Research Methodology in Petrochemical Industry

This study evaluates research issues in the petrochemical industry and explores various research methods. It focuses on the research philosophy, design, approach, and strategy, as well as data collection and analysis techniques. The study aims to provide insights into the impact of mergers and acquisitions on operational efficiency in the petrochemical industry.

CHAPTER 3: RESEARCH METHODOLOGY
Evaluation of research issues with implicating various research methods to formulate
studies. Study will have influences of various tools, techniques and tactics that will bring
accurate outcomes to the research relevant with issues. Thus, such analysis will be adequate and
accurate in terms of analyzing issues as well as making clear analysis over the facts (Bairi,
Manohar and Kundu, 2013). Analyzing the details relevant with operational practices of
industries in the market which ascertain that there will be effective changes into operational
viabilities. Thus, this study comprises with various methods which are needed to be followed by
researchers such as:
Research philosophy
This section is responsible for explaining the research philosophy that has been used in
overall research. It helps in overall development of knowledge regarding the subject matter.
Hence, it can be stated that it plays an important role in the overall development of background
of study. There are basically two types of research philosophies (Channon and Jalland, 2016).
These are positivism and interpretivism. These philosophies play an important role in providing
justification to overall research questions. Interpretivism philosophy will be helpful in giving
importance to beliefs of researcher. It helps in presentation of real facts and figures which
thereby help in generating overall conclusion for the research. It helps in analyzing various
elements of the research (Chenail, 2011). Positivism philosophy is related to develop interaction
to the environment in such a manner that the best possible solution can be gained out of it.
In the present study, interpretivism philosophy will be taken into consideration where real
facts and figures will be utilized so as to reach to effective results.
Research design
Research design is another significant concept of research that helps in encompassing
various elements and components that can further be compiled in a logical manner. It is
considered to be a blueprint of overall research compiled together so as to make it an effective
one. The present study is related to assessment of mergers and acquisition on operational
efficiency of petrochemical companies (Galeeva and Zinurova., 2015). Hence, exploratory
research design has been adopted for the present research. The research design will be helpful in
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exploring various aspects that are related to subject matter, ultimately affecting overall results of
the research. It will also be helpful in describing a new angle which will help in ascertaining the
impact of process of mergers and acquisitions (Field and Mkrtchyan, 2017). Investigation of this
concept will help in providing new insight to researchers and details regarding petrochemical
industry will also be analyzed to the core.
Research Approach
Research approach helps in describing overall path of research which helps in moving
forward for study. Moreover, it also has a greater impact on enhancing overall validity of the
research. There are basically two types of research approaches (Hamedi and et.al., 2012). These
are inductive and deductive. Inductive approach helps in finding out something new from the
researcher. However, deductive approach is related to test the existing theory in relation with
current subject matter. In the present research, inductive approach will be applied so as to find
out certain new theories that can be applicable to enhancement of operational efficiency of
organization.
Research Strategy
There are basically three types of research strategies. These are qualitative, quantitative
and case study. Since, the present research is based on analyzing the impact of mergers and
acquisition on operational efficiency of petrochemical industries, qualitative type of research
strategy will be taken into consideration (Krishnaswamy, Sivakumar and Mathirajan, 2012).
It will help in gathering in depth knowledge regarding subject matter that has actually
been chosen for the overall research. It will also help in concreting knowledge through
unstructured data which can be gathered through various sources (Bairi, Manohar and Kundu,
2013). In the present research study there have been selection of qualitative technique which is
comprised of taking interviews and asking questionnaires among the professionals of these
petrochemical industries. Along with this these professionals have been asked various objective
question which were being addressed for analyzing their opinion and behaviour towards an
operation.
Sampling
The target of the study is the petrochemical companies in Saudi Arabia, which number
about forty companies. In order to analyze the market efficiencies, Saudi petrochemical
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Companies as well as the impacts of merger and acquisition over the operational practices will
be analyzed through selecting effective sampling techniques (Channon and Jalland, 2016).
Considering the simple random technique of data analysis for eight companies out of around
forty companies which will be helpful and adequate as per determining the financial health of
selected Saudi petrochemical industries.
Selection of simple random techniques of sampling is that it will be easy and the most
convenient technique to investigate impacts of merger and acquisition over industries (Chenail,
2011). Also, twenty samples from executives, employees and some investors will be taken in this
study that includes twenty interviews, twenty questionnaires to employees, and twenty
questionnaires to investors.
Data Collection
Gathering relevant information as well as analyzing them as per having the most accurate
and concrete outcomes will be helpful in uplifting knowledge of researchers. Therefore, there are
two main techniques which will be used in research study as per collecting data and analyzing
the same. Primary research method will be beneficial in terms of making direct interactions with
the 20 employees, CEOs as well as executive professionals of the business (Galeeva and
Zinurova., 2015). Therefore, it will bring the researchers a most reliable and authenticate
information with is based on impacts of merger and acquisition over business.
It will be a beneficial technique which in turn have the positive impacts over revenue and
growth of business. Similarly, there will be use of secondary method of data collection which
insists the use of all secondary sources. It includes study over annual reports of Saudi
Petrochemical industries as well as industrial control (Field and Mkrtchyan, 2017). Therefore,
selection of 8 industries is on the basis of merger and acquisition activities had been held in these
businesses. Moreover, revenue generation and growth of these industries have reflected drastic
changes which were after the merger and acquisition process.
Data analysis
Necessity of interpretation and analysis is based on the gathered data and details relevant
with various facts and figures. There is need to have appropriate study over the facts which in
turn will be useful and appropriate as per having suitable data analysis and determination of the
facts. Evermore, here collected information will be gathered and analyzed as per making
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effective control over operations of business (Hamedi and et.al., 2012). Suggestions to
professionals of petrochemical industries will be made as per favorable and unfavorable
determination of the gathered information.
Taking interviews with CEOs and directors and ask several questions which bring details
relevantly. This is the primary data collection technique which enables the researchers in terms
of having direct interaction with individuals they are observing (Krishnaswamy, Sivakumar and
Mathirajan, 2012). Thus, the direct communication will be beneficial in terms of analyzing
accurate details relevant with research issues. Regarding the process of asking questionnaires to
20 employees and investors can be analyzed from their responses. Moreover, the analysis is
consisting of interview transcript as well as several questions which were anlsyed to have
effective information regarding impacts of merger and acquisition on business activities. The
information has been used by them in a manner to have the adequate ascertainment of the data
base on the basis of conducting the primary research on the several questions. Thus, these
questions will be asked to the employees engaged in Saudi petrochemical industries. Along with
this, taking interviews of Supervisors, CEO and managers based on taking their reviews on
concept of Merger and Acquisition. On the other side, there have been use of secondary data
analysis techniques on there were various industries which has been ascertained to have adequate
information regarding the facts. However, example of organization such as Spichem: Young and
Growing fast, Saudi Arabian Fertilizer Company, National Industrialization Company, Nama
Chemicals Co., Sahara Petrochemical Company, Yanbu National Petrochemical Company and
Rabigh Refining, Petrochemical Company, Saudi Kayan Petrochemical Co. and Methanol
Chemicals Co. have been analyzed to bring the adequate analysis over the impacts of Merger and
Acquisition over them which is resulting to manage the operations accordingly.
Ethical considerations
Every research is needed to have appropriate references of authors, books, journals and
relevant resources from which researchers have collected information as well as analyzed data
set. Thus, it will be beneficial in terms of bringing it a legal look and authenticate influence that
all the information is based on accurate information as well as data set (Bairi, Manohar and
Kundu, 2013). Considering authenticity of information there will be list of references at the end
of report as well as in text referencing of authors. Moreover, in relation with this research study
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there have been consideration payable over implicating the use of various information which are
relevant with the data base of the Saudi petrochemical firm’s annual performance. Along with
this, as per considering the confidentiality of the data base which consist of information relevant
with the number of professionals that have been interviewed as well as information obtained
through companies have been treated confidential. Thus, these are the ethical factor which have
been considered to have adequate analysis over the data set.
Reliability and validity
Validity of collected information will be accurate and helpful as it was collected through
authenticate resources. Development of various theories and study which will be based on
analyzing various facts and sources of information to have appropriate reasoning behind
analyzed data base (Channon and Jalland, 2016). Researcher is aware with the legal and valid
consideration of report which in terms with developing appropriate understanding relevant with
the study. Analyzed resources will have appropriate referencing of sources from which the
information has been gathered and studied. There has been selection of 20 randomly selected
employees which were performing in the Saudi petrochemical industries. Thus, they have
presented their reviews through questionnaire and interviews. Among them there have been
selection of managers, CEO as well as various employees to present their opinion on this
process. Therefore, on the basis of such reliable sources the researcher report has valid facts and
analysis which will be effective in making adequate conclusion.
Research limitations
In accordance with the research study as well as operational information of the analyzed
data set has required much time. Therefore, it can be said that after analyzing various sources and
factors there are still some areas which are remained unanalyzed (Chenail, 2011). It includes,
analyzing other sectors than Saudi Petrochemicals to have better ascertainment of the impact of
Merger and Acquisition over the financial health, operational efficiency and revenue generation
of firms. Time limit of research study is not as proper as well as sufficiency for the study as the
researchers will not have studied all the areas. On the other side, the professionals which were
being interview did not present their clear reviews and ideas in relation with making effective
analysis.
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