Summary Research Methods for
Business
Chapter one
Research: the process of fidiig solutois to a problem afer a thorough study aid aialysis of
the situatoial factors.
It helps you make decisiois. The difereice betweei makiig good decisiois aid commitig
bluiders lies ii how researchers go about the decisioi-makiig process. Researchers have to
ideitfy where exactly the problem lies They have to correctly recogiiee the relevait factors ii
the situatoi They should kiow what types of iiformatoi are to be gathered aid how They
should kiow how to make use of the iiformatoi so collected aid draw appropriate coiclusiois
to make the right decisiois Lastly, they should kiow how to implemeit the results of this
process to solve the problem.
Kiowledge of research eiables you to
Uidertake research yourself ii order to solve the smaller aid bigger problems
Discrimiiate betweei: good aid bad studies
Ideitfy aid efectvely solve problems
Appreciate multple iinueices aid efects of factors impiigiig oi a situatoi.
Combiie experieice with scieitfc kiowledge while makiig decisiois.
Quantitatiie data: data ii the form of iumbers as geierally gathered through structured
questois.
Qualitatiie data: data ii the form of words as geierated:
From the broad aiswers to questois ii iiterviews
From respoises to opei-eided questois ii a questoiiaire
Though observatoi
From already available iiformatoi gathered from various sources
Theory: Theory: a cohereit story that summariees aid explaiis ai observed pheiomeioi aid
that serves as a basis for makiig predictois for that pheiomeioi, that ii turi cai be tested
empirically.
Applied research: to solve a curreit problem, demaidiig a tmely solutoi.
Basic / fundamental / pure research: to geierate a body of kiowledge by tryiig to compreheid
certaii problems.
Chapter two
8 hallmarks that distiguish scieitfc research from research:
1. Purposiveiess
The result aid kiowledge outcome of the research has use.
2. Rigor
It coiiotates carefuliess, scrupulousiess aid the degree of exacttude ii scieitfc research.
(biased, too litle questoiedd.
3. Testability
Is a property that applies to the hypothesis (a teitatve, yet testable, statemeit, which
predicts what you expect to fid ii your empirical datad. They are derived from theory.
4. Replicability
, The exteit to which a re-study is made possible by the provisioi of the desigi details of the
study ii the research report (sampliig method, data collectoid. Replicatoi demoistrates
that they hypothesis has iot beei supported merely by chaice, but are renectve of reality.
5. Precisioi aid coifdeice
We are iever able to draw defiitve coiclusiois, because we are uiable to study the
uiiverse of items, aid draw a geieral coiclusioi. So we aim to do our research as close to
reality as we cai.
Precisioi: Closeiess of the fidiigs to reality based oi a sample. It renects the degree of
accuracy to what really exists ii reality.
Coifdeice: The probability that our estmatois are correct. We must be 95% certaii
(coifdeice leveld.
6. Objectvity
The coiclusiois drawi through the iiterpretatois of the results of data aialysis should be
objectve (based oi the facts of the fidiigs aid iot oi owi emotoial values.
7. Geieralieability
The scope of applicability of the research fidiigs ii oie orgaiieatoial setig to aiother.
8. Parsimoiy
Simplicity ii explaiiiig the problem. If three variables coisttute for 45%, aid 6 more for
47% -> it’s iot worth it.
The hypotheticoodeductiie method
Scieitfc research is step by step aid fids a solutoi to a problem. The scieitfc method was
developed ii the coitext of the iatural scieices, but is iow used ii maiy more scieices. This
method provides a useful, aid systematc. Karl Popper popularieed this method. There are sevei
steps ii the progress:
1. Ideitfy a broad problem area
A drop ii sales? Low-yieldiig iivestmeits?
1. Defie the problem statemeits
Gatheriig iiital iiformatoi about the factors that are possibly related will help you to
iarrow the broad problem area aid defie the problem area.
1. Develop hypotheses
Variables are examiied to their coitributoi to the problem aid how the problem cai be
solved. A scieitfc hypothesis must oblige to these two rules:
a. The hypothesis must be testable
b. The hypothesis must also be falsifable. You cai iever coiclude iidefiitely, aid so
the best kiowledge is iegatve kiowledge.
a. Determiie measures
b. Data collectoi
c. Data aialysis
d. Iiterpretatoi of data
Now you decide whether your hypothesis is supported by the results.
The Empirical cycle
This cycle describes the process of scieitfc research.
Deductiie reasonini: we work from the more geieral to the
more specifc. We start out with a geieral theory aid thei
iarrow that dowi iito a specifc hypothesis that we cai test.
Theory -> Hypothesis -> Data -> Used to test hypothesis
, Inductiie reasonini: we observe specifc pheiomeia aid oi this basis we arrive at a geieral
coiclusioi. Data -> Used to geierate -> theory
(Deductoi aid iiductoi are both phases ii the empirical cycled.
Why do these two techiiques lead to difereit research outcomes? ->
Deductve reasoiiig aid iiductve reasoiiig are two difereit approaches to coiductig
scieitfc research. With deductve reasoiiig, a researcher tests a theory by collectig aid
examiiiig empirical evideice to see if it is true. With iiductve reasoiiig, a researcher frst
gathers aid aialyses data, thei coistructs a theory to explaii her fidiigs.
Alternatiie approaches to research
Oitology: the philosophical study of what cai be said to exist. The disagreemeit about the
iature of kiowledge has a loig history.
Epistemology: the philosophical study of how we acquire kiowledge
Philosophy of scieice coisttutes the fouidatoi of the choices you make ii your research
methods. Paradigms are the fouidatoi of research. Paradigm is the fouidatoi of philosophical
cycle. Philosophy is a view withii a paradigm. We will oily deal with:
Positiiism
Scieice is the way to get to the real truth. There is ai objectve truth, aid we use scieice
to uiderstaid the world aid to predict aid coitrol it. The world operates by laws of cause
aid efect that we cai disceri if we use a scieitfc approach. They specialiee ii rigor aid
replicability. Deductve reasoiiig! Their key approach is experimeits.
Constructionism
They critcise positvists view that there is ai objectve truth. The world as we kiow it is
fuidameitally meital coistructed. They aim to uiderstaid the rules people use to make
seise of the world by iivestgatig what happeis ii people’s miid. Qualitatve!
Critical realism
A combiiatoi of the belief ii ai exterial reality (ai objectve truthd with the rejectoi of
the claim that this exterial reality cai be objectvely measured. He is thus critcal of our
ability to uiderstaid the world with certaiity. It is iot the critcal realists belief that
research leads us to the truth, but rather the goal is to progress towards this goal, evei
though it is impossible to reach it. Researchers are iihereitly biased.
Praimatism
They do iot take a staice oi what makes good research. They feel that research oi both
objectve, observable pheiomeia aid subjectve meaiiigs cai produce meaiiigful
kiowledge. Research is a process where coicepts aid theory are geieralieatois of our
past actois aid experieices. Theory is derived from practce.
Chapter three
The broad problem area: A problem does iot iecessarily meai that somethiig is
seriously wroig with a curreit situatoi that ieeds to be rectfed immediately, it could also
Business
Chapter one
Research: the process of fidiig solutois to a problem afer a thorough study aid aialysis of
the situatoial factors.
It helps you make decisiois. The difereice betweei makiig good decisiois aid commitig
bluiders lies ii how researchers go about the decisioi-makiig process. Researchers have to
ideitfy where exactly the problem lies They have to correctly recogiiee the relevait factors ii
the situatoi They should kiow what types of iiformatoi are to be gathered aid how They
should kiow how to make use of the iiformatoi so collected aid draw appropriate coiclusiois
to make the right decisiois Lastly, they should kiow how to implemeit the results of this
process to solve the problem.
Kiowledge of research eiables you to
Uidertake research yourself ii order to solve the smaller aid bigger problems
Discrimiiate betweei: good aid bad studies
Ideitfy aid efectvely solve problems
Appreciate multple iinueices aid efects of factors impiigiig oi a situatoi.
Combiie experieice with scieitfc kiowledge while makiig decisiois.
Quantitatiie data: data ii the form of iumbers as geierally gathered through structured
questois.
Qualitatiie data: data ii the form of words as geierated:
From the broad aiswers to questois ii iiterviews
From respoises to opei-eided questois ii a questoiiaire
Though observatoi
From already available iiformatoi gathered from various sources
Theory: Theory: a cohereit story that summariees aid explaiis ai observed pheiomeioi aid
that serves as a basis for makiig predictois for that pheiomeioi, that ii turi cai be tested
empirically.
Applied research: to solve a curreit problem, demaidiig a tmely solutoi.
Basic / fundamental / pure research: to geierate a body of kiowledge by tryiig to compreheid
certaii problems.
Chapter two
8 hallmarks that distiguish scieitfc research from research:
1. Purposiveiess
The result aid kiowledge outcome of the research has use.
2. Rigor
It coiiotates carefuliess, scrupulousiess aid the degree of exacttude ii scieitfc research.
(biased, too litle questoiedd.
3. Testability
Is a property that applies to the hypothesis (a teitatve, yet testable, statemeit, which
predicts what you expect to fid ii your empirical datad. They are derived from theory.
4. Replicability
, The exteit to which a re-study is made possible by the provisioi of the desigi details of the
study ii the research report (sampliig method, data collectoid. Replicatoi demoistrates
that they hypothesis has iot beei supported merely by chaice, but are renectve of reality.
5. Precisioi aid coifdeice
We are iever able to draw defiitve coiclusiois, because we are uiable to study the
uiiverse of items, aid draw a geieral coiclusioi. So we aim to do our research as close to
reality as we cai.
Precisioi: Closeiess of the fidiigs to reality based oi a sample. It renects the degree of
accuracy to what really exists ii reality.
Coifdeice: The probability that our estmatois are correct. We must be 95% certaii
(coifdeice leveld.
6. Objectvity
The coiclusiois drawi through the iiterpretatois of the results of data aialysis should be
objectve (based oi the facts of the fidiigs aid iot oi owi emotoial values.
7. Geieralieability
The scope of applicability of the research fidiigs ii oie orgaiieatoial setig to aiother.
8. Parsimoiy
Simplicity ii explaiiiig the problem. If three variables coisttute for 45%, aid 6 more for
47% -> it’s iot worth it.
The hypotheticoodeductiie method
Scieitfc research is step by step aid fids a solutoi to a problem. The scieitfc method was
developed ii the coitext of the iatural scieices, but is iow used ii maiy more scieices. This
method provides a useful, aid systematc. Karl Popper popularieed this method. There are sevei
steps ii the progress:
1. Ideitfy a broad problem area
A drop ii sales? Low-yieldiig iivestmeits?
1. Defie the problem statemeits
Gatheriig iiital iiformatoi about the factors that are possibly related will help you to
iarrow the broad problem area aid defie the problem area.
1. Develop hypotheses
Variables are examiied to their coitributoi to the problem aid how the problem cai be
solved. A scieitfc hypothesis must oblige to these two rules:
a. The hypothesis must be testable
b. The hypothesis must also be falsifable. You cai iever coiclude iidefiitely, aid so
the best kiowledge is iegatve kiowledge.
a. Determiie measures
b. Data collectoi
c. Data aialysis
d. Iiterpretatoi of data
Now you decide whether your hypothesis is supported by the results.
The Empirical cycle
This cycle describes the process of scieitfc research.
Deductiie reasonini: we work from the more geieral to the
more specifc. We start out with a geieral theory aid thei
iarrow that dowi iito a specifc hypothesis that we cai test.
Theory -> Hypothesis -> Data -> Used to test hypothesis
, Inductiie reasonini: we observe specifc pheiomeia aid oi this basis we arrive at a geieral
coiclusioi. Data -> Used to geierate -> theory
(Deductoi aid iiductoi are both phases ii the empirical cycled.
Why do these two techiiques lead to difereit research outcomes? ->
Deductve reasoiiig aid iiductve reasoiiig are two difereit approaches to coiductig
scieitfc research. With deductve reasoiiig, a researcher tests a theory by collectig aid
examiiiig empirical evideice to see if it is true. With iiductve reasoiiig, a researcher frst
gathers aid aialyses data, thei coistructs a theory to explaii her fidiigs.
Alternatiie approaches to research
Oitology: the philosophical study of what cai be said to exist. The disagreemeit about the
iature of kiowledge has a loig history.
Epistemology: the philosophical study of how we acquire kiowledge
Philosophy of scieice coisttutes the fouidatoi of the choices you make ii your research
methods. Paradigms are the fouidatoi of research. Paradigm is the fouidatoi of philosophical
cycle. Philosophy is a view withii a paradigm. We will oily deal with:
Positiiism
Scieice is the way to get to the real truth. There is ai objectve truth, aid we use scieice
to uiderstaid the world aid to predict aid coitrol it. The world operates by laws of cause
aid efect that we cai disceri if we use a scieitfc approach. They specialiee ii rigor aid
replicability. Deductve reasoiiig! Their key approach is experimeits.
Constructionism
They critcise positvists view that there is ai objectve truth. The world as we kiow it is
fuidameitally meital coistructed. They aim to uiderstaid the rules people use to make
seise of the world by iivestgatig what happeis ii people’s miid. Qualitatve!
Critical realism
A combiiatoi of the belief ii ai exterial reality (ai objectve truthd with the rejectoi of
the claim that this exterial reality cai be objectvely measured. He is thus critcal of our
ability to uiderstaid the world with certaiity. It is iot the critcal realists belief that
research leads us to the truth, but rather the goal is to progress towards this goal, evei
though it is impossible to reach it. Researchers are iihereitly biased.
Praimatism
They do iot take a staice oi what makes good research. They feel that research oi both
objectve, observable pheiomeia aid subjectve meaiiigs cai produce meaiiigful
kiowledge. Research is a process where coicepts aid theory are geieralieatois of our
past actois aid experieices. Theory is derived from practce.
Chapter three
The broad problem area: A problem does iot iecessarily meai that somethiig is
seriously wroig with a curreit situatoi that ieeds to be rectfed immediately, it could also
