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Definition of a Case Study “A case is a factual description of events that

actually happened at some point in the past…..It is designed to elicit discussion and analysis of a particular situation.” Naumes & Naumes, p. 10

This definition sounds like a teaching purpose.

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Another Definition“A case study is an empirical inquiry that

investigates a contemporary phenomenon within its real life context, especially when the boundaries between phenomenon and context are not clearly evident.”

(Yin, p. 13)

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Case Studies for Research Alternative Research Methods

Quantitative Economics Theoretical Economics Business Organization and Strategy Case Study Methods

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Advantages of Case Study Research Interesting Local Methods may suit the researcher Study of actual situation in a realistic

setting

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Advantages of Case Study Research Ability to study impact of actions over time Ability to determine causes (why it

happened) Place the situation in an overall

environment More depth possible than with a survey Full study of complex process

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Advantages of Case Study Research Answers questions not suited for aggregate

methods Why? How?

Example: Mergers and acquisitions

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Advantages of Case Study Researchon Mergers and Acquisitions Existing academic work on merger activity is

large sample and has mixed results. Case study approach illuminates the following

questions:

1.      What factors lead to mergers and acquisitions?

2.      Why does an acquisition succeed or fail? Source: Steven N. Kaplan, ed. Mergers and Productivity, Natl Bureau of Economic Research Conf

Rpt., Chicago: Univ. of Chicago Press, 2000.

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Disadvantages of Case Study Research Difficult to generalize Difficult to demonstrate reliability Subjectivity and potential bias Not widely accepted

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Goals of Research Explain phenomenon Evaluate successes and failures Predict the future Assist decision-makers to improve their

actions

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Approaches to Research Quantitative Economics

Survey Market-level data collection Analysis: Econometrics, “large-sample” statistical

techniques

Theoretical Economics Analytical methods use mathematics Derive testable hypotheses

These are the common modes in economics -business.

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Research design process Rigorous statistical and quantitative

techniques have tended to discount the importance of design

We all do the same thing Research is driven by data Case studies require individual design and

careful planning

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Types of Research Cases

1. Descriptive casesTraces a sequence of events and discovers key

phenomenon. Provides background on important trends in the economic sector.

2. Evaluative cases Why was this program successful?

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Types of Research Cases

3. Explanatory cases Objective is to pose competing explanations for the same

set of events. Compare the competing explanations to the actual course of events to find the best explanation.

4. Decision-focus casesThis is most common in business management teaching,

less common in research. The case builds up to a decision.

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Review: What is a Case Study? Definition

A story Actual events In their context, industry, time, economy

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Elements of a good story It has a beginning and an end It has detail, so the listener can picture

what is being described It has engaging events and/or characters It has a theme, or a message It has a style

Read Naumes and Naumes, chapter 1; and Yin, chapter 1.

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How Can a Story be Valid Research? Careful attention to data collection and

presentation. Complete Unbiased

Relating the events to theory and prior knowledge.

Strong analysis, including quantitative elements.

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Steps in Research Design1. Problem definition

2. Design (planning)

3. Data collection

4. Analysis (drawing conclusions)

5. Composition and reporting

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1. Problem Definition

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Start with specific hypothesis

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Development of Hypotheses

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Review the literature

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2. Research Design

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Strategy versus design Research strategy

Case study Survey Archival

These are the methods used to answer the study questions.

Research designSpecific action plan“A research design is the

logic that links the data to be collected (and the conclusions to be drawn) to the initial questions of a study.” (Yin p. 18)

Helps assure that the evidence addresses the original research question.

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Components of Research Design Questions of the study Propositions of the study Unit(s) of analysis Logic linking the data to the

propositions Criteria for interpreting the findings

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Questions of the Study

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Propositions of the Study

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Unit of Analysis

Cases can have a primary unit of analysis, and an embedded or related unit of analysis.

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Logic Linking Data and Propositions This is the most difficult concept in case

study research.

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Criteria for Interpreting the Findings There is little guidance in this area. One thing I have read is: How

generalizable? How “representative?” Look at the farm info case for a quote.

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Quality of Research Design Construct validity Internal validity External validity Reliability

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Construct validity: Establishing correct operational

procedures. Avoid subjectivity

Example: Bias in selecting case because poor performers will not participate

Select indicators that measure the phenomenon of interestExample: Employment numbers for the acquired firm

Use multiple sources of evidence

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Internal validity: Establishing a causal relationship

Avoid spurious effects Use caution in making inferences Think through any rival explanations and try

to rule them out This will be important for explanatory

cases, but not descriptive or exploratory cases

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External validity: Establish the domain to which conclusions

can be generalized Do not attempt to show statistical

generalizability Generalize case study findings to theory Replication logic through multiple cases

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Reliability: Demonstrating that the study can be

replicated and the same results would occur This does not mean doing the same case study over. It means documenting procedures carefully. Choose methods that can be defended to a reviewer. Having established methods improves reliability

because biases are minimized. Use a case study protocol.

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Assignment 1 Give an example of each of the criteria for

judging the quality of research designs, for a case study you might want to do.

Why are we doing this now?

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Assignment 2, 3, 4 Practice the steps in research design Critique the research design of published

case studies

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Conclusions about Research Design It is not easy! Researchers must be flexible in

implementing their plans. However, a plan is essential! Without a research design, you could end

up having worked hard to collect information that does not answer the key questions

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3. Data Collection There are six types of data collected in case

studies: 1.     Documents. 2.     Archival records. 3.     Interviews. 4.     Direct observation. 5.     Participant observation. 6. Artifacts.

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Review on Research Design Objectives of the study are clear. Research design provides the action plan. Considerable thought has been applied to

the project. Now it’s time to carry out the data

collection phase.

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Six Sources of Evidence1. Documentation

Both inside and outside the company Local library Government agencies Companies’ files

2. Archival records U.S. Securities and Exchange Commission State tax records

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Six Sources of Evidence3. Interviews

Problems of bias, poor recall, and poor or inaccurate articulation.

4. Direct observation5. Participant-observation

The researcher takes a direct role in the event. Sometimes researcher take a short-term position within the company.

6. Physical artifacts Example: Product packages in grocery stores

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Three principles of data collection1. Use multiple sources of evidence2. Create a case study database3. Maintain a chain of evidence

The goal is to allow reader to work backward from the case conclusions to the evidence used in drawing the conclusions. The case study report will include references to the specific documents, interviews, or observations.

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Case Study Protocol Document that contains the instruments,

procedures, and general rules that will be followed in using the instrument. (Instrument refers to questionnaire that will be used in interviews)

It is a tactic that will improve the reliability of the case results.

It is essential in a multiple case project or a project that uses many investigators.

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Sections of the Case Study Protocol Overview of the project Field procedures Case study questions Guide for the case study report

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Field Procedures-What to Cover Referrals

If an interview goes well, people are willing to provide a referral.

Is there time and interest in following up? Documents

Mail home or read now? Credentials (of researchers)

Business cards for students

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Field Procedures-What to Cover Locations

Address and directions Contingencies

What if researchers are late? What if there is a cancellation-can another

person in the company substitute?

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Field Procedures-What to Cover Note-taking or recording

Observational notes Theoretical notes Methodological notes

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Case Study Questions in the Protocol Reminders for the researchers

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Value of the Case Study Protocol Unites and trains the research team as it is

being prepared. Requires that researchers anticipate

problems. Can be used in future case studies.

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4. Analysis Most difficult phase in research process. Generalization phase Goal: address the initial propositions of

the study, while treating the evidence fairly Result:

compelling, interesting conclusions evidence that rules out competing

explanations

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Analytic Generalization Does this case support one theory versus a

rival theory? Multiple cases are different experiments.

If two or more cases support the theory, then replication can be claimed.

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LEVELTWO theory rival theory

policyimplication

rival policyimplication

SURVEY CASE STUDY EXPERIMENT

populationcharacteristics

case studyfindings

experimentalfindings

LEVELONE

sample subjects

Figure 1. Making Inferences: Two LevelsSource: COSMOS Corporation. (in Yin p.31)

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Analytic Strategy Develop the strategy early in the research project.

Include it in the case study protocol. Identify the priorities of what to analyze, and

why. Rely on theoretical propositions that led to the

case study in the beginning. Descriptive strategy may be easier to plan, but it

is usually less interesting.

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Modes of Analysis Pattern matching Explanation building Time series analysis Program logic models Analyzing embedded units Making repeated observations Secondary analysis across cases

Dominant modes

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Assignment 7Analyze the analytic process Find the section of the case in which

evidence is presented and conclusions are drawn. Describe the linkage between cited evidence

and conclusions. Are data displayed in tables? Other formats? Are comparisons being made? Are the linkages made in such a way that

conclusions are convincing?

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Pattern Matching Mode of Analysis Identify a pattern from theory Predict that other circumstances will follow

the pattern Find empirical evidence regarding the

pattern from a case study If the patterns coincide, the results

strengthen internal validity of the case

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Pattern Matching Mode of Analysis Example: Theory on the location of agribusiness

suggests that “supply-oriented” firms locate near agricultural production areas (Connor and Schiek). This is pattern-matching, used to explain why firms locate in urban or rural areas.

The pattern of location of one firm, or the various units of a corporation, could be examined in a case study.

Evidence about the firm’s products is normally the deciding factor in considering the firm to be “supply–oriented” or not.

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Pattern Matching Mode of Analysis Another example: Mergers and acquisitions

accompany a “shock.” Regulatory, or technological changes Series of cases support the pattern Case studies from value added project

Shock for Arrowhead – capital markets in 1998? Shock for Bimbo – NAFTA? If my cases don’t follow the pattern, are the cases

weak or is the pattern incorrect?

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Pattern Matching – Two Techniques Non-equivalent dependent variables: ALL of

the elements must be present for pattern to be supported.

Rival explanations: Focus on the known outcome, seeking the reasons behind the outcome. “how” and “why” type questions. rival theoretical explanations behind the outcome. mutually exclusive

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Explanation Building Mode of Analysis Iterative, repeated pattern matching Revise the predicted pattern after empirical

evidence is discovered Assignment 7: Constructing an

explanation

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Time Series Mode of Analysis Identify a change, or a disruption in the

normal time series. Case studies using the time series mode of

analysis use more public data, and do not rely as much on interviews.

Well-suited for cause and effect analysis that is needed to trace important changes in organizations.

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Time Series Mode of Analysis Example: Acquisition of Arrowhead Mills

by Hain Food Group. The firm went from privately held to a unit of a publicly traded corporation.

Hypothesis: Sales increase as the capital constraint is relaxed. Collect sales information to determine if the trend was altered after acquisition.

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Time Series Mode of Analysis Example of a Chronology: Connor’s case

study of Archer Daniels Midland, Inc. Note how the case is analytical and not

simply the reporting of events.

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Analysis of Embedded Units Topic within a case study Surveys of individuals within a

community-based case It is important to focus on the case unit of

interest and not simply aggregate the embedded units.

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Quantitative and Qualitative Data Example: Value-added cases U.S. government data on aggregated firms,

by states and by counties How can this be merged with case

findings? How can this be compared with case

findings?

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Research at the Firm Level versus Case Study

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Principles of High Quality Analysis Rely on all the relevant evidence Include all major rival interpretations Address the most significant aspect

of the case study Bring your own prior expert

knowledge to the case study

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5. Composition and Reporting Statement of purpose Outline the research hypotheses Present the case facts

“Rigorous and fair presentation of empirical data”

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5. Composition and Reporting Include a literature review Statement of the methodology

When and where interviews occurred Who was interviewed Method by which questions were developed

Analysis of how the case situation supports or disproves the hypotheses.

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Active Writing Style A character A “hook” These features are especially important for

cases used in teaching.

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Outlining Cases Published examples

Single case Case study series

Outlines of case in progress

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Supplemental Material Data Figures Instructor’s notes Literature review

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Linkages to Theory This is the most important element of the

conclusion of a research case Example: case series on mergers (Kaplan)

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Structure of the Report Linear-analytic Comparative Chronological Theory-building “Suspense” Unsequenced

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Anonymous Sources or Cases It is best to use actual names, firms, and

people Obtain release forms (signed) and written

permission to use quotes

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Review by Participants Final step in release process Helpful in re-writing and improving Time-consuming