BDMR8033 QUALITATIVE RESEARCH INSTRUCTOR: DR.

ZALEHA OTHMAN Name: Muhammad Hariz Bin Hamid (Matric No: 93979) Name: Faizul Bin Awang (Matric No: 93961) i. ii. iii. iv. iConstruct qualitative research based on philosophy chosen; Qualitative topic Issue Problem statement: desired stage and actual stage Research questions: 2 research questions

The topic: Developing a risk management model for venture capital financed early-stage companies Challenges facing venture capital industry in Malaysia iiThe issue: Researches have shown that venture capital financed early-stage companies have been experiencing the highest level of risk in any business life cycle. This phenomenon has led to their failures so they ought to be abandoned and exit, let alone to grow and succeed. Problem statement: Desired stage: The venture capital financed early-stage companies should be attentive of the possible risks (losses) by way of having proper measures to detect the likelihood of the risks to exist and propose the best solutions to such unfavorable situations. Actual stage: Many venture capital financed early stage companies are not well equipped with the notion of proper risk management framework of which shows that they are lacking of appropriate system to measure the existence of potential risks and the best ways to encounter probable adverse situations. ivResearch questions: 1) What measures do the early-stage companies used to discover the existence of any potential risks? 2) How would these companies manage the variety of risks they encountered? 3) In what way are environmental factors and regulatory framework supporting or hindering the development of a venture capital industry in Malaysia?

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Methodology This study has been carried out based on qualitative method of data gathering and analysis with inductive approach. The inductive approach of logical reasoning according to Trochim (2006) begins with a specific observation and measurement of units leading to a broader generalization of ideas and theories. It is an approach of theorizing that generalizes research ideas from the experience of the researcher rather than reflection on theories and concepts (Remenyi et al., 1998 p.105). Gould (1988, p. 22) on

the other hand explained that because scientific research is a socially oriented activity, they are usually grounded based on the researchers vision and intuition which could be likened to inductive method of reasoning. The epistemological consideration for this thesis is phenomenological philosophy (also known as interpretivism or anti-positivism), using qualitative method with inductive approach. The choice of this research conduit invariable is due to the fact that it would help appropriately answer the research question of whether environmental factors and policy framework are supporting or hindering VC investment operations in developing countries with particular emphasis on malaysia industry. We inclined to believe that to provide answer to this question in an industry such as VC will require direct and active interactions with the phenomenon being studied. Therefore, the use of interview and other related pure qualitative data collection methods seems to be the appropriate choice for this thesis. This would also help in understanding the experiences of practitioners in the industry, hence the use of qualitative method with inductive approach for this thesis. The next sub sections would be used to explain the two main philosophies underlying the process of grounding knowledge.

Data collection methods

We used semi-structured face-to-face interview, document survey, and direct observations of operations of respective firms. Semi-structured interview is the type that could be described as mixture of both structured and unstructured interview. With this type of interviewing, predefined questions in an interview guide are presented to the respondents with active participation of the researcher. Unlike structured interview, respondents in this type of interview have the freedom to provide open answers that may not follow strict interview patterns (Flick, 2002, p.74; Saunders et al. 2009, p. 320). The use of semi-structured interview in research afford researchers the opportunity to probe for more information on responses that lacks clarity (Ritchie &Lewis 2003, p.111).

Document survey and direct observation methods According to Remenyi et al. (1998, p. 175), document study as a data collection tool is very helpful because it serves as a back-up support system in verifying spellings, titles and more importantly, providing print support system for specific details of oral accounts of respondents. The use of direct observation for collecting primary data has also become very common with qualitative studies due to the benefits of giving the researcher deeper understanding of the phenomenon being studied.