Business Research Methods
MBA 424
MBA Program
Department of Management
Faculty of Business and Economics
Woldia University
Yohannes M. (PhD)
October, 2023
1
Recommended Text Books
Mark N.K. Saunders, Philip Lewis
and Adrian Thornhill (2019).
Research Methods for Business
Students, 8th Edition
Kothari, C. R. (2004). Research
Methodology: Methods and techniques.
New Age International.
2
Chapter One
Research Methods an Introduction
Definition of Research
• Literally, research is a word with two component parts i.e.
“re” and “search”. In which “re” means again and
“search” means to examine carefully, to find, to test, to try.
• Research may be defined as the systematic and objective
process of planning, gathering, recording, analyzing and
interpreting data to prove or disprove a hypothesis
(Zikmund, 2000).
• A systematic means of problem solving (Tuckman 1978).
3
Why Research?
Research is required because of the following
reasons (objectives):
• To identify and find solutions to the problems
• To help making decisions
• To develop new concepts
• To find alternate strategies
4
Objectives of Research
To gain familiarity with a phenomenon or to achieve new
insights into it (exploratory or formulate research studies)
Eg. What causes employee moral decline/why is sales decrease?
To portray accurately the characteristics of a particular
individual, situation or a group (descriptive research studies)
Eg. What is the characteristics of passengers for air transport
service?
Is a type of research that is used to identify the causes of a
problem (diagnostic research studies)
Eg. How frequent is an individual absent in work?
To test a hypothesis of a causal relationship between variables
(hypothesis-testing research studies)
e.g. Entrepreneurial behavior.
5
Significance of Research
The basis for nearly all government policies,
Solving various organizational, managerial,
operational and planning problems,
Studying social relationships and it is seeking
answers to various social problem,
The out let for new ideas and insights.
6
The Research Process
Research process consists of series of actions or
steps necessary to effectively carry out research.
7
Types of Research
1. Based on a general contribution to the knowledge:
• Basic research fills in the knowledge we don't have.
• Applied research seeks to answer a question in the
real world and to solve a problem.
2. Based on Purpose: The reason why are we
conducting the research:
• Exploratory,
• Descriptive,
• Explanatory (causal) research
8
Types of Research Cont.
3. On the basis of data used:
• Quantitative: is based on the measurement of
quantity or amount. It is applicable to phenomena
that can be expressed in terms of quantity.
• Qualitative, on the other hand, is concerned with
qualitative phenomenon, i.e., phenomena relating to
or involving quality or kind.
4. On the Basis of the Environment, in which the
research is carried out can be:
• Field
• Experimental
• Simulation
9
Types of Research Cont.
5. On The Basis of the Time
Required Completing:
• Cross-sectional
• Longitudinal
6. Based on logic: is the
research from specific to
general or vice versa.
• Deductive
• Inductive
10
Scientific Methods of Research
• The scientific method is the process of objectively
establishing facts through testing and experimentation.
The basic process involves:
o Make an observation
o Form a hypothesis
o Test the hypothesis
o Collect, organize and analyze the data
o Draw Conclusions
o Communicate the results
• The principals of the scientific method can be applied in
many areas, including scientific research, business and
technology.
11
Assumptions of science
• Scientists have a certain worldview about science
and their work.
• Their activities and practices are guided by the
following assumptions:
o The physical world is understandable.
o Science cannot provide the answers to all questions.
o Scientific knowledge is durable, but it does not
represent absolute truth.
o Scientific ideas are tentative (or subject to change).
12
Criteria of Good Research
• Purposiveness: research started with definite purpose.
• Rigor: (good theoretical base, sound methodological
design, carefulness, scrupulousness (precision).
• Testability: scientific research tends itself to testing
logically developed hypothesis.
• Precision and confidence:
o Precision: closeness of findings to reality.
o Confidence: the probability that our estimates are correct.
13
Criteria of Good Research Cont.
• Reductive: generalization (take individual data
establish general relationships).
• Replicability: methodology (research design and
procedures are repeated to enable the researcher to
arrive at valid and conclusion result).
• Parsimony: simplicity in explaining the phenomena or
problems that occur.
14
