Chapter III

Research Methodology

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 Chapter 3. Research Methodology
3.1 Introduction
3.2 Statement of the Problem
3.3 Need of the Study
3.4 Significance of the study
3.5 Literature review
3.6 Objectives of the Study
3.7 Hypothesis of the Study
3.8 Period of the Study
3.9 Research Type
3.10 Data collection Tools
3.10.1 Primary Data
3.10.2 Secondary Data
3.11 Sample Size
3.12 Geographical Area of Research
3.13 Data Analysis
3.14 Software and Statastical tests used for Analysis
3.15 Sample Size
3.16 Limitations of the Study
3.17 Chapter Scheme

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3.1 Introduction:

Research is systematic investigation to solve new or existing problems. It is a

process of collecting information, analyzing and interpreting information to
answer questions. But to succeed as research, the process must have certain
characteristics: it must, as far as possible, be controlled, rigorous, systematic,
valid and verifiable, empirical and critical.

Research uses procedures, methods and techniques that have been tested for their
validity and reliability. It is designed to be unbiased and objective. Research
process must meet certain requirements of the organization30.

Research is a structured enquiry that utilizes acceptable scientific methodology to

solve problems and create new knowledge that is generally applicable. Scientific
methods consist of systematic observation, classification and interpretation of
data. There are three types of research

 Scientific research : This research provides scientific information and

theories.

 Exploratory Research : Generate basic knowledge, clarify relevant

issues.

 Descriptive Research : Provide further insight into the research

problem.

Following are the steps in research process:

1. Formulating the Research Problem.
2. Extensive Literature Review.
3. Developing the objectives.
4. Preparing the Research Design including Sample Design.
5. Collecting the Data.
6. Analysis of Data.

                                                            
30
 Kumar, Ranjit, 2005, Research Methodology‐A Step‐by‐Step Guide for Beginners, (2nd.ed.), 
Singapore,  Pearson Education 

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 7. Generalization and Interpretation.
8. Preparation of the Report or Presentation of Results-Formal write ups of
conclusions reached.

The study undertaken is related to ICT impact on Dairy Cooperatives. The

researcher has used survey based method for the descriptive studies of selected
Dairy Cooperatives. In the research, Statified sampling method has been used for
the purpose of data collection. Sample size, analysis techniques, collection and
analysis of data, different types of data are discussed in this chapter.

3.2 Statement of the Problem:

As researcher has discussed in Chapter I, dairy industry is the prime sector of

Livestock Sectors. In this industry around 5.8% of the total work force is working
in the country. There is a rapid growth in information and technology. All
industries are eager to implement ICT services. Now-a-days most of the
businesses depend on Communication and Internet medium. The researcher has
made an attempt to study the various aspects related to Information and
communication technology in Dairy Cooperatives. The view is to understand such
problems for better implementation of ICT in Dairy Cooperatives. Keeping this in
view, the study was undertaken, titled as “Critical Study of Information and
Communication Technology Implementation in Selected Dairy Co-operatives”.

3.3. Need of the Study:

The research topic examines various services in Dairy Cooperatives as well as

satisfaction level of management, dairy employee and the farmer. In the area of
ICT every organization invests the significant amount of money. ICT can provide
one click solution or response for decision making. Implementation of ICT
services is very essential for the future development of the Dairy Cooperatives.
This research has made valuable suggestions to the Dairy Cooperatives for
improving their performance. The research also offers the Do’s & Don’ts while
implementing ICT services.

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3.4. Significance of the study:

The research is useful for awareness & popularity of ICT and understanding the
strength and weaknesses of Dairy coopeartives viz-a-viz ICT. By using
Information and Communication Technology the cost of man power and
productivity may be reduced, which is affecting the growth and productivity of
value added product and by products. Information and Communication
Technology attempts to integrate departments of Dairy Co-operatives and their
functions. ICT automates the tasks involved in performing the business processes.
Implementation of Information and Communication Technology offers
tremendous benefits. It monitors operations and applies corrective action directly
when problems occur. The study is based on following significance with reference
to the research area.
 This research is useful for understanding the awareness, status, strength and
weakness of ICT in dairy cooperative.
 ICTs considerably reduce the cost of man power planning and productivity
 Researcher has focused on the benefits of ICTs for Effective and Efficient
work in dairy cooperatives.
 The study is an attempt to investigate integration of dairy Cooperative
business process and their functions using ICTs.
 Researcher has studied specialized skill development in management by using
ICTs Implementation.
 Researcher has studied the ICT related critical issues in dairy co-operatives.

3.5 Literature Review

Literature review was an essential preliminary task to get acquainted with the
available knowledge in the area of Dairy Cooperatives. Literature review was an
essential part of entire research process which has made valuable contribution to
every step of research. The main purpose of literature review was to get clarity
and focus to the research problem, improve methodology and attention towards

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 findings. The researcher has given the literature review separately in Chapter IV.
Researcher has classified the literature review in following category.
 Review of Ph. D. Thesis

 Review of Newspaper Articles

 Review of Books

 Review of Research papers

 Review of Annual reports of Dairy Cooperatives

3.6 Objectives of the Study:

The study was focused on following objectives in the selected Dairy Co-
operatives.

 To study the Information needs and analysis of Information necessity of the

ICTs for Dairy Co-operatives.

 To evaluate benefits and identify the status of the ICTs Implementation.

 To identify issues and problems in implementation of ICTs in Dairy Co-

operatives.

 To offer suggestions regarding ICTs for overall improvement in decision

making in selected areas of effective and efficient management.

3.7 Hypotheses of the Study:

The research is focused on ICT services in dairy Co-operative organizations.

Dairy Cooperatives are selected on the basis of their milk collection range
(Higher, Medium and Low) and ICT experience. The researcher based on
following four hypotheses.

 Hypotheses 1: Milk collection range and experience of dairy in

ICT Implementation improves MIS.

 Hypotheses 2: Use of Information and Communication

Technology adds to the efficiency and effectiveness in Dairy Co-
operatives.

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  Hypotheses 3: All cognitive factors contribute unequally
for implementation of ICT.

 Hypotheses 4: The software problems are more prominent than

hardware problems.

3.8 Period of the Study:

Researcher has selected and reviewed period from 2002 to 2011 for ICT
implementation practices in selected Dairy Cooperatives.

3.9 Research Type:

The nature of study is descriptive. In order to accomplish above objectives and to

conduct this study, the required data was collected from primary as well as
secondary sources which aim at studying the awareness of the Information and
Communication Technology implementation and innovative development
awareness in selected Dairy Co-operatives. The researcher has collected data by
conducting structured interviews and through filling up structured questionnaires
from the experts in Milk Co-operatives having higher experiences of ICT
Implementation. The Research consists of various systematic observation,
collection, classifications and interpretation of data. The Research Methodology
consists of following six steps:

 Determine and define the research questions

 Select the cases and determine data gathering and analysis techniques

 Prepare to collect the primary and secondary data

 Collect data in the field

 Evaluate and analyze the data

 Prepare the report

3.10 Data collection Tools

Primary data and secondary data are the two types of data collection methods.
Researcher has used both the methods for data collection.

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 3.10.1 Primary Data:

Primary data is the data which is collected for the first time. Primary Data is
obtained from the Milk Co-operative employees such as Managing Director,
HOD / Managers, EDP Managers, programmers, operators and ICT Users in the
Dairy Cooperatives. Researcher has used following methods for collection of
primary data.

Observation Method: The researcher visited Dairy Cooperatives and observed

the functions of various departments. While observing the departments, researcher
has conducted informal interviews.

Survey Method: For this a predesigned questionnaire was used.

Questionnaires: Researcher has used five different sets of questionnaire to

collect the information from the various ICT Users. The set of questionnaires are
as follows,

 Questionnaire for General Information: having 15 main questions

 Questionnaire for Information Technology Department: having 27 main

questions

 Questionnaire for ICT User: having 8 main questions

 Questionnaire for Dairy Milk Collection Center: having 4 main questions

 Questionnaire for Top management : having 9 main questions

Personal Interviewing: The personal Interview method was used for top
management of the Dairy Cooperatives. It was more flexible as researcher got
quick response. Response rate was higher than other methods.

3.10.2 Secondary Data:

Secondary Data is the data which has already been collected and analyzed by
someone else. Researcher has used it for the references. Mahananda Dairy, Amul
Dairy, and NDDB annual reports were considered as a benchmark for the study.

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 Data regarding status of Milk Co-operative organizations and organizations
profiles were collected from annual reports of Gokul Milk Kolhapur, Katraj Milk
Katraj-Pune, Shivamrut Milk Akluj, Krishna Milk Islampur, Warana Milk
Warananagar-Kolhapur and Rajhans Milk Sangamner. Researcher also used
Websites, official records and various publications related to milk co-operatives.
Following sources were used for secondary data collection,
 Review of Ph. D. Thesis

 Review of Newspaper Articles

 Review of Books

 Review of Research papers

 Review of Annual reports of Dairy Cooperatives

 Web Sites

3.11 Sample Size:

In Maharashtra there are around 49 registered Dairy Cooperatives and very few of
them are having ICT Services. The researcher has selected six Dairy Cooperatives
having milk collection between 2 lakh liters per day to 7 lakh liters per day and
ICT experience more than five years. Table 3.1 shows the milk collection
capacities of selected Dairy Cooperatives. From the selected Dairy Cooperatives
researcher collected the data by using questionnaires, Open eye observation,
documentary study and scheduled interviews of various members related to ICT
Implementation or its service beneficiaries in the Milk Co-operative
organizations. Dairy Cooperatives are divided into following three categories on
the basis of Daily Milk Collection.

 Higher Range Milk Collection : Milk Collection above 5 lakh lpd.

 Medium Range Milk Collection: Milk Collection 2 lakh lpd to 5 lakh lpd.
 Low Range Milk Collection : Milk Collection up to 2 lakh lpd
Following Dairy Cooperatives were selected on the basis of above criteria and
geographical area spread over five districts of Maharashatra.

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Sr. Brand Daily Milk ICT
Name of Dairy Cooperatives
No Name Collection Experience
Higher Range Milk Collection
Kolhapur Zillha Sahakari Dudh Utpadak Sangh Ltd, Gokul 7 lakh More than
1
Gokul Dairy, Kolhapur Milk lit/day 10 years
Shree Warana Sahakari Dudh Utpadak Prakriya Warana 5 lakh More than
2
Sangh Ltd, Warananagar, Dist Kolhapur Milk lit/day 10 years
Medium Range Milk Collection
Shivamrut Dudh Utpadak Sahakari Sangh Maryadit, Shivamr 2.5 lakh More than
1
Akluj ut Milk lit/day 8 years
Sangamner Taluka Sahakari Dudh Utpadak Sangh Rajhans 2.47 lakh More than
2
Ltd, Sangamner Milk lit/day 9 years
Low Range Milk Collection
Rajarambapu Patil Sahakari Dudh Sangh Maryadit, Krishna 2.0 lakh More than
1
Islampur Milk lit/day 5 years
Pune Zillha Sahakari Dudh Utpadak Sangh Maryadit, Katraj 2.0 lakh More than
2
Katraj Dairy, Pune Milk lit/day 5 Years
Table 3.1 Milk collection capacities, Brands and ICT Experience

3.12 Geographical Area of Research: In the Map of Maharashtra, the marked area
shows the research area which researcher has selected for the study.

Six Dairy Cooperatives Spread over Five Districts

 Ahmednager District : One Dairy Co-operative

 Pune District : One Dairy Co-operative

 Solapur District : One Dairy Co-operative

 Sangali District : One Dairy Co-operative

 Kolhapur District : Two Dairy Co-operative

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 Map 3.1 : Map of Maharashtra

3.13 Data Analysis:

The data collected from primary sources was analyzed by using statistical tools
viz. percentage analysis, average analysis, deviations analysis etc. The hypotheses
were tested with the help of Chi-square test, paired student’s t-test and factor
analysis.

3.14 Software and Statistical Tests used for Analysis:

Microsoft Excel 2010 and SPSS-17 softwares are used for data analysis.
Microsoft Visio-2010 used for drawing various diagrams. Following statistical
tests were used for data analysis and hypothesis testing.

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1. Chi-Square Test:
The test is applied when two (or more) categorical variables from a single
population are available. It is used to determine whether there is a significant
association between the two (or more) variables.
The test procedure described is appropriate when the following conditions are
met:
 The sampling method is simple statified sampling.
 Each population is at least 10 times as large as its respective sample.
 The variables under study are each categorical.
If sample data are displayed in a contingency table the expected frequency count
for each cell of the table is at least 5.
In Hypothesis 1, the researcher has considered fifteen MIS reports related to the
implementation of ICT in the dairy cooperatives.
2. Student’s t-test:

This function gives a paired Student t test, confidence intervals for the difference
between a pair of means and, optionally, limits of agreement for a pair of samples
It is a test to compare sample means. It is conducted when:
 The data is too small.
 The data is Scaled (i.e. interval or ratio)
 The population mean is not known.
 The population Standard Deviation is not known.
In Hypothesis 2, the researcher has used a paired t-test to compare the mean
efficiency and effectiveness of dairy cooperatives having ICT implementation
experience of five or more years with the mean efficiency and effectiveness of
dairy cooperatives having less than five years of experience in ICT
implementation
In Hypothesis 4, the researcher used a paired t-test to compare the mean of
hardware and software problems.
The formula used for t-test is:
t = (x - m) / SE

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 where

t is the standardized variable,

m is the sample mean

SE is the Standard Error of the distribution.

SE is given by:

SE = s / sqrt( n ); where

S is the sample standard deviation

n is the sample size.

3. Spearman’s Test of Correlation

Spearman’s Test of Correlation is used when one has to see whether the two (or
more) data is significantly correlated or not. For this test,
 There should be two (or more) variables available.
 Corresponding data for both the variables should be available.
 The data should be ordered or ranked.
The formula used to find the Spearman’s rho is:
ρ = 1- {6D2/N(N2-1)}
where
D is the difference of corresponding ranks of the variables X and Y
N is the No. of observations.
Whether the Spearman’s rho is significant or not is tested by SPSS.
The researcher has used Spearman’s Test to find the correlation between the
degrees of computerization with the size of the dairy, both being ordered.
4. Factor Analysis:
 Factor analysis is a method for investigating whether a number of variables of
interest are linearly related to a smaller number of unobservable factors.
 Factor analysis attempts to identify underlying variables, or factors, that
explain the pattern of correlations within a set of observed variables.

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  Factor analysis is often used in data reduction to identify a small number of
factors that explain most of the variance observed in a much larger number of
manifest variables.
 Factor analysis can also be used to generate hypotheses regarding causal
mechanisms or to screen variables for subsequent analysis (for example, to
identify collinearity prior to performing a linear regression analysis).
 Under certain conditions, the theoretical variance of each variable and the
covariance of each pair of variables can be expressed in terms of the loadings
and the variance of the error terms.
In Hypothesis 3, the researcher has used a factor analysis for checking the contribution of
cognitive factors to implementation of ICT

5. Cross Tabulation:

Cross tabulation is used for creating a possibility table from the multivariate
frequency distribution of statistical variables. It is always used in survey research,
cross tabulations which can be produced by a range of statistical packages,
including some that are specialized for the task. A survey weight often needs to be
incorporated.
Researcher has used cross tabulation at various situations and has checkd
multivariate frequency.
6. Mean, Median, Mode and Frequency:

The mean, median and mode are used to obtain descriptive information about a
population from sample set of observed values

A) Mean: The mean (or average) of a set of data values is the sum of all of the
data values divided by the number of data values. That is:

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 B) Median: The median of a set of data values is the middle value of the data set
when it has been arranged in ascending order. That is, from the smallest value
to the highest value.

C) Mode: The mode of a set of data values is the value(s) that occurs most often.

D) Frequency: The frequency is the number of occurrences of a repeating event

per unit time. It is also referred to as temporal frequency.

3.15 Sample Size:

The research was focused on the Milk Co-operatives who have successfully
networked their IT set up in order to cover business application of various
department and sections. The sample is a randomly collected data from 6 office
in-charge, 28 IT department staff, 88 operators, 18 milk collection centers and 22
top management profesionals including HOD, Managing Directors. The stratified
convineant sampling method is used for data collection from selected Dairy
Cooperatives.

3.16 Limitations of the Study:

The research is based on ICT implementation more than five years in selected 6
Dairy Cooperatives with 161 respondents and less than five years in selected 12
Dairy Cooperatives with 51 respondents. The research study is focused only on
ICT Implementation which improves the services in Dairy Cooperatives. The
study is based on the feedback given by the sample respondents.

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 The Respondents were unenthusiastic to share the required information may be
because they thought it may be a part of enquiry conducted by an apex dairy
organization.
3.17 Chapter Scheme:

A brief outline of the chapters in which the study is presented as below.

Chapter I: Introduction to Dairy Co-operatives

This chapter provides an introduction to Dairy Cooperatives movement and its

significance, Operation Flood, origin of Dairy Cooperatives, need and objectives
of Dairy Cooperatives, dairy development status in India, Dairy Cooperatives
status in Maharashtra and growth of Dairy Cooperatives.

Chapter II: Need and Impact of ICT Implementation in Dairy Co-operatives

This chapter covers evolution of computers, need and various applications of

computers for business, different technical aspects considered in computerization
process, Hierarchy Chart, Roles, Responsibilities and Duties of authorities. This
chapter also covers areas of computerization, automation and profiles of various
computerized systems.

Chapter III: Research Methodology

This chapter provides scope and relevance of study; objectives, hypotheses,

methodology limitations of study, types of data, analysis techniques limitations of
research, Analysis technics, hypotheses testing methods and chapter scheme.

Chapter IV: Literature Review

This chapter covers brief summaries of referred books, theses, research articles
and research papers which covers Dairy Cooperatives services.

Chapter V: Case Studies of selected dairies

This chapter provides profile of various Dairy Cooperatives, and detailed case
study of ICT implementation in following manner.

 “Gokul” A Case Study of Kolhapur Zillha Sahakari Dudh Utpadak Sangh Ltd,
Gokul Dairy, Kolhapur

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  “Warana” A Case Study of Shree Warana Sahakari Dudh Utpadak Prakriya
Sangh Ltd, Warananagar.

 “Shivamrut” A Case Study of Shivamrut Dudh Utpadak Sahakari Sangh

Maryadit, Akluj.

 “Rajhans” A Case Study of Sangamner Taluka Sahakari Dudh Utpadak Sangh

Ltd, Sangamner.

 “Krishna” A Case Study of Rajarambapu Patil Sahakari Dudh Sangh

Maryadit, Islampur.

 “Katraj” A Case Study of Pune Zillha Sahakari Dudh Utpadak Sangh

Maryadit, Katraj.

Chapter VI: Data Analysis and Hypotheses Testing

This chapter summaries the data analysis, data interpretations and Hypotheses
testing. This chapter also explains the various charts and graphs.

Chapter VII: Findings and Suggestions

The concluding Chapter summaries the findings; conclusion drawn and suitable
suggestions made for effective IT implementation, scope for further study and to
improve the efficiency of various functional areas.

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