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 PART 1

CHAPTER 1

Introduction to Business
Research

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 1.1 Importance of Business
Research

Research is important to any business organization:

To stay competitive in the market
To accurately identify or understand its customers
To scrutinize its rivals in the industry
To analyze and emulate key strategies
To keep abreast on all aspects of the business

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 1.2 Scope of Business Research

Business research covers a wide range of phenomena.

Problems may occur in any areas of business
No clear boundaries on the classification of
problems on the basis of areas
Integration of problems related to two and more areas
External environment facing the business

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 1.4 Defining Business Research

An organized, systematic, data-based,

critical and objective, scientific enquiry or
investigation into a specific problem,
undertaken with the purpose of finding answers
and solutions to it.

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 Comprises four stages

 First stage: Problem identification

 Second stage: Gather the relevant information

 Third stage: Critically analyze the information

 Fourth stage: Provide solution to the existing

problem

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 1.5 Types of Business Research:
Applied and Basic Research
1. Basic research (also called fundamental or pure
research)
 Primary objective of the advancement of
knowledge and theoretical understanding
 Not undertaken to solve any specific problem
 Is often the foundation for further applied research

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 1.5 Types of Business Research:
Applied and Basic Research
2. Applied research
 Use knowledge (research findings) for practical
concerns
 Solve a current problem faced by the organization
in the work setting
 Application of known theories to the actual
operational field

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 1.6 Managerial Value of Business
Research

 To make right decisions in timely manner

 Well informed and up-to-date in their own area
of specialization
 Recent developments in particular industries
 Understand, predict and control the environment
of the organization

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 1.7 When is Business Research
Needed?

The manager’s decision as to whether or not research

should be conducted for a problem encountered in the
organization depends on various factors:
1. Time constraints
2. Availability of data
3. Nature of decision
4. Benefit versus costs

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 1.8 Ethical Consideration in
Research
The goal of ethics in research is to ensure that no one is
harmed or suffers adverse consequences while following any
stage of research.

Research must be conducted in a professional manner with a

systematic, organized, and scientific approach

Research project/results will remain confidential

Submit the research report to the sponsoring company at the

agreed time
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 1.8.2 Ethics and Target
Respondents

 Target respondents who can provide information

 Information collected should not be misused for
any other purpose
 Participation is voluntary
 Confidentiality of the replies
 Not to embarrass respondents/informants

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 1.8.3 Researcher and Team
Members

 Design a project that is safe for everyone involved

 Impartial and unbiased to accurately record all
necessary data

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 PART 1

CHAPTER 2

Scientific Investigation and

Business Research Process

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 2.1 Characteristics of a
Scientific Research

A scientific research has eight hallmarks:

 purposive
 rigour
 testability
 replicability
 accuracy
 objectivity
 generalizability
 parsimony

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 2.1.1 Purposive

 Helps the management know the customers’

expectation as well as perception in terms of critical
factors in delivering services
 Provides insights as to what areas need to be
emphasized
 Provides guidelines to develop proper strategies
and react to the changes

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 2.1.2 Rigour

 Should have a good theoretical base and sound

methodological design
 Rigorous research means that it applies the
appropriate instruments to meet the stated
objectives of the investigation for the level of
precision in the analysis

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 2.1.3 Testability

 Developing a set of research questions or

hypotheses to be tested, must be testable and
analysable

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 2.1.4 Replicability

 Results of the test of research objectives should

be supported again and again when the same
type of research is being repeated in other
similar circumstances

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 2.1.5 Accuracy

 Research should be designed in such a manner

that it ensures findings are very close to reality

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 2.1.6 Objectivity

 Conclusion drawn for the study should be based on

the facts derived from the results of data analysis,
and not based on one’s own subjective or
emotional values

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 2.1.7 Generalizability

 Refers to the applicability of research in one

organizational setting to other settings.

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 2.1.8 Parsimony

 Simplicity in explaining complex situations or

statistical analysis is always preferred to complex
and complicated results and findings

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 2.2 Approaches to Research

Two different thought processes:

 Reasoning
1. Induction (Inductive Reasoning)— general principles are
inferred from specific observations to arrive at valid
conclusions.
– Fact 1: X students of the BRM course is punctual.
– Fact 2: Y students of the BRM course is punctual.
– Fact 3: Z students of the BRM course is punctual.
– Fact n: N students of the BRM course is punctual.
– Conclusion: All students of the BRM course are punctual.

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 Inductive—Bottom Up Approach

Conclusion

Hypothesis

Premise

Specific
Observation

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 2.2 Approaches to Research
(cont.)

2. Deduction (Deductive Reasoning)—deductive

reasoning relies on specifics are inferred from
general principles/theory to arrive at valid
conclusions.
– Premise 1: All regular employees can be trusted not
to steal.
– Premise 2: Mr. Khairul is a regular employee.
– Conclusion: Mr. Khairul can be trusted.

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 Deductive—Top Down Approach

Theory

Hypothesis

Obvervation

Confirmation

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 2.3 Quantitative vs Qualitative
Research

 Quantitative research focuses on statistical

analysis of numerical data collected through the
use of large-scale survey research, using methods
such as questionnaire or structured interview.

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 2.3 Quantitative vs Qualitative
Research (cont.)

 Qualitative research attempts to explore and

understand people’s beliefs, experiences, attitudes,
behaviour and interactions through methods such
as interviews or focus group discussions.

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 Both have their strengths and
weaknesses

 One of the advantages of quantitative research is

that of generalisation of research findings to the
population through the statistical analysis
 On the other hand, the qualitative research does
not necessarily seek to choose the sample that is
representative of the target population. However, it
provides in-depth information which is not possible
with quantitative data

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 2.4 Business Research
Process: An Overview
Defining
Identify Problem
research
objectives

Designing
Managerial research
decision and method
action
Diagrammatic
Representation of the
Business Research
Process
Plan and do
Report primary
writing and research
presentation

Plan and do
Tabulation secondary
and analysis research

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 2.4.1 Problem Identification

 Desires to find information needed to fulfil a need.

In this context, a research is needed to address a
problem. If there is no problem then there is no
need for a research.

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 2.4.2 Defining the Research
Objective

 Need to be very focused to identify the research

objectives
 Four to five objectives are considered adequate

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 2.4.3 Research Design

 Provides the framework to be used as a guide in

collecting and analysing data
 Match a research problem with appropriate
research design
– Exploratory research design
– Descriptive research design
– Causal research design

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 Exploratory research design

 Is to generate hypotheses for further study

 Provide insight on how to do more conclusive
research

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 Descriptive research design

 Can be either (a) longitudinal or (b) cross-sectional.

– Longitudinal: taking multiple measures from the same
sample over an extended period of time—from a few
months to a few years

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 Cross-sectional

 Takes place at a single point in time

 No manipulation of variables
 Aims to describe the relationship between
variables

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 Causal /experimental research
design

 Seeks to establish the cause and effect relationship

among the variables of interest

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 2.4.4 Designing Research
Methodology

Major parts of research methodology are:

1. Research method: primary/secondary
2. Method of data collection
3. Sampling plan
4. Fieldwork plan
5. Analysis plan

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 2.4.5 Budget and Cost
Estimation

Three basic parameters which provide an estimate of

how much a study is going to cost.
Sample size.
How difficult it is to find the sampling units
(respondents) and their geographical dispersion?
Who will do the fieldwork?

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 2.4.6 Presentation, Report and
Decision-making

 A business research starts with problem

identification and ends with an actionable/formal
report.

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