BUSINESS RESEARCH METHODS
CHAPTER 1 – THE NATURE OF BUSINESS AND MANAGEMENT RESEARCH
Business research: 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.
Research is decision and dilemma centered.
Reporting study: to provide an account or summation of data, or to generate some statistics.
Descriptive study: to discover answers to the questions who, what, when, where and, sometimes,
how. The researcher attempts to describe, or define, a subject, often by creating a profile of a group
of problems, people or events.
Explanatory study: goes beyond descriptions and attempts to explain the reasons for the
phenomenon that the descriptive study has only observed.
Predictive study: 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 situations such an event might reoccur.
Rooted as much in theory as in explanation.
Applied research: has a practical problem-solving emphasis
Pure research or basic research: aims to solve perplexing questions of a theoretical nature that have
little impact on action, performance or policy decisions.
Criteria for good research (scientific method):
o Purpose clearly defined
o Research process detailed (so that it permits other researchers to repeat the research =
replicable)
o Research design thoroughly planned
o High ethical standards applied
o Limitations frankly revealed
o Adequate analysis for decision-maker’s needs
o Findings presented unambiguously
o Conclusions justified
o Researcher’s experience reflected
Positivism vs Interpretivism
Basic principles Positivism Interpretivism
View of the world: External and objective Socially constructed and subjective
Involvement of researcher: Independent Part of what is being observed
Researcher’s influence: Value-free Driven by human interest
Assumptions:
What is observed? Objective, quantitative, facts Subjective interpretations of
1
, meanings
How is knowledge developed? Reducing phenomena to simple Taking a broad and total view of
elements representing general phenomena to detect explanations
laws beyond the current knowledge
Usually larger samples Smaller sample sizes
Realism:
- Accepts the existence of a reality independent of human beliefs and behaviour
- Having acknowledgement of the subjectivity inherent to humans
Deduction vs Induction
Deduction:
- The conclusion must necessarily follow from the reasons given
- To be correct, it must be true and valid
- True: premises (reasons) given for the conclusions must agree with the real world
- Valid: the conclusion must necessarily follow from the premises
- Deduction is the process by which we test whether the hypothesis is capable of explaining
the fact.
Induction
- Draw a conclusion from one or more particular facts or pieces of evidence
- The conclusion explains the facts, and the facts support the conclusion
- Conclusion is only a hypothesis
- Induction occurs when we observe a fact and ask ‘Why is this?’
Concepts
o A concept is a generally accepted collection of meanings or characteristics associated with
certain events, objects, conditions, situations and behaviours.
o Fairly concrete
o Culturally shared and accepted
o Proper operational definition still necessary
o E.g.: dog, table, money, employee
Constructs
o More abstract
o Specifically developed for research purposes
2
, o Can combine multiple concepts
o E.g.: personality
An operational definition is one stated in terms of specific testing or measurement criteria.
Variable: synonym for construct, or the property being measured. Symbol to which we assign a
numeral, or value.
Dichotomous variables only have 2 values (employed/unemployed, male/female)
Continuous variable may take on values within a given range or, in some cases, an infinite set. E.g.
income, temperature, age or a test score.
In each relationship, there is at least one independent variable (IV) and one dependent variable (DV).
A moderating or interaction variable (MV) is a second independent variable that is included because
it is believed to have a significant contributory or contingent effect on the original IV-DV relationship.
Control variables (CV) are included in the investigation to ensure that the results are not biased by
not including them. It is included because it might influence the DV, but it does not affect the
relationship between the DV and IV.
Confounding variables (CFV) affect a relation between an IV and the DV or between a MV and the DV.
An intervening variable or mediating variable (IVV) is a conceptual mechanism through which the IV
and MV might affect the DV. It’s a factor that theoretically affects the DV but cannot be observed or
has not been measured.
Proposition: a statement about concepts that may be judged as true or false if it refers to observable
phenomena.
Descriptive hypotheses are propositions that typically state the existence, size, form or distribution of
some variable. E.g.: ‘The states of the European Union (case) are experiencing budget difficulties
(variable).’
Relational hypotheses are statements that describe a relationship between two variables with
respect to a particular case. E.g.: ‘Foreign (variable) cars are perceived by Italian consumers (case) to
be of a better quality (variable) than domestic cars.’
Correlational hypotheses state that the variables occur together in some specified manner
without implying that one causes the other. E.g.: ‘Young machinists (under 35 years of age)
are less productive than those who are 35 years of age or older.’
3
, With explanatory (causal) hypotheses, there is an implication that the existence of, or a
change in, one variable causes or leads to a change in the other. E.g.: ‘An increase in family
income (IV) leads to an increase in the percentage of income saved (DV).’
The role of the hypothesis
o It guides the direction of the study
o It identifies those facts that are relevant and those that are not
o It suggests which form of research design is likely the most appropriate
o It provides a framework for organizing the conclusions
What makes a good hypothesis?
o Adequate for its purpose (clearly states the condition, size or distribution of some variable in
terms of values that are meaningful to the research task)
o Testable
o Better than its rivals
A theory is a set of systematically interrelated concepts, definitions and propositions that are
advanced to explain and predict phenomena (facts).
A hypothesis is a statement relating two variables, while the theory provides the rationale
(achterliggende gedachte) why those two variables are related.
Theory:
- Narrows the range of facts we need to study
- Suggests which research approaches are likely to yield the greatest meaning
- Suggests a system for the researcher to impose on data in order to classify them in the most
meaningful way
- Summarizes what is known about an object of study, and states the uniformities that lie
beyond immediate observation
- Can be used to predict any further facts that may be found
Models represent phenomena through use of analogy.
- Descriptive models: describe the behaviour of elements in a system where theory is
inadequate or non-existent
- Explicative models: extend the application of well-developed theories or improve our
understanding of their key concepts
- Simulation models: clarify the structural relationships of concepts and attempt to reveal the
process relationships among them
Static: represent a system at one point in time
Dynamic: represent the evolution of a system over time
4
,CHAPTER 2 – THE RESEARCH PROCESS AND PROPOSAL
The research process:
5
, A research / management dilemma triggers the need for investigating how the dilemma can be
solved. It is usually a symptom of an actual problem.
The management question restates the dilemma in question form. E.g.: ‘How can the organization..?’
An exploration typically begins with a search of published data.
Formulate a research question that fits the need to resolve the management dilemma.
Investigative questions reveal the specific pieces of information that the manager feels he or she
needs to know in order to answer the research question.
Measurement questions:
- Pre-designed / pre-tested questions: have been formulated and tested by previous
researchers, are recorded in the literature, and may be applied literally or adapted to the
project at hand.
- Custom-designed questions
The research design is the blueprint for fulfilling objectives and answering questions.
Sampling design: identify the target population, select the sample. The researcher must determine
who and how many people to interview, what and how many events to observe, or what and how
many records to inspect. A sample is part of the target population.
The data-gathering of the research process typically begins with pilot testing. A pilot test is
conducted to detect weaknesses in design and instrumentation, and to provide proxy data for
selection of a probability sample.
What are data?
o Facts presented to the researcher from the study’s environment
o Abstract: more metaphorical than real
o Data are processed by our senses
o Elusive
o Reflect their truthfulness by proximity (closeness) to phenomena.
Data analysis usually involves reducing accumulated data to a manageable amount, developing
summaries, looking for patterns and applying statistical techniques.
Reporting the results: reports should be developed from the manager’s or information user’s
perspective.
At a minimum, a research report should contain the following:
o An executive summary of a synopsis of the problem, findings and recommendations
o An overview of the research (the problem’s background, literature summary, methods and
procedures, and conclusions)
o A section on implementation strategies for the recommendations
o A technical appendix with all the materials necessary to replicate the project
6
CHAPTER 1 – THE NATURE OF BUSINESS AND MANAGEMENT RESEARCH
Business research: 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.
Research is decision and dilemma centered.
Reporting study: to provide an account or summation of data, or to generate some statistics.
Descriptive study: to discover answers to the questions who, what, when, where and, sometimes,
how. The researcher attempts to describe, or define, a subject, often by creating a profile of a group
of problems, people or events.
Explanatory study: goes beyond descriptions and attempts to explain the reasons for the
phenomenon that the descriptive study has only observed.
Predictive study: 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 situations such an event might reoccur.
Rooted as much in theory as in explanation.
Applied research: has a practical problem-solving emphasis
Pure research or basic research: aims to solve perplexing questions of a theoretical nature that have
little impact on action, performance or policy decisions.
Criteria for good research (scientific method):
o Purpose clearly defined
o Research process detailed (so that it permits other researchers to repeat the research =
replicable)
o Research design thoroughly planned
o High ethical standards applied
o Limitations frankly revealed
o Adequate analysis for decision-maker’s needs
o Findings presented unambiguously
o Conclusions justified
o Researcher’s experience reflected
Positivism vs Interpretivism
Basic principles Positivism Interpretivism
View of the world: External and objective Socially constructed and subjective
Involvement of researcher: Independent Part of what is being observed
Researcher’s influence: Value-free Driven by human interest
Assumptions:
What is observed? Objective, quantitative, facts Subjective interpretations of
1
, meanings
How is knowledge developed? Reducing phenomena to simple Taking a broad and total view of
elements representing general phenomena to detect explanations
laws beyond the current knowledge
Usually larger samples Smaller sample sizes
Realism:
- Accepts the existence of a reality independent of human beliefs and behaviour
- Having acknowledgement of the subjectivity inherent to humans
Deduction vs Induction
Deduction:
- The conclusion must necessarily follow from the reasons given
- To be correct, it must be true and valid
- True: premises (reasons) given for the conclusions must agree with the real world
- Valid: the conclusion must necessarily follow from the premises
- Deduction is the process by which we test whether the hypothesis is capable of explaining
the fact.
Induction
- Draw a conclusion from one or more particular facts or pieces of evidence
- The conclusion explains the facts, and the facts support the conclusion
- Conclusion is only a hypothesis
- Induction occurs when we observe a fact and ask ‘Why is this?’
Concepts
o A concept is a generally accepted collection of meanings or characteristics associated with
certain events, objects, conditions, situations and behaviours.
o Fairly concrete
o Culturally shared and accepted
o Proper operational definition still necessary
o E.g.: dog, table, money, employee
Constructs
o More abstract
o Specifically developed for research purposes
2
, o Can combine multiple concepts
o E.g.: personality
An operational definition is one stated in terms of specific testing or measurement criteria.
Variable: synonym for construct, or the property being measured. Symbol to which we assign a
numeral, or value.
Dichotomous variables only have 2 values (employed/unemployed, male/female)
Continuous variable may take on values within a given range or, in some cases, an infinite set. E.g.
income, temperature, age or a test score.
In each relationship, there is at least one independent variable (IV) and one dependent variable (DV).
A moderating or interaction variable (MV) is a second independent variable that is included because
it is believed to have a significant contributory or contingent effect on the original IV-DV relationship.
Control variables (CV) are included in the investigation to ensure that the results are not biased by
not including them. It is included because it might influence the DV, but it does not affect the
relationship between the DV and IV.
Confounding variables (CFV) affect a relation between an IV and the DV or between a MV and the DV.
An intervening variable or mediating variable (IVV) is a conceptual mechanism through which the IV
and MV might affect the DV. It’s a factor that theoretically affects the DV but cannot be observed or
has not been measured.
Proposition: a statement about concepts that may be judged as true or false if it refers to observable
phenomena.
Descriptive hypotheses are propositions that typically state the existence, size, form or distribution of
some variable. E.g.: ‘The states of the European Union (case) are experiencing budget difficulties
(variable).’
Relational hypotheses are statements that describe a relationship between two variables with
respect to a particular case. E.g.: ‘Foreign (variable) cars are perceived by Italian consumers (case) to
be of a better quality (variable) than domestic cars.’
Correlational hypotheses state that the variables occur together in some specified manner
without implying that one causes the other. E.g.: ‘Young machinists (under 35 years of age)
are less productive than those who are 35 years of age or older.’
3
, With explanatory (causal) hypotheses, there is an implication that the existence of, or a
change in, one variable causes or leads to a change in the other. E.g.: ‘An increase in family
income (IV) leads to an increase in the percentage of income saved (DV).’
The role of the hypothesis
o It guides the direction of the study
o It identifies those facts that are relevant and those that are not
o It suggests which form of research design is likely the most appropriate
o It provides a framework for organizing the conclusions
What makes a good hypothesis?
o Adequate for its purpose (clearly states the condition, size or distribution of some variable in
terms of values that are meaningful to the research task)
o Testable
o Better than its rivals
A theory is a set of systematically interrelated concepts, definitions and propositions that are
advanced to explain and predict phenomena (facts).
A hypothesis is a statement relating two variables, while the theory provides the rationale
(achterliggende gedachte) why those two variables are related.
Theory:
- Narrows the range of facts we need to study
- Suggests which research approaches are likely to yield the greatest meaning
- Suggests a system for the researcher to impose on data in order to classify them in the most
meaningful way
- Summarizes what is known about an object of study, and states the uniformities that lie
beyond immediate observation
- Can be used to predict any further facts that may be found
Models represent phenomena through use of analogy.
- Descriptive models: describe the behaviour of elements in a system where theory is
inadequate or non-existent
- Explicative models: extend the application of well-developed theories or improve our
understanding of their key concepts
- Simulation models: clarify the structural relationships of concepts and attempt to reveal the
process relationships among them
Static: represent a system at one point in time
Dynamic: represent the evolution of a system over time
4
,CHAPTER 2 – THE RESEARCH PROCESS AND PROPOSAL
The research process:
5
, A research / management dilemma triggers the need for investigating how the dilemma can be
solved. It is usually a symptom of an actual problem.
The management question restates the dilemma in question form. E.g.: ‘How can the organization..?’
An exploration typically begins with a search of published data.
Formulate a research question that fits the need to resolve the management dilemma.
Investigative questions reveal the specific pieces of information that the manager feels he or she
needs to know in order to answer the research question.
Measurement questions:
- Pre-designed / pre-tested questions: have been formulated and tested by previous
researchers, are recorded in the literature, and may be applied literally or adapted to the
project at hand.
- Custom-designed questions
The research design is the blueprint for fulfilling objectives and answering questions.
Sampling design: identify the target population, select the sample. The researcher must determine
who and how many people to interview, what and how many events to observe, or what and how
many records to inspect. A sample is part of the target population.
The data-gathering of the research process typically begins with pilot testing. A pilot test is
conducted to detect weaknesses in design and instrumentation, and to provide proxy data for
selection of a probability sample.
What are data?
o Facts presented to the researcher from the study’s environment
o Abstract: more metaphorical than real
o Data are processed by our senses
o Elusive
o Reflect their truthfulness by proximity (closeness) to phenomena.
Data analysis usually involves reducing accumulated data to a manageable amount, developing
summaries, looking for patterns and applying statistical techniques.
Reporting the results: reports should be developed from the manager’s or information user’s
perspective.
At a minimum, a research report should contain the following:
o An executive summary of a synopsis of the problem, findings and recommendations
o An overview of the research (the problem’s background, literature summary, methods and
procedures, and conclusions)
o A section on implementation strategies for the recommendations
o A technical appendix with all the materials necessary to replicate the project
6
