Validity and Reliability

The data, which collected, should be valid and reliable. Easterby-Smith (2002) thought validity is a question of how far we can be sure that a test or instrument measures the attribute that it is supposed to measure. George Kelly defined validity as, «The capacity of a test to tell us what we already know» (Bannister and Mair, 1968). Easterby-Smith (2002) states reliability is primarily a matter of stability. If the collected data were not accurate, relevant and couldn’t pertain to the topic, for example: if it were not valid, the data would be useless.

In order to create the valid and reliable knowledge, my interviewees are people working with MCS and IFRS directly, namely head of economic department, head of financial department and head of filial.

Validity refers to the degree to which a study accurately reflects the specific concept that the researcher is attempting to measure or describe. While reliability is concerned with the accuracy of the actual measuring instrument or procedure, validity is concerned with the study’s success at measuring what the researchers set out to measure. With other words, validity is often defined by asking the question: Are you measuring what you think you are measuring? (Kerlinger, 1979, P.138, cited in Kvale, 1996, P. 238) Researchers should be concerned with both external and internal validity.

Yin (1989) suggested using multiple sources of evidence as the way to ensure construct validity. The method of having a variety of data collecting techniques in research, so it is called data triangulation and is the central rules in my research. In order to increase the

validity, based on some similar implementation process, I collected data both from primary and secondary sources.

Reliability is generally seen as a very difficult concept in qualitative research, especially when it is defined as ‘the extent to which studies can be replicated’ ( Le Compte and Goetz, 1982).

Researchers should evaluate stability and transparency in how sense it was made from the collected data. As a researcher, it doesn’t mean to record all you hear from the interviewees.

Get answers what researcher need, and guide interviewee tracing the questions what you want to ask. By investigator triangulation, it will keep the reliability. Reliability is enhanced by the triangulation of data collection and multiple analysis methods (Yin, 1989). Reliability is understood that different researchers investigating the same issue would get the same observations, or the same findings. In order to increase the reliability of my research, I not only portray from the interviews but also to browse the formal and official website or companies’ annual report. Using all kinds of different materials to prove and eliminate the bias from the individual. It will give me possibility to evaluate the problem from different points of view.

According to the principle of reliability, I considered some factors. First, the enterprise selected should have a very good foundation in accounting, so as to enable me to be able to collect the enterprise’s archives and reporting framework intact. Second, the enterprise chosen is representative enough in order to draw some conclusions about IFRS introduction. The present research is aimed:

· To describe differences/similarities of IFRS adoption in one Norwegian and one Russian Bank,

· To analyze these differences based on accounting and institutional theory,

· To understand challenges of IFRS adoption.

To fulfill this, it relies upon a mix of qualitative and interpretative techniques. Interviews with employees are viewed as the major tool of data gathering. Data is obtained and reinforced from different sources, entailing document search, informal interviews and

participant observation. This means that multiple sources of evidence are applied, and that data is triangulated from different “texts” and sources. In doing so, the aim is to increase the validity of the project, to generate a better and clearer understanding of the phenomenon, as well as to provide rich opportunities for further research.

The current situation in these banks is completely different. IFRS is completely introduced in SpareBank and they use this system as primary one. Of course they have some challenges connected with that system. The main one is that IFRS was designed for large corporations, but not for medium-sized banks. It takes a lot of time to prepare information, which is required to be in accounting report. Further, IFRS provides some information, which has no value, medium bank just do not need it.

From the other side, IFRS is introduced in Tavricheskiy de jure, but not de facto. It exists only because Central Bank of Russia requires it. But information, provided by that system is used completely. There is one person, responsible for IFRS preparation. She claims that the bank simply does not need such a system. “We do not have foreign investors, clients or partners, so there is no need of such a huge system.”

Despite interviews with employees are viewed as the main source of data gathering in my research, data will be obtained and reinforced from different sources, entailing document search, informal interviews and participant observation. This means that multiple sources of evidence are applied, and that data will be triangulated from different “texts” and sources.

In my opinion this strength point of triangulating data from different sources will help me to minimize risks from interview. I am aware of the fact that interviewee can provide researcher with “a language system delivering a partial and particular type of socially created perspective on everyday life” (Hopperet al., 1987). He may cheat or lie, or he may tell the exact truth as he perceives it but in, for him, selective and favorable views (Alvesson, 2003).

Another risk with the chosen design is connected with a high rate of power distance in Russia, if we talk in terms of G. Hofstede. It was not easy to appoint an interview with a member of top management of Russian bank. From the previous experience, many of them are usually not orientated on any kinds of research or educational activities. So, it is almost impossible to

with people, who are in touch with them. After this problem will be solved, it will be the next great challenge for me while interviewing persons from the top management of the companies, because they, probably, don’t perceive the information concerning strategic management of their company, their objectives and everything connected with strategy as a

“common knowledge”, they would prefer it as a “commodity for sale” (Merton, 1973). So, it is not obvious, that you will get desirable information while interviewing a top manager of Russian company; in most cases he/she will give you an evasive answer.

Considering above-mentioned risks of interviewing I have chosen multiple sources of evidence, and by doing so I will try to triangulate data from different texts and sources.