Theoretical Framework and

Hypotheses Development
 Outline
O Define Variable and Various Types
O Theoretical Framework/Research Model
O Hypotheses Development
 Theoretical Framework
O A theoretical framework represents your beliefs
on how certain phenomena (or variables or
concepts) are related to each other (a model)
and an explanation on why you believe that
these variables are associated to each other (a
theory).
O A theoretical framework offers the conceptual
foundation to proceed with the research, and
since a theoretical framework is none other than
identifying the network of relationships among
the variables considered important to the study
of any given problem situation.
 Variable
O Any concept or construct that varies or changes
in value.
O Examples of variables are absenteeism, job
performance and motivation.
Main types of variables:
O Dependent variable
O Independent variable
O Moderating variable
O Mediating variable (or intervening)
Identify the DV
 Identify the IV
O Research studies indicate that successful new
product development has an influence on the
stock market price of the company. That is, the
more successful the new product turns out to be,
the higher will be the stock market price of the
firm.
OA manager believes that good
supervision and training would increase
the production level of the workers.
 Identify the Moderating Variable
O A manager of an insurance company finds that
“fear appeals” in commercials are positively
associated with consumers’ behavioral intentions
to insure their house. This effect is particularly
strong for people with a high inherent level of
anxiety.
 Identify the Mediating Variable
O Failure to follow accounting principles causes
immense confusion, which in turn creates a
number of problems for the organization.
 Class Activity
Draw Research Model
O An investor believes that more information
increases the accuracy of his forecasts.
O A marketing manager believes that selecting
physically attractive spokespersons to endorse
their products increases the persuasiveness of
a message.
O A manager of an insurance company finds
that “fear appeals” in commercials are
positively associated with consumers’
behavioral intentions to insure their house.
This effect is particularly strong for people
with a high inherent level of anxiety.
O Failure to follow accounting
principles causes immense
confusion, which in turn creates a
number of problems for the
organization. Those with vast
experience in bookkeeping, however,
are able to avert the problems by
taking timely corrective action.
 Hypotheses
O It is a logical relationship between two or more
variables expressed in the form of a testable
statement.
O Several testable statements or hypotheses can be
drawn from the theoretical framework
formulated.
Types of Hypotheses
• Directional
• Non-Directional
 Directional Hypotheses
O If, in stating the relationship between two variables
or comparing two groups, terms such as positive,
negative, more than, less than, and the like are
used, then these hypotheses are directional
because the direction of the relationship between
the variables (positive/negative) is indicated,

Example
O The greater the stress experienced in the job, the
lower the job satisfaction of employees.
O Women are more motivated than men.
 Non-directional Hypotheses
O Non-directional hypotheses are those that do
hypothesize a relationship or difference, but offer no
indication of the direction of these relationships or
differences.
O There can be a significant relationship between two
variables, we may not be able to say whether the
relationship would be positive or negative.
Example
O There is a relationship between age and job
satisfaction.
O There is a difference between the work ethic values of
American and Asian employees.
 Null and Alternate Hypotheses
O The null statement is expressed as no
(significant) relationship between two variables
or no (significant) difference between two
groups.
O The alternate hypothesis, which is the opposite
of the null, is a statement expressing a
relationship between two variables or indicating
differences between groups.
 Example
O Ho: There is no relationship between stress
experienced on the job and the job
satisfaction of employees.

O HA: There is a negative relationship between

Organization Turnover
al Justice Intention
 Class Activity
(Write down the hypotheses statements)

Service Customer
Quality Switching
 Class Activity
(Write down the hypotheses statements)

Service Customer
Quality Satisfaction
 Class Activity
(Write down the hypotheses statements)

Service Customer Customer

Managerial
Expertise

Organizationa
Workforce
l
Diversity
Effectiveness
 Class Activity
(Draw Research Model for given Scenarios)
O Refer to Book.
 Class Activity
(Draw Research Model)
O H1: There is a positive relationship between financial
knowledge and intention to invest in the Saudi Arabian
Stock Market
O H2: There is a positive relationship between perceived
risks and intention to invest in the Saudi Arabian Stock
Market.
O H3: Perceived risks moderates the relationship
between financial knowledge and intention to invest in
the Saudi Arabian Stock Markets and, thus, the lower
the perceived risk, the stronger the relationship.
 Class Activity
(Draw Research Model)
O H1: Project managers’ despotic leadership has a significant
negative impact on project success
O H2: Project managers’ despotic leadership has a significant
positive impact on project team members’ emotional
exhaustion
O H3: Project team members’ emotional exhaustion has a
significant negative impact on project success.
O H4: Project team members’ emotional exhaustion mediates the
relationship between project managers’ despotic leadership and
project success.
O H5: Project team members’ high EI strengthens the positive
effect of their project managers’ despotic leadership behavior
on their emotional exhaustion.
 Class Activity
(Draw Research Model)
O H1: Green innovation practices have a positive effect on the
financial performance of 3PL providers.
O H2. Customer pressure has a positive effect on the green
innovation practices of 3PL providers.
O H3a. Flexibility-orientation strengthens the relationship
between customer pressure and green innovation.
O H3b. Control orientation weakens the relationship between
customer pressure and green innovation.
O H4a. Flexibility orientation strengthens the contributive
effect of green innovation on financial performance.
O H4b. Control orientation weakens the contributive effect of
green innovation on financial performance.
Thank you!