Module 1: Why business research
,Why business research
Two most common cognitive biases:
1. Confirmation bias: Confirmation bias refers to the tendency only to consider
information that agrees with ("confirms") our preexisting beliefs. We cherry-pick the
information we consider: we look for only the evidence that supports what we are
already thinking and disregard the rest. As such, we may become a prisoner of our own
prejudices.
2. Availability bias: Availability bias (also known as the availability heuristic) refers to a
cognitive bias in which we decide based on readily available information, even though it
may not be the best information to inform our decision.
Information that is more easily recalled (i.e., information that is more available because it
is more vivid or recent) is assumed to reflect more frequent and more probable events,
while information that is more difficult to bring to mind (i.e., information that is less
available because it is less vivid or recent) is assumed to reflect less frequent and less
probable events. The availability bias thus leads us to overestimate events.
Stages of research progress
Deductive and inductive research are two types of research approaches.
1. Inductive: researchers first collect data. Next, they try to find a pattern in these data,
after which they develop a theoretical framework based on this pattern. (building theory)
2. Deductive: researchers first hypothesize relationships between variables based on
theory. These hypotheses are then tested using data. (testing theory)
,Module 2: Theory Formation
, Research process
1. Define the business problem
2. Formulate the problem statement
3. Develop a theoretical framework
4. Choose a research design
5. Collect data
6. Analyze data
7. Write up
Demarcating a business problem
When does a business problem arise?
A business problem arises when a company faces either a threat (a difficulty to be
overcome), or an opportunity (a situation with the potential for improvement).
Demarcating a business problem
A business problem must be demarcated or narrowed down before diving into a
research study.
- Poorly demarcated: "Pfizer wants to boost its profits."
- Well demarcated: “Pfizer wants to know the impact of advertising spending
on the number of prescriptions written by doctors for Pfizer's products."
Problem relevance
Two types of relevance:
1. Academic relevance
2. Managerial relevance
Academic relevance
When is research academic relevant?
The same problem should not have been researched before.
· New topic = no prior research exists, although the topic is important
· New context = Prior research exists but in a different context
· Integrate scattered findings = Prior studies focus on different variables in
isolation, hence their relative impact is unclear.
· Reconcile conflicting findings = Prior studies reporting different findings
(small vs. large, positive vs. negative), and the conditions under which these
findings hold are unclear.
,Why business research
Two most common cognitive biases:
1. Confirmation bias: Confirmation bias refers to the tendency only to consider
information that agrees with ("confirms") our preexisting beliefs. We cherry-pick the
information we consider: we look for only the evidence that supports what we are
already thinking and disregard the rest. As such, we may become a prisoner of our own
prejudices.
2. Availability bias: Availability bias (also known as the availability heuristic) refers to a
cognitive bias in which we decide based on readily available information, even though it
may not be the best information to inform our decision.
Information that is more easily recalled (i.e., information that is more available because it
is more vivid or recent) is assumed to reflect more frequent and more probable events,
while information that is more difficult to bring to mind (i.e., information that is less
available because it is less vivid or recent) is assumed to reflect less frequent and less
probable events. The availability bias thus leads us to overestimate events.
Stages of research progress
Deductive and inductive research are two types of research approaches.
1. Inductive: researchers first collect data. Next, they try to find a pattern in these data,
after which they develop a theoretical framework based on this pattern. (building theory)
2. Deductive: researchers first hypothesize relationships between variables based on
theory. These hypotheses are then tested using data. (testing theory)
,Module 2: Theory Formation
, Research process
1. Define the business problem
2. Formulate the problem statement
3. Develop a theoretical framework
4. Choose a research design
5. Collect data
6. Analyze data
7. Write up
Demarcating a business problem
When does a business problem arise?
A business problem arises when a company faces either a threat (a difficulty to be
overcome), or an opportunity (a situation with the potential for improvement).
Demarcating a business problem
A business problem must be demarcated or narrowed down before diving into a
research study.
- Poorly demarcated: "Pfizer wants to boost its profits."
- Well demarcated: “Pfizer wants to know the impact of advertising spending
on the number of prescriptions written by doctors for Pfizer's products."
Problem relevance
Two types of relevance:
1. Academic relevance
2. Managerial relevance
Academic relevance
When is research academic relevant?
The same problem should not have been researched before.
· New topic = no prior research exists, although the topic is important
· New context = Prior research exists but in a different context
· Integrate scattered findings = Prior studies focus on different variables in
isolation, hence their relative impact is unclear.
· Reconcile conflicting findings = Prior studies reporting different findings
(small vs. large, positive vs. negative), and the conditions under which these
findings hold are unclear.
