Doctoral Seminar

Research Methodology (Forschungsmethodik I) Prof. Dr. Roman Boutellier & Prof. Dr. Oliver Gassmann ETH Zurich & University of St. Gallen

What makes a good case study

Louise Muhdi Research Fellow

Michael Daiber Research Associate

ETH Zurich, Switzerland Chair of Technology and Innovation Management Kreuzplatz 5 CH-8032 Zurich lmuhdi@ethz.ch

University of St.Gallen, Switzerland Institute of Technology Management

Dufourstrasse 40a CH-9000 St. Gallen michael.daiber@unisg.ch

27.10.2008

Research in business and management relies both on quantitative and qualitative research methods and strategies. Case study research is the most commonly used qualitative research strategy in this field. The objective of this paper is to give an insight on the different uses of case studies especially in a research context. The question when to use case studies as research methodology will be analyzed. Further this paper presents an overview of the criteria and requirements that define a successful case study.

In case studies evidence and information can be collected through various sources such as interviews, observations, physical objects or the analysis of archival information. A combination of the different sources as well as the inclusion of quantitative data is possible. According to Yin (2003) the use of the different research strategies is based on the following three conditions: The form of the research question: How and why questions can be answered by case study research whereas quantitative questions like how many and how much are rather used for quantitative methods like surveys and archival analysis. The control an investigator has over actual behavioral events: Case study analysis does not require control over the investigated behavioral element as for example experiments do. The focus on contemporary instead of historical data: Case studies are predominantly used to investigate on contemporary phenomena Additionally Gassmann (1999) reduces the use of case studies to research when there are few objects of investigation.

In social science case studies are used in different contexts with different objectives. Assessment case studies are used for teaching in an academic and non-academic ambit. When used in teaching, the main reason for using case studies is their illustrative strength. Through illustrative case studies students get a better understanding of theoretical aspects especially in management. The other context where case studies are widely used is research. But also within their use in research case studies are employed in the following ways with different objectives: Descriptive case studies are used to describe an event/ process in its natural ambit. The main objective is to answer how, who and what questions (Yin, 2003). Inductive or exploratory case studies are used to illustrate a research field with few theoretical knowledge (Siggelkow, 2007). Exploratory case are a means to develop a new theory in a field where "not much is known" (Eisenhardt, 1989). However one has to be cautious about developing a completely new theory, as fields described as "uncharted waters" can turn into well known ones through minimal effort in literature research.

Grounded theory is often falsely used as a synonym for inductive case study research especially in a managerial science context. Grounded theory in its original meaning "discovers" a theory directly from empiric raw data instead deriving it from case studies. (Locke, 2001, p. 106) Exploratory case studies try to validate, confirm, falsify or adapt a given theory. Especially this use of case studies is often regarded with a certain skepticism as generalization and validation is a field where quantitative research and experiments are seen as the only appropriate methodologies by many researchers (Yin, 2003). The importance of the illustrative strengths of case studies should not be neglected in a research context as case studies in research are used to sell ideas (The Economist, 2002).

Case study research has some important strengths compared to quantitative methods and experiments. Case studies describe the real world without influencing or simplifying it. Theories can therefore easily be tested on real world examples. As phenomena first appear in real life, (inductive) case study research, describing real world phenomena, is also an important tool in theory building. On the other hand case studies are often criticized as less powerful and less convincing than quantitative methods based on surveys or research experiments. The main objections are the small number n of analyzed cases and the non-representativeness of analyzed cases. Quantitative methods in social science have the big advantage of possessing a powerful measure of validity called "statistical significance" (Siggelkow, 2007). Therefore, when compared to quantitative research, results from case studies are often seen as not generalizable. In order to reduce skepticism towards case study research concerning generalizability multiple case studies and the methods resulting from these (triangulation, cross-case analysis) can be used(Yin, 2003). The comparison between different cases and theory helps to definef a domain where the case study's results are valid and help to achieve external validity (see also next paragraph) Moreover not everything important in an economic managerial ambit can be described and measured quantitatively or adequately described by statistical methods. An example of phenomena that can better be described as case studies are first cases, extreme cases, critical cases, differing cases or unique cases (Gassmann, 1999). When analyzing the evolution of assembly lines in automotive companies in 1908 statistical and quantitative analyses about their success and their savings potential would not have made sense. In this time assembly lines were a new phenomenon and therefore the manufacturing of the Ford Model T was a first case that could only be described by a case study. Another objection against case studies, the size of the documents and their often unclear structures. These last, more formal objections can be met by observing basic requirements concerning a case study displayed in the next paragraph.

In this paragraph requirements for case studies in research will be described and structured in two categories: conceptual requirements of case study research on one hand and structural requirements of a written case study on the other hand.

In order to be convincing and credible with its case studies a researcher must follow certain requirements. Yin (2003, p. 34) and Siggelkow (2007) give an overview of the most important Construct validity describes whether the case study gives support to the intended interpretation of the variables. In order to increase construct validity multiple sources of evidence should be used. Key informants should review the draft of the written case study in order to avoid misunderstandings. Through maintaining a chain of evidence an external observer can follow the steps from the initial research question to the case study results. Internal validity is especially important for explanatory or causal case studies, it has no relevance for exploratory or descriptive case studies. When establishing a causal relationship between event x and event y , you should be sure that the cause for event y is the event x and there is no alternative explanation or other possible cause. Analytic tactics like pattern matching and explanation building, addressing rival explanations and the use of logic models help defining causal relationships. External Validity describes to which extent the findings of the case study can be generalized to an entity (population, organization, group, country, industry). In order to establish external validity in a case study research, theory can be used in a single case study design. In multiple-case study designs "replication logic" is a way to establish external validity. This means that every case study can be considered as an experiment by itself and should be used to replicate previous cases or to expand emergent theory. Reliability is an internal requirement of case study. Exactly as if you repeat the same experiments there is the expectation that a second analysis of the same case would bring similar results. A good documentation of case study research (trough protocols or a database) helps to demonstrate that your case study meets the reliability requirements.

A case study based on scientifically and conceptually evidence is far from being a successful case study as the main addressee of the case study, its reader, has the final decision on whether a case study is perceived as good. Therefore the structural requirements of the written case study are not less important than the requirements presented above. Besides citing the general quality requirements of case study research in his "ten ingredients for a good case study" Abell (1997) has a special focus on the "soft success factors" of a case study. Although he is arguing from a teaching case study background most of his insights can be applied to the use of case studies in research:

Relevance for the audience: A case study has to be written in a manner that the recipients, the readers of the article, book or dissertation, perceive the importance of the described topic. This seems to be self-evident but has to be stated. Voyage of discovery: The readers interest in the topic when the readers of the case study are taken on a "voyage of discovery" and face unexpected or even contraintuitive insights. This will also improve the impact of the publication. Controversies: A case study that excludes every evidence that is controversial to the theoretical state of the art can appear unrealistic. It is therefore important to describe the case as close as possible to reality and not to omit contradictory perspectives and circumstances. Include all necessary data but not too much: A case study has to include all data to convince with internal validity. There is however a risk that researchers that were working intensively on a topic tend to include too much data in their case studies as everything appears essential. If overloaded with important amounts of not necessary data a case study will turn into a huge and unreadable documents, which is often criticized by objectors to case studies in social science research. Formal structure and elaboration: Case studies should be written in a manner that the reader does not quit reading after few lines. Therefore a clear structure and a well written text is a basic requirement for a case study. Another important formal success factor case studies is their size. As long as necessary information is displayed there is a simple message to observe: "Less is more".

Due to their practical orientation case study based research is very commonly used as a research strategy at both the Institute of Technology Management at the University of St.Gallen and the Chair of Technology and Innovation Management at the ETH Zurich. Furthermore in our common research project about idea generation through Crowdsourcing in different industries case studies will play an important role. Therefore a knowledge about the possibilities and the limits of case study research is especially important for our research projects, publication projects and dissertation projects in the area of technology and innovation management. A main insight we got through investigating on case studies is to which extent the planning of our case study and our research design is critical for the success of the case study. Another important learning is the importance of appropriate writing style for a case study's success. When The literature used to write this paper will certainly be used and cited in our future works.

Abell, D. (1997). What makes a good case? Features, pp. 4 - 7. A short manual with 10 steps to achive a successful case study. Although having a clear focus on teaching case studies most Abell's recommendations are valid in research case studies as well. The main focus is on how to write a case study in a readable and structured way.

The Economist, (2002, August 17). Economics focus The fruits of fieldwork. The Economist, 60. An article that makes in clear through examples that not everything an economist finds important can by analyzed and illustrated through statistics. Even though questioning whether case studies or fieldwork bring really new insights one big advantage of case studies is described: selling ideas.

Eisenhardt, K. M. (1989). Building theories from Case Study Research. Academy of Management Review , pp. 532 - 550. This paper describes a process of building theories through inductive case studies in areas with few previous knowledge. It gives an insight on when theories can be built on case studies and describes the process in eight steps. Through comparison with other papers on case study based research an extensive overview about literature on case studies is included.

Gassmann. (1999). Praxisnhe mit Fallstudienforschung. Wissenschaftsmanagement , 3 pp. 11-16. A guide about the use if case studies in research about technology management. Gassmann describes how and when case studies can be used in early research stages. A special focus lies on methods to be used while doing case study research.

Locke, K. (2001). Grounded theory in Management Research. Thousand Oaks, London, New Dehli: Sage Publications. Locke describes how the research strategy of grounded theory can be used in management. She describes what is called "gounded theory" in research papers an how research through inductive case studies differ from original grounded theory.

Siggelkow, N. (2007). Persuasion with case studies. Academy of Management Journal , pp. 20 - 24. Siggelkow gives an overview of the main requirement a researcher has to fulfill in order to convince critical with his case study research. He describes conceptual as well as formal and structural requirements for a successful case study.

Yin, R. K. (2003). Case Study Research - Design and Methods. Thousand Oaks, London, New Dehli: Sage Publications. A classic on case study based research. This book includes instructions for the execution and documentation of case study based research. It shows how to structure and analyze case studies. Every chapter has a short summary at the beginning and questions in the end for a better understanding. This book must be read by anyone who thinks about using case studies in his dissertation.

Yin, R. K. (1981). The Case Study Crises: Some answers. Administrative Science Quarterly , pp. 58-65. In this article Yin answers the criticisms about the case study research publiched by different authors the years before and gives advice on how to design case studies to refute their arguments.