Business Research Methodology

Lecture 1
Introduction
Course leader : Dr. Moges Logaw
Course Description

 Course Name : Business Research Methodology

 Code: MBA 621
 Credit hours: 3
 Instructor : Dr. Moges Logaw

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 Course Objectives

At the end of this course students are expected

to
 be familiar with the meaning of research ;
formulate proposal on business related research
topics; and
Identify the ways in which research papers are
formulated, written and presented with a view to
informing the forthcoming dissertation.

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Contents

Chapter I - Meaning of Research

Chapter II - Defining Research Problem and Hypothesis Formulation

Chapter III - Research Proposal

Chapter IV - Research Design (planning of research project)

Chapter V - Sources and Methods of data collection

Chapter VI - Sample Design and Procedure

Chapter VII - Data analysis (an overview)

Chapter VIII - Interpretation & reporting the research result

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Chapter 1: Introduction to Research
1.1. Basic Concept of Research

1.1.1. Sources of Knowledge

Group work
Please Discuss the following questions in group and come
up with your suggestion
• What are the possible source of Knowledge?
• How the required knowledge is obtained from these
sources?
• Give us your definition about Research
• What are the characteristics of research?
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 Sources …
You might have realized that there are a number of ways of acquiring
knowledge. Some of the sources of knowledge include the following.
The two major approaches of knowing the world are everyday
experience and science.

Everyday Experience as Sources of Knowledg

• As we live in this world and interact with our surrounding we may
be confronted with new ideas that may have important impact on
our lives.
• We get access to this new information through our senses
• the most immediate way of knowing something. This is what we call
sensory knowledge.

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 Sources …
There are also other ways of knowing from our everyday experiences.
• The Method of Tenacity
– The term tenacity refers to the acceptance of a belief based on the idea that “we have
always known it to be this way”.
– In other words, it represents the automatic acceptance of the prevailing traditional
beliefs and customs in which we have been socialized.

– We accept those beliefs and customs as true without exploring them

and then behave with it.
– Even when we come across evidences that contradict our beliefs, we still tend to cling
to our traditional belief.

• As a way of learning about the surrounding world the method of

tenacity has two problems:
– The information may gain wide acceptance through its
familiarity alone.
– Tenacity offers no means for correcting erroneous ideas.

For instance, in some cultures Female Genital

Dr. Moges LogawCutting (FGC) is an accepted practice. 8
 Sources …
• The Method of Authority
– If we enter into a new culture, we may experience so many things for which we
are not familiar.
– If we are naïve to most of the practices what we do, is we ask someone in that
culture who is supposed to have the knowledge – an authority figure.
– We are likely to ask others whom we think have a wealth of experience and
knowledge about the cultural practices of the community.
– We may, then, accept a new idea or information stated by this authority figure.
– In many cases, referring to an authority, especially in areas about
which we know nothing, is useful and beneficial.
– We often rely on the judgment and expertise when we consult, for example,
electrician, civil engineer or chemist.

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 Sources …
• In this type of source of knowledge, government officials and
clerics dictated their truth to the public.
• Remember that authority can be incorrect and at times can lead
people in the wrong directions.
• Hence, it is important to examine the basis of the authority’s
claims. We have to raise questions like, are these claims based on
opinion, tradition, or direct experience?
• How valid are the sources of this information?
for example, a physician may tell us that smoking
affects our health.

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 Sources …
The Priori Method
– The idea that underlies the priori method is that first we develop general knowledge,
opinion, or belief about the world through the aforementioned methods or personal
observation of things around
us and then we draw new and specific conclusion from this general
knowledge.
– As a result it is also known as a deductive reasoning.
• Our intellect allows us to use sensory data to develop a new kind of
knowledge.
• If we take the FGC example once again, a person living in a culture
where the practice of female genital cutting is common and well
accepted may draw specific knowledge that the practice is against
the rights of females because it is the removal of a body part without asking
the consent of the victims.
• Reason and logic are the basic tools of an a prior method and often take the
form of a logical syllogism such as All men are tall; Alemu is a man;
therefore, Alemu is tall.
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 Sources …
• Common Sense
– Common sense is based on our own past experiences and our perceptions
of the world.
– It originates from our day-to-day practical experiences and in turn guides
our daily interaction with our surrounding
– Note that our experiences and perceptions of the world may be quite
limited.
– The concepts that we have about the world may be seriously
misleading.
– Although common sense may help us deal with the routine aspects of daily
life, it may also form a wall and prevent us from understanding new ideas.

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 Sources …
Science
• science is a systematized body of knowledge used either to solve
our everyday problems or to formulate new knowledge or theories.
• In this description of science we see that research is the major
vehicle of science
• The steps in the scientific method guide researchers in planning,
conducting, and interpreting research studies. Scientific research
follows logical steps, which include:
• defining the problem
• making tentative explanations
• gathering information
• testing the validity of the hypothesis
• making conclusions as to whether the hypothesis can be
accepted or rejected
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 1.1.2. Meaning of Research
• Research in common parlance refers to a search for
knowledge.
• Once can also define research as a scientific and
systematic search for relevant information on a specific
topic.
• In fact, research is an art of scientific investigation.
• The Advanced Learner’s Dictionary of Current English lays
down the meaning of research as
– “a careful investigation or inquiry especially through search for
new facts in any branch of knowledge.
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 Meaning…

 According to Clifford Woody research comprises

◦ defining and redefining problems
◦ formulating hypothesis or suggested solutions
◦ collecting, organizing and evaluating data
◦ making inferences and reaching conclusions
◦ and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis.
 D. Slesinger and M. Stephenson define research as

◦ the manipulation of things, concepts or symbols for the

purpose of generalizing to extend, correct or verify
knowledge

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 Meaning…

Research is, thus,

 an original contribution to the existing stock of knowledge
making for its advancement.
 It is the pursuit of truth with the help of study, observation,
comparison and experiment.
Generally,
 research Simply means, a search for facts – answers to
questions and solutions to Problems.
 It is a Purposive investigation.
 It is an “Organized inquiry” (It seeks to find explanations to
unexplained phenomenon, to classify the doubtful propositions
and to correct the misconceived facts).

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 1.1.3. Characteristic and Types of Research

1.2.1. Major Characteristics of Research

Best and Kahn( 1992) have summarized the main characteristics of
research as under:
 Research is directed towards the solution of the problem.
 It may attempt to answer a question or to determine the relation
between two or more variable
 is based up on observable experience or empirical evidences.
 demands accurate observation and description
 involves gathering new data from primary or first –hand sources
or using existing data for a new purpose.
 It is more often characterized by carefully designed procedures,
always applying rigorous analysis.

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Characteristics …
 requires expertise.
 strives to be objective and logical, applying every possible
test to validate the procedure employed, the data collected,
and the conclusions reached.
 involves the quest for answers to unsolved problems.
 is characterized by patient and unhurried activity.
 is carefully recorded and reported
 sometimes requires courage.

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 Group work
• In doing a research we may face many problems.
Please list of them with their short coming
• Variables are the most important elements that
has to be seen in any research works. Please give
us its meaning, characteristics and types.

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 Problems with Research Today

 Unclear statements about the intent of the study

 Inarticulate rendering of the research problem

 Unclear design & methodology

 Questionable data

 Contradictory or vague findings

 etc.,

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 Variables in Research
What is a Variable?
 A variable is an event, a characteristic or an attribute that can be:
measured (can be assessed & recorded on an instrument) &
Varies (can assume different values or scores for different
individuals).
Example:
1. Human being varies in terms of:
 physical characteristics such as ht, wt, etc
 intellectual characteristics such as intelligence, self- concept etc.
2. Gender, ethnicity, socio economic status , test scores, age, and teacher
experience are all variables; people differ on these characteristics.

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 Families of Variables in Quantitative Studies
 Independent variable
 An attribute or characteristic that influences or affects an outcome
or Dependent variable
 Is a variable that is responsible for the occurrence of behaviour of
DV
 Can be manipulated & controlled by the researcher so that its effect
can be seen on the DV
 It can also be referred as classifying, measured, cause, experimental,
manipulated or treatment variable.
 Dependent variable
 An attribute or characteristic influenced by the Independent
variable(IDV).
 Is the one whose value or occurrence or extent depends on & is
affected by IDV
 It can also be referred as the outcome, effect, criterion or
consequence variable
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Examples
i) In studying “The Effect of market promotion on sell of goods
The DV is – amount of goods sold
IDV is – market promotion
ii) If “The effect of reinforcement from the government side on
investors’ attitude toward investment” is a research title, what are
the ID & D variables?
IDV = Reinforcement DV = Attitude towards investment
 Control Variables
 Variables that serve as a benchmarking to cross-check the changes in
the DV due to the treatment being manipulated on it.

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Extraneous variables
 Are variables that influence in participant selection, procedures,
statistics, or the design & likely to affect the outcome & provide an
alternative explanation of results than what was expected
They could be grouped into two.

i) Variables that can be controlled

  A) Participant variables
 These include both intervening variables & organismic
variables
 Intervening variable (mediating variable):
 A variable that intervenes b/n or alters the relation
b/n” the IDV & DV
 It cannot be directly observed but can be
controlled.
Examples
a) Anxiety, Boredom, etc

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 Organismic variables: Variables that cannot be altered but can be
controlled. E.g., Sex of participants
B) Environmental Variables: variables that appear in the setting of a study
(e.g., learning materials) that may cause unwanted difference b/n groups
ii) Variables that could not be controlled
 Confounding variables (spurious variables):
Attributes or characteristics that the researcher cannot directly measure
b/se their effects cannot be easily separated from the other variables, even
though they may influence the r/ship b/n the IDV and the DV.
For example, if you are researching whether a lack of exercise has an effect on
weight gain, the lack of exercise is the independent variable and weight gain is
the dependent variable.
A confounding variable would be any other influence that has an effect on
weight gain. Amount of food consumption is a confounding variable, or
weather could be a confounding variable. Each may change the effect of the
experiment design.

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Probable Cause Effect
(X) (Y) (Z)

Independent Extraneous Dependent

Variables Variables
Variables

Control
Variables
 Participant Variables
 Intervening
Variables Confounding
 Organismic Variables
Variables
 Environmental
Variables

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 1.2. Classification of Research
Group Work
Please refer the following classification of research and give us their description.

Research can be classified based on

1.Methods
– Historical research
– Descriptive research
– Correlational research
– Causal research
– Experimental research
– Case study research
– Ethnographic research
– Grounded theory
2. Function
– Applied
– Action Research
– Fundamental (Basic) Research
3. Data
 Quantitative
 Qualitative
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 1.1.1 Classification by Methods
• Historical research
– generates descriptions, and sometimes attempted explanations, of conditions,
situations, and events that have occurred in the past.
E.g. - Curriculum reform in the pre 1974 Ethiopia
- Marketing history in Ethiopia
 
– Historical research consists of studying a problem, an issue, a phenomenon, a
movement, etc., that happened in the past, and information collected from the past
serves as the data to be interpreted.
– Historical researchers use documents and other artifacts to reconstruct the past
through a process of critical inquiry.
– Historical research consists of describing what was, rather than what is or what effects
certain variables may have on others.
– But historical research is much more than an attempt to accurately reconstruct the past.
• It involves much interpretation and a projection of results and interpretation onto current issues,
problems, procedures, and the like.
– In the context of business, historical research deals with business "matters" of the past.
• Can we say the contents of any document are credible? How can we be sure that the contents of
documents or field notes collected from interviews of informants are valid? Should we take every
information for granted?
– source materials
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 Historical research …

To determine the authenticity, credibility or truthfulness of the contents of documents or interviews, we should
make critical analysis
There are two types of critical analysis:
• External and internal criticisms.
External Criticism
•This type of criticism evaluates the validity of a document. It raises questions such as where, when, and by
whom the document was produced. Was the writer on the spot ?
when the event occurred? Are the place and time consistent with what is known about the event?
The researcher should focus on these and other questions relevant to find out the genuinity of the document.

Internal Criticism
• This evaluates the meaning, accuracy, and trustworthiness of the content of the document.
• It is content analysis of the document.
• What was the position of the writer? What was the relationship between the writer and the subject about
which the document was written?
• For instance, an author who was a member of Sky Bus Transport might have written a positive side of their
transport system, and another author who was from competent company might have emphasized the weak
side of the survice.
– That is why the analysis of the relationship of the writer with the subject is important.
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 Types of Historical Data
Historical evidences may be classified in to three
A) Documents (usually written). Examples: 
 Official records, minutes of meeting, legal documents, Court decisions
charter, etc 
 Institutional records:
 university bulletins proceedings
 Memories, biography, diaries personal letter, etc
 News papers, periodicals. Journals, etc
B) Relics or Remains 
 Archeologically remains (such as tools & utensils)
 Buildings, furniture & equipment
 Photographs and other records
 Forms of degree, diploma & certificate rewards registers
 Text books, maps, drawings, etc
 Written material
C) Oral Testimony
 Is a spoken account of a witness, or participation in an event?
◦ Recorded interviews
  
Sources of Historical Data

 Can be classified in to two categories Namely

a) Primary source of data
 Refers to the original documents and remains which are the first witness of a fact
 Are the only solid basis of historical research
 Are eye witness accounts and are reported by actual observer or
a participant in an event
e.g. Original records kept, eye witness, photographs, minutes of
organization etc
b) Secondarily sources of data
 A record which is one or more steps removed from an original history
 Here the author reports the observation of others
e.g. Most history books
 Encyclopaedias
Note: Some types of materials may be secondary sources for some
purposes and primary sources for another why?
e.g High school history books
 Descriptive research
• provides information about conditions, situations, and events that occur in the
present.
– For example, a survey of the physical condition of ancient buildings
• Research using a descriptive design simply describes an existing phenomenon
by using words or numbers to characterize individuals or a group.
• It assesses the nature of existing conditions.
• The purpose of most descriptive research is limited to characterizing something
as it is, though some descriptive research suggests tentative relationships.
• There is no manipulation of treatments or subjects; the researcher measures
things as they naturally occur.
• The following questions could be answered by means of descriptive designs:
– How many times during a school day does Mr. Birhanu use negative reinforcement with
his students?
– What are the students' attitudes toward school discipline?
– What is the self-concept of the female students of fourth graders?
– What is the reading achievement level of different ethnic groups in the school?
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 Correlational research

• Involves the search for relationships between variables through the use of various measures
of statistical association.
– For example, an investigation of the relationship between visitors’ satisfaction with hotel service
– Do variable X and variable Y vary together?
– Are they related in a systematic way?
– Do people who experience more stress have more headaches?
• Variables measured but not manipulated
• Cannot determine cause or effect
• Correlation Coefficient Varies from -1.0 to +1.0
– e.g., +.9, -.65, +.32, -.70
Strength
• The higher the absolute value, the stronger the relationship (-.9 > +.6; +.9 > -.8)
Direction
• Positive ፡Higher scores on Var X associated with higher scores on Var Y
• Negative ፡Higher scores on Var X associated with lower scores on Var Y

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Correlation…

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Individual Exercise

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Correlation…

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 Spearman Rank Order Correlation

•  

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 Spearman Rank Order …
Example: Calculate the correlation between the two judges’ ratings from the data
below.
Spearman Rho for Rankings of Two Judges’ Ratings of Art Projects for Seven Subjects

Judge A's Judge B's

Subject Ranking Ranking D
A 1 2 -1 1
B 2 1 1 1
C 3 4 -1 1
D 4 3 1 1
E 5 6 -1 1
F 6 7 -1 1
G 7 5 2 4
         
Sum       10

Thus we can see that there is a high positive correlation, but not a perfect correlation
between the two judges ratings.
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