CHAPTER 3

METHODOLOGY

The aim of this chapter is to set out the methodological approach undertaken

to examine the operations, finance, human resources and internal audit functions of

rural banks in Aklan.

Qualitative Approach

A qualitative research approach was chosen for this study because qualitative

methods are especially useful in analyzing how organizations function. These

methods were used to analyze and understand the operations of rural banks in Aklan

as well as the challenges faced by rural banks such as competition from other

financial institutions, lack of infrastructure, and low financial literacy among

consumers. The result of this study can help bank employees to develop and innovate

strategies and improve their operations.

The qualitative research methods used for this study are described further below and

included semi-structured interviewing, and systematic and concurrent data collection

and data analysis procedures.

Sampling and Selection of Participants

Rural banks in Aklan and their employees who have knowledge about the

bank’s internal operations system and who have a thorough knowledge about the

bank’s operations since they would be “knowledgeable informants”. Because the goal

of the study was to provide a comprehensive understanding of the rural banking

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industry in Aklan, including its organizational structure, regulatory environment, and

financial performance, to identify the challenges faced by rural banks as well as to

analyze all information gathered it is important that they are knowledgeable regarding

the internal operations of the banking industry.

Participants are chosen through purposive sampling because they have been selected

for having the characteristics the researchers need for the sample. Once the

participants had been identified, a letter was sent to them with the Informant Consent

Form that include the description of the research study, research procedures, risks and

benefits of the participation in the study, participants’ rights, and protection of

confidentiality. Rural banks who signed the consent form became participants in the

study and received details about the interview process and procedures along with the

copy of interview protocol. At this point the five main branches of rural banks in

Aklan had been interviewed.

Role of the Researcher

In a qualitative research, the researcher is the primary research instrument of

data collection. This means that data are mediated through inventories, questionnaires,

or machines. To fulfill this role, consumers of the research need to know about the

human instrument. The qualitative researcher needs to describe relevant aspects of

self, including any biases and assumptions, any expectations, and experiences to

qualify his or her ability to conduct the research.

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The role of the researchers in a qualitative research is to attempt to access the

thoughts and feelings of study participants (Zubin & Austin, 2015). It is not an easy

task as, as it involves asking people to talk about things that are quite confidential to

the bank. The role of the researchers consists of aligning methodologies with research

goals. The researchers in this study will gather information on participants’

organizational structure, regulatory environment, financial performance and

operations system as well as the challenges they faced such as competition from other

financial institutions, lack of infrastructure, and low financial literacy among

consumers through a semi-structured interview. The researchers will also interpret the

data and present findings from the result of interview and draw conclusions about the

findings. The researchers will follow ethical principle through abiding the information

written in the Informant Consent Form that include the description of the research

study, research procedures, risks and benefits of the participation in the study,

participants’ rights, and protection of confidentiality.

The researcher of the present study acknowledged that their personal background

could influence the interpretation of data. The researchers acknowledge that their

character as a resident of the participants’ location could bias the interpretation of the

research results. To minimize any personal bias on the results of this study,

respondents’ validation will be utilized during and after the interview to increase

validity and credibility of the study results. During each interview, the researcher will

restate and summarize the information to questioning participants on the accuracy of

the information.
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Data Collection Method

For this study, the researchers will conduct the data gathering through

interview. Interview is most effective for qualitative research because it allows

researchers to explore the topic in the most depth. Interview provides significant

source of primary data as it gives the participants the opportunity to elaborate their

answers in ways that are not possible with other methods such as survey research as

well as it offers flexibility to use a variety of techniques to get the desired information

(Clements, 2023). By gathering first-hand information, the researchers can explain,

better understand, and explore the respondents' opinions, behavior, and experiences in

a non-monotonous way. To achieve the optimum use of interview time, the

researchers will use interview guides to keep the interview focused on the desired line

of action. Researchers hoped to gather information about the operation of rural banks.

For this reason, the interview questions will be sent to the interviewees beforehand

through email, messenger, or other possible means to give them ample time to prepare

and be able to provide informative and substantive answers relevant to the study. The

researchers will conduct a semi-structured interview with open-ended questions. The

researchers will prepare a set of similar questions to be answered by all interviewees

who agreed to participate in the study. Participants will be given the interview

protocol prior to their scheduled interview and will have the option to choose the

interview venue for their convenience. The researchers will conduct the interview and

will make sure that participants are comfortable throughout the course of an

interview. The length of the interview is estimated to be 10-15 minutes. In conformity

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with ethical standards, the personal information gathered for the purpose of this

research will remain confidential.

Data Analysis

The researchers will use the qualitative methodology in gathering the needed

information relevant to the study. The research methodology that is appropriate for

this study is the case study research design using in-depth interview. Case study

research involves intensive analysis of an individual unit, e.g. a person, a community

or an organization. As such, case studies provide an opportunity for the researcher to

gain a deep holistic view of the research problem, and may facilitate describing,

understanding and explaining a research problem or situation (Baxter and Jack, 2008).

During the field phase, the researcher will interact with the participants by conducting

a semi-structured interview (Yazan, 2015). Once the data are gathered, these will be

transcribed, analyzed, interpreted, and finalized. In order to have the interview data

captured more effectively, the researchers will make use of voice recording devices.

The recorded data will then be transcribed verbatim. The researchers will make use of

their critical thinking in rationalizing and defining the data. As the final step of data

analysis, the researchers will verify the data collected by checking the validity of

recorded data, allowing the researchers to modify hypothesis and review the

conclusions.
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Summary

This chapter presents the methods and procedures used to examine the

operation of rural banks in Aklan. The study will use qualitative field research to

gather information particularly by conducting semi-structured face-to-face interviews.

Chapter 4 will present the research findings of the study.