Lecture 7

Theoretical framework,
Conceptual Framework &
Hypotheses Development
 Outline
• Framework Development
• Theoretical Framework & Conceptual Framework
• Variables
• Dependent, Independent, Moderating, Intervening
• Hypotheses Development
• Definitions of Hypothesis
• Theory vs. Hypothesis
• The Role or Importance of Hypothesis
• Types of Hypothesis
• Characteristics of Hypothesis
• Sources of Hypothesis
• Formulating the Hypothesis
• Testing the Hypothesis
 Framework Development
 Framework development refers to
conceptual and theoretical framework.
◦ Both frameworks are important to provide the
direction of research and to ascertain the
compliance to research questions/objectives.

 A framework offers a model of how to

make logical sense of the relationships
among the several factors that have been
identified as important to the problem.
 Theories are formulated to explain, predict,
and understand phenomena and, in many
cases, to challenge and extend existing
knowledge, within the limits of the critical
bounding assumptions.

 The theoretical framework is the structure

that can hold or support a theory of a
research study (foundation on which the
entire research is based).

 The theoretical framework introduces and

describes the theory which explains why
the research problem under study exists.
A theoretical framework consists of concepts,
definitions, and existing theory/theories that are
used for your particular study.
◦ The theoretical framework must demonstrate an
understanding of theories and concepts that are
relevant to the topic of your research.

The theoretical framework is not something that is

found readily available in the literature.
◦ You must review pertinent research literature for
theories and analytic models that are relevant to your
research problem or issues.
◦ The selection of a theory should depend on its
appropriateness, ease of application, and explanatory
power.
The theoretical framework strengthens the
study in the following ways.
◦ An explicit statement of theoretical
assumptions permits the reader to evaluate
them critically.

◦ The theoretical framework connects the

researcher to existing knowledge. Guided
by a relevant theory, you are given a basis
for your hypotheses and choice of research
methods.
◦ Articulating the theoretical assumptions of a
research study forces you to address
questions of why and how. It permits you to
move from simply describing a
phenomenon observed to generalizing
about various aspects of that phenomenon.

◦ Having a theory helps you to identify the

limits to those generalizations. A theoretical
framework specifies which key variables
influence a phenomenon of interest. It alerts
you to examine how those key variables
might differ and under what circumstances.
 The Need for a Theoretical Framework
 A theoretical framework is a conceptual model of how one
theorizes or makes logical sense of the relationships among
the several factors that have been identified as important to the
problem or research.

 The theoretical framework discusses the interrelationships

among the variables that are believed to be integral to the
issues being investigated.

 Developing a conceptual framework helps researcher to

postulate or hypothesizes and test certain relationships to
improve an understanding of the issues.

 From the theoretical framework, testable hypotheses can be

developed to examine whether the theory formulated is
valid or not. The hypothesized relationships can thereafter be
tested through appropriate statistical analysis.
9
 Strategies for Developing the
Theoretical Framework
1. Developing the Framework

2. The Components of the Theoretical

Framework

3. Purpose of Theoretical Framework

 Examine your thesis title & research problem. The research problem
anchor the entire study & forms the basis for the construction of the
theoretical framework

Brainstorm on what you consider to be the key variables in your research

Review related literature to find answers to your research question

List the constructs and variables that might be relevant to your study.
Group these variables into independent and dependent categories.

Review the key theories and choose the theory/theories that can best
explain the relationships between the key variables in your study

Discuss the assumptions or propositions of this theory and point out their
relevance to your research
 There are 5 basic features that should
be incorporated in any theoretical
framework:
◦ Variables considered relevant to the study
should be clearly identified & discussed.
◦ Should state how the variables are related.
◦ There should be an indication as to whether
the relationships would be positive or
negative (based on findings from literature).
◦ There should be clear explanation of why
we would expect the relationships to exist.
◦ A schematic diagram of the theoretical
framework should be given so that the
theoretical relationships can easily seen &
understood.
 To stimulate
research

To predict and To test

control situations Purpose theories

To establish orderly
To make research
connections
findings meaningful
between
and generalizable
observations & facts
 Conceptual Framework
 After formulating the theoretical framework,
the researcher has to develop the conceptual
framework of the study.

 A concept is an image or symbolic

representation of an abstract idea. Chinn and
Kramer (1999) define a concept as a
“complex mental formulation of experience”.

 While the theoretical framework is the theory

on which the study is based, the conceptual
framework is the operationalization of the
theory.
 Conceptual framework represents:
◦ the researcher’s own position on the
problem.
◦ It gives direction to the study.
◦ It may be an adaptation of a model used in
a previous study, with modifications to suit
the specific inquiry.
◦ Able to show the relationships of the
different constructs.
◦ It allows the researcher to construct his/her
own terms and to clarify those being used in
the study.
 Conceptual framework is a logically
developed, described and elaborated
network of associations among
concepts or variables deemed relevant
to the research problem, which have
been identified through preliminary
information gathering and the literature
search.
 Conceptual Framework
 This consists of concepts that are
placed within a logical and sequential
design.
 Represents less formal structure and
used for studies in which existing theory
is inapplicable or insufficient.
 Based on specific concepts and
propositions, derived from empirical
observation and intuition.
 May deduce theories from a conceptual
framework.
 Purposes of Conceptual Framework
 To clarify concepts and propose
relationships among the concepts in a
study.

 To provide a context for interpreting the

study findings.

 To explain observations.

 To encourage theory development that

is useful to practice.
 How should the conceptual framework
be formulated?
1. Cite your conceptual framework or
paradigm
2. Identify your variables
3. Point out the dependent and
intervening variables
4. Show the direction of the study.
 Variables
 A variable “is a symbol of an event, act,
characteristics, trait or attribute that can
be measured and to which we assign
categorical values” (Cooper & Schindler,
2008, p.61).

 There are four main types of variables:

◦ Dependent variables
◦ Independent variables
◦ Moderating variables/ Interaction variables
◦ Intervening variables
 Variables…..
Dependent variable
 Is the variable of primary interest to the
researcher.
 It measures the effect of the independent
variables.
 It is also the outcome of the change (s)
brought about by changes in an independent
variable.
 Is variable that is the effect or is the result or
outcome of another variable (also referred to
as outcome variable or effect variable).
 Variables…..
Independent variable
 The cause variable, or the one that identifies
forces or conditions that act on something
else.
 Is one that influences the dependent variable
in either positive or negative way.

Economic
FDI
Growth

Independent variable Dependent variable

 Variables…..
Moderating variable
 is one that has a strong contingent effect on the independent
variable-dependent variable relationship.
 The presence of a third variable (MV) modifies the original
relationship between the independent & dependent variable.
 Example:
 a strong relationship has been observed between the quality
of library facilities (X) and students performance (Y).
 Although this relationship is supposed to be true generally, it
is contingent on the interest of the students. Meaning that
only those students who have the interest to use the library
will show improved performance in their studies.
 In this relationship students’ interest is moderating
variable, i.e. which moderates the strength of the association
between X and Y variables
 Variables…..
 Moderating variable:
◦ A variable that influences, or moderates,
the relation between two other variables
and thus produces an interaction effect.

Economic
FDI
Growth

Institutional quality

Independent Moderating Dependent

variable variable variable
 Variables…..
Intervening variable:
 A basic causal relationship requires only
independent and dependent variable.
 A third type of variable, the intervening variable,
comes between the independent and dependent
variables and shows the link between them.
 Advances in knowledge depend not only on
documenting cause and effect relationship but also
on identifying the mechanisms that account for the
causal relation.
 Hence, the intervening variable acts as a
dependent variable with respect to independent
variable and acts as an independent variable
toward the dependent variable.
 Variables…..
Intervening Variable: Example 1
 The statistical association between income
and longevity.
 By just having money does not make one
live longer.
 Other variables intervene between money
and long life.
 People with high incomes tend to have better
medical care than those with low incomes.
 Medical care is an intervening variable in the
relationship between income and longevity.
 Variables…..
Intervening Variable: Example 2
• Another finding that 5-day work week results in
higher productivity.
• In this work-week hypothesis, one might view the
intervening variable to be the job satisfaction.
• Thus, the statement could be: The introduction of
5-day work week (IV) will increase job satisfaction
(IVV), which will lead to higher productivity (DV).

Intervening Variable: Example 2

Institutional Economic
FDI
quality Growth
 Theoretical Framework and Conceptual Framework
may be represented as models:
◦ A model is a symbolic representation that helps
the researcher to express abstract concepts and
relationships easily, using minimal words.

◦ A model can be represented schematically or

mathematically.
 Schematic model - conveys concepts and
propositions through the use of boxes, arrows or
other symbols.
 Mathematical or statistical model - conveys
concepts and propositions through the use of
letters, number and mathematical symbols.
Examples of Theoretical/Conceptual
Framework
Examples of Theoretical/Conceptual
Framework…
Examples of Theoretical/Conceptual Framework…
Examples of Theoretical/Conceptual Framework…
 Hypotheses Development
• Once we have identified the important
variables and established the relationships
among them through logical reasoning in the
theoretical framework, then we are in a
position to test whether the relationships hold
true through appropriate statistical analysis.

• Formulating such testable statements is

called hypotheses development.
 Definitions of hypothesis
• A hypothesis can be defined as a
logically conjectured relationship
between two or more variables
expressed in the form of a testable
statement.

• Relationships are conjectured on the

basis of the network of associations
established in the theoretical
framework formulated for the research
study.
 Definitions of hypothesis
 “A hypothesis is a conjectural statement of the
relation between two or more variables”(Kerlinger,
1956)
 “Hypothesis is a formal statement that presents the
expected relationship between an independent and
dependent variable.”(Creswell, 1994)
 “A research question is essentially a hypothesis
asked in the form of a question.”
 “An hypothesis is a statement or explanation that is
suggested by knowledge or observation but has
not, yet, been proved or disproved.”(Macleod,Clark
and Hockey,1981).
 Theory vs. Hypothesis
 The terms theory and hypothesis are often used
interchangeably

 Theory  Hypothesis
 Well-established principle  Specific, testable
that has been developed to prediction about what you
explain some aspect of the expect to happen in your
natural world. research
 Arise from repeated  A hypothesis makes a
observation, extensive specific prediction about a
testing & tested hypotheses specified set of issues.
that are widely accepted  A hypothesis is a
among scholars. speculative guess that
 Predicts events in a general has yet to be tested.
context
 The Importance of Hypotheses
 Hypotheses facilitate the extension of knowledge in
an area. They provide tentative explanations of
facts and phenomena, and can be tested and
validated.

 Hypotheses provide the researcher with rational

statements, consisting of elements expressed in a
logical order of relationships which seek to
describe or to explain conditions or events, that
have not yet been confirmed by facts. (It is a guide
to the thinking process and the process of
discovery)
 The Importance of Hypotheses…

 Hypotheses provide direction to the

research. It defines what is relevant
and what is irrelevant. The hypotheses
tell the researcher specifically what he
needs to do and find out in his study.

 Hypotheses provide the basis for

reporting the conclusions of the study.
It serves as a framework for drawing
conclusions.
 Sources of Hypothesis
 Review of similar studies in the area (literature).

 Examination of data and records, concerning the

problem for possible trends, peculiarities and other
clues.

 Discussions with colleagues and experts.

 Exploratory personal investigation which involves

interviews on a limited scale with interested parties
and individuals to secure greater insight into the
practical aspects of the problem.
 Generation of Research Hypothesis
Problem statements become research
hypotheses when constructs are operationalized
 Formulating Hypothesis
How to derive hypothesis:
 Deduction - reasoning from general to specific
(theory, then research)
◦ “Theory indicates that the more countries get
engaged in world economy, the more they tend
to adopt democratic reforms. You will test this
hypothesis using data from Latin American
countries.
 Induction - reasoning from specific to
general (research, then theory)
◦ E.g. “Jane and Rebecca vote for Democratic
candidates”  “most women favor Democratic
candidates”
 Formulating Hypothesis…

Inductive

Deductive
 Types of Hypotheses
 Null Hypotheses and Alternative
Hypothesis
Null Hypotheses (H0 or HN)
 The null hypothesis is the one tested.
 In the null form, the researcher makes a
statement that no relationship exists.
 Example: “There is no significant difference
between the academic achievement of high
school athletes and that of non athletes,”
 One can only falsify the null to lend support to
the research hypothesis.
 Types of Hypotheses…….
Alternative Hypotheses (H1or HA)
 Is the research hypothesis which is “claim” made by
the theory.
 Example: “There is significant difference between
the academic achievement of high school athletes
and that of non athletes,”
 Only reached if H0 is rejected.
 Frequently “alternative” is actual desired conclusion
of the researcher.
If we conclude 'do not reject H0', this does not necessarily
mean that the null hypothesis is true. It only suggests that there
is not sufficient evidence against H0 in favor of H1.Rejecting the
null hypothesis then, suggests that the alternative hypothesis
may be true.
 Types of Hypotheses…….
 Directional and Non-directional Hypothesis

 Directional hypothesis:
◦ The hypotheses which specify the direction of the
expected differences or relationships
◦ E.g. the research hypothesis: “There will be a
positive relationship between FDI and economic
growth”.

 Non-directional hypothesis:
◦ A research hypothesis which does not specify the
direction of expected differences or relationships.
◦ E.g. FDI will have a significant impact on the
economic growth
 Example
 Consider the example of a simple association
between two variables, Y and X.
1. Y and X are associated (or, there is an association
between Y and X).
◦ The first hypothesis provides a simple statement of
association between Y and X. Nothing is indicated to
determine which variable, Y or X, would tend to cause the
other variable to change in value.

2. Y is related to X (or, Y is dependent on X).

◦ The second hypothesis is also a simple statement of
association between Y and X, but this time it may be
inferred that values of Y are in some way contingent upon
the condition of the X variable.
 Example…
3. As X increases, Y decreases (or, increases
in values of X appear to effect reduction in
values of Y).
◦ The third hypothesis is the most specific of the
three. Not only does it say that Y and X are related
and that Y is dependent on X for its value, but it
also reveals something more about the nature of
the association between the two variables.
 Characteristics of Hypothesis
1. Hypothesis should be clear and precise. If the
hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as
reliable.

2. Hypothesis should be capable of being tested.

Some prior study may be done by researcher in
order to make hypothesis a testable one.

3. Hypothesis should state relationship between

variables, if it happens to be a relational
hypothesis.
 Characteristics of Hypothesis
4. Hypothesis should be limited in scope and must be
specific.

5. Hypothesis should be stated as far as possible in

most simple terms.

6. Hypothesis should be consistent with most known

facts i.e., it must be consistent with a substantial
body of established facts.

7. Hypothesis should be amenable to testing within a

reasonable time.
 Steps in Hypothesis Testing
State the null and the alternate
hypotheses

Choose the appropriate statistical

test (parametric or nonparametric)

Determine the level of significance

desired (5% or 1%)

Evaluate the results

Decision Rule: Reject H0 in favor of

H1 or Do not reject H0
 Errors in Hypotheses
 Two types of errors are possible while testing
the hypotheses:
 Type I error
oA type I error occurs when the null hypothesis (H0)
is wrongly rejected when it is true.
 Type II error
oA type II error occurs when the null hypothesis
(H0), is not rejected when it is in fact false.
Decision
Accept H0 Reject H0
H0 (true) Correct decision Type I error (alpha error)
H0 (false) Type II error (ß error) Correct decision
 Summary

Research Theoretical Formulate

problem framework hypothesis