Chapter 4

Research Methodology

Research Methodology

In general, it has been shown that a good research technique is essential for the success of a
study. Research methodology has been given various definitions by different schools of
thought. According to Sarantakos (1998), research methodology is the philosophy of
techniques; it is the way one makes meaning of the subject of inquiry. Additionally as defined
by Rajasekar et al., (2013), a research technique is the ‘procedures by which researchers go
about their work of explaining, describing and predicting phenomena.’ Given that the primary
objective of a research methodology is the work plan of a study. In general, it is crucial to set
up appropriately in order to direct the study process in the right direction. To carry out our
research appropriately, the technique listed in the below table will be used.

Summary of Research Methodology

Determining the research problem

Research Problem

Any research project often starts with a research challenge, which is why it is regarded as one of the
two essential components. According to what is cited by Frey and Feld (2002), ‘most studies approach
tax morale as a black box without thinking or even analysing or even thinking how it may develop or
how it might be maintained. The same applies for Mauritius as a result of the paucity of research on
tax compliance, tax avoidance and tax evasion, all of which have been the subject of several studies.
Moreover, the lack of previous study on tax morale at the level of SMEs on this small island is the
primary research topic driving this investigation.Therefore, this instantly offers us a further reason to
start this investigation. In addition, SMEs have been highlighted for this study due to their
significance both at the national and international level of economic engagement.

ResearchWork Goal

It is impressive that a study is carried out in order to achieve its objectives. Despite the fact
that Mauritian SMEs tax morale has been a subject of prior study, the other goal of this
research is as follows:

1. To determine the association between tax compliance and morale at the corporate
level.
2. To determine the impact of owner managers’ demographic characteristics on the tax
morale of their businesses.
3. To shed light on the ‘black box’s corporate side
4. To gauge the impact of factors connected to the government on SMEs’ tax morale
5. To examine the institutional influences on SMEs tax compliance

Research Design Selection

Study Design

According to Rossman and Marshall (2010), a researcher can often use one of three sorts of
research methods: informal, explanatory or descriptive. Explanatory research, however,
proposes a lot of ideas and imagination in order to reach the study’s main goal, according to
Davidson and Patel (1994). The Fluid survey Team (2014) came to the conclusion that
because causal research seeks to reveal the effect and so establishes a link between two
variables, it falls within the category of conclusive research. On the other hand, according to
Richie et al., (2013), descriptive research helps the researcher to comprehend a group of
target samples so that acceptable inferences for the variables may be drawn.

Study Approach

A research may be seen from two points of view, the inductive method or the deductive
approach, according to Saunders et al.,(2007). The first method is based on examining an
observation environment where data is gathered, built upon and from which a generalisation
is made or an idea is put together. In particular, it begins with the connected goals that are
later generalised. Furthermore, it does not begin with the creation of hypotheses; rather, it
begins with the research objectives and questions that must be answered. The figure below
demonstrates this.
In particular, a deductive method starts with a theory or hypothesis that is validated before
drawing a conclusion regarding whether to reject it or accept it. In other words, as seen in the
figure below, this technique is said to conclude from normal to specific:

From the aforementioned inquiry, a deductive strategy is used since it has the potential to
support the goal of this research, which will highlight the notion of tax morale at the SMEs
level.

Study Techniques

Quantitative research and qualitative research are the two main categories of research
methodology. More details about the two research techniques are provided in the table below:

According to the definitions of the two approaches indicated above, our research may be
classified as descriptive and quantitative, with the descriptive method being more suited to
comprehend the explicit ways being explored on tax morale at the level of SMEs.

Process of Data Collection

Data gathering is a fundamentally important step in the research process, according to the
study of Scheurich (2007). To be able to maintain the integrity of this study it requires the
accuracy of data collection. Normally there exist the two categories of data collection
including data from primary sources and from secondary sources (Gronhaug and Ghauri
2005). Generally, secondary data consists of material that is easily accessible through a
variety of channels, such as the internet, journals or publications. They are information being
gathered previously from others. On the other hand, primary data is obtained from sources
like surveys, in person interviews and questionnaires that have a defined aim and focus.
Primary data will henceforth be the main source of information for this study and it will be
gathered via the use of questionnaires among the population size chosen.

Survey

According to the study done by Schutt and Check (2012), survey research is the ‘collection of
information from a sample of people through their feedback received from questions.’ This
viability, through which several data are gathered, is well recognised. Surveys may be
conducted using a variety of methods, including questionnaires. Due to its ease in quickly
gathering quantitative data from a variety of samples, this method has also been applied to the
gathering of information.

Design of Study Questions

A covering letter explaining the purpose of the study was included in the questionnaire
(Appendix 1) simplified design to increase response rates. It included close-ended questions
in a variety of formats, including contradictory answers, objective response, filtered questions
and a 5 point Likert scale for the respondent’s evaluation of themselves. The following 5
parts comprised the questions: Section A and B of the survey consisted of a total of six
multiple choice questions and three conflicting queries, with an emphasis on the respondent’s
personal characteristics and those of his or her firm, respectively. As for Section C, it had
four questions concerning tax compliance and morale that could only be answered with a
‘Yes’ or a ‘No’. The 13 questions in Section D, which was about tax morale and corporate
factors with a ‘Yes’ or a ‘No’. The 13 questions in Section D, which was about tax morale
and corporate factors, were divided into 5 point Likert Scale questions, 8 contradictory
questions and 2 filtered questions for which answer guidance was provided. Last but not the
least, Section E, there are 6 questions on a 5-point Likert scale which were asked, which were
about tax morale and governmental causes.

Pilot Test

The primary goal of this test was to identify the different ways that each participant
understood the questionnaire. As a result, a pilot test of the questionnaire was conducted
among various business owners. Generally speaking, the pilot test can prove to be
advantageous since changes can be made in response to comments and recommendations
about the complexity and components of the questionnaire. In doing so, this has helped to
make it more dependable and less time consuming.

Sampling and Population Size

Since it is almost difficult to research a country’s whole population, sampling approaches are
necessary. As a result, 250 SMEs were chosen as a sample for this study from the most recent
representation, the stratified sampling strategy has been used.In accordance to what is cited
by Frankel et al.,(2012), ‘stratified random sampling is a process where a particular suburb or
strata are selected for the sample in the same proportion as they exist in the population.’
Because of this, the stratification was created based on the districts in which the SMEs are
situated in order to provide each firm on the island an equal chance of selection.

District SME (Population) Stratified Fraction SMEs Sample

Black River 515 250*(515/8038) 17

Flacq 992 250*(992/8038) 31

Grand Port 701 250*(701/8038) 22

Moka 417 250*(417/8038) 13

Pamplemousse 893 250*(893/8038) 28

Plaines Wilhems 2332 250*(2332/8038) 72

Port Louis 971 250*(971/8038) 30

Riviere Du Rempart 814 250*(814/8038) 25

Savanne 403 250*(403/8038) 12

Total 8038 250

A sum of 250 questionnaires were handed out. They were mostly disseminated through
email.Moreover, certain surveys were also distributed in hardcopy upon the confirmation of
specific appointments with SMEs owners.

Data Interpretation and Evaluation

Microsoft Excel and the Statistical Package for the Social Sciences (SPSS), in particular, will
be used as tools to evaluate and interpret the information gathered from the survey, and the
overall interpretation of the discussions and findings of the outcomes will be discussed in the
upcoming chapter.

Research Limitations

One prime weakness of the study is that tax is a sensitive subject, therefore some respondents
were unwilling to provide honest information about their organisation, which might result in
distorted findings. Additionally, the planned sample size of 250 responders was not met; only
223 were acquired, of which 27 were incomplete and had to be removed. As a result, there
were 223 taken for analysis. Another major drawback was the lack of time I had to travel to
the SME owners for delivering the questionnaires around the island due to which they were
sent via email and this has caused various issues such as misunderstanding of questions and
inaccurate information received.