Business

Research Methods
(Tofik M.(PhD)
CHAPTER ONE: INTRODUCTION

1
1.1 Meaning and Concepts of Research
What is research?
Information is power, the basis for decision
making(problem….information…solution).
Organizations (pvt & gvt) use research for
furnishing information continuously to improve
their decisions and performances

Research is derived from the word search

preceded by the prefix re (re-search); But avoid
“reinventing the wheel".

2
• Different scholars may define research differently:
• Research is the application of human intelligence in
systematic manner to a problem whose solution is not
immediately available.
• Research is knowledge/Knowing the gap between what
is happening and what we think to happen
• Research is a process of systematic inquiry that entails
collection of data; documentation of critical information;
and analysis and interpretation of that data/information,
in accordance with suitable methodologies set by
specific professional fields and academic disciplines.

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 ………cont’d
Research defined as the systematic and objective
process of (planning), gathering, recording, analyzing and
interpreting data to prove or disprove a hypothesis
(Zikmund, 2000).

Important Points in this definition are:

• Research is a process(series of linked activities)
• Research is systematic(organized activity)
• Research is objective(unbiased or impartial)
• Research is purposeful( has specific goals to
achieve)

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 ……………….Contd.
• Research is, thus, an original contribution to the existing stock of
knowledge making for its advancement.
• It is the pursuit of truth with the help of study, observation,
comparison and experiment.
• It is the search for knowledge through objective and systematic
method of finding solution to a problem is research.
• The systematic approach concern in generalization and the
formulation of a theory is also research.
• As such the term ‘research’ refers to the systematic method

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 What Research Is Not?
• Research isn’t information gathering:
• Mere gathering information from resources such books or
magazines isn’t research as it has no contribution to new
knowledge.

• Research isn’t the transportation of facts:

• Merely transporting facts from one resource to another doesn’t
constitute research.
• No contribution to new knowledge although this might make
existing knowledge more accessible.

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 Why Study Business Research?

Business research
provides
information to
guide business
decisions

With Research, you

will reach the right
decision!
 Business Research: Definition

A process of : determining, acquiring, analyzing,

synthesizing, and disseminating relevant business data,
information, and insights to decision makers in ways
that mobilize the organization to take appropriate
business actions that, in turn, maximize business
performance.
• Business research is a process of acquiring detailed
information of all the areas of business and using such
information in maximizing the sales and profit of the
business.
• Such a study helps companies determine which
product/service is most profitable or in demand. \
• In simple words, it can be stated as the acquisition of
information or knowledge for professional or commercial
purpose to determine opportunities and goals for a business.
• Business research can be done for anything and everything.
• In general, when people speak about business research it
means asking research questions to know where the money
can be spent to increase sales, profits or market share.
• Such research is critical to make wise and informed
decisions. 1-9
 Advantages of Business research
• Business research helps to identify opportunities and threats.
• It helps identify problems and using this information, wise decisions
can be made to tackle the issue appropriately.
• It helps to understand customers better and hence can be useful to
communicate better with the customers or stakeholders.
• Risks and uncertainties can be minimized by conducting business
research in advance.
• Financial outcomes and investments that will be needed can be
planned effectively using business research.
• Such research can help track competition in the business sector.
• Business research can enable a company to make wise decisions as
to where to spend and how much.
• Business research can enable a company to stay up-to-date with the
market and its trends and appropriate innovations can be made to
stay ahead in the game.
• Business research helps to measure reputation 1-10
1.2.Objectives of Research

To gain familiarity with a phenomenon or to achieve new insights into

it (studies with this object in view are termed as exploratory or
formulate research studies);

To portray accurately the characteristics of a particular individual,

situation or a group (studies with this object in view are known as
descriptive research studies);

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……Objectives of Research

To determine the frequency with which something occurs or with

which it is associated with something else (studies with this object in
view are known as diagnostic research studies);

To test a hypothesis of a causal relationship between variables (such

studies are known as hypothesis-testing research studies)

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 ……Objectives of Research
 To generate new knowledge, principle and scientific law
 To review and synthesize existing knowledge. That is, to
verify the validity of the previous work.
 To investigate some existing situation or problem
 To explain new phenomenon
 To examine the cause of the problem
 To examine the nature of the problem
 To provide solution to a problem eg. COVID 19, Ebola
 To construct or create a new procedure and new system
 A combination of any one of the above

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Importance of research
1. A Tool for Building Knowledge and for Facilitating
Learning
2. Means to Understand Various Issues and Increase Public
Awareness
3. An Aid to Business Success
4. A Way to Prove Lies and to Support Truths
5. Means to Find, Gauge, and Seize Opportunities
6. Nourishment and Exercise for the Mind

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 1.3. Motivation of doing research
Desire to get degree with its consequential benefit
Desire to get respect and promotion (to own respect in
society).
Desire to face a challenge in solving the unsolved
problem.
Desire to get intellectual joy of doing some creative
work
Directive of government
Employment condition

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Activity 1
• Identify any five topics or areas on which research can be conducted in
your locality or public organizations
1._________________________________________
2._________________________________________
3._________________________________________
4._________________________________________
5._________________________________________
 

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 1.4. Types of Research
I. On the basis of the outcome of the research
a)Fundamental Research
also called academic or basic or pure research
aimed at investigating or search for new principles and
laws (increase understanding of fundamental principles)
concerned with generalization and formulation of a theory
and may arise out of curiosity.
organized only for the attainment of knowledge and truth
also verifies the old established theories, principles and
laws
E.g., Darwin Theory of Evolution

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 b ) Applied research
• aimed at finding a solution for an immediate problem facing a society, a group
or industry (business organization).
• While pure research discovers principles and laws, applied research discovers
their application in solving some social, economical or any other problems.
• Applied research is a methodology used to solve a specific, practical issue
affecting an individual or group.
• This scientific method of study and research is used in business, medicine,
and education in order to find solutions that may improve health, solve
scientific problems or develop new technology.
• Examples
• The improvement of safety in the working place,
• Ways to market products to millennials
• What type of anti-smoking campaigns can reduce smoking among youth or adults?
• Is genetically modified food hurting health?
• Is violence in the media and in video games damaging children's mental health?
• How can obesity be prevented?

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II. On the basis of the purpose (The reason why a
research is conducted)
a. Exploratory research (Pilot Survey)
• also called preliminary research.
• aimed at discovering, identifying and formulating a
research problem and hypothesis.
• When there are few or no studies that can be referred
such research is needed.
• The focus is on gaining insights and familiarity with
the subject area for more rigorous investigation at a
latter stage

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• undertaken with the aim of clarifying ambiguous
problems
• general problems usually known but not sufficiently
understood
• the purpose is to get more information, not to uncover
specific courses of action (subsequent research)
- Determining a specific course of action to follow is not a
purpose of exploratory research!

Example: Child-Care support programme for employees

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Examples of exploratory research
Eg.1: Consider a scenario where a juice bar owner feels that increasing the
variety of juices will enable increase in customers, however he is not sure and
needs more information. The owner intends to carry out an exploratory
research to find out and hence decides to do an exploratory research to find out
if expanding their juices selection will enable him to get more customers of if
there is a better idea.
Eg.2: Another example of exploratory research is a podcast survey template
 that can be used to collect feedback about the podcast consumption metrics
both from existing listeners as well as other podcast listeners that are currently
not subscribed to this channel. This helps the author of the podcast create
curated content that will gain a larger audience

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b. Descriptive Research
 description of the state of nature or affairs, as it exists at present.
 ex-post facto research.
 The main characteristic of such research is that the researcher has no
control over the variables; he can only report what has happened or what
is happening.
• undertaken with the aim of determining the
characteristics of a population or phenomenon
• Previous knowledge of problem exists
• High degree of precision or accuracy required

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Descriptive research.. contd
• Descriptive research is a type of research that describes a population,
situation, or phenomenon that is being studied.
• It focuses on answering the how, what, when, and where questions If a
research problem, rather than the why.

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Examples of descriptive research
 an investor considering an investment in the ever-changing Addis Ababa
housing market needs to understand what the current state of the market is,
how it changes (increasing or decreasing), and when it changes (time of the
year) before asking for the why
 What is the absentee rate in a particular office?
 What is the qualification of different groups of employment?
 Frequency of shopping
 Preferences of people
 Who are the main consumers of organic foods?
 How many students read the prescribed course literature?
 Where do most holiday-makers travelling overseas go?

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 c). Analytic research
 goes beyond simple description of the state of nature.
 When a researcher encounters an issue that is already known
and have a description of it, you may begin to ask “why” things
are the way they are.
 uses facts or information already available, and analyzes them
to make a critical evaluation of the material.
 Not only describe the characteristics, but also it analyzes and
explains why and how it happened or is happening.
 The information or facts used here can be either Qualitative or
Quantitative.
Eg.1 Examining the fluctuations of U. S. international trade balance
during 1974-1995 is an example of descriptive research; while
explaining why and how U.S. trade balance move in a particular way
over time is an example of analytical research.
Eg.2 How can we reduce the numbers of complaints made by
customers
Eg.3 How can we expand the range of our services? 25
 d) Predictive research
• goes beyond explaining why and how things happened.
• It predicts (forecast) the possible (probability) of happening similar situation in
other places.
• Empirical research concerned with forecasting future events or behavior: the
assessment of variables at one point in time so as to predict a phenomenon
assessed at a later point in time.
E.g.,
• How would an increase in interest rate affect our profit margin?
• What type of packaging will improve the sales of our products?
• What will be the impact of change in oil price

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 III. On the basis of the information used
in the study
a) Qualitative research:
 applicable for phenomenon that cannot be expressed in terms of
quantity.
 Things related to quality and kind.
 Research designed to find out how people feel or what they think
about a particular subject or institution is an example of such
research.
Example : Ethnographic research
• It involves the researcher to adapt to the natural environment and
observe its target audience to collect data.
• Such a method is generally used to understand cultures,
challenges or other things that can occur in that particular setting.
• For example: The worldly renowned show “Undercover boss”
would be an apt example of how ethnographic research can be
used in businesses. 27
 b) Quantitative research
• concerned with quantitative phenomenon.
• It is based on the measurement of quantity or amount.
• It is applicable for phenomenon that can be expressed in term of
quantity.

Quantitative research data Qualitative research Data

Associated with numbers Associated with details

Implemented when data can be segregated into well-defined

Implemented when data is numerical
groups

Collected data can be statistically analyzed Collected data can just be observed and not evaluated

Examples: Height, Weight, Time, Price, Temperature, etc. Examples: Scents, Appearance, Beauty, Colors, Flavors, etc.

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 IV. On the basis of the environment in which the research is
carried out research can be
 a. Field research
 It is a research carried out in the field. Such research is common in social
science, agricultural science, history and archeology.
b. Laboratory research
 It is a research carried out in the laboratory. These are commonly
experimental research.
 Such researches are common in medical science, agriculture and in general
in natural sciences eg. Vaccine for Ebola, Covid 19
c. Simulation research
 Such research uses models to represent the real world.
 Simulation is common in physical science, economics and mathematics.
 A simulation is a computer model in which experiments can be conducted,
creating a higher level of completeness than a normal experiment.
  Simulation models can assist in both complex and simple experiments, and
they can be used with almost any social process
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 V. On the basis of the time required to complete the
research

a) Cross sectional(One -time research)

 It is a research limited to a single time period
 A cross-sectional study is conducted at a given point in time.
 Cross-sectional study is conducted with different samples
b) Longitudinal research
 Such research is also called on-going research.
 It is a research carried out over several time periods.
 A longitudinal study requires a researcher to revisit participants of
the study at proper intervals. 
  Longitudinal study is conducted with the same sample over the years.

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31
 1.5. Research and Scientific method
• Research methodology and technique are mostly different from one
science to another or can be different from research to research.

• The philosophy common to all research methodology and technique

is called Scientific methods.

• The scientific method is a process for experimentation that is used to

explore observations and answer questions

• “Scientific research is systematic, controlled, empirical, and critical

investigation of natural phenomena guided by theory and hypotheses
about the presumed relations among such phenomena.” Kerlinger,
1986

• Research is an organized and systematic way of finding answers to

questions/testing hypothesis
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The Scientific Method
Direct
Direct observation
observation

Clearly
Clearly defined
defined variables
variables

Clearly
Clearly defined
defined methods
methods

Empirically
Empirically testable
testable

Elimination
Elimination of
of alternatives
alternatives

Statistical
Statistical justification
justification

Self-correcting
Self-correcting process
process
Forms of scientific methods
1.Induction

E.g.
Socrates is mortal ,
and Socrates is a man,
therefore, man is mortal.

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2.Deduction( General to specific )

E.g. Man is mortal

Socrates is a man;
therefore, Socrates is mortal

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 1.6. Research Processes
• Identification and Formulating the research problem
• Extensive literature survey
• Developing working hypothesis
• Preparing the research design
• Determine sample design
• Collecting data
• Analysis of the data
• Hypothesis testing
• Generalization and interpretation
• Reporting the result

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Stages in the Research Process

Define
Problem

Planning a Conclusions
Research Design and Report

Planning Processing and

a Sample Analysing the Data

Gathering
the Data
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Flowcharting the Research Process (1)
Problem Discovery

Selection of Secondary (historical) data

exploratory Pilot Study
research technique Experience Survey
Case Study

Problem Definition
(Statement of research objectives)

Survey (Interview, Questionnaire)

Selection of Experiment (Laboratory, Field)
basic research Secondary Data Study
method Observation

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Flowcharting the Research Process (2)

Survey (Interview, Questionnaire)

Experiment (Laboratory, Field) Collection of Data (Fieldwork)
Secondary Data Study
Observation
Editing and Coding Data

Sample Design
Data Processing and Analysis

Probability Non-Probability Interpretation of Findings

Sampling Sampling

Report

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 1.7. Characteristics of a Good Research
 The purpose of the research, or the problem
involved, should be clearly defined and sharply
delineated in terms as unambiguous as possible

 The research procedures used should be

described in sufficient detail to permit another
researcher to repeat the research.

 The procedural design of the research should

be carefully planned to yield results that are as
objective as possible.

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…..Characteristics of a Good Research
 The researcher should report, with complete
frankness, flaws in pro­cedural design and estimate
their effect upon the findings.

 Analysis of the data should be sufficiently adequate

to reveal its sig­nificance, and the methods of
analysis used should be appropriate.

 Conclusions should be confined to those justified by

the data of the research and limited to those for
which the data provide an adequate basis.

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1.8. Problems Encountered by Researchers in
Developing Countries

 Lack of a scientific training in the methodology

 Insufficient interaction between the university research
departments and development establishments and
government departments
 Reluctance in supplying the needed information to
researchers.
 Overlapping research studies
 Lack of code of conduct for researchers
 Difficulty of timely availability of published data in
libraries
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 CHAPTER I PART II
FORMULATION OF
RESEARCH PROBLEMS AND HYPOTHESES

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 What is a Research problem?
•Refers to some difficulty, which a researcher
faces (experiences) in the context of both a
theoretical or practical situation and wants
to obtain a solution for the same.

44
• … is an expression of the dilemma or disturbing
situation that needs investigation for the purposes of
providing understanding and direction.

• … is a perceived difficulty, a feeling of discomfort about

the way things are, or a discrepancy between what
someone believes should be the situation and what the
situation is in reality.

• … is a gap or a difference between what is expected or

desired to be and the actual condition exists.

• The significance of a problem can be measured by

the gap 45
The research problem
•Is the problem or issue that leads to the need for a
study.
•The issue that exists in the literature, theory, or
practice eg. TPA VS NPM
•It might spring from an experience researchers
have had in their personal lives or workplaces.
•It may come from an extensive debate that has
appeared in the literature Eg.benefits Health care
financing Reform, MFI role in poverty alleviation
•It might develop from policy debates in
government or among top executives Eg. Tax policy
, public service provision options,
• The research problem in a study begins to become
clear when the researcher asks:
• “what is the need for this study?” or
• “what problem influenced the need to undertake this
study?”,
• “Why does this research need to be conducted?” .
• If a researcher is unable to answer these questions
clearly then the statement of the problem is likely
to be ambiguous.
• The research problem is often confused with the
research questions those questions that the
investigator would like to answer in order to
understand or explain the problem.
Choice of research topic is affected by many
things:

Interests and values of the researcher

Current events in the academic world and
The context in which the research is to be made.
IFRS :Fairness of fair value method
Research may start with the discovery of an
opportunity or a problem that should come
before problem definition.
Fairness of fair value method
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Research problem..cont
• Over and above these conditions, the individual or the
organization can be said to have the problem only if ‘I’
does not know what course of action is best, i.e., ‘I’, must
be in doubt about the solution.
• Thus, an individual or a group of persons can be said to
have a problem which can be technically described as a
research problem, if they (individual or the group), having
one or more desired outcomes, are confronted with two or
more courses of action that have some but not equal
efficiency for the desired objective(s) and are in doubt
about which course of action is best.
• We can, thus, state the components1 of a research problem
as under:
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 Research problem….cont
• Thus, a research problem is one which requires a
researcher to find out the best solution for the given
problem, i.e., to find out by which course of action the
objective can be attained optimally in the context of a
given environment.
• Thus, an individual or a group of persons can be said to
have a problem which can be technically described as a
research problem, if they (individual or the group), having
one or more desired outcomes, are confronted with two
or more courses of action that have some but not equal
efficiency for the desired objective(s) and are in doubt
about which course of action is best.
• We can, thus, state the components1 of a research
problem as under: 50
 Research Problem …contd
I. There must be an individual or a group which has some difficulty
or the problem.
II. There must be some objective(s) to be attained at. If one wants
nothing, one cannot have a problem.
III. There must be alternative means (or the courses of action) for
obtaining the objective(s) one wishes to attain. This means that
there must be at least two means available to researcher for if he
has no choice of means, he cannot have a problem.
IV. There must remain some doubt in the mind of a researcher with
regard to the selection of alternatives. This means that research
must answer the question concerning the relative efficiency of the
possible alternatives.
V. There must be some environment(s) to which the difficulty
pertains

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Research problem.. Cond
• Thus, a research problem is one which requires a
researcher to find out the best solution for the given
problem, i.e., to find out by which course of action the
objective can be attained optimally in the context of a
given environment.
• There are several factors which may result in making the
problem complicated.
• For instance, the environment may change affecting the
efficiencies of the courses of action or the values of the
outcomes; the number of alternative courses of action
may be very large; persons not involved in making the
decision may be affected by it and react to it favorably
or unfavorably, and similar other factors. All such
elements (or at least the important ones) may be thought
of in context of a research problem. 52
Research problem…contd
• SELECTING THE PROBLEM
• The research problem undertaken for study must be carefully selected. The
task is a difficult one, although it may not appear to be so. Help may be taken
from a research guide in this connection.
• Nevertheless, every researcher must find out his own salvation for research
problems cannot be borrowed. A problem must spring from the researcher’s
mind like a plant springing from its own seed.
• If our eyes need glasses, it is not the optician alone who decides about the
number of the lens we require. We have to see ourselves and enable him to
prescribe for us the right number by cooperating with him.
• Thus, a research guide can at the most only help a researcher choose subject.

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 Research problem contd

However, the following points may be observed by a researcher in

selecting a research problem or a subject for research:

I.Subject which is overdone should not be normally chosen, for it will

be a difficult task to throw any new light in such a case.
II.subject should not become the choice of an average researcher.
Too narrow or too vague problems should be avoided.
III.The subject selected for research should be familiar and feasible so
that the related research material or sources of research are within
one’s reach.

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“The formulation of the problem is
often more essential than its
solution.”

Albert Einstein

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 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation
Exploratory
Research
Problem Definition/problem statement (Optional)

Statement of
Research Objectives

56
 Cont….
• problem definition is refer to the process of defining and
developing a decision statement and the steps involved in
translating it into more precise research terminology,
including a set of research objectives.

• It is the indication of a specific business decision area that

will be clarified by answering some research questions.

• A decision statement is a written expression of the key

question(s) that a research user wishes to answer.

• It is the reason that research is being considered.

57
 Significance of research problem

At the out set of the research process, the researcher

may not have a clear statement of the problem.

The formulation of a problem is often more important

than its solution (Albert Einstein) because the subsequent
research process and the solution are completely
dependent on the problem.

A problem well defined is a problem half solved (Dewy).

58
Significance ….
It allows the researcher to set the proper research
objectives, and efficiently use resources.

Problem definition is the indication of a specific

development decision area that would be classified by
answering some research questions.

A problem definition error or omission is likely to be a

costly mistake that cannot be corrected in latter stages of
the process.

59
 Problem Complexity
Situation Research
Objectives

Easier:
1. Situation is
Harder:
1. Situation appears new
recurring/routine 2. Change(s) in situation is
2. A dramatic change subtle
occurs 3. Symptoms are scattered
3. Symptoms are isolated 4. Symptoms are ambiguous
4. Symptoms are
consistent
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IDENTIFICATION OF THE PROBLEM
SOURCES OF RESEARCH PROBLEMS

• Theory of One’s Interest

• Daily Problems
• Technical Changes
• Unexplored Areas
• Discussion With Experts
• Preliminary Survey of Literature
• Places/Institutes Conducting Research In The Area
• Professional Journals, Papers, Conferences, Seminars Etc.
• Encyclopedia
• Research Abstract In That Area
• Current Researches and their Limitations
61
THE PROCESS OF PROBLEM DEFINITION

 A problem definition indicates a specific

managerial decision area that will be
clarified by answering some research
questions.

62
The Process of Problem Definition,………………………cont’d

Ascertain the Determine unit of

decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
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 1. Ascertain the Decision Maker's Objective

Objectives are seldom clearly articulated and given to the

researcher.

The decision maker seldom formulates his objectives

accurately.

She/he is likely to state his objectives in the form of

platitudes which have no operational significance.

Objectives usually have to be extracted by the researcher.

64
 One effective technique for uncovering elusive
research objectives consists of presenting the manager
with each possible solution to a problem and asking
whether she/he would follow that course of action.

If the decision maker says "no," further questioning to

determine why the course of action is inappropriate
usually will help formulate objectives.

 Often exploratory research can illuminate the nature

of the opportunity or problem and help decision makers
clarify their objectives and decisions.

65
2. Understanding the Background of the Problem

 The iceberg principle illustrates that understanding

the background of a problem is vital.

 In situations in which the decision maker's

objectives are clear, the problem may be diagnosed
exclusively by exercising managerial judgment.

 In the absence of adequate information about a

problem a situation analysis is the logical first step
in defining the problem.

66
A situation analysis involves a preliminary
investigation or informal gathering of background
informa­tion to familiarize researchers or decision
makers with the decision area.

Gaining an awareness of organizational or

environmental conditions and an appreciation of
the situation often requires exploratory research.

67
3. Isolating and Identifying the Problem, Not the
Symptoms
Anticipating all of the dimensions of a problem is
impossible for any researcher or executive.

Occurrences that appear to be "the problem" may be

only symptoms of a deeper problem.

Isolation of a core problem from its symptoms can be

carried out by listing all the likely problems and
conducting cause and effect relationship of the identified
problems through paired comparison.

68
 Cont……
This helps to eliminate the symptoms from
the list

The illustration in the following page shows

how symptoms may cause confu­sion about
the nature of the true problem.

69
4. Determine the unit of analysis
Unit of analysis the level or unit about which
conclusions are made in research

The investigation may focus on the collection of data

about organizations, departments, work groups,
individuals or objects.

A problem may be investigated at more than one levels

of analysis and the conclusions may vary.

Determining the unit of analysis should not be

overlooked during the problem definition stage of the
research.

70
 5. Determine the Relevant Variables

A variable is defined as anything that varies or changes

in value.

A variable generally is anything that may assume

different numerical or categorical values.

Key independent and the dependent variables should

be identified in the problem definition stage.

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 Cont….
A dependent variable is a criterion or a variable that is to
be predicted or explained.

An independent variable is a variable that is expected to

influence the dependent variable.

For example, average hourly rate of pay may be a

dependent variable that is influenced or can be predicted
by an independent variable such as number of years of
experience.

72
Cont….
There are also intermediary variables that always lie
between the independent variables and the
dependent variable.

Intermediary variables are outcomes of the

independent variable and causes of the dependent
variable

The assignment of variables to independent,

intermediary, and dependent variables vary from one
situation to another.

73
 6. State research questions and objectives
After problem definition researchers should prepare a
written statement that clarifies any ambiguity about what
they hope the research will accomplish.
Research questions and hypothesis can add clarity to the
statement of the development problem.
Research questions makes it easier to understand what is
perplexing to decision makers and indicate the issues to
be resolved.
A research question is the researcher’s translation of the
development problem into a specific need for inquiry.

74
 The goal of defining the problem is to state the research questions
clearly and to have well formulated hypothesis.

Research Objective is the researcher's version of the development

problem – specifies what is to be done by the researcher

These objectives explain the purpose of the research in measurable

terms-and define standards of what the research should
accomplish.
Objectives helps to ensure that the project will be manageable in
size.

75
Research objectives must specify the information needed
to make a decision.

Identifying the information needed may require decision

makers or researchers to be as specific as listing the exact
wording of the question in a survey or explaining exactly
what behavior might be observed or recorded in an
experiment.

Many career decisions, for example, are made by both a

husband and wife. If this is the case, the husband-wife
decision-making unit (or household) is the unit of analysis.

It is useful if the research objective is a managerial action

standard. If the criterion to be measured
76
continued

The number of research objectives should be limited

to a manageable quantity.

The fewer the study objectives, the easier it is to

ensure that each will be addressed fully.

Therefore specific objectives influence the research

design because they indicate the type of information
needed.

77
 Activity 2
• Identify ten major problems in your organization
• From these ten problems select the most significant three
problems by following the procedures to be followed in
problem definition and recognize that one of theses
problems will be your research topic for the research
proposal that you are going to develop by the end of
chapter three.

78
CONDITIONS FOR EFFECTIVE FORMULATION OF RESEARCH
PROBLEMS
1. Systematic immersion in the subject through first
hand observation (information)

2. Study of relevant literature on the subject

3. Discussions with persons with practical experience

in the field of study: experience survey

79
State the research questions and research
objectives

80
If you do not know where you are going,
any road will take you there.

81
 Broad research Statement of Exploratory research
objectives business problem (optional)

Specific Objective 1 Specific Objective 2 Specific Objective 3

Research Design
Results

82
 Formulation of Research Hypotheses
Hypotheses are a set of proposed solutions or
explanations, which the researcher is obliged to test on
the bases of already known facts.

A research hypothesis is a predictive statement, capable

of being tested by scientific methods, that relates an
independent variable to some dependent variable.

A hypothesis provides basic guide/direction/ frame

work to the researcher. It is a tentative
solution/proposition/explanation.

83
Research hypothesis may refer to an unproven proposition or supposition
that tentatively explains certain facts; phenomena; a proposition that is
empirically testable.

Research hypotheses are statements that can be empirically tested.

Hypothesis are usually more specific than problem statements; they are
usually nearer to the actual research operations and testing.

84
 Cont….
In social science hypothesis formulation may be
replaced by research questions and objectives.

Research question is the researcher’s translation of

the problem into specific need for inquiry.

Research objective is the purpose of the research in

measurable term

85
 Sources of Hypothesis
1. Hypothesis originates in the science itself or in the
scientist
Personal and idiosyncratic experiences,
perception and conception of the researcher play
a major role.
Researchers should think differently and
carefully.
2. Analogies are comparisons or analogies between systems
(such as social and natural systems)

3. Hypothesis may rest also on the findings of other studies

In social science research is usually exploratory i.e
it is an extension from other researches or clear
hypothesis
86
Cont…………

4. A hypothesis may stem from a body of theory,

which may afford by way of logical deduction, the
prediction that if certain conditions are present
certain results would follow.

5. Value orientation of the culture in which a science

develops may furnish many of its basic hypotheses.

87
 Characteristics of Hypothesis
1. Hypothesis should be clear and precise
2. Hypothesis should be capable of being tested
3. Hypothesis should state relationship between
variables, if it happens to be a relational hypothesis.
4. Hypothesis should be limited in scope and must be
specific
5. Hypothesis should be stated as far as possible in most
simple terms
6. Hypothesis should be consistent with most known
facts
7. Hypothesis should be amenable to testing within a
reasonable time.
8. Hypothesis must explain the facts that gave rise to the
need for explanation.
88
 Types of Hypothesis
Null hypothesis
Often stated as … There is no difference/ relationship etc
among alternatives or variables.
Alternative hypothesis
The alternate hypothesis ,on the other hand, states that
there is some difference /relationship among
alternatives or variables.
 In hypothesis testing we proceed on the basis of null
hypothesis, keeping the alternative hypothesis in view.
 Why? On the assumption that null hypothesis is true, one
can assign the probabilities to different possible sample
results, but this cannot be done if we proceed with the
alternative hypothesis.
89
 The importance of significance level

In the context of hypothesis testing significance level is

the most important concept.

It is always some percentage (10%, 5% and 1% ) which

should be chosen with great care, thought and reason.

If we take the significance level at 5 per cent, then this

implies that H0 will be rejected when the sampling result
(i.e., observed evidence) has a less than 0.05 probability of
occurring if H0 is true.

90
 One-Tailed and Two-Tailed Tests
• A directional hypothesis is tested with a one-
tailed test whereas a non-directional hypothesis
is tested with a two-tailed test.

• The following three relationships are only possible

between any two parameters, μ1 and μ2:
• (a) μ1 = μ2
• (b) μ1 < μ2
• (c) μ1 > μ2

91
 Directional (one-tailed tests)
• H0: μ1 ≥ μ2 or μ1 ≤ μ2
• H1: μ1 < μ2 or μ1 > μ2

Non – directional (two-tailed tests)

• H0: μ1 = μ2
• H1: μ1 ≠ μ2

92
Nine Steps of Hypothesis Testing
1. State the null & alternative hypothesis
2. Choose the level of significance
3. Choose the sample size
4. Determining the appropriate statistics technique
5. Set up the critical value
6. Collect data and compute the sample value
7. determine whether the test statistics has fallen in
to the rejection or non-rejection region
8. Make the statistical decision
9. Express the statistical decision in the context of the
problem

93
 Errors in Hypothesis Testing
In hypotheses testing there are basically two types of errors that one can make.
We may reject H0 when H0 is true and we may accept H0 when in fact H0 is
not true.
The former is known as Type I error and the latter as Type II error. In other
words, Type I error means rejection of hypothesis which should have been
accepted and Type II error means accepting the hypothesis which should have
been rejected.
Type I error is denoted by α (alpha) known as α error, also called the level of
significance of test; and Type II error is denoted by β (beta) known as β error.

94
Tabular presentation of α and β

95
 Activity 3
1. For the three most important problems identified
in Activity 2, formulate, at least, one hypothesis for
each problem

2. Test / check whether they are qualify a good

hypothesis or not.
Make sure that these hypotheses will included in the
research proposal that you are going to prepare at
the end of chapter three.

96
Fairness of fair value concept
•In recent years, international standard setters and regulators such as the
International Accounting Standards Board (IASB) and the Financial Accounting
Standards Board (FASB) have begun to favor the use of fair value accounting
over historical cost accounting in financial reporting. A key reason for this shift in
methodology is to improve the relevancy of the information contained in
financial reports.
•The general principle underlying the shift is that up-to-date information
improves investors' and regulators' abilities to make informed decisions. To
date, the fair value concept is applied in several IASB standards such as IAS
16Property, Plant and Equipment; IAS 37Provisions, Contingent Liabilities and
Contingent Assets; IAS 38Impairment of Assets; IAS 39Financial Instruments; IAS
40Investment Properties; IAS 41Agriculture;IFRS 2Share-basedPayment; and
IFRS 3 Business Combinations.
• In principle, fair value accounting sounds attractive - surely if something is 'fair'
then it must also be good? The implications for accounting practice, however,
are huge and highly controversial. Amongst the questions being debated are:
how reliable are fair values?; how easy is it to audit fair values?; will fair value
accounting work in practice?; and what are the implications for performance
measurement? Such a controversial topic is worthy of consideration by all
practicing accountants and the aim of this article is to discuss briefly the main
issues relating to fair value accounting. 97
 CAPTER I PART III
Research Proposal And Guide To
Prepare a Proposal

98
What is a Research Proposal?

A research proposal is a written statement of the

research design that includes a statement
explaining the purpose of the study and a detailed,
systematic outline of a particular research
methodology (Zikmund, 2000).

 A research proposal is intended to convince

others that you have a worthwhile research project
and that you have the competence and the work-
plan to complete it
99
• It is a comprehensive compilation of
• what, why, how, when, and where in research.

• Its organization and clarity is the first

opportunity to measure/evaluate your ability to
successfully execute a project.

• It is a written statement of the research design

that makes the research process operative for
the specific problem

• It is a plan of future research and an

explanation of how it will be achieved 100
According to Emory (1991), the purpose of a
research proposal is:
To present the problem to be researched
and its importance
To discuss the research efforts of others
who have worked on related problems.
To set forth the data necessary for solving
the problem
To suggest how the data will be gathered,
treated and interpreted
101
Regardless of your research area
and the methodology you choose, all
research proposals must address the
following questions (A proposal tells
us):
What will be done….objectives/research quets.
Why it will be done……problems/research gap
How it will be done……methodology/design
Where it will be done…..place of study
To whom it will be done, and ….audience
What is the benefit of doing it?....significance

102
 Function of the research proposal
 Proposal as a means of communication
• It serves as a basis for determining the feasibility
of the research project
• It serves to communicate
• what information will be obtained,
• where it will be obtained, and
• how it will be obtained
 Research proposal as plan
• It sets out the plan in step-by-step detail and
helps to organize idea in a systematic manner
• It reduces the probability of costly mistake
• ‘’Failure to plan is planning to fail ‘’ 103
 Proposal also functions as a contract
• It constitute a bond of agreement between the
researcher and the funding sources or sponsors
• It gives the research supervisor a basis for guiding
the researcher while conducting the study
Other Benefits:
Improved record-keeping
Enhanced credibility
Better program evaluation
Better financial management

104
Specific Values of Research Proposal
Value the Sponsor:
• Allows the sponsor to assess:
• the sincerity of your purpose,
• the clarity of your design,
• the extent of your background material, and
• your fitness for undertaking the project
• Provides a basis for the sponsor to evaluate the
results of a research
• The discipline or research ethics it brings to the
sponsor

105
 Value to the Researcher
• A tentative work plan that charts the logical steps
• Allows the researcher to plan and review the
project’s steps
• To assess the various approaches to the problem
• A guide for the researcher throughout the
investigation
• The proposal forces time and budget estimates for
young researcher

106
 Ethical Issues in Research
What is Ethics?
• Ethics is two things. First, ethics refers to well-founded
standards of right and wrong that prescribe what humans
ought to do, usually in terms of rights, obligations,
benefits to society, fairness, or specific virtues. ...
Secondly, ethics refers to the study and development of
one's ethical standards.
• Ethics is a state of good or bad
• Ethics Vs Rules and Regulations
• Rules are formal and ethics is societal law
• Research demands ethical behavior from its participants.
• The goal of ethics in research is to ensure that no one is
harmed or suffers adverse consequences from research
activities. 107
• Ethical questions are philosophical questions that are based
on the perceptions of a society.
• Societal norms are codes of behavior adopted by a group,
suggesting what a member of a group ought to do under
given circumstances.
• Ethics bridges the gap between laws and actual practices.
• In research ethical issues are concerns of the three major
stakeholders:
• The researcher or investigator
• The subject or respondent, and
• The sponsor or client or financier
• Therefore ethical issues are explained by the interaction of
the rights and obligations of these three stakeholders.
• Do you agree with the statement of Marcus A. ‘‘A man
should be upright ,not be kept upright ‘’ 108
 Rights and Obligations of the Respondent
Obligation:
• To provide truthful information.
Rights:
i) Privacy
• Collecting and giving out of personal information of
respondents without their knowledge can be a serious
violation
• This involves the subject’s freedom to choose whether or
not to comply with the investigator’s request.
• Field interviewers indicate their legitimacy by
• passing out business cards,
• wearing nametags, or
• identifying the name of their company.

109
ii) Deception/The right not to be deceived
• Deception occurs when the respondent is told only a
portion of the truth or when the truth is fully
compromised.
• Some suggest two reasons to legitimate deception:
• To prevent biasing the respondents prior to the survey and
• To protect the confidentiality of a third party (e.g., the client).
• However
a) The benefits to be gained by deception should be
balanced against the risks to the respondents.
b) Once the research is completed, the subjects who were
deceived should be “debriefed.”

110
c) Debriefing explains the truth to the participants and
explains why deception was used.
d) Researchers are not expected to create a false
impression by disguising the purpose of the research
iii) The right to be informed
• The right to be informed of all aspects of the research
including: its purpose and sponsorship
• not to exaggerate/Neither overstate nor understate
• Explain to the respondent that their rights and well-being
will be adequately protected and indicate how that will
be done.
E.g. maintaining confidentiality

111
• Ensure that interviewers obtain informed
consent from the respondents.
• Debriefing Respondents - it is a good practice
to offer them follow-up information.
• Consent must be voluntary and free from
coercion, force, requirements, and so forth.
• Respondents must be adequately informed in
order to make decisions.
• Respondents should know the possible risks or
outcomes associated with the research.
projects.

112
 Rights and Obligations of the Researcher
• A code of ethics may also be developed by professional
associations.
• Code of ethics is a statement of principles and operating
procedures for ethical practice.
• Points that deserve attention in the efforts of the
researcher in relation to ethics.
i) The purpose of Research is Research
• The purpose should be explained clearly
• The researcher should not misrepresent himself/herself
for the sake of getting admission or information.
• Research should not be politicized for any purpose.

113
ii) Objectivity
• Researchers must not intentionally try to prove a
particular point for political purposes.
• The researcher should not try to select only those data
that are consistent with his/her personal intentions or
prior hypothesis.
iii) Misrepresentation of Research
• To analyze the data honestly and to report correctly
the actual data collection methods.
iv) Protecting the Right to Confidentiality of both
Subjects and Clients
• The privacy and anonymity of the respondents are
preserved.
• Both parties also expect objective and accurate report
from the researcher.
114
v) Dissemination of Faulty Conclusions
• Researchers and clients should be reserved from
disseminating conclusions from the research project that
are inconsistent with or not warranted by the data.
Rights & Obligations of the sponsor (Client/User)
i) Buyer-seller relationship
• The general development ethics expected to exist
between a buyer and a seller
• It is unethical to solicit competitive bids that have no
chance of' being accepted just to fulfill a corporate
purchasing policy stating that a bid must be put out to
three competitors.

115
ii) An Open Relationship with Researchers
• The obligation to encourage the researcher to seek
out the truth objectively.
• This requires a full and open statement of
• The problem,
• Ex­plication of time and money constraints, and
• Any other insights that may help the supplier,
iii) An Open Relationship with Interested Parties
• Conclusions should be based on the data.
• Violation of this principle may refer to justifying a self-
serving, political position that is not warranted from
the data poses serious ethical questions.

116
 iv) Commitment to Research
• This involves requesting research proposals when there
is a low probability that the research will be conducted.
• Researchers believe that the client has the obligation to
be serious about considering a pro­ject before soliciting
proposals.
v) Pseudo-Pilot Studies
• Tell the researcher that it is a pilot study and that if a
good job is performed during the pilot study stages there
will be an ad­ditional major contract down the line.

117
vi) Right to Quality Research
• Ethical researchers provide the client with the
type of study he/she needs to solve the
managerial question.
• The design of the project should be suitable for
the problem
• The ethical researcher reports results in ways
that minimize the drawing of false conclusions.

118
MAJOR COMPONENTS Of
A RESEARCH PROPOSAL
Preliminaries/Prefixes
i) Cover page
Title of the Research
(A Case Study of ……..)
Purpose why the Research is conducted
Name and Address of the investigator
Advisor/Reader
Month and Place where the proposal is written
ii) Acronyms (if any, abbreviations alphabetically arranged))
iii) Table of Contents
iv) List of Tables
v) List of Figures

119
 1.1 Title of the Research
• The title summarizes the main idea or ideas of your study.
• A good title contains the fewest possible words that
adequately describe the contents and/or purpose of your
research paper.
• The title is without doubt the part of a paper that is read
the most, and it is usually read first.
• If the title is too long it usually contains too many
unnecessary words, e.g., "A Study to Investigate the...."
• On the other hand, a title which is too short often uses
words which are too general.
• For example, "African Politics" could be the title of a book,
but it does not provide any information on the focus of a
research paper.
 Research title continued
The following parameters can be used to help you formulate a suitable
research paper title:
•The purpose of the research
•The narrative tone of the paper [typically defined by the type of the research]
•The methods used
•The initial aim of a title is to capture the reader’s attention and to draw his or
her attention to the research problem being investigated.
•Create a Working Title
Typically, the final title you submit to your professor is created after the
research is complete so that the title accurately captures what was done.
• The working title should be developed early in the research process because it
can help anchor the focus of the study in much the same way the research
problem does.
•Referring back to the working title can help you reorient yourself back to the
main purpose of the study if you feel yourself drifting off on a tangent while
writing.
 Research title contd
Effective titles in academic research papers have several characteristics.
• Indicate accurately the subject and scope of the study.
• Avoid using abbreviations.
• Use words that create a positive impression and stimulate
reader interest.
• Use current nomenclature from the field of study.
• Identify key variables, both dependent and independent.
• May reveal how the paper will be organized.
• Suggest a relationship between variables which supports the
major hypothesis.
• Is limited to 10 to 15 substantive words.
• Do not include "study of," "analysis of" or similar constructions.
• Titles are usually in the form of a phrase, but can also be in the
form of a question.
 INTRODUCTION
1.2. Background of the study –Deductive order
Definitions and Concepts Related to the topic
Global issues and trends about the topic
Situations in Less Developed Countries or in
an industry
National level
Firm/Regional level
Related with your study area

123
Introduction …contd
• An introduction is the first passage in a journal article,
dissertation, or scholarly research study.
• It sets the stage for the entire project. Wilkinson (1991)
mentioned the following:
• The introduction is the part of the paper that provides
readers with the background information for the
research reported in the paper.
• Its purpose is to establish a framework for the research,
so that readers can understand how it is related to other
research. (p. 96)
• The introduction establishes the issue or concern
leading to the research by conveying information about
a problem.
.
124
 1.3 . Statement of the Problem or
(Justification for the study)
Facts that motivated the investigator to conduct the research
Exactly specifying and measuring the gap
Hard facts or quantitative data about the topic for some previous
years, for example three years

1.4 Research Objectives, Research Questions, and Research

Hypothesis (optional)
1.3.1. Research Objectives – Ends to be met in conducting the
research
What the investigator will analyze and how;
what comparisons to make and at what level
General objective
 often one statement directly related to the topic

125
Specific Objectives

what the researcher wants to achieve

about she/he wants to collect data;
what to analyze and compare

1.4.2. Research Questions - Questions to be

answered to meet the research objectives or
produce implications for the hypothesis

1.4.3. Research Hypothesis ( Optional) -

tentative propositions to be tested in the research

126
3. Research Methods and
Data Collection
3.1. Data Type and Source (Decide one of them or
both by giving justifications)
Qualitative V/s Quantitative ( Give reasons)
Primary Sources (Decide on which method or
methods to use by stating justifiable reasons
Questionnaires
Interviews
Observations
Focus group discussions, etc.

127
Secondary Sources (Decide which method or methods
to use by stating justifiable reasons) and exactly state
the sources from which you will get the data
Reports, manuals, Internal publications,
data base systems
Journals and Publications for assessing
existing findings and
Internet
Books for assessing theories and
principles related to the topic etc.

128
3.2. Study Design
Census Vs Survey( Decide which one to use and
why)
Survey design ( Decide on the survey designs to
be used by clearly stating the reasons for your
decision
Sample Size( Use the sample size determination
formula as a base and make adjustments with
due regard to the target population and the
homogeneity or heterogeneity of the population
characteristics
Sampling Design( Show how and why you are
going to use the different techniques of probability
and/or nonprobability sampling techniques
Sampling Procedure( clearly state the steps in
sampling)
129
 Steps in Sampling Design
Determine the universe/target population
Sampling unit
Source list/Sampling frame
Size of sample (Use the sample size determination
formula as a base and make adjustments with due regard to
the target population and the homogeneity or heterogeneity
of the population characteristics)
Parameters of interest( what the data is focused on)
Sampling procedure ( Show how and why you are going
to use the different techniques of probability and/or
nonprobability sampling techniques)

130
 3.3. Data collection
State the data collection tool or tools to be
used with necessary Justifications.
• Interview,
• Questionnaire,
• Observation,
• Focus group discussion
Questionnaire design
Questionnaire testing or pretesting if
necessary

131
Data collection Procedures ( show in detail)
How the Questionnaire will be administered
Who will be involved?
How many people will be involved?
When will data be collected?
Where will data be collected?
How Data collection will be administered?
How other methods will be applied in
combination (Triangulation)
Focus Group discussions
Interviews
Observation

132
3.4. Data processing and Analysis
Manual Vs Mechanical
Editing: Field Vs in-house editing ( include reasons)
Recording /Data entry/ or keyboarding
Methods of Analysis
Qualitative V/s Quantitative
Descriptive (tools to be used)
Explanatory vs exploratory

133
1.5 Significance of the study- Benefit of
the study (Who may use the findings)
User organizations
Other researchers
The society or the community
1.6 Definition of key Terminologies and
Concepts
Conceptual definitions – general and related
to dictionary meaning
Operational – in the context of the research
paper and in measurable terms

134
Scope and Limitation of the study

Scope(delimitation) provides the boundary

or framework
Limitation is the implication or effect of the
scope- does not mean weakness or problems
to be faced

135
REVIEW OF RELATED LITERATURE.

Deductive Order (General to specific)

Concepts and definitions of terminologies
directly related to the topic.
Global issue and trends
Regional or continental or industrial facts
Best experiences, if relevant
Problems and challenges related to the topic

136
Important points in the literature
Adequacy- Sufficient to address the statement
of the problem and the specific objectives in
detail
Logical flow and organization of the contents
Adequate citations
The variety of issues and ideas gathered from
many authors

137
Time and Budget Schedule
TIME SCHEDULE
Try to put reasonable and realistic time
on the basis of
The scope of the study
The research objectives to be achieved
The methods and techniques to be used
Description or Activity
Duration
Final Date
Remark

138
BUDGET

Realistic and detailed to reflect the

activity schedule and convincing for the
reader or possibly the financier;
reflect real budget
Description or Activity
Unit
Unit Price
Computations
Total Cost
Remark

139
 Basic Questions- Problem definition
• What is the purpose of the study?
• How much is already known?
• Is additional background information
necessary?
• What is to be measured? How?
• Can the data be made available?
• Should research be conducted?
• Can a hypothesis be formulated

140
Basic Questions- Research Design
• What types of questions need to be answered?
• Are descriptive or causal findings required?
• What is the source of the data?
• Can objective answers be obtained by asking
people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?
• 
141
Basic Questions- Sample selection
• Who or what is the source of the data?
• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?

142
Basic Questions- Data Collection

•Who will gather the data?

•How long will data gathering take?
•How much supervision is needed?
•What operational procedures need to
be followed?

143
Basic Questions- Data Analysis &
Evaluation

• Will standardized editing and coding.

procedures be utilized? How will the data be
categorized?
• Will computer or hand tabulation be utilized?
• What questions need to be answered?
• How many variables are to be investigated
simultaneously?
• What are the criteria for evaluation of
performance?
144
Basic Questions-Type of report

• Who will read the report?

• Are managerial recommendations
requested?
• How many presentations are required?
• What will be the format of the written
report?

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Basic Questions- Overall Evaluation

•When should the research be scheduled

to begin?
•How much will the study cost?
•Is the time frame acceptable?
•Do we need outside help?
•Will this research design attain the
stated research objectives?

146