How would the financial institutions benefit by expanding the study research of the impact of consolidations (bank concentrations) over the bank’s profitability?
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Address the content of each colleague’s analysis and evaluation of the topic, as well as the integration of relevant resources.
Address the question(s) posed by each colleague for further Discussion.
Link each colleague’s posting to other colleagues postings or to other course materials and concepts, where appropriate and relevant.
Include proper APA citations.
In the case of Tregenna (2009), the author was successful in identifying the correlation between concentration and bank profitability. This study will contribute to my study research topic because it provides a similar topic as my research project, i.e., the impact of bank concentration through consolidation through mergers and acquisitions. Tregenna (2009) study provides detailed information of the qualitative and quantitative methods utilized (i.e., bank profitability literature research, bank-level panel data) that could assist me in my study analysis. This research will also serve as study for comparison and support, and could serve as material to be furthered investigated.
As for Ennis and Keister (2004), in their study, they examined how the possibility of a bank run could affect the deposit contract offered and the investment decisions performed by a competitive bank. The authors analyzed Cooper and Ross (1998) studies, who demonstrated that when the probability of a run is small, the bank offers a contract that admits a bank-run equilibrium (Ennis & Keister, 2004). Ennis and Keister (2004) demonstrated that when the cost of liquidating investment early is high, amount of investment is decreasing in the probability of a run. On the other hand, the authors showed that when liquidation costs are moderate, amount of investment is increasing in the probability of a run (Ennis & Keister, 2004). This study will contribute to my study research topic because it provides a thorough analysis of the mixed methods used to analyze the relationship between bank-run and the deposit contracts and the level of investments of a competitive bank. This research will also serve as study for comparison and literature support, and could serve as material to be furthered investigated.
Finally, Jacobs (2010) analyzed the different set of the methods or practices that the financial institutions may use to assess total risk in terms of monetary measure known as capital. This study will contribute to my study research topic because it provides a complete evaluation of the several practices applied in validating economic capital models, both quantitative and qualitative approaches. The author first presented a qualitative validation of the economic capital models, followed by a quantitative validation of the economic capital models (Jacobs, 2010). Also, a thorough analysis of relevant literature is reviewed and included in the research study. Furthermore, this study presented several of these approaches (bench marking, sensitivity analysis and testing for predictive accuracy) using data from major banking institutions loss experience (from supervisory call reports), and estimated and compared, alternative established, frameworks for risk aggregation (including alternative copula models) (Jacobs, 2010). Therefore, this research will also serve as study for comparison and support, and could serve as subject to be furthered investigated.
Questions 1: How would the financial institutions benefit by expanding the study research of the impact of consolidations (bank concentrations) over the bank’s profitability?
The study by Espiritu (2008) described the measurement of outsourcing success with outsourcing alliance. The researcher suggested that business leaders should use balanced set of measures like financial, relationship, and resource access to measure supplier performance. The researcher used mixed-method approach. The study used pilot survey, main survey, and factor analysis to find the factors for measuring alliance performance with outsourcing. Researcher used preliminary qualitative pilot study to find the variables for main quantitative study. According to Anderson (as cited in Espiritu, 2008) about $140 billion wages will be outsourced by 2015. The researcher found that about 50% outsourcing initiatives fail due to poor performance of outsourcing alliance. The researcher used survey questionnaire, which included closed-ended questions and open-ended questions to find the factor for measuring performance of outsourcing alliance. The researcher conducted study in the western region of the United States. The researcher used online tools for both qualitative and quantitative method with open-ended questions, and closed-ended questions (Espiritu, 2008).
The existing research by Espiritu (2008) is relevant to the proposed study. The existing study describes the performance of organization with outsourcing alliance firms in terms of factors like financial, relationship, and resource access to measure supplier performance. The proposed research is to see the impact of offshoring on business growth of subsidiaries of electronic manufacturing service (EMS) companies operating in the United States. The proposed research can also use preliminary qualitative study to look for possible variables, which affect business growth of EMS companies, and then researcher can validate those variables with quantitative method to generalize the concepts.
The research by James (2008) evaluates the relationship between total quality management (TQM) and performance of organization. The study compares performance of organization with TQM and the organization without TQM. The firms with TQM did better on domestic sales, export sales, net income, return on asset (ROA), and productivity. The researcher conducted study in the Island of Jamaica. The participants were the senior managers from the manufacturing firms in Jamaica. The researcher used explanatory mixed-method to carry out the study. First phase was quantitative method, and the second phase was qualitative method with face-to-face interviews. Independent variables in the research were TQM and non-TQM firms. The dependent variables are domestic sales, export sales, net income, return on asset, and productivity growth. The qualitative method after quantitative method explains the quantitative results. The researcher used personalized postal survey questionnaire to collect quantitative data. Researcher used Cronbach’s alpha coefficient (0.70) to see the reliability of the instrument. The recommendation for future study is to review the implications to improve firm’s performance and firm’s competitiveness in changing global business environment (James, 2008).
The existing research study by James (2008) is not directly relevant to the proposed study. The existing research relates indirectly to proposed study. The proposed study is to see the impact of offshoring on business growth of subsidiaries of EMS companies operating in the United States. The study by James describes the impact of TQM on performance indicators like domestic sales, export sales, net income, return on asset, and productivity growth of the organizations. The proposed research can also use explanatory mixed-method with emphasis on quantitative method in phase one, and then strengthening the proposed research with qualitative method using small number of participants.
In conclusion, mixed-method provides strength to the research, which involves both quantitative method and qualitative method. The mixed method can use either explanatory mode, or exploratory mode. In explanatory mixed-method researcher uses quantitative method in phase one, and qualitative method (to strengthen the quantitative results) in phase two. In exploratory mixed-method researcher uses qualitative method (to find out research variables) in phase one, and quantitative method in phase two (Creswell, 2008). The proposed research, to see the impact of offshoring on business growth of subsidiaries of EMS companies operating in the United States, can use the concurrent embedded strategy for mixed-method. The researcher will use concurrent embedded strategy for mixed-method, which includes quantitative method as primary, and qualitative method as supporting research method. The quantitative study will use survey, and then qualitative method will use phone interviews with few participants from top-level management. The beauty of concurrent embedded strategy for mixed-method is that researcher can use both research methods concurrently. The results from both researches can be integrated in analyze phase.
Question 2 .To save time and resources, can open-ended questions be included in the survey questionnaire for qualitative data instead of costly face-to-face interviews?
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Considering one method type is viable; however, it depends on the question which is being answered whether it would be beneficial to the reader to have information from both types of research. My understanding is that quantitative research will provide the answer of how many of something occurs, or it will allow for the comparison of one number to another number. Quantitative research could be used if the only information needed is a numerical pattern or set of numbers. Qualitative research could be used alone if the only answer needed was why something occurred. When looking for reasons of an occurrence theory and written words are used as a replacement for numbers.
Comparisons
Mixed method can provide the elements from both qualitative and quantitative methods, and in doing provide not only the numbers of what is happening and the conjecture of why it is happening, but better provide information on what can be done to prevent the occurrences. Whether a researcher uses mixed methods or one of the stand alone methods, both of the stand alone methods should be familiar. Both methods should be familiar due to the information that can be provided. Even if a researcher stated they will use only one method, there still may be a need for some information from the other method, especially if the researcher wants to provide a clear picture to management. Management can make better arguments for change based on numbers and patterns, whereas professionals are better motivated with the understanding of why the changes are needed.
World View
The constructivism world view looks at multiple view points, and there is one view point from seeing the qualitative point of view and another view point from seeing the quantitative point of view. In addition the constructivism world view looks to make theories, and theories are easier to formulate when the researcher has information from multiple methods. This makes the mixed methods approach the best for the constructivism.
Developing Expertise
In order to become more comfortable with a mixed methods approach, individuals should look at the research results provided in magazines and articles with an eye to see what type of method the writer is using. All things being equal, a reader should expect a fuller picture from a mixed method approach, however there is also additional work required in order to properly provide information from both methods.
Questions 3. Considering more information is gained from mixed methods, what situations would negate the use of mixed methods?
Creswell (2007) describes a single continuum that connects qualitative and quantitative research at the endpoints with mixed methods in the middle.
The use of mixed-method is likely to increase the quality of final results and to provide a more comprehensive understanding of analyzed phenomena. All three methods complement each other because the Mixed Methods derives from the other two methods.
Mixed methods can expand our understanding of a research problem because it exposes both methods, whereas if you are using one of the other methods, you will only be exposed to the one method (Creswell, 2008)
Greene, Caracelli, & Graham, (1989) Highlighted five major purposes mixed-method evaluation as followed:
Triangulation. tests the consistency of findings obtained through different instruments.
Complementarily clarifies and illustrates results from one method with the use of another method.
Development results from one method shape subsequent methods or steps in the research process.
Initiation stimulates new research questions or challenges results obtained through one method.
Expansion provides richness and detail to the study exploring specific features of each method.
Greene & Caracelli, 1997 asserts that researchers can use multiple paradigms or worldviews in their mixed methods study. This “dialectical perspective recognizes that contradictions and tensions reflect different ways of knowing about and valuing the social world and says you can use multiple paradigms.
The mixed method approach allows me to see my world view (advocacy and participatory) from both the objective (quantitative) and subjective (qualitative).
Steps to become more comfortable with this approach would be to study the method in detail to gain a better understand of its main purposes and design used.
Questions 4. What are the benefits of mixing?
