a content validity index (CVI) was calculated.

The formula used to determine the validity index was:

CVI=   Number of items regarded as relevant by judges

Total number of items judged

​

Substituting the values:

CVI =  32   ​≈ 0.82

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Based on the content validity index of 0.82, the researcher concluded that the instrument was valid. This conclusion aligns with Amin and Min (2007), who assert that a CVI of 0.7 and above is considered suitable.

3.8.2 Qualitative data

To ensure that the interview is valid the researcher did a pilot study and after confirming that the interviews were valid and the institution granted him the permission he went ahead and conducted the interviews. The interviews were also conducted because with the actual respondents who had knowledge regarding the topic under investigation this enabled the researcher in getting information from the respondents who had knowledge and expertise in the subject.

3.8.2    Reliability of the questionnaire

The researcher also pre-tested the questionnaire before administering it to the sampled population. Reliability determination aimed to assess the consistency of results through this pre-testing phase. Cronbach’s Alpha value was utilized to test for the internal consistency and reliability of the questionnaire. This method was applied to the different variables related to ICT and the performance of Pride Microfinance.

The Cronbach’s Alpha values were calculated using SPSS software, and the results were established for each variable. According to Sekaran (2001), the Alpha values for each variable under study should not be less than 0.7 for the statements in the instruments to be considered reliable. This threshold ensured that the questionnaire was robust enough to yield consistent and reliable data for analysis.

Table 3.2: Reliability Test Values

The results in Table 3.2 indicated that the entire instrument achieved a Cronbach’s alpha reliability of 0.940, implying a high level of consistency among individual items within the instrument. This score significantly exceeded the threshold of 0.6 suggested by Sekaran (2001), confirming that the questionnaire was reliable for collecting data on the variables of interest.

3.9       Procedure of Data Collection

The researcher obtained a recommendation letter and an introductory letter from the Uganda Management Institute. Following this, permission was sought from the Human Resource Management of Pride Microfinance to collect data. This process ensured that the researcher had the necessary approvals to engage with the staff and conduct the study effectively.

3.10     Data Analysis

Data collected was checked, coded, and edited for completeness and accuracy. The analysis was conducted using the Statistical Package for the Social Sciences (SPSS) version 21.0. Quantitative data was analysed using frequency distribution tables, Excel spreadsheets, and Pearson correlation to determine the degree of relationship between variables. Regression analysis was also performed on the quantitative data.

On the other hand, qualitative data was analyzed using thematic analysis, which involved organizing the opinions and attitudes of respondents into key themes. Each interview was summarized, capturing the main themes, sub themes, major events, and critical information on the objectives. Data was interpreted and analyzed into themes that are suitable for the set objectives. This helped the researcher to draw conclusions concerning the relationships and differences found in the research results. This comprehensive approach allowed for a thorough understanding of the data collected from both quantitative and qualitative sources.

3.11 Ethical consideration

Ethical considerations were addressed by first seeking authorisation from the Uganda Management Institute and other relevant authorities. The questionnaires were designed to ensure that no identifying information was collected, thereby maintaining strict confidentiality for the respondents.

Participation was voluntary, and respondents were not offered any inducements to take part in the study. The researcher took care to inform respondents about the purpose of the research, their importance in the research process, and the expectations of their participation, as highlighted by Lloyd Bevan (2009).

Informed consent was obtained from all informants and respondents, who were assured that their information would remain confidential. The researcher explained that the study was purely academic and that all data would be treated with the utmost confidentiality. If access to the information was required by anyone other than university authorities, the researcher would seek the consent of the respondents beforehand