BUS485: BUSINESS RESEARCH

METHODS
Chapter 04
Evaluating the value of Research
 Conceptually, the value of research is not  Decision theory: The focus is on trying
difficult to determine: to assess the outcomes of each action.
 the result of decisions made with the The manager chooses the action that
information minus the result that would be affords the best outcome – the action
made without it
criteria that meets or exceeds whatever
 But, practically it is almost impossible!
criteria are established. Each criterion is
 Option analysis: Managers conduct formal a combination of a decision rule
analysis of each alternative research project (criterion for judging the attractiveness)
judged in terms of estimated costs and and a decision variable (quantifiable
associated benefits and with managerial characteristic, attribute, or outcome). The
judgment playing a major role. evaluation of alternatives requires that:
 Prior or Interim Evaluation: In this case,
1) each alternative is explicitly stated,
managers decide to control the research
expenditure risk by doing a study in stages. 2) a decision variable is defined by an
Costs are then reviewed at each stage. outcome that may be measured, and
 Ex Post Facto Evaluation: This form occurs 3) a decision rule is determined by which
after the research is conducted but can be outcomes may be compared.
useful in guiding future decisions.
The Research Process
 Stage 1: clarifying the research question.
 Stage 2: research proposal
 Stage 3: Research Design
 Stage 4: Data Collection and preparation.
 Stage 5: Data Analysis and Interpretation.
 Stage 6: Reporting.
The Research Process (cont.)
Actions & steps in research process Steps in the Research Process
 Review concepts and theories (Review the literature) Identifying a Problem
 Review previous research finding
 Define research problem and set the scope and objectives of research Reviewing the Literature
 Identify all variables, indicators and parameters required to be
investigated into in the research
Specifying a Purpose
 Define criteria/indicators for measurement/assessment/evaluation of
the parameters
 Formulate hypotheses (if needed) and identify the method for testing Collecting Data
 Identify the sets and data required by groups, types
 Design the data collection framework (including sample design)
 Collect data (Execution) Analyse and
 Analyse data
Interpret Data
 Analyse cause/effect relationships
 Interpret and report Report and Evaluate
Reference: Research Design Qualitative, Quantitative, and
Mixed Methods Approaches (3/E) By John W Creswell
The Research Process (cont.)
 Stages in the Research Process 1. Choosing the
Problem and
Stating
Hypothesis

5. Interpreting 2. Formulating
Result Research Design

3. Data
4. Analysing Data
Collection
The Research Process (cont.)
 Stages of the Research Process

Problem Discovery Discovery and

and Definition Definition

and so on
Research
Design Conclusions and
Report

Sampling

Data Processing
and Analysis
Reference: Business Research Methods Data
(7/E) By William G. Zikmund Gathering
Stage 1: Clarifying the Research Question
 A management dilemma is an
opportunity of problem that the
manager has discovered because of
one or more symptoms.
 A management question is a
restatement of the manager’s dilemma
in question form.
 A research question is the hypothesis that best states the objective of the
research; the question that focuses the researcher’s attention.
 An investigative question is the question the researcher must answer to
satisfactorily answer the research question.
 A measurement question is the question asked of the participant or the
observations that must be recorded.
Stage 2: Proposing Research
 The research must be proposed in order to allocate
resources to the project.
 There are three types of budgets in organizations where
research is purchased and cost containment is crucial.
 Rule-of-thumb budgeting involves taking a fixed
percentage of some criterion. For example, a percentage
of the prior year’s sales revenues may be the basis for
determining the business research budget for a
manufacturer.
 Departmental (functional area) budgeting allocates a
portion of total expenditures in the unit to research
activities. This allows units like
 human resources and marketing to have the authority to approve their own projects
 Task budgeting selects specific research projects to support on an ad hoc basis.
This is the least pro-active form but permits definitive cost-benefit analysis.
The Research Proposal: written

Purpose Methods Extent

Legally-binding
Timing
contract Written
proposals
establish
Obligations Delivery

Budgets
Stage 3: Designing the Research
 There are three components to this stage:
research design, sampling design, and pilot
testing.
 Research design is the blueprint for fulfilling
objectives and providing the insight to answer
the management dilemma. There are many
methods, techniques, procedures, and protocols
possible.
 Next, identify the target population and determine whether a sample or census is
desired. A census is a count of all elements in a population. A sample is a group of
cases, participants, events, or records that constitute a portion of the target
population. The researcher must determine whether to choose a probability or
nonprobability sample, including types of samples, sample frames, how samples are
drawn, and the determination of sample size
 A pilot test is conducted to test weaknesses in the research methodology and the data
collection instrument and to provide proxy data for selection of a probability sample.
Stage 4: Data Collection
 Data may be characterized by their abstractness, verifiability, elusiveness, and
closeness to the phenomenon.
 As abstractions, data are more metaphorical than real. For instance, the growth
in GDP cannot be readily observed.
 Second, data are processed by our senses. When sensory experiences consistently
produce the same result, our data are said to be trustworthy.
 Capturing data is elusive. It is complicated by speed at which events occur and
the time-bound nature of observations. Opinions, preferences and attitudes also
vary from one to another, and with passage of time.
 Data reflect their truthfulness by closeness to the phenomena.
 Secondary data are originally collected to address a problem other than the one which
require the manager’s attention at the moment.
 Primary data are data the research collects to address the specific problem at hand.
Stage 5: Data Analysis & Interpretation, and
Stage 6: Reporting the Results

Steps in Data Analysis & Interpretation Parts of the Research Report

 In reporting the results, the researcher should
Reduce data to manageable size strive to provide insightful information
adapted to the client’s needs and to choose
words carefully when crafting interpretations,
conclusions, and recommendations. Typical
reports should include:
Develop summaries  The executive summary consists of a synopsis
of the problem, findings, and recommendations.
 The overview of research explains the
background, exploratory findings from
secondary data, the research design and
Look for patterns procedures, and the conclusions.
 The implementation strategies section expands
on recommendations.
 A technical appendix contains all the materials
Apply statistical techniques necessary to replicate the project.
Research Process Problems to Avoid
 Researchers must remain objective. The slide presents common problems in the
research process.
 Unresearchable questions: Not all management questions are researchable and not all
research questions are answerable.
 An ill-defined problem is one that addresses complex issues and cannot be expressed
easily or completely.
 Politically-Motivated Research: Sometimes a research study is intended to win approval
for a pet idea or to protect a decision maker. In these cases, it may be more difficult to get
support for the most appropriate research design.
 Researchers must remain objective. Some common problems:
 The favoured-technique syndrome occurs when researchers are method-bound. They
recast management questions so that it is amenable to their favorite method.
 Company database strip-mining means that managers may feel that they do not want to
collect more data until they have thoroughly evaluated all existing data. While data mining
can be a good starting point, it will rarely address all questions related to a specific
management dilemma.