Business Research

Methods

Chapter 1 - Introduction to Research Methodology

 Topics to be discussed
• Definition of Research

• Types of researches

• Applied and Basic Research

• The research processes

• Why managers should know about research

• Ethics and Business Research

• Research Philosophy

• Inductive Vs Deductive Reasoning

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How do we acquire knowledge?
• Knowledge acquisition gained
• Trial and error
• Experience
• Reasoning
• Intuition
• Most importantly through the use of appropriate methods
• The scientific method (research)

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 Definition of Research

• Literally, research (re-search) -“search again”.

• Research is defined as a search for knowledge.

• Research is a systematic investigation to find answers

to a problem.

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 Characteristics of Research
• Research is a process of collecting, analyzing and interpreting information to answer
questions. But to qualify as research, the process must have certain characteristics:

• Systematic: some procedures must follow others.

• Rigorous: relevant, appropriate and justified procedures applied

• Valid and verifiable: findings are correct and can be verified

• Empirical: based upon hard evidence

• Critical: methods are carefully scrutinized/studied.

• Controlled: the effects of other factors affecting relationship are minimized

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Objectives of Research
• Studies may have multiple purposes (e.g. both to explore and to
describe) but one purpose usually dominates.
• To extends knowledge
• Theory building - discovered new information
• To verify and test existing facts and theory
• To analysis inter-relationships between variables
• Find solution to current problems
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 Business research
• Business research refers to academic and/or applied research on topics relating to
questions that are relevant to the field of business and management and have a social
science orientation.

• It can be described as a systematic and organized effort to investigate a specific

problem encountered in the work setting, which needs a solution.

• It provides the needed information that guides managers to make informed

decisions to successfully deal with problems encountered in their organizations.

• It is a systematic inquiry that provides information to guide business decisions.

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 Managers and research
• Managers with knowledge of research methods are well positioned than those
without:

• It helps managers to identify problem situations before they get out of control.

• It helps managers to interact effectively with the researchers.

• It also helps managers to become discriminating recipients of the research

findings presented, and to determine whether or not the recommended solutions
are appropriate for implementation.

• Minor problems can be solved by the manager, major problems would warrant
the hiring of outside researchers or consultants.
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Internal vs External Researchers
• Internal Consultants or Researchers: Some organizations have their own
research department, which might be called:
• The management services department
• The organization and methods department
• The Organization and Development (OD) department
• R & D (research and development department)

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 Advantages of Internal Researchers
• Advantages:
• Better chance of being readily accepted by the employees.
• Require much less time to understand the system
• Available for implementing recommendations
• May cost considerable less than external team.
• Disadvantages:
• May have less fresh ideas and perspectives
• Certain powerful groups in the organization to influence or misrepresent
certain facts.
• May not be perceived as “experts” by the management,
• Organizational biases by the team
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External
• Advantages:

• Wealth of experience from having worked with different types of organizations

• More knowledge of current sophisticated problem-solving models

• Disadvantages:

• The cost of hiring an external research team is usually high.

• They need a considerable time to understand the organization to be researched.

• They seldom get a warm welcome by employees

• May charges additional fees in the implementation and evaluation phases.

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Types of Research
• The typology of a research can viewed from three perspectives:
1. From the point view of application of research study

2. From the point view of objective of undertaking a research study

3. From the point view of the mode of inquiry (research process) of a

research study

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 13
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Applied Research
• Applied research is carried on to find solution to a real-life problem requiring

an action or policy decision.

• It is thus problem-oriented and action-orientedIt is undertaken to solve a

specific problem or provide a solution to a practical question. Thus, it seeks

an immediate and practical result.

• It is conducted to reveal answers to specific questions related to action,

performance, or policy needs.

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Pure research
• Pure research is undertaken for the sake of knowledge without any intention to

apply it in practice.

• This is mainly concerned with generalization and with formulation of theory.

• Pure research is also known as basic or fundamental research.

• It may lead to either discovery of a new theory or refinement of an existing

theory.

• It is not necessarily problem-oriented. It aims at extension of knowledge.

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Exploratory research
• It is preliminary study of an unfamiliar problem about which the researcher
has little or no knowledge.

• It is ill-structured and much less focused on pre-determined objectives.

• Exploratory research questions are typically developed when:

a) Not much is known about a particular phenomenon;

b) Existing research results are unclear or suffer from serious limitations;

c) The topic is highly complex; or

d) There is not enough theory available to guide the research

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Descriptive Research
• A descriptive study aims at identifying the various characteristics of a

community or institution or problem under study

• Descriptive research includes surveys and fact-finding enquiries

• The major purpose is description of the state of affairs as it exists at present.

• It describes a particular phenomenon, focusing upon the issue of what is

happening, or how much of it has happened, rather than why it is

happening.
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Correlational Research
• Correlational studies describe relationships between variables.

• Research that studies the relationship between two or more variables is also

referred to as a correlational study .

• While correlational studies can suggest that there is a relationship between two

variables, finding a correlation does not mean that one variable causes a

change in another variable.

• The degree of association is often measurable.

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Explanatory (causal) Research
• The desire to know “why,” to explain, is the purpose of Explanatory Research.

• An explanatory study goes beyond description and attempts to explain the reasons for

the phenomenon that the descriptive study only observed.

• Explanatory Research is involved in explaining why something happens, and

assessing causal relationships between variables.

• Causal researches explain what is sometimes called a “cause and effect” relationship.

The cause is referred to as the ‘independent variable’, the variable that is affected is

referred to as the ‘dependent variable’.

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 cont’d

“Our sales are declining “What kind of people are buying “Do price and promotion have

and we don’t know why.” our product? Who buys our significant effect on sales

“Would people be competitor’s product?” volume of our products?”

“What features do buyers prefer in
interested in our new
our product?”
product idea?”

Exploratory Research Descriptive Research Causal Research

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 QUANtitative Research

• Quantitative research involves analysis of quantifiable or statistical data that is

often measurable.

• Quantitative research is based on some quantitative measurement of characteristics.

• It is applicable to phenomena that can be expressed in terms of qunatities.

• Eg. What is the marginal sales volume of product advertisement twice a week on

TV?

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 QUALitative Research
• Qualitative research designed to find out how people feel or what they think

about a particular subject or institution is also qualitative research

• It is concerned with qualitative phenomena.

• Eg. Attitude of customers towards the services of a firm.

• The major qualitative techniques of research are: field research, case study

and focus group discussion

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Quantitative vs. Qualitative: Research Purpose
• Seeks to establish relationships and • Concern is with the understanding
explain causes of changes in of the social phenomenon from the
measured variables. That is, the
participants’ perspectives. This
goal of science is to explain and
requires, to some degree,
predict.
researcher participation.
• The scientific method, also known
as a priori or pre-established • Use of emergent design utilizing
design. constant comparison and revision.
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Quantitative vs. Qualitative: Prototypical
Studies
• Experimental or correlational • Use of ethnography, which helps
designs are used to reduce error, readers understand the multiple
bias and the influence of perspectives of the situation by
extraneous variables--control of the persons studied.
bias is through design. Subjectivity in data analysis and
interpretation is acknowledged.

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Quantitative vs. Qualitative: Researcher Role

• Obtained through the use of • Provided by detailed description of

measurement and statistics phenomenon

• Researcher detachment from • Researcher immersed in the situation and

the phenomenon being studied.
study in order to avoid bias.
• Generalizations are contextually-bound.
• Context-free generalizations
• Extension of understandings by others.
• Results replicated by others.
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Research Process
• The research process is similar to undertaking a journey. For a research

journey there are two important decisions to make:

• What you want to find out about or what research questions (problems)

you want to find answers to;

• How to go about finding their answers.

• There are practical steps through which you must pass in your research

journey in order to find answers to your research questions.

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Research Process: An Overview
• Formulation the research problem

• Extensive Literature Review

• Developing or working hypothesis

• Preparing research design

• Determining Sample and Design data collection instruments

• Collecting the data (observation, interview, questionnaire)

• Analysis of the data

• Generalization and Interpretation

• Preparing Research Report 27

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Ethics and Business Research
• Ethics in business research refers to a code of conduct or expected societal
norms of behavior while conducting research.

• Ethical conduct applies to the organization and the members that sponsor
the research, the researchers who undertake the research, and the
respondents who provide them with the necessary data.

• Researchers should safeguard against physical or psychological harm,

exploitation, invasion of privacy, and guard the welfare of the participants
and organization, their clients, their colleagues, and themselves.

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 Informed Consent
• Tell participants who is conducting study

• Why was subject singled out for participation? e.g. random or with some attribute

• What is the time commitment?

• Any benefits for the participant to be expected?

• Any potential risks, and how have these been managed?

• Explain the study and offer to answer questions

• Participation is always voluntary.

• Provide participants with copy of informed consent form (if relevant).

• Confidentiality/anonymity condition 29
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 Plagiarism
• Plagiarism is taking another’s work and passing it off as your own.

• True plagiarism is, quite bluntly, stealing.

• Sometimes a person just copies text word for word from a book or article and
pretends that he is the author.

• Or buys an already written paper on the web.

• Some hire “advisors” and get it done

• One should always provide references for any statistics, graphs, tables, numbers.

• Thus, it isn’t just the words of another person’s ideas that one should reference.
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 Copy Direct Quotations
• Make sure that you write it precisely, word - for - word as in the original.

• Also essential that you enclose the quoted text in quotation marks.

• Failing to put someone else’s direct text in quotation marks and crediting the author, may
lead to accusations of plagiarism.

• It’s often preferable to take down the substance of an author’s idea and write it in your
own words, i.e. to paraphrase.

• The greater part of your paper should be in your own words with appropriate
documentation of the ideas of others.

• Of course, some direct quotation is fine - but always with citation.

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 Unintentional Plagiarism
• Many instances of plagiarism stem from sloppy research rather than through a

deliberate desire to cheat.

• Many students during the research process take bad notes, e.g. they write down

someone else’s text verbatim but forget to include the quotation marks.

• A reader who recognizes the original text might think that the student has

cheated.

• So, the golden rule is to take excellent notes, write your whole paper yourself

and to document your sources as well and as honestly as possible.

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 “Common Knowledge” and Plagiarism
• It is not necessary to document every single statement.

• One need not give a reference for stating that Addis Ababa is the capital city

of Ethiopia.

• This fact is common knowledge and belongs in the public domain.

• However, if you are referring to a thesis that states that Addis Ababa is not

the economic hub of the country but only the political center, proper citation

to such a theory is requisite.

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 Research philosophy
• The research philosophy you adopt contains important assumptions about

the way in which you view the world.

• These assumptions will underpin your research strategy and the methods

you choose as part of that strategy.

• Research philosophy can be defined as the development of the research

background, research knowledge & its nature.

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 Cont’d
• All research is based on assumptions about how the world is perceived and how

we can best come to understand it.

• Even if the philosophy you adopt will be influenced by practical considerations,

the main influence is likely to be your particular view of the relationship between

knowledge and the process by which it is developed.

• Research philosophy:

• Ontology: is concerned with nature of reality.

• Epistemology: is concerns what constitutes acceptable knowledge in a field of study.

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Epistemology
• What is (or should be) regarded as acceptable knowledge in a discipline?

• Can (should) the social world be studied according to the same principles as
the natural sciences?

• If the answer is YES, the research follows the doctrine of the natural
science epistemology: Positivism (and also Realism)

• If the answer is NO, the research follows the opposite to positivism

doctrine: Interpretivism

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Ontology
• Can (should) social entities be considered objective entities

• If the answer is YES: the research takes a position of Objectivism (social

phenomena confront us as external – independent and objective – facts)

• or are they social constructions

• If the answer is NO: the research takes a position of Constructionism

(Constructivism) – social phenomena and their meanings are continually
being accomplished by social actors; the phenomena are not only produced
through social interactions, but they are in a constant state of revision

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Epistemology and ontology

Epistemological positions Ontological considerations

• Positivism, • Objectivism

• Realism • Constructionism

• Interpretivism (Constructivism)

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Positivism
• Research philosophy used by the natural sciences

• The researcher is an objective analyst of the external world; the end

product of the research are law-like generalizations

• Makes detached interpretations about the data that have been collected in
an objective manner

• Observations can be quantified; this permits statistical analysis

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Positivism …
• The researcher is independent of the subject of the research:

• The researcher does not affect the subject of the research

• The researcher is not affected by the subject of the research

• Focus on

• Highly structured methodology and methods (e.g., questionnaires) to

facilitate replication

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Realism
• Shares two features with Positivism:
• A belief that the natural and social sciences should apply the same kind
of approach to the collection of data and to explanation
• A view that there is an external reality which is separate from our
description of it

• Realism is an attempt by some researchers in social sciences to adjust

Positivism to studies of social phenomena

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Realism …
• It allows for inclusion into their explanations of theoretical terms that sometimes
cannot be observed

• It also recognizes that people cannot be studied in the style of natural sciences; that it
is important to understand how people think and interpret things, to take context
(e.g., time and place) into account

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Interpretivism
• Opposite to Positivism

• Argues that the social world of business and management is too complex and
unique for the traditional natural sciences approaches

• Therefore, it cannot be generalized; it depends on particular sets of

circumstances and individuals

• It is the role of interpretivists to seek to understand the subjective reality of those

that they study

• To understand their motives, actions, and intentions

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Ontological considerations – Objectivism
• An ontological position that implies that social phenomena confront us as
external facts that are beyond our reach or influence

• For example, an organization has rules and regulations; standardized

procedures for getting things done; there is a hierarchy; mission statement;
individuals have to conform to these rules; they do jobs to which they are
appointed; they are told what to do and they tell others what to do;
otherwise, they may be reprimanded or even fired

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 Oncology - Constructionism (Constructivism)
• An ontological position that asserts that social phenomena and their meanings are
continually being accomplished by social actors

• It implies that social phenomena and categories are not only produced through social
interactions but they are in a constant state of revision
• For example, in some organizations rules are less extensive and less rigorously imposed than in
other classic organizations
• They are not commands but rather general understandings; the outcome are agreed-upon
patterns of action in different situations that are the product of negotiations among the
different parties involved
• The social order is in a constant state of change
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Links between Epistemology and Ontology
• Epistemological orientation of Positivism is most likely linked to
Ontological orientation of Objectivism (and Realism)

• Interpretivism is usually linked to Constructionism

• Research strategies (emerge from the above):

• Quantitative research strategy (usually linked to Positivism and

Objectivism/Realism and to Deductive Research)

• Qualitative research strategy (usually linked to Interpretivism and

Constructionism and to either Inductive Research or Grounded Theory)
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 Research Methodology vs Research Methods
• Research methodology is a way to systematically solve the research problem.

• It may be understood as a science of studying how research is done scientifically.

• It is the study of the general approach to inquiry in a given field.

• In it we study the various steps that are generally adopted by a researcher in

studying his research problem along with the logic behind them.

• It refers to the rigorous analysis of the methods applied in the stream of research,

to ensure that the conclusions drawn are valid, reliable and credible too.
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Cont’d
• The techniques and procedure, that are applied during the course of
studying research problem are known as the research method.

• Research method refers to the technique which can be adopted to explore the
nature of the world that surrounds us. On the contrary, research
methodology is the foundation, which helps us to understand the
determinants influencing the effectiveness of the methods applied.

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Cont’d
• The scope of research methodology is wider than that of research method, as the

latter is the part of the former.

• For understanding the research problem thoroughly, the researcher should know

the research methodology along with the methods.

• Epistemology is a philosophy of knowledge and methodology is also concerned

with how we come to know, but is much more practical in nature.

• Epistemology involves the philosophy of how we come to know the world while

methodology involves the practice.

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The interrelationship between the building blocks

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THE METHODOLOGICAL (DESIGN) PROCESS
Ontology

Sources Epistemology

Methods Methodology

(Source: Grix, 2002)

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Inductive Vs. Deductive reasoning
• In Deductive reasoning, we work from the more general to the more specific.

• A premises lead us to a certain conclusion.

• We start out with a general theory and then narrow down that theory into

specific hypotheses we can test. We narrow down even further when we

collect specific observations to test our hypotheses.

• Analysis of these specific observations ultimately allows us to confirm (or

refute) our original theory.

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Deductive research approach

THEORY

HYPOTHESIS Top-down approach

Theory testing

OBSERVATION

CONFIRMATION
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Inductive research approach

THEORY

TENTATIVE HYPOTHESIS

PATTERN Bottom-up approach

Theory building

OBSERVATION
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End