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Strategic Management Practice: 

A Case Study of the Port of Tauranga Ltd 

A 152.787 (75 point) thesis 
presented in partial fu lfilment 

of the requirements for the degree of 

MASTER OF BUSINESS STUDIES 

in Management 

at Massey University, 
Palmerston North, New Zealand. 

Jennifer M. Doughty 

2000 



ABSTRACT 

The development, implementation, and results of strategic initiatives are important 

issues for organisations, and become critical when radical changes occur in the business 

environment. 

In the period 1989 to 1992 legislation was introduced to reform the New Zealand ports 

sector. The scope of the reforms was extensive and has influenced business operations 

in this sector over the past decade. This thesis reports a study carried out to identify 

strategic initiatives taken by Port of Tauranga Ltd to respond to those changes. Two 

particular strategic initiatives were investigated: the development of container port 

facilities at Sulphur Point, Tauranga, and Metroport, Auckland. 

A case study research approach was adopted. Multiple research methods were used to 

gather information for the study and to analyse the results. Preliminary studies were 

carried out in 1999 to identify research issues. An experience survey was designed to 

gather a range of perspectives from people with knowledge and experience of the 

company. Documents and records were analysed to track strategies conceived and 

implemented by the company in the research period. Experiences of Port of Baltimore 

in establishing container port facilities were reviewed; issues and trends relevant to this 

research study were identified. 

The analysis revealed congruence with some theoretical aspects of strategic 

management. Strategic intentions were identified in relation to business initiatives. 

Outcomes were assessed and conclusions were reached about whether expectations for 

Sulphur Point and Metroport were realised. The innovative nature of these 

developments was examined and has relevance for strategic management practice. 

ii 



ACKNOWLEDGEMENTS 

Without the cooperation of many people this study could not have been completed. I 

would like to thank Athole Herbert for agreeing to participate in a preliminary study in 

1999, and for his encouragement to persevere with the aspiration to research strategic 

management practice at Port ofTauranga Ltd. 

Participants in the study were generous with their time and observations and I 

acknowledge their contribution. The experience of meeting this diverse group and the 

challenge of exploring research issues with respondents was enlightening. A feature of 

the project was the willingness of these busy people to generously share their time, 

experiences, and convictions. 

The initial contact with the company was with Tony Reynish. I am grateful for his 

assistance in coordinating my various requests. I acknowledge the help of Jo Barnett 

who located records and documents. My sincere thanks go to Jon Mayson, who 

authorised access to people and information. 

I would like to acknowledge the support and insights provided by my supervisors, Dr 

Robin Smith and Pat Kelly, and by Dr Astrid Baker, course co-ordinator. They provided 

valuable advice and guidance throughout the project. Dr Baker and Dr Stephen Legg 

were course co-ordinators for papers completed in 1999 that were sources of background 

information for this thesis. They provided constructive views and advice. 

My family has given their support and encouragement throughout this research study. I 

could not have completed this thesis without the support, endurance, and understanding 

of my husband, Ross Doughty. 

111 



TABLE OF CONTENTS 

ABSTRACT ii 

ACKNOWLEDGEMENTS iii 

Chapter One - Introduction 

l.l Background 1 

1.2 Purpose of the study 2 

1.3 Strategic management 3 

1.4 Thesis structure 4 

Chapter Two - Literature Review 

2.1 Introduction 6 

2.2 Port sector reform 6 

2.3 Strategic management 11 

2.3.1 Forms of Strategy 11 
2.3.2 Patterns of Strategy Development 14 

2.4 Strategy Outcomes 22 

2.4. I Strategy influences 25 

Chapter Three: Design and Method of Research 

3.1 Introduction 28 

3.2 Research Strategy 30 

3.3 Research Approach 31 

3.4 Research Methods 34 

3.4.1 Data Collection 36 
3.4.2 Experience Survey 40 
3.4.3 Interviews 42 

3.5 Data Organisation 48 

lV 



3.6 Data Analysis 48 

3.6.1 Preliminary Studies 49 
3.6.2 Document Analysis 50 
3.6.3 Analysis oflnterviews 50 
3.6.4 Port of Baltimore 52 

3.7 Ethical Issues 52 

Chapter Four: Research Results 

4.1 Introduction 54 

4.2 Perspectives and Experience 54 

4.3 Reform of the New Zealand Ports Sector 56 

4.3.1 Reform Process 56 
4.3.2 Waterfront Employment 57 
4.3.3 Reform Consequences 59 

4.4 Transition Issues 60 

4.5 Strategic Management 61 

4.5.1 Strategic Planning Processes 61 
4.5.2 Port Development 62 
4.5.3 Development of Sulphur Point Facilities 62 
4.5.4 Development ofMetroport Facilities 68 

4.6 Strategy Changes 73 

4.7 Internal Influences on Organisation Strategy 73 

4.7.1 Organisation Direction 73 
4.7.2 Corporate Governance 75 
4.7.3 Financial Performance 77 
4.7.4 Shareholder Expectations 81 
4.7.5 Management Culture 81 
4.7.6 Business Ethics 83 

4.8 Industry Factors 83 

4.8.1 Industry Policy 84 
4.8.2 Market Factors 85 
4.8.3 Competition 89 
4.8.4 Transport Infrastructure 92 
4.8.5 Technology 93 
4.8.6 Business Risks 94 

v 



4.8.7 
4.8.8 
4.9 

4.9.1 
4.9.2 
4.9.3 
4.9.4 
4.9.5 

Chapter Five: 

5.1 

5.2 

5.3 

5.4 

5.5 

5.6 

5.7 

5.8 

Chapter Six: 
6.1 

6.2 

6.3 

6.4 

6.5 

6.6 

REFERENCES 

APPENDICES 

Appendix 1: 

Appendix 2: 

Appendix 3: 

Appendix 4: 

Business Opportunities 
Industry Trends 
External Influences on Organisation Strategy 

Political and Regulatory Influences 
Economic Influences 
Environmental Influences 
Social and Cultural Influences 
Port of Baltimore Experience 

Discussion 

Introduction 

Port Sector Reform 

Transition Issues 

Strategic Management 

Development of Sulphur Point Facilities 

Development of Metro port Facilities 

Influences on Strategic Management 

Strategy Development 

Summary and Conclusions 
Introduction 

Strengths of the Study 

Limitations of the Study 

Further Research 

Summary 

Conclusions 

Letter to Interview Participants 

Consent Form for Interview Participants 

Interview Template and Topic Guide 

Schedule of Participants 

Vl 

95 
96 
98 

99 
99 
101 
103 
104 

109 

110 

112 

113 

117 

118 

120 

125 

127 

127 

128 

128 

129 

131 

134 

141 

141 

142 

143 

149 



UST OF FIGURES AND TABLES 

Figures: 

2.1 Forms of Strategy 13 

2.2 Patterns of Strategy Development 15 

3.1 Research Issues and Analysis Framework 49 

4.1 Local Government Shareholding of NZ Port 
Companies 1997 76 

4.2 Percentage Change in Share Market Prices 80 

4.3 Forecast Recoverable Volumes Growth by Region 
from 1 April 1999 88 

Tables: 

3.1 Six Sources of Evidence: Strengths and Weaknesses 35 

3.2 Comparison of Major Survey Methods 39 

4.1 Duration of Association with Port of Tauranga Ltd 55 

4.2 Roles and Relationships 55 

4.3 Operating Statistics 59 

4.4 Growth in Container Trade at Port of Tauranga 67 

4.5 Port of Tauranga Ltd Share Values 77 

4.6 Financial Indicators 1996-2000 78 

4.7 Port ofTauranga Ltd Asset Valuation 79 

4.8 Instruments of Industry Policy 84 

4.9 New Zealand Container Growth 86 

4.10 Container Volumes for Ports of Auckland, Lyttleton 
Port Company and Port ofTauranga 1996-2000 86 

4.11 Port of Tauranga Economic Impact Comparisons 
for 1993 and 1998 100 

Vll 



CHAPTER ONE INTRODUCTION 

1.1 BACKGROUND 

The original decision in 1950 to build a deep-water port at Mount Maunganui was based 

on the need to provide port facilities for forestry exports from forest resources in 

Rotorua, Taupo, and Bay of Plenty regions. It was recognised that growth in primary 

products from the region would expand and the proposed port may also ultimately be 

used for exports of dairy, meat, and horticultural produce. Port development 

commenced in 1953, with the first stage completed for use during 1955 (Hansen, 1997, 

p.80). Port of Tauranga Ltd now handles more export tonnage than any other port in 

New Zealand, is highly dependent upon the export of primary products, particularly 

logs, timber, and dairy products, and is vulnerable to changes in export demand for these 

products. 

In 1973 the United Kingdom was admitted to the European Community (EC). This 

move had been signalled for many years, but New Zealand had done little to diversify 

export products and markets. At the same time the world was coming to terms with the 

first of the oil price shocks and the major recession that followed. Scollay and St John 

(1996) recount that the effects of the oil shock on the New Zealand economy resulted in 

a negative growth rate in 1976-78. The country was heavily reliant on imports of oil and 

petroleum based products and this contributed to a rise in import prices. The effects of 

the oil shock fed into higher import prices for other products and as the terms of trade 

deteriorated there was a significant rise in the inflation rate. By 1978 there was a huge 

internal budgetary deficit, high inflation, and unemployment rates were climbing~ actual 

living standards declined. The second oil shock of 1979-80 impacted upon the economy 

again. The economic situated deteriorated between 1980 and 1984. The fourth Labour 

Government was elected in 1984 and embarked upon a reform programme to deregulate 

sectors of the economy and industry. The incoming government was committed to 

1 



reviewing the nature and extent of government interventions in the economy. Pickford 

and Bollard (1998) summarise the effects of the reforms: 

The reform process was designed to free the market system from government 

regulation wherever possible. Included were major deregulations in the finance, 

transport and energy sectors; reform of the labour market; . . . the termination of 

state-regulated monopoly rights; the introduction of new light-handed business 

rules for competition policy and utility regulation; . . . The speed, size and 

sequencing of these reforms pushed New Zealand industry, and the economy at 

large, into a restructuring recession from 1986 to 1991, in which many 

manufacturers gave up domestic operations or went out of business entirely. 

Almost all were forced into new management strategies, operational cuts and 

labour reductions, and corporate restructuring. Government investment 

programmes dropped to very low levels, and the newly corporatised State Owned 

Enterprises, under pressure to become profitable, cut costs by massive reductions 

in their labour forces. The reforms left slimmed-down enterprises across almost 

all industries and sectors, together with substantial unemployment in the 

economy (p.9). 

It was against this background that reforms were initiated in the New Zealand ports 

sector in 1988. 

1.2 PURPOSE OF THE STUDY 

Port of Tauranga Ltd evotved out of the former Bay of Plenty Harbour Board after 

deregulation of port and waterfront industries in the period 1988-1992. The company 

faced significant internal and external challenges to compete in this newly deregulated 

industry sector, and has initiated strategic and structural changes in the past ten years. 

This research project aimed to examine two major strategic initiatives undertaken by 

Port of Tauranga Ltd, and to assess the relationship between strategy intentions and 

outcomes for these particular initiatives. The research study sought to investigate: 

2 



In the period 1989-1999 what major strategic initiatives did Port of Tauranga Ltd 

take to respond to changes in business conditions after deregulation of the New 

Zealand ports sector, and are the outcomes of those strategies consistent with 

intentions? 

The preliminary investigation led to development of specific objectives: 

1. To investigate strategic management decisions that led to the development of 

Sulphur Point container port facilities, and to identify strategic intentions and 

outcomes. 

2. To investigate strategic management decisions that Jed to the establishment of 

Metrooort. an inland terminal in the industrial heartland of South Auc1<1an<1, and 

to identify strategic intentions and outcomes. 

The study sought to identify reasons for development and implementation of these 

particular initiatives, to identify issues and factors that influenced strategy development, 

to examine the relationship between strategy intentions and outcomes, and to identify 

significant changes in strategy. 

The project provided an opportunity for practical investigation and analysis to produce a 

case study of strategic management practice in a New Zealand business organisation 

over a recent period of business history. 

1.3 STRATEGIC MANAGEMENT 

The development and implementation of management strategies and the results of 

strategic management in practice are major issues for organisations. How to achieve 

quality strategic management outcomes is a recurring theme in management literature, 

as is the debate on what constitutes quality outcomes. Mintzberg and Waters (1985), 

Mintzberg, Quinn, and Goshal (1998), draw attention to the relationship between 

leadership plans and intentions, and what organisations actually do. There is a lack of 

3 



information on the relationship between intended and actual outcomes of strategic 

initiatives, and the need to identify strategies that have emerged during implementation. 

Strategies may be developed deliberately to address specific events or business 

conditions, and strategies may emerge in response to changes in the business 

environment. 

Strategy development does not occur m a vacuum. An associated issue is the 

identification of conditions, influences, and occurrences that stimulate changes in 

strategy development patterns in organisations. Results of strategies may be markedly 

different from intentions, and perspectives on outcomes and impacts of management 

decisions may vary in actual business situations. Investigation and analysis is required 

to identify ways in which strategic intentions are formulated, how strategic outcomes are 

identified, and the quality of, and relationship between, strategic intentions and 

outcomes. Organisations do not always include a feedback loop to assess these 

important relationships, and to identify reasons, positive and negative, for variations. 

1.4 THESIS STRUCTURE 

Chapter One sets out the background to the development of Port of Tauranga and 

establishes the historical context to the research study. The purpose and objectives of 

the study are explained. 

Chapter Two provides information and references to research studies and literature 

sources that are relevant to research themes: port sector reform. strategic management, 

strategy outcomes. 

Chapter Three describes the research design and methods. The rationale for adoption 

of the case study research strategy and qualitative research approach is presented. 

Research methods are described. The range of data collection methods is identified and 

the relationship between multiple methods and validity of data is explained. The model 

developed by Mintzberg and Waters (1982) for "Tracking Strategy in an Entrepreneurial 

4 



Finn, (p.467) is presented in an abbreviated form. Rationale for the selection of the 

experience survey method is presented. The basis for data analysis is explained and an 

analysis framework is produced. Ethical considerations for this research study are 

identified. 

Chapter Foui reports research results. The results are related to the research analysis 

framework. Industry factors are presented, and internal and external influences on 

strategic management are identified. 

Chapter Five relates research results to the original research purpose and objectives, 

and to research issues and themes. The significance of particular findings is explained. 

Chapter SixJ presents a summary of the research study. Strengths and limitations of the 

study are identified and recommendations are made for further research. Conclusions 

about strategic management at Port of Tauranga Ltd over the research period are drawn 

from the research results. 

5 



CHAPTER TWO LITERATURE REVIEW 

2.1 INTRODUCTION 

Three main research themes are explored in this literature review: 

(1. Port sector reform. u 
2. Strategic management. 

3. Strategy outcomes. 

2.2 PORT SECTOR REFORM 

Port sector reform was part of an extensive reform programme introduced by the fourth 

Labour Government in the 1980s. The thrust of the reforms was to separate state and 

commercial activities and responsibilities. The background to the reforms is addressed in 

the literature and is relevant to understanding the context in which reform of the ports 

sector occurred. 

Scollay and St John (1996) discuss fluctuations in the New Zealand economy from 

colonial days to the modem economy. They identify 1984 as the starting point of a 

"period of the most far-reaching and dramatic economic change, probably without 

precedent in New Zealand's history" (p.81). They consider: 

The essential feature of Rogemomics was a new-found faith that market forces 

are best at finding efficient outcomes for the economy, and this in tum implied a 

vastly reduced role for government in the economy. Deregulation involved a 

drastic reduction in the degree of government control over the ways markets 

operate. Over the years a vast array of rules and regulations had accumulated, 

affecting virtually every market in the economy, and dealing with such issues as 

prices, hours of business, entry of competitors into the market, the range of 

business that individual firms could conduct, and so on. (p.82). 

6 



In a discussion of economic trends and economic policy, Hawke ( 1992) explains: 

The Government tried to separate state commercial activities and organize them 

as state-owned enterprises with clear commercial objectives. The essence of the 

SOE reorganization was to facilitate monitoring of efficient use of assets which 

are owned by the public, entrusting commercial objectives to management while 

reserving social considerations for the Government which can contract with an 

SOE where social and commercial considerations conflict (p.439). 

Sinclair (1991) draws attention to the right-wing nature of the ' revolution'. He recalls 

that "The years 1984-1990 saw numerous and rapid changes which many people found 

bewildering. The only comparable periods of change were the eighteen-nineties under 

the Liberals and the nineteen-thirties under Labour . . . the changes at those times were 

left-wing" (p.323). McRobie (1992) considers that "business and financial leaders were 

generally extremely supportive of the radical overhaul of the economic infrastructure" 

(p.405). He notes that in the short-term the economy boomed as controls were removed, 

but there was a social cost as inflation also rose. These writers draw attention to the 

radical nature of the reform programme. 

The timeframe, scale, and scope of reforms are confirmed by Kelsey (1997). She locates 

the 1984 economic summit as the time when the Labour Government confirmed support 

for reform. She captures the scope of the reforms: 

In short order, the government 

• removed import licensing; 

• removed exchange regulations; 

• reduced tariffs; 

• removed price controls on almost everything; 

• removed production and distribution controls in individual industries and 

services; 

7 



• deregulated finance markets; 

• amended the Commerce Act to focus on efficient competition; 

• repealed the Economic Stabilisation Act to limit ministerial powers of 

intervention; 

• abolished many consultative and advisory organisations; and 

• transferred responsibility for regulatory control increasingly from the 

legislature and Executive to the judiciary (p.85). 

The strategy for exposing 'fortress New Zealand' to the global competitive 

market-place centred on three elements: eliminating industry assistance; 

withdrawing border protection from domestic producers and financial 

institutions; and shifting the regulation of capital, goods and labour from the 

state to the market (p.86). 

The policy objective of shifting the regulation of capital, goods and labour from the state 

to the market was translated in real terms in the ports sector to the dismantling of 

harbour boards and their replacement with corporate structures, and deregulation of 

waterfront employment. Capital and labour had been highly regulated in the ports sector 

prior to the reforms. 

The experiences of the New Zealand ports sector did not occur in isolation. Boston, 

Martin, Pallot, and Walsh (1996) analyse public sector reforms, with particular emphasis 

on public sector management. They identify pressures for reform and key legislative 

components: the State Owned Entreprises Act 1986, the State Sector Act 1988, and the 

Public Finance Act 1989 (p.58). They explain that ports were among a group of state 

trading enterprises that changed their status through the corporatisation and privatisation 

reforms introduced in the mid 1980s. fhP-ir ownership status changed from local 

government ownership to a "mix of private investor and local authority ownership" 

(p.66). They set out a table of public sector trading enterprises that identifies their 

original status and their eventual post-reform status (p.66) .• 

8 



This was the political and economic background which set the scene for reform of the 

New Zealand ports sector. Harbour Boards were operating under many of the 

restrictions and regulations described in the literature. While port companies were to 

retain a component of local authority ownership, separation of government and 

commercial activities underpinned the nature of port sector reforms. 

In 1988 F. McKenzie was Chairman of the Bay of Plenty Harbour Board. There were 

eleven board members~ some represented sectoral interests. Port ofTauranga operations 

were overseen by the General Manager, M. Williams, and Harbour Board Secretary, A. 

Herbert. According to one observer "not a great deal of discretion was delegated to 

senior management in contrast to the more business-like attitude of the current Port 

Company Board". Prior to 1988 New Zealand harbour boards had operated under a 

plethora of restrictions on the type of activities they could undertake. They existed to 

provide port facilities for their local region and there was little scope for competition 

between ports. The role of the Minister of Transport was pivotal in determining the 

nature and scope of activities undertaken by individual ports. Harbour Boards applied to 

the Minister for capital funding and had to justify their proposals. Funding was 

contestable and other Harbour Boards could oppose grants of funds for activities they 

felt would result in competition for shipping business. ln contrast, the role of the 

Minister of Transport in the deregulated environment is to establish the public policy 

framework within which port companies operate, and to integrate objectives for this 

sector within the overall government policy framework. The Minister continues to have 

a role in listening to concerns of shippers and other port users, and in endeavouring to 

ensure port companies provide competitive, cost-effective services for the sector. 

Cavana, Harrison, Heffernan, and Kissling (1998) examine port reforms in a specific 

industry study of the freight transport industry. They explain that the 1984 Labour 

Government instigated a review of the costs of onshore transport and of handling 

cargoes. The Port Industry Review Committee proposed a new port policy in 1986, and 

the government initiated a two-stage approach to the reform process. The initial thrust 

would be to restructure and refocus port authorities to achieve a commercial approach to 

9 



the waterfront industries. The second stage was to address the attitudes and operations 

of the waterfront labour force to enable competition for handling cargo and manning 

ships. (Bureau of Industry Economics, 1995, p. 112). 

The Freight Industry study is part of a broader business and economic analysis of a 

selection of New Zealand industries produced by Pickford and Bollard (1998). They 

explain that "the industry case studies present a wide range of experiences with respect 

to history, regulation, and underlying production technology; to market structure, firm 

behaviour, and international competitiveness, and to performance outcomes in terms of 

efficiency, costs and profitability" (p.7). These case studies illustrate that the reforms 

introduced in the mid 1980s had far reaching consequences for many New Zealand 

industries, including the ports sector. 

There has been extensive analysis of historical, political, and economic issues that led to 

the reforms. There has been limited scope for analysis of the reforms to attempt to 

assess whether intended social and commercial objectives were achieved. This is partly 

because restructuring and realignment continued throughout the 1990s. 

In 1995 an independent review of the New Zealand state sector management framework 

was commissioned by the State Services Commission and The Treasury. Professor 

Allen Schick was asked to carry out an independent study. While this study was not 

designed to be a review of the reforms, inevitably the outcomes of reforms were a 

consideration. Schick (1996) notes: 

Not every aspect of reform in New Zealand has worked out as expected. 

Although its reforms have been more comprehensive and rigorous than those 

introduced in other countries, they have been neither complete nor perfect; their 

effectiveness has depended on the manner in which they have been implemented 

as well as on underlying concepts and doctrines. . . . The difference between the 

high and low performing organisations is not just a matter of getting the right 

people for the job - although effective leadership does make a big difference -

10 



but also requires that missions and resources be properly aligned and that each 

organisation dearly knows what is expected of it (p.3). 

Schick' s analysis applies to the ports sector. The reforms were extensive, and whether 

they were successful or not depended upon the philosophy and manner in which they 

were implemented. His comments regarding leadership, personnel, and strategy have 

parallels in the experiences of the ports sector. The Port Companies Act 1988 delineated 

what was expected of the newly formed organisations: "The principal objective of every 

port company shall be to operate as a successful business" (S5). The issues of effective 

leadership and alignment of missions and resources are explored in this research study of 

strategic management at Port ofTauranga Ltd. 

2.3 STRATEGIC MANAGEMENT 

The reform process was used to introduce corporate ownership structures and strategic 

management practices. The rationale for this government strategy was to tmprove 

utilisation of resources and to establish and achieve commercial objectives. 

Public policy directed the strategic approach and direction in the reform and transition 

period. The current Chairman of the Board of Directors, F. McKenzie, coordinated the 

transition from Bay of Plenty Harbour Board to Port ofTauranga Ltd. In recent years the 

organisation has presented a dynamic image, illustrated by strategic moves to position 

the Company to diversify operations and establish a wider base of operations. Analysis 

of these strategic initiatives is a fundamental objective of this study. The Company has 

developed strategies to address the intentions of the organisation and the realities of the 

business environment in which it operates. This has meant that new strategies have 

emerged in response to changing business conditions. 

11 



2.3.1 Forms of Strategy 

The concept of strategy as plan, ploy, pattern, position, and perspective is explored by 

Mintzberg (1994), and Mintzberg, Quinn, and Gosha! (1998). The proposition is that the 

term strategy has been used in many different ways, and that the varying definitions can 

be compatible with each other. An intended course of action may constitute a plan, or a 

ploy, consistency in behaviour may constitute a pattern. 

Thus, the definitions of strategy as plan and pattern can be quite independent of 

each other: plans may go unrealized, while patterns may appear without 

preconception. . .. If we label the first definition intended strategy and the second 

realized strategy . . . then we can distinguish deliberate strategies, where 

intentions that existed previously were realized, from emergent strategies, where 

patterns developed in the absence of intentions, or despite them (which went 

unrealized). 

For a strategy to be truly deliberate - that is, for a pattern to have been intended 

exactly as realized - would seem to be a tall order (Mintzberg, 1998, p.l6). 

Mintzberg (1994) indicates his clear preference for an emergent learning form of 

strategy development, but does acknowledge that planning does have its place in the 

strategic framework. 

Figure 2.1 illustrates Mintzberg' s concept of "Forms of Strategy". 

12 



Figure 2.1: Forms of Strategy 

Figure 1- 1 
Forms of Strategy 

(Source: Mintzberg, 1994, p.24) 

Johnson and Scholes (1997) link intended strategy with a "deliberate, systematic process 

of development and implementation", the model supported by the planning school 

(p.44). They point out that development of strategy in an "intended, planned fashion" 

does not always ensure that strategies will be realised (p.44). They explore the concept 

of imposed strategy, where an external organisation or group may exert influence over 

strategy development and limit consideration of options and freedom of choice (p.45). 

The concept of emerging strategy is addressed in relation to evolving strategies that 

inform strategic decisions, consolidate strategic direction, and may achieve incremental 

change (p.43) 

New Zealand's experiences of public and private sector reforms provide examples of 

imposed strategy. The government determined public policy direction and legislated 

conditions for ownership and operation of New Zealand ports 

13 



There is a range of views on whether a deliberate approach to strategy development, 

articulation, and implementation contributes to quality strategic outcomes, or whether a 

flexible approach is more conducive. These two examples constitute extremes on a 

continuum, and there are variations on these themes to be found in theory and in 

practice. Mintzberg and Waters (1985) consider "that strategy formation walks on two 

feet, one deliberate, the other emergent. ... The relative emphasis may shift from time to 

time but not the requirement to attend to both sides of this phenomenon" (p.271) . 

The Bay of Plenty Harbour Board adopted a deliberate, or planned, approach to strategic 

management of Port of Tauranga. They did not have the flexibility to be innovative 

because their activities were tightly controlled by government regulations. Senior 

managers in more recent years have bad more flexibility and this is illustrated in some of 

the strategic management decisions taken by the Port Company in the 1990s. There is 

still evidence of a conservative, planned approach to some decisions and this mix of 

approaches is viewed positively by market commentators. It does iJJustrate the shift in 

emphasis from deliberate to emergent to meet requirements of actual management 

situations. 

The quality movement has had an influence on organisational management at all levels. 

This movement embraces the concept of achieving continuous improvement through the 

organisation, and considers that there is a strong link between continous improvement 

and learning (Bergman and Klefsjo, 1994, p.414). Port of Tauranga Ltd has 

implemented quality improvement strategies and was the first New Zealand port to 

receive ISO 9002 accreditation in 1994 for marine and cargo operations. The company 

does demonstrate flexibility to experiment and adopt new approaches, and its record 

indicates that it values learning from its own experiences and history. Increasingly 

customers and suppliers of the Port Company are becoming ISO accredited. 

Accreditation is recognised as a quality assurance indicator in this industry sector. 

14 



2.3.2 Patterns of Strategy Development 

Patterns of strategy development may be observed over time. Johnson and Scholes 

(1997) refer to patterns of strategy development in relation to levels of stability or 

turbulence in the business organisation. The patterns depicted are continuity, 

incremental, flux, and transformational. The authors suggest that strategy changes only 

incrementally in periods of relative stability, that strategy may change markedly but may 

lack focus in periods of flux, and that transformational patterns will result in 

"fundamental change in strategic direction" (p.41 ). Refer to Table 2.2 for a 

representation of patterns of strategy development. 

Figure 2.2: Patterns of Strategy Development 

Continuity Incremental Flux 

(Source: Johnson and Scholes, 1997, p.41) 

I 
I 
I 
I 
I 
\ 
I 
I 
I 
I 
I 
I 
I 
I 
\ 
\ 
\ 
I 
\ 
I 
\ 

Transformational 

There is an ongoing debate on whether organisations do achieve effective changes in 

strategy direction as a result of incremental adjustments - evolutionary change, or 

whether change is achieved through rapid, fundamental change - revolutionary change. 

It is recognised in the literature that the two positions are not mutually exclusive. 

Reform of the New Zealand ports sector brought rapid, fundamental change to the nature 

and structure of ownership and operations of port companies and is an illustration of 

transformational, or revolutionary change. The period from 1988-1992 could be 

15 



regarded as transformational, from 1993 to 1997 could be regarded as incremental 

change, and from 1998 to 2000 as transformational, but not revolutionary, as the Port 

Company set out to diversify the scope and nature of its operations. 

Mintzberg (1998) supports the concept of strategy developing and emerging over time. 

He uses industry examples in the development of his concept of crafting strategy as an 

outcome of "traditional skill, dedication, perfection though the mastery of detail" 

(p.ll 0). His thesis is that "the crafting image better captures the process by which 

effective strategies come to be" (p.llO). He supports the proposition that periods of 

stability and change are evident in the strategy patterns of organisations, and contends 

that "while it is true that particular strategies may always be changing marginally, it 

seems equally true that major shifts in strategic orientation occur only rarely" (p.ll6). 

Johnson, Wood, and Hart (1988) examined the corporate planning processes in a wide 

range of New Zealand companies and concluded that they comprised two groups, 

consistent with Mintzberg's depiction of the craftsman and the apprentice. Their 

findings also indicated that incremental change is consistent with stable environments, 

and that emergent strategies lie dormant until a viable market opportunity is presented. 

This proposition is supported by the experience of Port of Tauranga Ltd, with 

incremental change from 1992 to 1997, and emergent strategies to initiate Sulphur Point 

and Metro port developments to take advantage of market opportunities. 

Quinn and Voyer ( 1998) observed and documented the change processes in ten major 

organisations. They consider that a technique or pattern of "logical incrementalism" 

results in strategy evolving through iterative processes over time, and emerging as part 

of a dynamic process (pp.107-113). 

The research findings of Romanelli and Tushman (1994) ''strongly support the 

conclusion that revolutionary transformation is the most common mode of fundamental 

transformation" (p.1162). They consider that more research is needed to "examine both 

the frequencies of revolutionary and nonrevolutionary transformations and the 

16 



underlying organizational systems and conditions that may give rise to the different 

modes" (p.1163). 

The need to embrace revolutionary change is proposed by Peters (1989). He recognises 

that the marketplace is turbulent and supports learning "individually and as organisations 

- to welcome change and innovation as vigorously as we have fought it in the past, in 

accounting as well as in new-product development. The corporate capacity for 

continuous change must be dramatically increased" (p.274). 

The dangers of incremental strategic change are considered by Johnson (1988). One of 

the implications discussed is that managers who are resistant to change may support an 

incremental approach to strategic change to minimise the impact on the existing 

organisational paradigm of beliefs and assumptions. This may produce an effect of 

strategic drift as the organisation loses contact with the strategic realities of the 

environment in which it operates (p. 77). Examples of strategic drift are evident in the 

ports sector, where some port sector organisations have resisted making changes to 

respond to a dynamic environment and are having difficulties in maintaining 

competitiveness. 

Miller (1990) contends that the development of organisational consistency over time 

with accompanying entrenchment of routines and systems decreases flexibility and 

blocks learning and adaptation. He highlights the dangers inherent in organisations 

magnifying patterns and structures to extend and augment existing strategic positions in 

the hope of repeating prior successes. Again these trends are evident in some port sector 

organisations. 

The issues of strategic drift and organisational consistency are relevant to analysis of 

strategic management in the ports sector. Some ports have embraced opportunities that 

originated from the reforms~ others have achieved a change in structure but little change 

in strategic direction. Where incremental change is the preferred strategy development 

17 



mode there are dangers of strategic drift if a climate of resistance to change is allowed to 

develop. Organisations lose the capability to respond strategically to changes in the 

business environment. Strategic drift was not evident at Port of Tauranga Ltd over the 

research period. 

An important phase of this research project was to investigate strategic planning and 

behaviour at Port ofTauranga Ltd. Mintzberg and Waters (1982) developed a model for 

"Tracking strategy in an entrepreneurial firm" and identified four major steps: 

collection of basic data, inference of patterns and periods, investigation of each period, 

building of theory (p.466). From this research they drew a tentative conclusion: 

... that companies plan when they have intended strategies, not in order to get 

them. In other words, one plans not a strategy but the consequences of it. 

Planning gives order to vision, and puts form on it for the sake of formalized 

structure and environmental expectation. One can say that planning 

operationalizes strategy . ... It may be the only way to pull together the diverse 

decisions of large organizations in stable environments and to handle large and 

complicated commitments of resources (p.498). 

Researchers have developed and supported propositions in favour of formal strategic 

planning approaches as a means of achieving quality strategic outcomes. There is also 

support for the concept of learning organisations with an emphasis on innovative, 

flexible processes. The literature of the mid 1990s suggests that strategic planning is 

being reinvented in an attempt to retain effective planning characteristics, and to make it 

relevant to the comparatively dynamic environments that face many business operations 

(Sokol, 1992; Perlitz, 1993; Bhide, 1994; Mintzberg, l994; Pekar and Abraham, 1995; 

Feurer and Chaharbaghi, 1 995; Thompson and Richardson, 1996; Taylor, 1 997). 

The various approaches discussed in the literature include the planning approach, the 

incremental approach, the cultural/political approach, and the imposed approach. 

18 



Various tenns are used in the literature to describe the range of approaches, but the 

tenns used above capture the essential characteristics of the major forms. 

The incremental approach is supported by those who consider it provides the flexibi lity 

for strategy intentions to be amended, for new strategies to emerge in response to 

changes in the environment, and for organisations to learn from their experiences. The 

link between formal planning and bureaucratic processes is explored by Quinn ( 1980), 

His observations support the "logic of logical incrementalism" (p.58). 

The cultural/political approach may be adopted by organisations where there are 

influential groupings who control resources, and may be resistant to change. Examples 

of this approach can be found in large institutions and professional service organisations. 

The externally imposed approach can be a feature of public sector organisations, and 

parent companies with subsidiary structures who seek to achieve consistency across the 

entire organisation. Strategy may be imposed from an internal source, particularly 

where an entrepreneurial, or authoritative, figure or group captures the strategic 

management process (Johnson and Scholes, 1997). There are prominent individuals and 

groups who influence strategic planning at Port of Tauranga Ltd. Harbour boards and 

port companies have historically been subjected to externally imposed policies. While 

the extent of this has reduced since reforms, there are still wide ranging political and 

regulatory influences on port operations. 

Feurer and Chaharbaghi ( 1995) support the need for a dynamic approach to strategy 

development. They draw upon and acknowledge the wide range of theories and 

frameworks that have been proposed in this area, and recognise that while these address 

and support different strategy development positions they all "aim at maximising the 

performance of an organization by improving its position in relation to other 

organizations" (p.ll). They give clear support to the need for creativity and innovation 

in the strategy process to address the dynamic nature of business environments. They 

identify the need for researchers to "continuously adjust their objectives and processes to 

new emerging issues that are relevant to the real business needs of organizations and the 

19 

J 



pace of change in the environment rather than defining and testing a limited number of 

hypotheses" (p.20). Port of Tauranga Ltd has demonstrated innovation in developing 

strategies to maximise performance and improve market position. 

The various approaches are not always mutually exclusive. Mintzberg and Ansoff 

embarked on a classic debate on the merits of the formal planning approach through a 

series of articles between 1990 and 1994. In his critique of the design school approach 

to strategic management, Mintzberg (1990) concedes that while the model may have 

restricted applications, there are circumstances where application of this formal planning 

model may be relevant. Ansoff (1991) in reply produced a critique of Mintzberg's 

proofs and concepts, and his emerging strategy formation process. However, Ansoff did 

concede that the "emerging strategy" model is a valid prescription for success in some 

environments for some organisations. (p.460). 

Richardson (1994) attempts to cJarify the "definitional problem" of strategic 

management, and to examine strategic management as a concept which embraces a 

range of strategic components and leadership styles in "strategic configuration", 

responsive to changes in the environment (p.27). In essence Richardson is reflecting 

that the various definitions relating to strategic management concepts should not be the 

major consideration, but the development of strategic management processes that enable 

organisations to respond to changes in the environment is important. Port of Tauranga 

Ltd has developed its own strategic configuration to equip the organisation to compete in 

the ports sector environment. It is a mix of formal and flexible systems and styles. 

Porter (1985, 1991) stresses that strategy must concern itself with an understanding of 

the industry, and the development of organisational competence to achieve competitive 

advantage over industry rivals. For diversified organisations he examines strategy on 

two levels: corporate strategy, to determine which business sectors the organisation will 

participate in, and to unify the focus of the organisation; and business unit strategy, to 

create competitive advantage in each discrete operation. 

20 



Crocombe, Enright, and Porter (1991) initiated a study where strategy patterns of New 

Zealand firms were assessed. The findings concluded that: 

Although there are notable exceptions, New Zealand firms tended to have a 

mind set that is not well aligned to the requirements for competitive success in the 

global economy. This mindset is typically characterised by a short-term, static 

perspective of competition. Such a perspective is inadequate in a world where 

competition has become profoundly dynamic and where success depends on 

continuous improvement in all parts of the business. . . . ft limits the range of 

strategic options for New Zealand firms. Many focus on improving performance 

within current constraints, rather than devising strategies that change the 

constraints and build new sources of advantage (p.l26). 

This study was undertaken in 1990, in the period when New Zealand port companies 

were making the transition from harbour boards to port companies. They were coming 

from an environment where competition between ports was controlled and were moving 

to more flexible ownership and operational structures. They were required by statute to 

run successful businesses in a dynamic environment. This was a strategic challenge. 

fn a later article, Porter (1997) considers: 

Without strong, vigorous, positive leadership, having and maintaining a strategy 

is impossible. . . . Basically, leaders must have a perception of their competitive 

environment, and they have to be constantly in tune with how it is evolving; but 

their essential function is to find a distinctive place in that environment for their 

organisation, and to enforce the choices that are required to support that position 

(p.lO). 

21 



2.4 STRATEGY OUTCOMES 

Identification of strategy outcomes in relation to the research objectives is an important 

part of this research study. Strategic management literature and experience indicate that 

identification of outcomes is not straightforward. The planning versus learning 

proponents both use quantitative and qualitative research studies to support their view of 

the quality of outcomes produced through their preferred strategic management 

processes. There are the associated questions of whether quality strategic outcomes 

necessarily equate with the intended outcomes, or whether, in practice, the dynamic 

nature of business environments influences strategic intentions and outcomes. These 

questions are particularly relevant to this research study as the researcher is seeking to 

establish whether outcomes of strategic initiatives at Port of Tauranga Ltd were 

consistent with intentions. 

Stacey (1993) concluded that although strategy management processes were being 

installed to attempt to achieve coherence of strategy direction over the long term, 

"outcomes achieved were rarely what had been intended or expected. The changes 

occurred, not because we were planning, but because we were learning in a manner 

provoked by the very ambiguity and conflict we were trying to remove" (p 11 ). He 

based his conclusion on his experience working with companies on "strategy, 

reorganization, and change management assignments" (p.l 0). 

What is unclear is whether organisations m practice have the necessary appraisal 

processes in place to determine what the strategic outcomes are, how they relate to what 

was intended, if anything new has emerged, and what intentions remain unrealised. For 

many organisations the emphasis has been on developing quantitative, often financial, 

indicators to measure strategy outcomes. Increasingly researchers support the use of 

comprehensive frameworks to enable consideration of strategic intentions and outcomes 

from a diverse range of internal and external stakeholder perspectives, and this was the 

approach adopted in this research study. 

22 



Kelly (1997) has developed a six-stage approach for developing performance measures 

to monitor achievement of strategic goals. Her model incorporates identification of 

value drivers, critical success factors, an umbrella set of measures to chart progress, 

identification of relevant best practice models, development of organisation wide 

indicators, reporting options and format. The article uses the model in relation to the 

New Zealand banking industry, but the principles have wider applications. 

The link between performance and business strategy is examined by Scott (1995). He 

uses Whittington's model of four standard approaches to strategy formulation and relates 

the establishment of relevant goals to each approach. He considers that "the framework 

gives insight into business strategy and thus to performance measures which are likely to 

be most relevant" (p.37). 

Porter (1985, 1991) has developed models for examining environmental influences and 

competitive factors, the Porter diamond model, and Porter five-forces, and value chain 

analysis tools. These models have been widely used in their original forms as 

frameworks for industry analysis. They have also been the foundation for development 

of other analysis models relevant to particular sectors and circumstances. 

David (1997) considers that "Strategy evaluation is essential to ensure that stated 

objectives are being achieved" (p.276). He explains that strategies may have short-term 

and long-term objectives and criteria can be used to evaluate strategy. He refers to 

Richard Rumelt' s four criteria for evaluating strategy: "consistency, consonance, 

advantage, and feasibility" (p.276). He expands upon these criteria, and explains that 

strategies should not be inconsistent, that they should take account of trends, that they 

should be feasible in terms of resource requirements, and that they should contribute to 

competitive advantage (p.278). 

Most of the relevant strategic management literature emanates from the United States of 

America and Britain, and examines these issues in those particular business contexts. 

While some of the themes are universal, it is useful to explore these topics in the New 

23 



Zealand business environment. Reference has previously been made to the industry case 

studies developed by Pickford and Bollard (1998). They analyse industries using a 

model of market structure-conduct-performance "widely used by industrial economists 

... [and] introduced by Professor Mason at Harvard University in the 1930s" (p.ll). 

The framework has been modified by the inclusion of feedback effects, and incorporates 

background conditions, demand, supply, market structure, market conduct, market 

performance, and public policy. The underlying assumption of this framework is that 

"market (or industry) structure determines, or at least has a strong influence on the 

conduct of firms, which in turn determines the performance outcomes of the industry" 

(p. 1 0). The freight transport industry case study provides useful background 

information for examining overall economic performance of the industry and identifies 

factors that influence firms within the industry. 

Case studies of stratey and management in a selection of small to large New Zealand 

organisations have been produced by Poulin, Mills, and Spiller (1998). The authors 

provide a framework for case analysis of strategic challenges and issues. They combine 

factors from Porter's five-forces model, and the widely used PEST (political, economic, 

social, technological) framework, with their own BITS (beliefs, identity, technology, 

structure) components to produce a framework for case analysis of strategic challenges 

and issues. 

Lewis, Markel, Hubbard, Stockport, and Davenport (1996) use a framework for case 

analysis that incorporates external environmental analysis using recognisable PEST 

factors plus Land D (legal and demographic), industry environment using Porter' s five­

forces model, and company analysis of strategy and performance. 

Features of the various models described in this section for identifying and assessing 

strategic outcomes were used to develop the research issues and analysis rramework for 

this thesis study. 

24 



2.4.1 Strategy Influences 

Organisation direction and purpose, corporate governance, management culture, and 

stakeholder expectations are influences upon strategy development and planning. 

Akers ( 1989) maintains that business ethics are a key component of our competitiveness 

as a society and that ethics and competitiveness are inseparable. The issue of whether 

Port ofTauranga Ltd has acted in an ethical and socially responsible way in its business 

dealings in a competitive industry environment is examined in this research study. 

Jayaraman and Min ( 1993) examine ethics in business organisations at three levels, the 

operating level, the corporate level, and the societal level. The relationship of the market 

system, the nature of business and ethical basis of individual decisions is explored. 

They contend that the next phase in the development of mature corporations into a new 

environment is the embracing of the emerging values of the twenty-first century and the 

evolution of the individual, the organisation and the society into new forms of 

socioeconomic organisations. Port of Tauranga Ltd is a member of the New Zealand 

Business Council for Sustainable Development which expresses a commitment to 

emerging values of balanced social, environmental and economic development. 

The ideas associated with the legitimacy of business are examined by Hoffman and 

Moore (1990): 

The legitimacy of business - the public's acceptance of its right to exist and its 

belief in the " rightness" of business as an institution - has always rested on 

business' connection with our highest social values and on its perceived 

contribution to what we view as the good life or the good society. . . . The 

legitimacy of business still rests on public confidence in its contribution to a 

good society (p.607). 

25 



Public acceptance and public confidence are particularly relevant where business 

organisations have grown out of local authority structures and especially where they 

retain significant ownership investments. 

Public policy and corporate governance issues are relevant to the background to 

deregulation of the ports sector and transition to corporate fonns of ownership and 

operation. Cavana, et al. (1998), trace government reviews and policies in the 1980s 

that led to the development of policies for waterfront refonn and commercialisation of 

port authorities. 

An organisation's relationship with the community in which it operates is an indicator of 

commitment to social responsibility. The changing attitude of New Zealand companies 

to this relationship is explored by von Tunzelmann (1996). She contends that where 

companies may have traditionally considered this relationship a liability there is an 

emerging view that strong social and community relationships add value to an 

organisation. She explains that they "are developing their roles in social and community 

initiatives as an integra] part of strategy and strategic decision-making (value adding)" 

(p.2l). A tentative framework of influences on business success is provided. Port of 

Tauranga has developed strong community Jinks since it was established in the 1950s 

and it is evident that social and community relationships are considerations for strategy 

development. 

McKinlay (1999) explores the concepts associated with public ownership of community 

wealth. He poses questions about: 

the relationship between the public and those who hold the wealth. What is their 

mandate? How do they determine that their decisions on the use of that wealth 

properly meet the needs, priorities or wishes of that public? How are they 

appointed, how are they held accountable, and what powers should they have? 

(p.2). 

26 



These questions are relevant to consideration of strategic management and corporate 

governance at Port ofTauranga Ltd, particularly because of the majority shareholding in 

the company held by Bay of Plenty Regional Council. 

Two records have been produced by Neil G. Hansen (1997, 2000) detailing the history 

of the Tauranga Harbour and Port of Tauranga. There are several earlier publications 

relating to the history and operations of the Tauranga Harbour Board. These include 

works by Mirrielees, A.J. (1941), Bowers, M.E. (1970), Oram, B.A. (1981). This 

literature has been useful in establishing the historical background to the development of 

the port. 

27 



CHAPTER3 DESIGN AND METHOD OF RESEARCH 

3.1 INTRODUCTION 

Research studies were conducted in 1999 to background reform of the New Zealand 

ports sector and to identify resulting ownership and operational changes. An oral history 

interview was conducted with a person who had held a senior management position in a 

port company through the reform and restructuring periods. Theoretical, analytical, and 

operational research issues and themes identified from these studies have contributed to 

the research framework for this project. 

It was evident from the initial studies that harbour boards and the ports sector were faced 

with major challenges in dealing with the realities of the reforms in the 1988-1989 

period to make the transition from regional authority status to commercial port company 

operations. The second step came in 1992 when Port ofTauranga Ltd listed on the New 

Zealand Stock Exchange and the Board of Directors, senior managers, and shareholders 

were faced with the realities and challenges of preparing the Port Company to take this 

significant step. 

Deregulation and corporatisation have resulted in changes in the nature of community 

involvement with port operations, and in stakeholder expectations of business 

performance. Organisational purposes have changed from provision of port facilities to 

meet local needs, to the requirement to operate as a business with the "principal 

objective of every port company . . . [to] operate as a successful business" (Port 

Companies Act, 1988, Section 5). Port companies have had mixed experiences in the 

period since the reform measures. Port ofTauranga Ltd considers that it has developed a 

viable port company and is meeting commercial imperatives to provide satisfactory 

returns to shareholders. 

28 



The research questions combine an historical perspective of events -the reform period, 

with contemporary initiatives and issues - strategic initiatives to establish and develop 

port facilities; the need for a commercial approach to port operations. The research is 

set in the real-life context of the operations of Port of Tauranga Ltd over the 1989-1999 

period. 

The research questions required investigation into what strategic initiatives were taken 

by Port of Tauranga Ltd in particular periods, and whether the outcomes of strategic 

management decisions were consistent with intentions. Cooper and Schindler (1998) 

discuss the nature of research and differentiate between descriptive and causal studies in 

the following way: 

The Purpose of the Study. The essential difference between descriptive and 

causal studies lies in their objectives. If the research is concerned with finding 

out who, what, where, when, or how much, then the study is descriptive. If it is 

concerned with learning why - that is, how one variable produces changes in 

another - it is causal (p.132). 

Yin (1994) considers: 

'how' and 'why ' questions are more explanatory and likely to lead to the use of 

case studies, histories, and experiments as the preferred strategies. This is 

because such questions deal with operational links needing to be traced over 

time, rather than mere frequencies or incidence (p.6). 

This research study sought to investigate operational links over time and ts both 

explanatory and descriptive. 

29 



3.2 RESEARCH STRATEGY 

A case study approach was selected as an appropriate research strategy to examine these 

questions and issues. Port of Tauranga developments at Sulphur Point and Metroport 

are examples of contemporary events in an actual business context. Sulphur Point 

developments had their genesis in the late 1980s and were commenced in 1992; 

Metroport is a more recent development that completed its first year of operations in 

1999. Yin (1994) considers a case study approach effective in investigating 

contemporary phenomena and contextual conditions in real-life situations. He develops 

a technical definition of a case study: 

I. 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 

(p. 13). 

Yin explains the relevance of the case study method to cover contextual conditions 

where these are considered pertinent to the area of study. He identifies technical 

characteristics and specific aspects of data collection and data analysis relevant to case 

study investigations to develop the second part of his technical definition: 

2. The case study inquiry 

• copes with the technically distinctive situation in which there will be many 

more variables of interest than data points, and as one result 

• relies on multiple sources of evidence, with data needing to converge in a 

triangulating fashion, and as another result 

• benefits from the prior development of theoretical propositions to guide data 

collection and analysis (p.13). 

30 



There has been wide-ranging debate on the merits and limitations of case studies. The 

limitations most often cited are - limited scope for making valid comparisons (Cooper 

and Schindler, 1998, p.13), limitations inherent in drawing conclusions from a single 

study, and in generalising concepts and theories to other settings (Easterby-Smith, 

Thorpe, and Lowe, 1991, p.41 ; Yin, 1994, p.IO). There are limited valid comparisons in 

New Zealand to the strategic developments of Sulphur Point and Metroport and the 

caution regarding general ising research results is pertinent. 

Yin (1994) concludes "the case study as a research strategy comprises an all­

encompassing method - with the logic of design incorporating specific approaches to 

data collection and to data analysis" (p.l3). These factors were considerations in 

deciding the research approach. 

3.3 RESEARCH APPROACH 

The nature of this particular case study predicated an emphasis on qualitative techniques. 

There has been complementary quantitative analysis on aspects of business performance 

of Port of Tauranga over the research period. Researchers agree that quantitative and 

qualitative methods can be combined in one project and that particular research 

problems may lend themselves to a qualitative approach. (Strauss and Corbin, 1990; 

Yin, 1994). 

A qualitative research approach is consistent with the need to draw data from a variety 

of sources and methods to enable triangulation of evidence to gain a wider perspective 

on the phenomenon being studied, and to ensure validity and reliability of results 

(Mathison, 1988, p .15). 

In a discussion of qualitative techniques Van Maanen (1983, p.9 cited in Easterby­

Smith, Thorpe, and Lowe, 1991, p.7l) defines qualitative methods as an "array of 

interpretive techniques which seek to describe, decode, translate and otherwise come to 

terms with the meaning, not the frequency of certain more or less naturally occurring 

31 



phenomena in the social world". The distinction of achieving an understanding of the 

meaning of events and issues is important in the context of this research study. The 

research is designed to investigate the business context in which strategic management 

initiatives were developed and to understand to what extent the initiatives achieved their 

purpose. In deciding to use a qualitative approach Easterby-Smith, et al. ( 1991) 

consider "the key question is whether the quality of experience is more important than 

the frequency of opinions and events" (p.ll5). For this research project the quality of 

experience was an essential factor. 

Denscombe ( 1998) explains the advantages of qualitative analysis: 

The data and the analysis are 'grmmded '. A particular strength associated with 

qualitative research is that the descriptions and theories such research generates 

are 'grounded in reality' . This is not to suggest that they depict reality in some 

simplistic sense, as though social reality were 'out there' waiting to be 

'discovered '. But it does suggest that the data and the analysis have their roots in 

the conditions of social existence .... 

There is a richness and detail to the data. The in-depth study of relatively 

focused areas, the tendency towards small-scale research and the generation of 

' thick descriptions' means that qualitative research scores well in terms of the 

way it deals with complex social situations .. .. 

There is a tolerance of ambiguity and contradictions. To the extent that social 

existence involves uncertainty, accounts of that existence ought to be able to 

tolerate ambiguities and contradictions, and qualitative research is better able to 

do this than quantitative research (Maykut and Morehouse 1994:34). This is not 

a reflection of a weak analysis. Tt is a reflection of the social reality being 

investigated. 

There is the prospect of alternative explanations. Qualitative analysis, because it 

draws on the interpretive skills of the researcher, opens up the possibility of more 

than one explanation being valid (p.220). 

32 



The investigation of the effects of port sector reform and of later strategic developments 

required analysis of real-life events, not simulations or experiments. Miles and 

Huberman (1994) assert that "Qualitative data, with their emphasis on people' s ' lived 

experience, ' are fundamentally well suited for locating the meanings people place on the 

events, processes, and structures of their lives: their ' perceptions, assumptions, 

prejudgments, presuppositions' (van Manen, 1977) and for connecting these meanings to 

the social world around them" (p. lO). This emphasis on ' lived experience' was a 

significant factor in the choice of research methods. 

Denscombes ' s (1998) perspective on the disadvantages of qualitative analysis observes: 

The data may be less representative. The flip-side of qualitative research' s 

attention to thick description and the grounded approach is that it becomes more 

difficult to establish how far the findings from the detailed in-depth study of a 

small number of instances may be generalized to other similar instances .... 

Interpretation is bound up with the 'self' of the researcher. Qualitative research 

recognizes more openly than does quantitative research that the researcher's own 

identity, background and beliefs have a role in the creation of data and the 

analysis of data .. .. 

There is a possibility of decontextualising the meaning. In the process of coding 

and categorizing the field notes, texts or transcripts there is a possibility that the 

words (or images for that matter) get taken literally out of context. The context is 

an integral part of the qualitative data .... 

There is a danger of oversimplifying the explanation. In the quest to identify 

themes in the data and to develop generalizations the researcher can feel 

pressured to underplay, possibly disregard, data that 'doesn't fit ' (p 221). 

These observations are justifiable and were considerations in the design and selection of 

data collection and analysis methods. 

33 



What does emerge from the debate is that case studies can make a significant 

contribution to research and do have a legitimate role. A feature of case studies is that 

"they place more emphasis on a full contextual analysis of fewer events or conditions 

and their interrelations. . .. An emphasis on detail provides valuable insight for problem 

solving, evaluation, and strategy. This detail is secured from multiple sources of 

information. It allows evidence to be verified and avoids missing data" (Cooper and 

Schindler, 1998, p.133). These features are consistent with those identified by Yin 

(1994). Criticisms of case studies overlap with criticisms of the qualitative research 

approach, particularly in relation to the ability to make valid comparisons and to 

generalise fin~ings. 

3.4 RESEARCH METHODS 

To address the research questions and meet criteria for reliable case study data it was 

evident that data would need to be collected from a range of sources internal and 

external to Port of Tauranga Ltd, and that sources of data needed to be credible. (Yin, 

1994; Mathison, 1988). 

Zikmund (1994) considers that business research is concerned with sourcing and 

analyzing information to support quality decision-making. Data collection and analysis 

for this project were concerned with sourcing and analysing information to understand 

key issues and themes identified in research questions and objectives. These topics 

included strategic management issues and decisions in conjunction with operational 

factors. 

Yin (1994) explains that there are advantages and disadvantages associated with major 

sources of evidence, and that using multiple sources increases the validity of the data 

and information base. Table 3.1 identifies what Yin regards as strengths and 

weaknesses of particular sources of evidence. 

34 



Table 3.1: Six Sources of Evidence: Strengths and Weaknesses 

Source of Evidence Strengths Weaknesses 

Documentation Stable- can be reviewed repeatedly. Retrievability - can be low. 
Unobtrusive - not created as a result Biased selectivity - if collection is 
of the case study. incomplete. 
Exact - contains exact names, Reporting bias - reflects (unknown) 
references, and details of an event. bias of authors. 
Broad covererage - long span of time, Access - may be deliberately 
many events, and many. settings. blocked. 

Archival records (Same as above for documentation). (Same as above for documentation) 
Precise and quantitative. Accessibility due to privacy reasons 

Interviews Targeted - focus directly on case Bias due to poorly constructed 
study topic. questions. 
Insightful - provides perceived causal Response bias. 
inferences. Inaccuracies due to poor recall. 

Reflexivity - interviewee gives what 
interviewer wants to hear. 

Direct Observations Reality - covers events in real time. Time--consuming. 
Contextual - covers contextual event. Selectivity - unless broad coverage. 

Reflexivity - event may proceed 
differently because it is being 
observed. 
Cost - hours needed by human 
observers. 

Participant- (Same as above for direct (Same as above for direct 
observation observations). observations). 

Insightful into interpersonal behavior Bias due to investigator's 
and motives. manipulation of events. 

Physical artifacts Insightful into cultural features. Selectivity. 
Insiehtful into technical operations. Availability. 

(Source: Yin, 1994, p.80) 

The comparison indicates that interviews do have the advantages of being targeted and 

insightful, and these were important considerations for this study. However, it also 

shows that there are potential weaknesses if interviews are not carefully constructed and 

if the interviewer does not use methods that reduce the capacity for bias and 
. . 
maccuractes. 

35 



3.4.1 Data Collection 

Information for this study was collected in a variety of ways to ensure there was a valid 

base of data to identify concepts and themes and from which to analyse issues. 

Information was sourced from: 

(a) An industry study. 

(b) A preliminary oral history interview. 

(c) Documentation and archival records. 

(d) Observations of facilities and operations ofPort ofTauranga Ltd. 

(e) An experience survey using semi-structured interviews. 

(f) An information exchange with an external reference source, Port of Baltimore. 

A study of the Transport industry, New Zealand Shipping and Port Industries Sector, 

was completed in 1999. This study examined the historical background to the industry, 

and identified the impetus for, and consequences of, reform of the shipping and ports 

sector. 

A preliminary oral history interview was completed in 1999 with a person who had 

senior management experience with Bay of Plenty Harbour Board, and subsequently 

with Port of Tauranga Ltd. He later became a local government councillor with a 

regional council who are major shareholders in a port company. This interview was 

useful in identifying issues and themes for further examination through the research 

study. 

Documentation and archival records relating to business operations were accessed from 

Port of Tauranga Ltd and a wide range of other sources. Books and articles that address 

historical aspects of the development of Port ofTauranga were identified. 

To identify key factors and to establish the context in which strategic initiatives were 

developed statistical sources, industry commentaries, media reports, journal articles, and 

36 



relevant publications and were identified and information was collected over a two year 

period. Port of Tauranga Ltd provided copies of Annual Reports from 1989 to 2000. 

The reports were analyzed and an information matrix was developed to categorise data 

over the research period to distinguish: ownership and operational aspects; significant 

activities and events; and financial performance. This material was useful in 

establishing the business context in which the organization operated in the periods when 

strategic initiatives were being planned and implemented. 

Tt was not possible to gain access to specific strategic plans from Port of Tauranga Ltd. 

The New Zealand port sector is competitive and recent and current strategic planning 

information is regarded as confidential. This is a reality of conducting a case study of 

recent and ongoing events. Alternative approaches to investigate strategic planning and 

behaviour at Port of Tauranga Ltd were required. Mintzberg and Waters (1982) 

developed a model for 'Tracking Strategy in an Entrepreneurial Firm' and identified 

four major steps: 

Step 1 The first step was the collection of basic data. Each study began by 

developing chronologies of the decisions and actions that shaped the 

organization's history, as well as of related trends and events in the environment 

and available figures on the organization' s performance . ... 

Step 2 was to infer the patterns and periods .... 

Step 3 An investigation of each period was the third step .... At this point, use 

was made of organizational records and in-depth reports carried out by, for, or 

about the organization, and interviews were conducted with key actors of the 

periods in question. Of interest here were the people and forces that shaped the 

strategies of each period - in other words, the underlying causes of the major 

changes - as well as the interrelationships among the different strategies and 

related structures. 

Step 4 was the bui lding of theory. The research team sat down with a detailed 

report on the organization' s history - the descriptions and explanations of its 

patterns and periods - for a series of brainstorming sessions. These focused on a 

37 



set of major conceptual issues, with the intention of extracting and inducing 

whatever theoretical conclusions could be drawn from these particular results 

(p.467). 

The research project undertaken by Mintzberg and Waters was a major research project 

designed to track strategies and the processes by which they form in organizations. 

The study tracked the strategies of a retail chain over 60 years of its history. This 

research study of Port ofTauranga Ltd is of a shorter time scale, but principles identified 

by Mintzberg and Waters were considered relevant to the study and have been applied to 

identify strategies and performance, particularly in relation to the development of 

Sulphur Point and Metroport port facilities. The four-step model devised by Mintzberg 

and Waters has been used as the framework for tracking strategy over this period. 

Economic impact studies carried out in 1993 and 1998 by Professor Warren Hughes, 

The University of Waikato, were useful resources to examine the economic 

contributions made by the Company to the Bay of Plenty region in the research period. 

Direct observation of port sites enabled an assessment of the nature, size, and extent of 

shipping and storage facilities, nature and use of technology, and identification of other 

business activities associated with port operations. 

A meeting was arranged and attended with a representative of Port of Baltimore, 

Maryland Port Administration, Planning Division, Baltimore, USA. This person had 

responsibilities for business development and marketing planning and analysis. A 

preliminary letter was written to the Director of Planning and Business Development, 

setting out information about the researcher, the project, and proposing areas for 

discussion. Port of Baltimore is situated on Chesapeake Bay, which is a similarly 

sensitive environmental area. In 1 990 Port of Baltimore developed Seagirt Container 

Terminal, which is a substantial container facility, a further parallel. In each port 

substantial dredging and land reclamation has been required for development. The 

38 



purpose of this meeting was to exchange information and to establish an external 

reference point for common issues. 

Survey methods considered for this project were interviews and questionnaires. Czaja 

and Blair (1996) have produced a comparison of major survey methods that addresses a 

range of aspects of survey research and compares the features of mailed questionnaires, 

telephone interviews, and face-to-face interviews. 

Table 3.2: Comparison of Major Survey Methods 

Aspect of Survey Mailed Telephone Interviews Face-to-face (in-
Questionnaires home} Interviews 

Administrative, Resource 
Factors: 
Cost Low* Low/medium High 
Length of data collection Long (10 weeks) Short (2-4 weeks) Medium/Long (4-12 
period weeks) 
Geographic distribution of May be wide May be wide Must be clustered 
sample 
Questionnaire Issues: 
Length of questionnaire Short/medium (4-12 Medium/Long (1/4-3/4 Long (l/2-1 hour) 

pages) hour) 
Complexity of questionnaire Must be simple May be complex May be complex 
Complexity of questions Simple to moderate Must be short and simple May be complex 
Control of question order Poor Very good Very good 
Usc of open-ended Poor Fair Good 
questions 
Usc of visual aids Good Usually not possible Very good 
Use of household/personal Very good Fair Good 
records 
Rapport Fair Good Very good 
Sensitive topics Good Fair/good Fair 
Nonthreatening questions Good Good Good 
Data Quality Issues: 
Sampling frame bias Usually low Low (with ROD) Low 
Response rate 45o/o-75% 60o/o-90% 65o/o-95% 
Response bias Medlhigh (favours Low Low 

more educated 
persons) 

Knowledge about refusals Fair Poor Fair 
and noncontacts 
Control of response Poor Fair Good 
situation 
Quality of recorded Fair/good Very good Very good 
response 

Note: *Indicates that the method has an advantage over one or both of the other methods m the specific 
survey component noted. 
(Source: Adapted from Czaja and Blair, 1996, p.32) 

39 



Consideration of these comparisons, the scope of this project, and the need to gain 

insights from people with an understanding of particular issues and activities, led to the 

selection of face-to-face, or personal, interviews as the primary survey method. The 

comparisons confirmed that personal interviews were suitable for complex, long 

interviews where the interviewer could maintain some control over the interview 

sequence. The use of open-ended questions was appropriate for this method, and the 

quality of recorded responses was considered to be very good. Disadvantages included 

the cost of this method, the length of the data collection period, the issue of sensitive 

topics, and potential for sampling frame bias, and response bias. These factors were 

taken into consideration in the design of the interviews, the selection of respondents, the 

conduct of interviews, and recording of responses. 

3.4.2 Experience Survey 

According to Cooper and Schindler (1998) the use of the communication approach to 

survey or question people to gather primary data is appropriate where respondents have 

experience and knowledge that qualifies them to provide the desired information. The 

experience survey method was selected to access this experience and knowledge to gain 

information relevant to the research topics. Significant features of the experience survey 

approach have been illustrated in earlier references to the emphasis on people's own 

experience to gain an understanding of events and circumstances (Yin (1994), Easterby­

Smith et al. (1991), Denscombe (1998), Miles and Huberman (1994). Cooper and 

Schindler (1998) suggest that "we will profit by seeking information from persons 

experienced in the area of study, tapping into their collective memories and experiences" 

(p.l36). They go on to identify key factors for this survey method: 

When we interview persons in an experience survey, we should seek their ideas 

about important issues or aspects of the subject and discover what is important 

across the subject' s range. The investigative format we use should be flexible 

enough so that we can explore various avenues that emerge during the interview. 

What is being done? What has been tried in the past without success? Who is 

40 



involved in decisions, and what roles do they play? What problem areas and 

barriers can be seen? What are the costs of the processes under study? Whom 

can we count on to assist and/or participate in the research? What are the priority 

areas? (p.l36). 

These factors were considerations in establishing information templates of topics and 

sequences to be explored during interviews. A key issue was to include people from a 

range of backgrounds with different experiences from which to draw. According to 

Cooper and Schindler (1998) "Discovery is more easily carried out if the researcher can 

analyze cases that provide special insight. Typical of exploration, we are less interested 

in getting a representative cross-section than getting information from sources that might 

be insightful" (p.136). 

3.4.2.1 Survey participants 

The need to access "collective memories and experiences" for such insight guided the 

selection of interviewees. To achieve a range of experience and perspectives, this survey 

targeted people drawn from suppliers, shareholders, customers, competitors, Port of 

Tauranga personnel who had been involved in strategy development, Board of Directors, 

employees, port-related unions, stevedoring companies, and sharemarket analysts. 

Endeavours were made to identify people who represented different positions and 

viewpoints (Cooper and Schindler, 1998, p.136), and who had a mix of business 

experiences with Port of Tauranga Ltd. People were selected for the nature and extent 

of their experience of Port ofTauranga Ltd, the intention was to gather information from 

"insightful sources" (Cooper and Schindler, 1998, p.l36). Participants were approached 

individually. Permission was sought from Port of Tauranga Ltd to contact current 

directors and employees of the Company. Fifteen people were contacted for interview, 

one person declined and fourteen people were interviewed. Further information on 

participants is set out in Chapter 4, Section 4.1. 

41 



3.4.3 Interviews 

Interviews are widely used as a source of information for case study research. Yin 

(1994) explains: 

The interviews may take several forms. Most commonly, case study interviews 

are of an open-ended nature, in which you can ask key respondents for the facts 

of a matter as well as for the respondents' opinions about events. In some 

situations, you may even ask the respondent to propose his or her own insights 

into certain occurrences and may use such propositions as the basis for further 

inquiry. The more that a respondent assists in this latter manner, the more that 

the role may be considered one of an "informant" rather than a respondent. Key 

informants are often critical to the success of a case study. . . . Of course, you 

need to be cautious about becoming overly dependent on a key informant, 

especially because of the interpersonal influence - frequently undefinable - that 

the informant may have over you. A reasonable way of dealing with this pitfall 

again is to rely on other sources of evidence to corroborate any insight by such 

informants and to search for contrary evidence as carefully as possible (p.84). 

The research design for this study endeavoured to combine the features of interviews of 

key informants with reference back to documents and observations to verify insights and 

optruons. Versions of events provided by interviewees on specific events were 

contrasted to check the accuracy and validity of views expressed. Easterby et al. (1991) 

discussing interviewing explain: 

They are useful when: 

(a) the step-by-step logic of a situation is not clear 

(b) the subject matter is highly confidential or commercially sensitive~ 

(c) the interviewee may be reluctant to be truthful about this issue other than 

confidentially in a one-to-one situation (p. 74). 

42 



Yin (1994) contrasts the form and use of "a focused interview" (Merton et al., 1 990), 

where the interview does not follow a rigid pattern but canvasses "a certain set of 

questions derived from the case study protocol" with "a formal survey" where questions 

and form are structured (p.84). 

Consideration was given to whether to conduct interviews on an individual, personal 

basis, or to form focus groups to access information. One of the goals of the research 

project was to gain different perspectives on events and issues and this was a significant 

factor in deciding to conduct interviews on a personal basis, using a topic guide, or 

interview template. Face-to-face interviews were preferred for this experience survey to 

enable the range of background experiences of the participants to be explored (Sekaran, 

1992, p.220). 

Easterby et al. ( 1991) refer to a study undertaken by Richard [Thorpe] where managers 

and employees were interviewed together. They note that this research approach 

enabled comparison of perspectives on situations and enabled "better lines of enquiry to 

be developed and provided the opportunity to check out emergent themes and patterns as 

the interviews progressed" (p. 74). They go on to observe that researchers do make 

choices about data collection and issues to be explored, and contend that a framework 

may be developed but should not be rigid: 

One way in which this can be achieved is to prepare a 'topic guide' which can be 

used as a loose structure for the questions. Although there may be some 

deviation from the sequence so as to follow interesting Jines of inquiry and to 

facilitate an unbroken discussion, the interviewer should attempt to cover all the 

issues mentioned (p. 75). 

Semi-structured interviews were selected to conduct the experience survey and gain 

insights on events. Research issues and themes had been identified and it was 

considered preferable for these topics to be introduced in a natural sequence, according 

to the range of experience of the respondent, and the development of the interview. The 

43 



interviewer had a topic guide, and apart fi-om the introductory and closing sections of the 

interview, had the flexibility to introduce themes as the interview progressed, and to 

allow participants to develop issues and expand upon their initial responses. This is 

explained further by Denscombe (1998): 

Semi-structured and unstructured interviews are really on a continuum and, in 

practice, it is likely that any interview will slide back and forth along the scale. 

What they have in common, and what separates them from structured interviews, 

is their willingness to allow interviewees to use their own words and develop 

their own thoughts. They lend themselves to in-depth investigations, particularly 

those which explore personal accounts of experiences and feelings (p.113). 

The interview sequence was developed to stimulate interest from the outset but to lead 

off with relatively straightforward questions. Zikmund (1997) explains: "If the opening 

questions are interesting, simple to comprehend, and easy to answer, respondents' 

cooperation and involvement can be maintained throughout the questionnaire" (p.394). 

Interviews were divided into sections. Administrative questions were asked in the 

introductory section. They were designed to establish the nature and duration of the 

association with Port of Tauranga, the particular expertise of the interviewee, and any 

specific industry interest or perspective. A section examined historical aspects of port 

sector reform. Waterfront employment issues at the time of reform were incorporated in 

interviews where people had knowledge and understanding in those areas. 

A section examined influences on the operations and activities of Port of Tauranga Ltd 

and covered topics relating to competitiveness, business ethics, technology, 

transportation issues, environmental issues, including the impact of changes in Chief 

Executive on management culture and practices. Strategic management issues explored 

included challenges relating to corporatisation and strategy development processes. A 

further section addressed specific questions about Sulphur Point and Metroport 

initiatives. Social and community responsibilities were examined in a separate section. 

44 



A final summary section asked participants to identify critical actions taken by Port of 

Tauranga Ltd to compete in the deregulated port sector environment, and to identify any 

significant risks for the Company in maintaining competitiveness. In this sequence 

partcipants were asked to comment on emerging trends in the industry. Before 

concluding the interview participants were asked if there were any other issues that were 

important to them during their association with Port of Tauranga that they would like to 

comment on. 

Two separate sections were developed to gather responses from people with particular 

knowledge in specific areas. The 1989 Statement of Corporate Intent was used to 

question two interviewees who were involved at different levels of Bay of Plenty 

Harbour Board, and subsequently Port of Tauranga Ltd prior to the reform period, 

during the reforms from 1989-1992, and who are still involved. The statements 

incorporated in the document were read to the participants and they were asked if these 

aims had been met. Another section examined issues relating to the share market and 

perspectives of the performance ofPort ofTauranga Ltd by investors and share market 

analysts. 

Not all sections of the topic guide were used with all participants. The administrative 

section was covered with all interviewees, as were the summary questions relating to 

critical actions, risks for the Company, and issues important to individuals. Other 

sections were used where participants had particular knowledge or experience to identify 

their perspectives on particular issues and activities. The interviews combined some 

structured sections to develop key themes and issues, and provided for respondents to 

express their own views on issues they felt were relevant and important. 

45 



3. 4. 3. I Interview Procedures 

Potential interview participants were contacted by telephone and letter to arrange the 

interview. Participants selected the venue for the interview. It was considered important 

that it was a venue they were comfortable in. A copy of a letter is set out in Appendix 1. 

At the interview meeting the interviewer introduced herself and gave some background 

information on her area of study, the aims of the research, and the nature and purpose of 

the interview. Participants generally responded with information about themselves and 

the nature of their experience or knowledge ofPort ofTauranga Ltd. Explanations were 

given about the nature and duration of the interview. It was explained that participants 

did not have to respond to specific questions if that was their wish, that they could ask 

questions at any stage of the interview, and that they could withdraw at any time. This 

information was consistent with the consent form. The respondent and the interviewer 

signed the form and each retained a signed copy. A copy of the consent form is set out 

in Appendix 2. 

Initially tape recording of the interviews was considered. lt was decided that 

interviewees would probably not give information as frankly as they would if the 

interview was on a less formal basis. The researcher had prepared an interview template 

setting out sections of the interview and relevant research issues and themes. Space was 

provided under each section to make notes. A copy of an interview template is provided 

in Appendix 3. 

Each interview commenced with the administrative section and continued with sections 

relevant to the experience of the participant. As the interview progressed discussion 

moved from genera] areas to more tightly targetted issues and questions (Sekaran, 1 992, 

p. 195). Each interview concluded with an invitation to the participants to raise issues 

that were important to them. Participants were treated as experts in their particular 

areas. Neutral probes were used where required to explore or clarify particular issues or 

responses (Babbie, 1995, p.267, p.277; Easterby-Smith et al., 1991, p.80; Denscombe, 

46 



1998, p. 125). Where participants did not wish to discuss topics their rights were 

respected. Interviewees were thanked for participating and were asked if the researcher 

could contact them again if there was a need to clarify information. Interview notes were 

transcribed promptly onto an individual interview template. At the completion of all 

interviews the information was consolidated into an integrated matrix of topics and 

responses. 

3.4.3.2 Interview Bias and Interviewer Effect 

All interviews were approached in a consistent manner and contact with participants 

followed the same form and procedures. Information for each interview was prepared in 

the same way in an interview pack. The researcher followed the same format for 

interview preliminaries and for the conduct of each interview. The researcher 

endeavoured to convey a neutral stance on research topics and to be an observant and 

vigilant listener. Yin ( 1994) considers: 

Being a good listener means being able to assimilate large amounts of new 

information without bias. As an interviewee recounts an incident, a good listener 

hears the exact words used by the interviewee (sometimes, the terminology 

reflects an important orientation), captures the mood and affective components, 

and understands the context from which the interviewee is perceiving the world 

(p.57). 

It was important to identify orientation, mood, and context in participants' responses to 

gain a better understanding of their perceptions of events and activities being examined. 

Denscombe (1998) explains that age, sex, ethnicity, social and occupational status of the 

interviewer may influence responses of participants (p.316). The interviewer 

endeavoured to present herself in a similar way at each interview, in a manner consistent 

with the interview setting, and the work role of the respondent (Babbie, 1995, p.265). 

Most of the interviews were conducted on business premises in offices or meeting 

47 



rooms. The interviewer endeavoured to ask questions in a neutral manner, and not to 

antagonize interviewees or to adopt a judgmental stance. Interviews ranged in length 

from 60 minutes to 120 minutes, depending upon the range and depth of experience of 

respondents. 

3.5 Data Organisation 

Research notes, reports, observations, correspondence, documents, and transcripts were 

organised and stored to support analysis and interpretation of information. Yin (1994) 

refers to the desirability of having procedures for data collection and storage to enhance 

quality control and maintain reliability of information (p. 96). From this information and 

the 1999 research studies, research issues and themes were identified. 

3.6 Data Analysis 

The experience survey approach was consistent with the need to analyse information 

with reference to a theoretical framework of strategic management and business 

analysis. Business analysis frameworks contain various configurations of factors 

relevant to particular industries and studies. There are fundamental components that 

feature in the analysis models - background conditions; industry environment; market 

factors including suppliers, customers, and demand; competitive factors; political and 

regulatory factors; economic factors; socio-community factors; and technological factors 

(Pickford and Bollard, 1998; Poulin et al. 1998; Lewis et al. 1996; Porter, 1985, 1991). 

The analytical framework for this project incorporated the above components with 

consideration of other research themes that had been identified in the preliminary phase. 

The pattern of relationships built up by Port of Tauranga Ltd was an important area for 

examination. Figure 3. 1 identifies components of the research issues and analysis 

framework. 

48 

\ 



Figure 3.1: Research Issue