Business Research: Concept, Types, Process

and Application in Business Decision.

Defining the Research Problem, Theoretical
Foundations and Model Building Formulation
of Research Hypothesis. Nature of Research
Designs and its Types. Concept of Independent
& Dependent variables.
Concept: Research is an activity that leads us to finding new facts, information, assisting us in
verifying the available knowledge and in making us question things that are difficult to understand
as per existing data. To be successful manager it is important for you to know how to go about
making the right decisions by being knowledgeable about the various steps involved in finding
solutions to problematic issues.
It may be understood in following terms also:
 Research is a continuous activity in majority of disciplines and professions.
 It is helpful in critical assessment of the way we work, execute policies, and give instructions in our
professions.
 It is systematic observation of processes to find better ways to do things and to reduce the effort
being put in to achieve an objective and identifying the validity of the targets.
 In fact research is a subconscious activity that we are involved in at all times whether it is purchase
of daily use articles , a car, an electronic good or planning a holiday.

DEFINITIONS OF RESEARCH: According to (Rocco, 2011), "Research is a careful

investigation or inquiry especially through search for new facts in any branch of
knowledge." Research is a movement, a movement from the known to the unknown
(Redman and Mory, 2010). Research is manipulation of things, concepts or symbols for the
purpose of generalizing to extend, correct or verify knowledge, whether that knowledge
aids in construction of theory or in the practice of an art (Kothari, C.R.) .According to
(Creswell, 2008), "Research is systematic investigation to establish the facts." In the
broadest sense of the word, the definition of research includes any gathering of data,
Types of Research:Research can be classified into various categories depending on the
perspective under which the research activity is initiated and conducted. The categorization
depends on the following perspectives in general:
• Application of research study
• Objectives in undertaking the research
• Inquiry mode employed for research

1. Classification based on Application:

a. Pure / Basic / Fundamental Research:
b. Applied / Decisional Research:

2. Classification based on Objectives:

c. Descriptive Research:
d. Co relational Research:
e. Explanatory:
f. Exploratory Research:

3. Classification based on Inquiry Mode:

g. Structured approach:
h. Unstructured approach:
4. Other Types of Research:
(i) Descriptive v/s Analytical:
(ii) Applied v/s Fundamental:
(iii) Quantitative v/s Qualitative:
(iv) Conceptual vs. Empirical:
Research Process:
Application in Business Decision:
Defining the Research Problem:
Some sources of Research Problems may be identified as follows:
 Personal Experiences.
 Media: Documentation done on various issues, live coverage, panel discussions etc.
 Resources: Literature such as books, journals, news articles, periodicals etc may
facilitate the researcher to identify a relevant problem based on the area of interest.
 Government / Official Records: The orders passed by government. The decisions given
in various cases by courts, the petitions and surveys conducted become important
sources to shortlist finer prints in abrader problem.
 People: A group of individuals may be studied to understand how they behave, how
tiny respond to a particular situation do or what responses are generated when they are
influenced from within or outside the group.
 Discussions: A researcher may be able to come to a conclusion to identify a research
problem by discussing the perspectives with peers, colleagues, seniors in the field,
guides etc.
 Problems: It may be decided to examine the existence of certain issues or problems
relating to society, sciences or any subjects in reference.
 Programs: These may be used to evaluate the effectiveness of an interference,
involvement or intrusions.
 Phenomena: To establish the existence of regularity and to understand if a procedure
would yield similar results overtime when used repetitively. This includes causes and
effects and relationships between variables.
IMPORTANT CONSIDERATIONS IN SELECTING A RESEARCH PROBLEM: A
good problem statement begins by introducing the broad area in which
your research is centered, gradually leading the reader to the more
specific issues you are investigating. The statement need not be lengthy,
but a good research problem should incorporate the following features:
1.Persuasive Topic: The problem that is taken up for research should
not only be of ample interest to the researcher but also the one that is
continuously motivating to ensure consistent efforts to find a solution.
The significance is greatly reduced if the idea is to just get some
superficial knowledge about the problem and not to lead the researcher
to resolve.
2.Viability: A problem that has been identified to be studied should be
decide on the basis of whether it is actually possible to be resolved , or
has some previous know how to guide the researcher to move ahead. A
problem which has not been foreseen earlier may be selected but then
the resources availability should be considered.
3.The So What Test: A research problem should be able to pass the
―So What‖ test as in social researches, to ascertain the meaningfulness
According to Ranjit Kumar (RM – A step by step guide) a few more considerations that
assist a researcher to ensure that the study will remain manageable and that you will
remain motivated are:
a. Interest: a research endeavor is usually time consuming, and involves hard work and
possibly unforeseen problems. One should select topic of great interest to sustain the
required motivation.
b. Magnitude: It is extremely important to select a topic that you can manage within the
time and resources at your disposal. Narrow the topic down to something
manageable, specific and clear.
c. Measurement of concepts: Make sure that you are clear about the indicators and
measurement of concepts (if used) in your study.
d. Level of expertise: Make sure that you have adequate level of expertise for the task
you are proposing since you need to do the work yourself.
e. Relevance: Ensure that your study adds to the existing body of knowledge, bridges
current gaps and is useful in policy formulation. This will help you to sustain interest
in the study.
f. Availability of data: Before finalizing the topic, make sure that data are available.
g. Ethical issues: How ethical issues can affect the study population and how ethical
problems can be overcome should be thoroughly examined at the problem
formulating stage.
Theoretical Foundations and Model Building
Formulation of Research Hypothesis.
HYPOTHESIS: A hypothesis is an educated guess, based on the probability of an outcome. Scientists
formulate hypotheses after they understand all the current research on their subject. Hypotheses
specify the relationship between at least two variables, and are testable. For a hypothesis to function
properly, other researchers must be able to reproduce the results that prove or disprove it.

A hypothesis is either a suggested explanation for an observable phenomenon, or a reasoned

prediction of a possible causal correlation among multiple phenomena. In science, a theory is a
tested, well-substantiated, unifying explanation for a set of verified, proven factors.
Characteristics & Qualities of a Good Hypothesis
 Power of Prediction. One of the valuable attribute of a good hypothesis is to predict for future.
 Closest to observable things. A hypothesis must have close contact with observable things.
 Simplicity.
 Clarity.
 Testability.  Relevant to Problem.

The general functions of hypotheses:

Development of Research Techniques
Separating Relevant From Irrelevant Observation
Selecting Required Facts
Direction of Research
Acts as a Guide
Prevents Blind Research
Accuracy & Precision
Link between Theory & Investigation
Link between Assumption & Observation
Provide answer for a Question
Save Time, Money & Energy
Nature of Research Designs:
Characteristics of research determine whether a research is free of biases, prejudices, and
subjective errors or not. The terms are very commonly used in research and the success of any
research depends on these terms. They can be summarised as:

1. Generalized. 1. 6. Reliability.
2. Controlled. 2. 7. Validity.
3. Rigorous. 3. 8. Employs hypothesis
4. Empirical. 4. 9. Analytical & Accuracy.
5. Systematic 5. 10. Credibility.
6. 11. Critical
Research design is the conceptual structure within which research would be conducted. The
function of research design is to provide for the collection of relevant information with smallest
possible input in terms of effort, time and money. According to Green and Tull ―A research is the
specification of methods and procedures for acquiring the information needed. It is the overall
operational pattern or framework of the project that stipulates what information is to be collected
from which sources by what procedures‖. The preparation of research design, appropriate for a
particular research problem, involves the consideration of the following:
1. Objectives of the research study.
2. Methods of Data Collection to be adopted
3. Sources of information—Sample Design
4. Tools for Data collection
5. Data Analysis Tools : qualitative and quantitative
Steps in developing a research design
1. Classify the intended outcome i.e. what needs to be understood.
2. Develop the research question.
3. Understand what needs to be measured.
4. Select the population as per the study taken up.
5. Identify the ideal data collection method.
6. Construct interconnected characteristics.
7. Use correct analysis tools. 8. Decide how the findings of the study shall
be published.
Types of Research Designs:
Concept of Independent & Dependent variables.
Defining a Variable: An image, perception or concept that can be measured; hence capable of
taking on different values- is called a variable. A variable is also defined as anything that has a
quantity or quality that varies. Types of Variables:
 The dependent variable is the variable a researcher is interested in.
 An independent variable is a variable believed to affect the dependent variable.
 Confounding variables are defined as interference caused by another variable.