Business Research Methods

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 Chapter 1
Overview of Research
 1.1: Definition of Scientific Research

• Research is defined as human activity based on intellectual application in the

investigation of matter.
• Research is the systematic process of collecting and analysing information in order to
increase our understanding of the phenomenon about which we are interested or
concerned.
• Scientific research is performing a systematic study in order to test a hypothesis or
answer a question.
• Scientific research is a systematic attempt to obtain answers to meaningful questions
about phenomena or events through the application of scientific procedures.
• It is the function of the researcher to contribute to the understanding of the
phenomenon and to communicate that understanding to others.
• Scientific research must be organized and undergo planning;
• Scientific research follows a set of protocols and established structures.
• These protocols can vary slightly between disciplines, but all follow similar
basic structure.
• Failure to follow the guidelines may prevent the findings from being
accepted and taken seriously.
• Scientific research looks at an area and breaks it down into easily
testable/ answerable pieces, i.e. breaking down a large and seemingly
impossible problem into manageable chunks (large pieces).
• The treatment of the individual pieces will allow the larger problem/
question to be approached and answered.
• All scientific research has a goal and ultimate (final) aim, repeated and
refined study gradually reaching an answer.
• 2) Descriptive research: Descriptive research is a research which describes
phenomena as they exist.

• It is used to identify and obtain information on the characteristics of a particular

problem or issue.

• For example, descriptive research may answer such questions as:

• What is the absentee rate in office or manufacturing department?

• What is the turnover rate of X company?

• What are the qualifications of different groups of employees?

• (3) Eplanatory research

• Analytical research aims to understand phenomena by discovering and

measuring causal relations among them

•
• The desire to know "why," to explain, is the purpose of explanatory research.

• Explanatory research looks for causes and reasons.

• 4) Predictive research: it aims to generalize from the analysis by predicting
certain phenomena on the basis of hypothesized, general relationships.

• Some examples of predictive research are:

• In which city would it be most profitable to open a new retail outlet?

• Will the introduction of an employee bonus scheme lead to higher levels of

productivity?

• How would an increase in interest rates affect our profit margins?

• B) Based on the Outcome of the research, research is classified in to:

1]. Applied Research 2) Basic Or Fundamental research

• Applied research aims at finding a solution for an immediate problem

facing a society or an industrial/business organization

• The central aim of applied research is to discover a solution for some

pressing practical problem
• 2) Basic or fundamental research

• Basic research is being conducted primarily to improve our

understanding of general issues

• It is not emphasized on immediate application

• Example: Does personal characteristics influence people’s career

choices.

• The principal aim of basic research is to make a contribution to

knowledge
• C) Based on the process of research, research is classified in to:
• 1) Quantitative 2) qualitative Research
• Quantitative: Quantitative research is based on the measurement of
quantity

• Qualitative Research: Qualitative research is concerned with

qualitative phenomenon, i.e., phenomena relating to or involving
quality or kind.

• Qualitative research is more subjective in nature and involves

examining and reflecting on perceptions
• Based on the logic of the research, research is classified in to:
• 1) Deductive 2) Inductive research:
• Deductive: it is a study in which a conceptual and theoretical structure is
developed and then tested by empirical observation

• Particular instances are deducted from general inferences

• For this reason, the deductive method is referred to as moving from the
general to the particular.

• For example, you may have read about theories of motivation and wish to
test them in your own workplace
• (2) Inductive research: it is a study in which theory is developed from
the observation of empirical reality

• General inferences are induced from particular instances

• It is referred to as moving from the specific to the general.

• For example, you may have observed from factory records in your
company that production levels go down after two hours of the shift
and you conclude that production levels vary with length of time
worked.
• Other types of researches

• One-time research or longitudinal research

• From the point of view of time, we can think of research either as

one-time research or longitudinal research.

• 2) Field-setting research or laboratory research

• Research can be field-setting research or laboratory research

depending upon the environment in which it is to be carried out.
 1.3. Characteristics of research

• Although research projects vary in complexity and duration, research typically has
the following distinct characteristics:
• A. Research originates with a problem
• B. Research requires clear articulation of a goal
• C. Research requires a specific plan for proceeding
• D Research usually divides the principal problem into more manageable sub
problems
• E. Research is guided by specific research question or hypothesis
• F. Research requires the collection and interpretation of data
 a. Research originates with a problem
• The world is filled with unanswered questions and unresolved problems.
• Everywhere we look, we see things that cause us to wonder, to speculate, to
ask questions.
• by asking questions, we strike the first spark igniting (lighting) a chain
reaction that leads to the research process.
• An inquisitive (questioning) mind is the beginning of research, as some
scholars say “Inquiring (analytical) minds want to know”.
• Look around you; consider the unresolved situations that evoke these
questions.
• What is such a situation like?
• Why does such and such phenomenon occur?
• What does it all mean?
• These are everyday questions. With questions like these, research begins.
 b. Research requires clear articulation of a goal
• The ultimate goal of the research must be set forth clearly and precisely in a
grammatically complete sentence.
• The statement of goal answers the question, “what problem do you intend
to solve?”
• It is essential for the success of any research undertaking; without it, the
research is on very shaky ground.
 c. Research requires a specific plan for proceeding
• research is not a blind excursion into the unknown, with the hope that the
data necessary to answer the question will turn up.
It is instead, a carefully planned work, a search and discover mission
explicitly outlined in advance.
• Researchers plan their overall research design and specific research
methods in a purposeful way so that they can acquire data relevant to
their research problem.
• In addition to identifying the goal of your research, you must also identify
how you propose to reach your goal.
• You cannot wait until you are deep in the project to plan and design your
strategy.
d. Research usually divides the principal problem into more manageable sub problems

• from a design standpoint it is often helpful to break a main research

problem into several sub problems, that when solved, will resolve the
main problem.

• By closely inspecting the principal problem the researcher often

uncovers important sub problems.
e.g Inventory control? Broken down to proper soft ware? Proper
authorization? Proper documentation? Proper audit?
 e. Research is guided by specific research question or hypothesis

• Having stated the problem/ sub problems, the researcher usually

forms one or more research questions/ hypotheses.

• develop one or more tentative explanations/ questions.

 f. Research requires the collection and interpretation of data
• collect data and organize them in meaningful ways so that they can be interpreted.
• Data demand interpretation.
• Data, events and observations are, in themselves, only data, events only , observations
and nothing more.
• The significance of the data depends on how the researcher extracts meaning from
them.
• data un-interpreted by human mind are worthless: they can never help us to answer
the question.
• interpretation is subjective in nature
• Different minds often find different meanings in the same set of facts.
• But no rule or formula can lead the researcher to a correct interpretation.
• Interpretation depends entirely on the hypotheses, assumptions, and logical reasoning
processes of the researcher.
 1.3. Features of Good Research
• Good research generates dependable data that are derived
by professional conducted practices and that can be used
reliably for decision making.
• In contrast, poor research is carelessly planned and
conducted, resulting in data that a manager can’t use to
reduce his/her decision-making risks.
• Good research follows the standards of the scientific
method: systematic, empirically based procedures for
generating replicable research.
• These features are described below:
1. Purpose clearly defined:
• The purpose of the business research-the problem involved or the decision
to be made-should be clearly defined and sharply delineated in terms as
unambiguous as possible.
• The statement of the decision problem should include its scope, its
limitations and the precise meanings of all words and terms significant to
the research.
• Failure of the researcher to do this adequately may raise legitimate doubts
in the minds of research report readers as to whether the researcher has
sufficient understanding of the problem to make a sound proposal
attacking it.
• This characteristic is comparable to developing a strategic plan for
achieving an objective before developing a tactical plan or an action map.
2. Research process detailed:
• The research procedures used should be described in sufficient detail to
permit another researcher to repeat the research.
• Except when secrecy is imposed, research reports should reveal with
candor (openness) the sources of data and the means by which they
were obtained.
• Omission of significant procedural details makes it difficult or impossible
to estimate the validity and reliability of the data and justifiably weakens
the confidence of the reader in the research itself as well as any
recommendations based on the research.
• This characteristic is comparable to developing a tactical plan.
3. Research design thoroughly planned:
• The procedural design of the research should be carefully planned to yield
results that are as objectives as possible.
• When a sampling of the population is involved, the report should include
evidence concerning the degree of representativeness of the sample.
• A survey of opinions or recollections ought not to be used when more reliable
evidence is available from documentary sources or by direct observation.
• Bibliographic searches should be a thorough and complete as possible.
Experiments should have satisfactory controls.
• Direct observations should be recorded in writing in as soon as possible after the
event.
• Efforts should be made to minimize the influence of personal bias in selecting
and recording data.
• This characteristic is comparable to developing detailed action plans for each
tactic.
• E.g data collection technic, sampling technic and size, observation checklist,
interview guide
4. High ethical standards applied:
• Researchers often work independently and have significant latitude
(autonomy) in designing and executing research projects.
• Careful consideration must be given to those research situations in which
there is a possibility of physical or psychological harm, exploitation, invasion
of privacy, and/or loss of dignity.
• The research need must be weighted against the potential for adverse
effects.
5. Limitations frankly reveled:
• The researcher should report, with complete frankness, flaws in procedural
design and estimate their effect on the findings.
• There are very few perfect research designs.
• Some of the imperfections may have little effect on the validity and
reliability of the data; others may invalidate them entirely.
• A competent researcher should be sensitive to the effects of imperfect
design. The researcher’s experience in analyzing data should provide a
basis for estimating the influence of design flaws.
• As a decision maker, you should question the value of research where no
limitations are reported.
6. Adequate analysis for decision maker’s needs:
• Analysis of the data should be extensive enough to reveal its significance,
what managers call “insights.”
• The methods of analysis used should be appropriate.
• The extent to which this criterion is met is frequently a good measure of
the competence of the researcher.
• Adequate analysis of the data is the most difficult phase of the research
for the novice (beginner).
• The validity and reliability of data should be checked carefully.
• The data should be classified in ways that assist the researcher in
reaching pertinent conclusions and clearly reveal the findings that have
led to those conclusions.
• When statistical methods are used, the probability of error should be
estimated and the criteria for statistical significance applied.
7. Findings presented unambiguously:
• Generalizations that outrun (escape) the evidence on which they are
based, exaggerations, and unnecessary verbiage tend to be leave an
unfavorable impression.
• Such reports are not valuable to managers for an organizational decision
making.
• Presentation of data should be comprehensive, easily understood by the
decision maker, organized so that the decision maker can readily locate
critical findings.
8. Conclusions justified:
• Conclusions should be limited to those for which the data provide an
adequate basis.
• Researchers also may be tempted to rely too heavily on data collected in
a prior study and use it in the interpretation of a new study. Such practice
sometimes occurs among research specialists who confine their work to
clients in a small industry. These actions tend to decrease the objectivity
of the research and weaken reader’s confidence in the findings.
• Good researchers always specify the conditions under which their
conclusions seem to be valid.
9. Researcher’s experience reflected:
• Greater confidence in the research is warranted if the researcher is
experienced, has a good reputation in research, and is a person of
integrity.
• Were it possible for the reader of a research report to obtain sufficient
information about the researcher, this criterion perhaps would be one
of the best bases for judging the degree of confidence a piece of
research warrants and the value of any decision based upon it.
• For this reason, the research report should contain information about
the qualifications of the researcher.