BUSINESS RESEARCH METHODS
1. THE NATURE OF BUSINESS AND MANAGEMENT RESEARCH
1.1 WHY STUDY RESEARCH?
Business research: Defined as a systematic inquiry whose objective is to provide the
information that will allow managerial problems to be solved.
Management dilemma: Any problem or opportunity that requires a management
decision.
Three factors have stimulated an interest in this scientific approach to decision-making:
The need for more and better information as decisions become more complex
The availability to improved techniques and tools to meet this need
The resulting information overload if discipline not employed in the process
There have been changes in the business research environment in the past two
decades, due explosive technology growth and continuing innovations in global
communications. These kinds of changes have created new knowledge need for the
manager and created new publics that should be considered when evaluating any
decision. Other knowledge demands have risen as a result of problems with, for example,
trade policies, protected markets, and technology transfers. The trends towards
complexity have increased the risks associated with making business decisions. We must
strive for meaningful explanations and decisions should be based on good information.
Factors that characterize the complex business decision-making environment:
There are more variables to consider in every decision
More knowledge exists in every field of management
Global and inland competition
Improving quality of explanatory theories and models
Government continuously showing concerns for all aspects of society
The explosive growth of company websites on the World Wide Web, have shown
the presence of new series of information. Its quality is not always impeccable
Workers, shareholders, customers and the public are demanding to be included in
a company decision-making: they are better informed
To succeed in such an environment, we need to know how to identify high-quality
information on which high-risk decisions can be based.
The research process is streamlined thanks to:
Business research tools have become more sophisticated
Improvements in information technology
,The next developments have affected the business research process:
Organizations are practicing data-mining
Advances in computing technology have allowed business to create the
architecture required for data warehousing
The power and user-friendliness of today’s computers
The communication and measurement techniques have been improved
1.2 WHAT IS RESEARCH?
The four different types of study can be classified as:
Reporting: Simply to provide an amount of summation of some data, or to
generate dome statistics
Descriptive: Tries to discover answers on the questions who, what, when, where
and sometimes how. Attempts to describe/define a subject often by creating a
profile of a group of problems, people of events
Explanatory: Goes beyond description and attempts to explain the reasons for
the phenomenon that descriptive study has only observed. In an explanatory
study, the researcher uses theories, or at least hypotheses, to account for the
forces that caused a certain phenomenon to occur
Predictive: If we can provide a plausible explanation for an event after it has
occurred, it is desirable for us to be able to predict when and in what
circumstances such an event might occur
1.3 IS RESEARCH ALWAYS PROBLEM-SOLVING BASED?
Applied research has a practical problem-solving emphasis (not always negative!)
Pure research or basic research is also problem-solving based but aims to solve
perplexing questions of a theoretical nature that have little direct impact on action,
performance or policy decisions (theoretical questions, expand knowledge).
The answer to the question ‘Is research always problem-solving based?’ is yes. Whether
basic, or applied, simple or complex, all research should provide an answer to a question.
1.4 WHAT MAKES GOOD RESEARCH?
Good research follows the structure of the scientific method.
1. Purpose clearly defined: The purpose of the research should be clearly defined and
well explained. It must be specific and easy to understand, without any confusion or
uncertainty.
2. Research problem detailed: The research should be described in enough detail so
that another researcher can repeat it. This means it must be clear and well-documented,
making it possible to replicate the study (research set-up).
3. Research design thoroughly planned: The research should be carefully planned to
ensure that the results are as objective as possible. This means avoiding bias and making
sure the findings are fair and reliable (research design and methodology).
,4. High ethical standard applied: A research design should include protections to
prevent mental and physical harm to participants. It should also prioritize data integrity,
ensuring that the information collected is accurate and trustworthy. This makes the
research more valuable and ethical (ethical requirements).
5. Limitations frankly revealed: The researcher should clearly explain any weaknesses
in the research design and estimate their impact on the results. Some flaws may have
little effect on the accuracy and reliability of the data, but they should still be mentioned
(limitations of the research).
6. Adequate analysis for decision maker’s need: The analysis should be detailed
enough to show the importance of the results. The methods used should be appropriate
and help decision-makers understand the findings clearly.
7. Finding presented unambiguously: The findings/results should be presented
clearly and in an organized way. The data must be easy to understand so that decision-
makers can quickly find the most important information.
8. Conclusions justified: The conclusions should be based only on the data. They must
be well-supported and not go beyond what the research findings can prove.
9. Researcher’s experience reflected: The research should always contain
information about the qualifications of the researcher (areas for improvement/further
research).
1.5 RESEARCH PHILOSOPHIES
Research is based on reasoning (theory) and observations (data or information).
How observations and reasoning are related to each together is a still ongoing
philosophical debate on the development of knowledge. There are three types of
research:
1. Positivism: Positivism comes from natural sciences and is based on the idea that
facts are objective because they exist outside of us and cannot be influenced by our
opinions. Main ideas of positivism:
The social world exists outside of us and can be studied objectively
Research should be neutral (without personal opinions or values)
The researcher is independent and should act as an objective observer
Key Assumptions:
The social world is studied by collecting real, objective facts
The social world is made up of simple parts, which can be broken down and
studied separately
2. Interpretivism: Interpretivism says that we cannot study the social world in the same
way as natural sciences. It believes that people create the social world and give it
meaning based on their own experiences (subjective). Main ideas of interpretivism:
The social world is created by people and understood in different ways
The researcher is part of what is being studied
Research is influenced by the interests of the researcher
Key Assumptions:
, The social world is studied by understanding how people see and explain things
Social events can only be understood by looking at the whole picture.
3. Realism: Realism combines ideas from positivism and interpretivism. It believes that a
real world exists outside of what people think or do. However, to understand human
behaviour, we must also accept that people see things in their own way. Main ideas of
realism:
Reality exists outside of human beliefs and actions
To understand people and their behaviour, we must accept that everyone sees the
world differently
Critical realism says there is a difference between what researchers think is real
and the true reality, which may never be fully known
1.6 SCIENTIFIC REASONING
Scientific reasoning is about how we use theory in research. The way theory is included
can be different depending on the research approach. Sometimes, research starts with a
theory to test if it is correct or to find an answer to a problem. Other times, research ends
with a theory, based on what was found during the study.
DEDUCTION VS INDUCTION
Two different research approaches:
1. Deduction starts with a general rule or idea and applies it to a specific case. If the
rule is true, then the conclusion must also be true. For example, if all birds have wings
and a sparrow is a bird, then we can conclude that a sparrow has wings. Deductive
reasoning is useful when we already have established knowledge and want to test if it
applies to a new situation.
2. Induction works the opposite way. It starts with specific observations and creates a
general conclusion based on them. For example, if you see that the sun has risen in the
east every morning, you might conclude that the sun always rises in the east. However,
this conclusion is not guaranteed to be true in every situation because new evidence
could change it. Inductive reasoning is useful when we are exploring new topics and
trying to develop general ideas from what we observe.
In research, we often combine deduction and induction in what is called the ‘double
movement of reflective thought’.
First, we observe facts and look for patterns (induction)
Then, we create a hypothesis based on these patterns (induction)
Finally, we test the hypothesis by applying it to new cases (deduction) to see if it
holds true
Conclusion: Research is a mix of both induction and deduction. First, we observe and
guess, then we test and confirm. Researcher encounters a curiosity, doubt, suspicion.
1. THE NATURE OF BUSINESS AND MANAGEMENT RESEARCH
1.1 WHY STUDY RESEARCH?
Business research: Defined as a systematic inquiry whose objective is to provide the
information that will allow managerial problems to be solved.
Management dilemma: Any problem or opportunity that requires a management
decision.
Three factors have stimulated an interest in this scientific approach to decision-making:
The need for more and better information as decisions become more complex
The availability to improved techniques and tools to meet this need
The resulting information overload if discipline not employed in the process
There have been changes in the business research environment in the past two
decades, due explosive technology growth and continuing innovations in global
communications. These kinds of changes have created new knowledge need for the
manager and created new publics that should be considered when evaluating any
decision. Other knowledge demands have risen as a result of problems with, for example,
trade policies, protected markets, and technology transfers. The trends towards
complexity have increased the risks associated with making business decisions. We must
strive for meaningful explanations and decisions should be based on good information.
Factors that characterize the complex business decision-making environment:
There are more variables to consider in every decision
More knowledge exists in every field of management
Global and inland competition
Improving quality of explanatory theories and models
Government continuously showing concerns for all aspects of society
The explosive growth of company websites on the World Wide Web, have shown
the presence of new series of information. Its quality is not always impeccable
Workers, shareholders, customers and the public are demanding to be included in
a company decision-making: they are better informed
To succeed in such an environment, we need to know how to identify high-quality
information on which high-risk decisions can be based.
The research process is streamlined thanks to:
Business research tools have become more sophisticated
Improvements in information technology
,The next developments have affected the business research process:
Organizations are practicing data-mining
Advances in computing technology have allowed business to create the
architecture required for data warehousing
The power and user-friendliness of today’s computers
The communication and measurement techniques have been improved
1.2 WHAT IS RESEARCH?
The four different types of study can be classified as:
Reporting: Simply to provide an amount of summation of some data, or to
generate dome statistics
Descriptive: Tries to discover answers on the questions who, what, when, where
and sometimes how. Attempts to describe/define a subject often by creating a
profile of a group of problems, people of events
Explanatory: Goes beyond description and attempts to explain the reasons for
the phenomenon that descriptive study has only observed. In an explanatory
study, the researcher uses theories, or at least hypotheses, to account for the
forces that caused a certain phenomenon to occur
Predictive: If we can provide a plausible explanation for an event after it has
occurred, it is desirable for us to be able to predict when and in what
circumstances such an event might occur
1.3 IS RESEARCH ALWAYS PROBLEM-SOLVING BASED?
Applied research has a practical problem-solving emphasis (not always negative!)
Pure research or basic research is also problem-solving based but aims to solve
perplexing questions of a theoretical nature that have little direct impact on action,
performance or policy decisions (theoretical questions, expand knowledge).
The answer to the question ‘Is research always problem-solving based?’ is yes. Whether
basic, or applied, simple or complex, all research should provide an answer to a question.
1.4 WHAT MAKES GOOD RESEARCH?
Good research follows the structure of the scientific method.
1. Purpose clearly defined: The purpose of the research should be clearly defined and
well explained. It must be specific and easy to understand, without any confusion or
uncertainty.
2. Research problem detailed: The research should be described in enough detail so
that another researcher can repeat it. This means it must be clear and well-documented,
making it possible to replicate the study (research set-up).
3. Research design thoroughly planned: The research should be carefully planned to
ensure that the results are as objective as possible. This means avoiding bias and making
sure the findings are fair and reliable (research design and methodology).
,4. High ethical standard applied: A research design should include protections to
prevent mental and physical harm to participants. It should also prioritize data integrity,
ensuring that the information collected is accurate and trustworthy. This makes the
research more valuable and ethical (ethical requirements).
5. Limitations frankly revealed: The researcher should clearly explain any weaknesses
in the research design and estimate their impact on the results. Some flaws may have
little effect on the accuracy and reliability of the data, but they should still be mentioned
(limitations of the research).
6. Adequate analysis for decision maker’s need: The analysis should be detailed
enough to show the importance of the results. The methods used should be appropriate
and help decision-makers understand the findings clearly.
7. Finding presented unambiguously: The findings/results should be presented
clearly and in an organized way. The data must be easy to understand so that decision-
makers can quickly find the most important information.
8. Conclusions justified: The conclusions should be based only on the data. They must
be well-supported and not go beyond what the research findings can prove.
9. Researcher’s experience reflected: The research should always contain
information about the qualifications of the researcher (areas for improvement/further
research).
1.5 RESEARCH PHILOSOPHIES
Research is based on reasoning (theory) and observations (data or information).
How observations and reasoning are related to each together is a still ongoing
philosophical debate on the development of knowledge. There are three types of
research:
1. Positivism: Positivism comes from natural sciences and is based on the idea that
facts are objective because they exist outside of us and cannot be influenced by our
opinions. Main ideas of positivism:
The social world exists outside of us and can be studied objectively
Research should be neutral (without personal opinions or values)
The researcher is independent and should act as an objective observer
Key Assumptions:
The social world is studied by collecting real, objective facts
The social world is made up of simple parts, which can be broken down and
studied separately
2. Interpretivism: Interpretivism says that we cannot study the social world in the same
way as natural sciences. It believes that people create the social world and give it
meaning based on their own experiences (subjective). Main ideas of interpretivism:
The social world is created by people and understood in different ways
The researcher is part of what is being studied
Research is influenced by the interests of the researcher
Key Assumptions:
, The social world is studied by understanding how people see and explain things
Social events can only be understood by looking at the whole picture.
3. Realism: Realism combines ideas from positivism and interpretivism. It believes that a
real world exists outside of what people think or do. However, to understand human
behaviour, we must also accept that people see things in their own way. Main ideas of
realism:
Reality exists outside of human beliefs and actions
To understand people and their behaviour, we must accept that everyone sees the
world differently
Critical realism says there is a difference between what researchers think is real
and the true reality, which may never be fully known
1.6 SCIENTIFIC REASONING
Scientific reasoning is about how we use theory in research. The way theory is included
can be different depending on the research approach. Sometimes, research starts with a
theory to test if it is correct or to find an answer to a problem. Other times, research ends
with a theory, based on what was found during the study.
DEDUCTION VS INDUCTION
Two different research approaches:
1. Deduction starts with a general rule or idea and applies it to a specific case. If the
rule is true, then the conclusion must also be true. For example, if all birds have wings
and a sparrow is a bird, then we can conclude that a sparrow has wings. Deductive
reasoning is useful when we already have established knowledge and want to test if it
applies to a new situation.
2. Induction works the opposite way. It starts with specific observations and creates a
general conclusion based on them. For example, if you see that the sun has risen in the
east every morning, you might conclude that the sun always rises in the east. However,
this conclusion is not guaranteed to be true in every situation because new evidence
could change it. Inductive reasoning is useful when we are exploring new topics and
trying to develop general ideas from what we observe.
In research, we often combine deduction and induction in what is called the ‘double
movement of reflective thought’.
First, we observe facts and look for patterns (induction)
Then, we create a hypothesis based on these patterns (induction)
Finally, we test the hypothesis by applying it to new cases (deduction) to see if it
holds true
Conclusion: Research is a mix of both induction and deduction. First, we observe and
guess, then we test and confirm. Researcher encounters a curiosity, doubt, suspicion.
