CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1 Research design

The study will use a case study design; using this technique both Qualitative and quantitative techniques will be used. the researcher will use the above methods because many aspects will be covered in the study concerning the impact of debt financing on the performance of an organization at Sebbaggala and sons electrical center given the complex nature of the Sebbaggala business, qualitative research method will be used because it collects information within a short time while quantitative will be through interview to cross check what has been given.

3.2 Study population

The study will target Administrators, finance officers and procurement officers of Ssebagala & Sons Electro Centre Ltd.

This will involve a total of 35 employees in Ssebagala & Sons Electro Centre Ltd.

3.3 Sampling size

Mugenda and Mugenda (2003), argue that it is impossible to study the whole targeted population and therefore the researcher shall take a sample of the population. A sample is a subset of the population that comprises members selected from the population.

The study will use solvin’s formula

It is computed as n = N / (1+Ne2).

Whereas:

n = no. of samples

N = total population

e = error margin / margin of error, e=0.05

Sebbaggalla & sons electro centre has got about 35 employees using solvin’s formula,

n= 35/(1+35(0.05)²

n = 35/1.0875

n = 32

The sample will target 32 respondents that will be selected in a way that 17 respondents’ will be from finance department, 5 will be key administrators and 10 respondents who are from procurement department. While carrying out research, purposive sampling will be applied to the above different categories of respondents.

Table: Sample size of the respondents

Population Category	Total population	Sample size	Sampling technique
Administrators	5	5	Purposive sampling
Finance officers	20	17	Purposive sampling
Procurement officers	10	10	Purposive sampling
Total	35	32

3.4 Sampling Technique

The study will use purposive sampling, according to Barbie, (2001) Purposive sampling is one that is selected based on the knowledge of a population and a purpose of the study.

The study will use purposive sampling on all the respondents this is because purposive sampling helps the researcher to get specific information on the impact of debt financing on the performance of an organization also because it will help the researcher get people who are well experienced and have enough knowledge about the problem under the study.

3.5 Sources of data collection

Source of data will be from both primary and secondary sources.

Primary data

Primary data will be obtained from the questionnaires administered on the target respondents who will include administrators, procurement staff and finance officers, to gain opinions and practices on the impact of credit on the performance of an organization.

Secondary sources

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This will comprise of literature related the impact of credit on the performance of an organization.

Secondary data shall be obtained from, published articles, journals, News Papers, Text Books, publications relating to the impact of debt financing on the performance of an organization. Secondary data will be sourced because it yields more accurate information than obtained through primary data, and it is also cheaper.

3.6 Data Collection Instruments

The major instruments for data collection will be questionnaires and interview guide. Surveys will be just one part of a complete data collection and evaluation strategy. The major method of data collection for the study will be the survey, which will be done using selected instruments like questionnaires. The questionnaire will provide respondents with ample time to comprehend the questions raised and hence, they will be able to answer factually.

3.6.1 Questionnaires

The researcher will use self administered questionnaires to collect data. The researcher will administer the questionnaires to respondents in different respondents including, fiancé officers, and procurement staff, which will be designed basing on study objectives and questions. Respondents will read and write the questionnaires themselves. The questionnaires will be close ended and will be considered convenient because they will be administered to the literate and its anonymous nature will fetch unhindered responses.

3.6.2 Interviews

Qualitative data will be collected from the informants using interviews. The interview guide will be structured.

The researcher will hold interviews with administrators to help in getting information that may otherwise be difficult in getting using interviews. The interviews will take approximately 30 minutes.

3.7Data collection procedures

Upon receiving a letter of introduction from the departments of economics and statistics of Kyambogo University the area of study will be visited for the purpose of familiarization.

The researcher will seek permission from administrators and once allowed to proceed with research, questionnaires will be issued and interviews will be carried out with the selected respondents.

3.8 Quality control of data instruments

The instrument will be taken to the supervisor to check its correctness there after pilot study will be carried out to find out if it measures what it is meant to for.

3.8.1 Validity and Reliability

The data a collection tools shall be pre-tested on a smaller number of respondents from each category of the population to ensure that the questions are accurate clear and in line with each objective of the study.

3.8.1 Validity

It is the degree to which results obtained from the analysis of the data actually represents the phenomenon understudy, (Mugenda & Mugenda, 2003). To ensure validity of instrument close guidance of the supervisor will be adopted. This will help to identify ambiguous questions in the interval and be able to re-align them to the objectives.

3.8.2 Reliability

Reliability tests and analysis shall be carried out.

3.9Data processing and analysis

The raw data will be coded, edited, and arranged ready for analyzing only completed raw data will be analyzed using statistical package for social scientists and the findings will be presented using Graphs, tables and pie-charts.

3.10 Limitations of the study

The researcher may face the following challenges in the course of the study;

The researcher may not get enough time to interview all the respondents, but this will be solved by budgeting for the time appropriately.

The researcher may also face challenges in language as other respondents may feel comfortable expressing themselves in local languages.

Other researchers may ask for money from the researcher, this will not affect the study as the respondents will be persuaded that the research is meant for academic purpose

APPENDIX I: QUESTIONNAIRE

TOPIC: THE IMPACT OF CREDIT ON THE PERFORMANCE OF AN ORGANIZATION

ACASE STUDY OF SSEBAGALA & SONS ELECTRO CENTRE LTD

Dear respondent

I am ATIMANGO BRENDA a student of Kyambogo University, am carrying out a study on the above stated topic. You are one of the respondents randomly selected to participate in the study. The information given shall be treated with utmost confidentiality and shall only be used strictly for academic purpose.

GENERAL DATA

SECTION A:

Gender: Male female

Age a) 18 -29 b) 30 – 39 c) 40 and above

Educational level

Master’s degree Bachelor’s degree diploma others

For how long have you been working with ssebbaggalla & sons electro centre?

a) 2 years and below c) 6-10 years

b) 3-5 years d) 10 years and above

SECTION B: Benefits of credit to the performance of ssebagala & sons electro centre ltd

Key: SA=strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

Tick in the box where appropriate.

Response	Response
Response	SA	A	N	D	SD
1) profits of the organization has increased
2) there are new branches being set up
4) SSebagala & sons has grown the number of customers
5) The level of revenue has grown
6) Sales volumes are high at ssebbagala & sons
7) Management can pay workers in time
8) The productivity of employees has increased
9) The capacity of Ssebbagala & sons has increased

Please mention other benefits of credit to the performance of Ssebagala & sons electro centre ltd.

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

SECTION C: Challenges of credit to the performance of ssebagala & sons electro centre ltd

Key: SA=strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

Response	Response
Response	SA	A	N	D	SD
1) The organization has many debts
2) Employees are not paid in time because of the need to repay debts
3) Profitability of an organization is reduced to cater for the credit expenses
4) Increases organization’s costs of operations
5) An organization can lose its assets in case of failure to pay back to lenders
6) Suppliers are not paid in time
7) Some assets of the organization has been sold off to cater for debts

Please mention other challenges of credit to ssebagala & sons electro centre ltd.

.…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

SECTION D: Other factors affecting the performance of ssebagala & sons electro centre ltd’s

Key: SA= strongly agree, A=agree, N=neutral, D=disagree, SD=strongly disagree

Response	Response
Response	SA	A	N	D	SD
1) The number of customers of Ssebagala & sons electro centre has increased
2) Poor employees skills in the organization
3) Poor infrastructural development in the area
3) High rent expenses faced by the organization
4) Poor managerial skills of the top management
5) Poor credit management system of an organization
6) Poor level of supervision in an organization
7) Poor inventory management systems in an organization
8) Difficulties in accessing credit from creditors

Please mention other factors affecting Ssebagala & sons electro centre’s performance.

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

INTERVIEW GUIDE

How often does ssebaggalla & sons get credit?

What are some of the benefits of credit to the performance of ssebbaggalla & sons?

In what ways does credit affect the performance of ssebbaggalla & sons?

What are the challenges of credit to the performance of ssebbaggalla & sons electro centre?

Research proposal writer