Business Research Method

Chapter One
Introduction
 Learning outcomes
Upon successful completion of this chapter, students
should be able to :
• Differentiate scientific and non scientific ways of
knowing
• Define Research
• List and explain different types of research
• Identify and describe objectives and characteristics
of research
• Describe business research types
 Research methodology: Introduction
Methods of knowing
There are two broad ways of coming to know things
1. Traditional Ways/non scientific approaches
Tenacity /tradition
people grow up internalizing knowledge, skills, and attitudes inherent in the culture they live in
Authority
We rely on experts, leaders, authors . Belief based on prominence or importance of
source
Reasoning
Is a method of knowing through logic and reason
It can be deductive or inductive
NB. Logical conclusions may not necessarily lead to correct conclusions
Experience
• There is certainly some truth in the old saying that ‘‘experience is the best
teacher’’
• Yet it can be dangerous to rely solely on one’s experiences when trying to determine
the truth of some matter
 What limitations can you sense from these
traditional sources of knowledge?
• Logical conclusions may not necessarily lead
to correct conclusions
• Dangerous to rely solely on one’s experiences
when trying to determine the truth of some
matter
• There might conditions where tradition will be
harmful.
• So there needs to have scientific way of
knowing i.e Scientific research
2. Science as a way of knowing
The most reliable way of knowing
Science can be defined as a methodological and
systematic approach to the acquisition of new
knowledge
scientists attempt to gain new knowledge by
making careful observations and using
systematic, controlled, and methodical
approaches which leads us to scientific research.
• So what is research?
• What makes it different from report?
 Meanings of research
Research is composed of two syllables, re and search.
• re is a prefix meaning again, anew or over again
• Search is a verb meaning to examine closely and carefully, to test and try, or to
search. Therefore research is:
 A method of obtaining knowledge through systematic observation or
experimentation
 Is a systematic attempt to obtain answers to questions through the application of
the scientific method
Generally, Research is:-
• Systematic - so ordered, planned and disciplined;
• Controlled - the researcher can have confidence in his/her research outcomes;
• Empirical - putting beliefs, ideas or assumptions to a test.
• Critical- many truths are tentative and are subject to change as a result of
subsequent research.
 Characteristics of scientific research
• Is directed toward the solution of a problem;
• Demands accurate observation and
description;
• Requires expertise;
• Is characterized by patient and unhurried
activity;
• Is carefully recorded and reported;
• Sometimes requires courage;
 What is business research?
Business research is defined as the systematic
and objective process of generating information
for aid in making business decisions
It facilitates the managerial decision process for
all aspects of a business. Therefore
• Business research must be objective and
• Detached and impersonal rather than biased
Classification of research
 Research can be classified in terms of:
• Goal of research,
 Basic research: It is done to gain knowledge
 Applied research: focus on solving practical problems and improve the
present situation
• Based on design of research,
 Descriptive research: in this type of research, the researcher simply records
what she/he has systematically observed. It includes naturalistic
observation, survey, case study)
i.Naturalistic observation: subjects are observed in their natural
environment to get a real (not artificial) picture of how behavior
occurs.
ii.Case study: an individual is studied in great detail.
iii.Survey: used to collect data from a very large group of people.
 Cont.…
Correlational Research: is a research method that measures the relationship between
two or more variables.
Experimental Research It is a research method that allows researchers to study the
cause and effect relationship between variables.
Based on data type/Approaches of research,
 Quantitative research :Numerical, measurable data and large sample size, statistical
analyses
 Qualitative research: non-numerical data, In-depth descriptions of situations, Interpretive
and descriptive
 Based on field of study
 Natural science research,
 Social science research,
 Educational research,
 Behavioral science research
 Health science research, etc.
 Business research types
Basic research
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a pragmatic problem.
• Example Is executive success correlated with high need for achievement?
Applied research
• Conducted when a decision must be made about a specific real-life problem
• Example: causes of employee turnover
Evaluation Research
• Evaluation research is the formal, objective measurement and appraisal of
the extent to which a given activity, project, or program has achieved its
objectives.
Performance monitoring research
• Research that regularly provides feedback for evaluation and control
• Indicates things are or are not going as planned
 Objectives of research

• To gain familiarity with a phenomenon or to achieve

new insights into it (explanatory )
• To represent accurately the characteristics of a
particular individual, situation or a group (descriptive
)
• To determine the frequency with which something
occurs or with which it is associated with something
else (diagnostic)
• To test a hypothesis of a causal relationship between
variables (hypothesis testing).
 Major Topics for Research in Business

• General Business Conditions and Corporate

Research
• Financial and Accounting Research
• Management and Organizational Behavior
Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research
 Chapter two
Designing Research Problem and Hypothesis
Formulation
Learning outcomes
Upon successful completion of this chapter,
students should be able to :
• Identify research problem formulation
• List and describe sources of research topics
• Explain process of hypothesis formulation
• Describe different types of hypothesis
• Identify and describe steps of hypothesis testing
 What is a research Problem?

A research problem is a statement about an area

of concern, a condition to be improved, a
difficulty to be eliminated, or a troubling
question that exists in scholarly literature, in
theory, or in practice that points to the need for
meaningful understanding and deliberate
investigation.
 1. Problem identification
• The first and foremost step in the research process is the
choice of a suitable problem/topic
• Problem identification is a difficult but an important phase of
the entire research process. It requires a great deal of time,
energy, and logical thinking.
• It is particularly challenging for novice researchers

NB: A problem well stated is a problem half solved

 Sources of a research topic
• How researchers choose the topics that they study?

Research ideas can & do come from a variety of d/t sources

– Personal and professional experience
– Observation (observing life events)

– Brainstorming (discussing & generating ideas with colleagues)

– Theories
– Previous research (professional literature)
Criteria for selecting research topic
• Relevance/Significance of topics
• Avoidance of duplication
• Urgency of data needed (timeliness)
• Feasibility of study: A good research question should
be feasible within the time and resources available
• Interest from Authority
• Applicability of results
• Interest to the researcher
• Ethical acceptability.
 2. Problem formulation and research
question
Research questions
• Derived from topic, statement of the problem
and specific objectives.
• are interrogative statements stated in
question form
• provide a framework for conducting the study
and help to delimit the study.
 Cont….

The following questions are determined to be answered

in any of problem statement.
• What type of research was reported in the area?
• What has been found in the previous studies?
• What suggestion do other researchers make for further
study?
• What has not been investigated?
• How can the proposed study add to our knowledge of
the area?
• What research methods were used in previous studies?
 3. Hypothesis formulation
• A hypothesis or hypothesis statement seeks to
explain why something has happened, or what
might happen, under certain conditions.
• It can also be used to understand how
different variables relate to each other.
• Hypotheses are often written as if-then
statements; for example, “If this happens, then
this will happen.
 Cont.…
• Needed in quantitative research
• It is a tentative explanation of the relationship between two or more variables
• Is also a possible answer to a research problem
• Null and alternative hypothesis are most common types of hypothesis
• Null hypothesis always predicts that there will be no differences between the
groups being studied
It predicts that there will be no relationship between the variables being studied.
• Alternate (experimental or research) hypothesis always predicts that there will
be a difference between the groups being studied (or a relationship between
the variables being studied)
•  A null hypothesis is written as H0, while the alternate hypothesis is written
as HA or H1.
• H0:  µ1 = µ2. H1 : µ1 ≠ µ2.
 Process of testing hypothesis
• hypothesis testing is a decision-making process for evaluating claims
about a population.
• keep in mind that it is the null hypothesis that is tested, and then the null
hypothesis is either confirmed or refuted (sometimes phrased as rejected
or not rejected)
• Remember, if the null hypothesis is rejected (and that decision is based
on the results of statistical analyses), the researcher can reasonably
conclude that there is a difference between the groups being studied (or
a relationship between the variables being studied)
• Rejecting the null hypothesis allows a researcher to not reject the
alternate hypothesis, and not rejecting a hypothesis is the most we can
do in scientific research. To be clear, we can never accept a hypothesis;
we can only fail to reject a hypothesis
 Steps of hypothesis testing

There are four steps of hypothesis testing

Step1. State the hypothesis
a) H0 states that there is no change, no difference, no effect
Ex. Training has no effect for performance i.e. H0 : µ1= µ2
b) H1 states that there is a change
Ex. Training has effect for performance i.e. H0 : µ1≠µ2
Step 2. set the criteria for rejecting H0
choose level of significance ꭤ- level, most frequently used ꭤ- level is 0.05
and 0.01.
It is Z- critical a region of rejection
Step3. computing the test statistics (Z-Observed)

step 4. decide about H0 if Z-observed in step 3 is greater than Z-critical in

step2 then we reject the null hypothesis. Otherwise we fail to reject null hypothesis.
 Chapter Three
Developing a Research Proposal
Learning outcomes
Upon successful completion of this chapter, students
should be able to :
• Define research proposal
• Describe functions of research proposal
• List and describe components of research proposal
• Explain advantages of research proposal
• Develop business research proposal
 Introduction

 Before an attempt is made to start with a research project,

a research proposal should be compiled. For the beginner
researcher, this is usually among the most difficult parts.

 After proper and complete planning of a research, the plan

should be written down. The research proposal is the
detailed plan of study.

 The term "research proposal" indicates that a specific

course of action will be followed.
 Research proposal
• It is a plan for the research
• It is laying out the details of our plan for review by anyone interested

• It is analogous to the blueprint for building construction

• The length of the proposal depends on the nature of the research and scope of the study

Function of research proposal

A research proposal’s main function is to detail the operational plan for obtaining answers
to your research questions.
• what you are proposing to do ?

• how you plan to proceed?

• Why you selected the proposed strategy?
 Cont…
• A research proposal should communicate the purpose and
plan of the research in such a way that it:

 enables you to return to the proposal for your own

guidance in decision making at different stages of the
research process

 Convinces your research supervisor or a reviewer that

your proposed methodology is meritorious, valid,
appropriate and workable in terms of obtaining answers
to your research questions or objectives.

• The length of the proposal can vary from 10 to 2o pages.

 Components of the Research Proposal

The format differs from organization to organization but key elements in most proposals

are:
1.Title page
2. Summary/Abstract
3. Introduction/Background
4. Statement of the problem
5. Hypotheses /Questions
6 Objective/Aim of the study
7. Delimitation of the study
8. Significance and justification
9. Research methods, materials and procedures
10. Ethical considerations
11. Operational definition
12. Literature review
13. Time and budget breakdown
14. References
15. Appendices/Annexes
 Cont…

1. Background of the study

Background provides information building up to the research problem. First it globalize
the problem and then contextualize it.
• Stated from broad view to narrow view i.e. historically, geographically,
conceptually….)
• Show the context of existing research. i.e Trend, Severity, magnitude, and impact of
the problem. It Indicate the rational of your study.
• Its aim is to make the reader understand the context in which the problem is
occurring
2. Statement of the problem
The statement of problem describes the problem under study.
• Is a process of specifying a problem explicitly & narrowing it down to workable size.
• It Show research evidences from perspectives
• Identify the variables you plan to analyze
• Showing gaps what is known and what is unknown? The gaps may be knowledge and
or methodological
Objectives of the study
These are statement of what you intend to achieve.
Objectives should be
• Simple (not complex), Specific (not vague),
• stated in advance (not after the research is done), and
stated using “action verbs” that are specific enough to be measured. Commonly, research
objectives are classified into general objectives and specific objectives.
Research question
These are obtained from objectives and turn it in to questions.
Scope of the study
• Geographic, Functional/Conceptual and Time coverage of your study should be stated.
Significance of the study
ask your self who is going to benefit from the research and how?
• Academicians and institutions
• Groups and individuals
So it needs to be stated on how these bodies will be benefited from your study
 Operational definitions
• Is explaining a concept solely in terms of the
operations used to produce and measure it
• Operationalization is key for: measurement,
observation, tool development and validation
Ethical consideration
a) In formed consent:
b) Confidentiality
c) Freedom from physical and emotional harm
 Literature Review
What are the major purposes of doing a literature review?
• The primary purpose of a literature review is to help researchers
become familiar with the work that has already been conducted in
their selected topic areas
• The major roles of the literature review are:
– To educate us about previous research on the topic
– To lay out the rationale for the research study by identifying the gap in

the knowledge base (prior to data collection)

– To help formulate and refine the research questions/hypotheses
– Interpretation of findings (after data collection)

– To construct a theoretical or conceptual framework

 Cont…
The process of reviewing the literature
• Active reading
• Careful record keeping
• Selective note taking
• Critical evaluation of the information
Materials surveyed and reviewed should be
• Recent and timely
• Objective and unbiased
• Relevant, valid and reliable
• Scholarly or popular-prisatge
• Should not be to few nor too many
 Cont…
When reviewing related literatures please consider
the following points.
• Who are the key authors?
• What did they say?
• What do the other authors say?
• Include a theoretical framework for the research.
Research method and research techniques

• This is how the research is going to be

conducted, where it is to be conducted and how
the sample would comprised of.
• It also includes the techniques to be used in the
research for data gathering
(interviews ,questionnaires, observations…)
• Target population and sampling techniques, and
data analysis plan is also considered in this
section of the proposal.
 Time and budget break down
• Explain how you plan to go about conducting
your research. Clearly identify the key sources
you intend to use and explain how they will
contribute to the analysis of your topic.
• Use GANT charts to show your plan
 Time schedule

Month
Responsibl Sep Oct Nov Dec Jan Feb Mar Apr May
e person

Title Responsibl XX
selection e person

Proposal Principal XX XX
preparatio investigator
n
Literature Principal XX XX
review investigator

Data Principal XX
collection investigator

Data Assistant XX XX
analysis researchers

Discussio Employed XX
n and statisticians
Conclusio
n
Report Principal XX
investigator
 Budget breakdown

Item No Unit Unit Price Total price in

measurement Eth birr
Digital camera 1 No 10,000 xxxxxxx
Stationeries
Transportation 4 Round 200 xxxxx
cost
Duplication of No.
paper
pen 4 No

Total xxxxxxxxxxxx
References
Styles

 APA (American psychological Association) Manual: for

social sciences and behavioral sciences
 ASA (American Sociological Association style): for
sociologists
 AMA (American Medical Association): Commonly used in
medical sciences
 MLA: (Modern Languages Association, Literature, political
science, law, philosophy
 Appendices/Annexes

Include in the appendices of your proposal any

additional information you think might be
helpful to a proposal reviewer. For example,
include:
• Questionnaire & other collection forms
• The consent form (if any)
 Advantages of research proposal
It has advantage for both researchers and organizations.
1. Advantage of research proposal to the researcher
• Planning and review of steps. It encourages the
researcher to plan and review the projects in a logical
manner.
• Guideline of the investigation
• A reviews of previous plans.
• Controlling of errors
• Estimations of time and budget
2. Advantages of research proposal to the organization.
• Selection of the researcher: helps the organization to select
appropriate researcher.
• Check the genuineness of the researcher: some one who
can bring new ideas and innovations is chosen.
• Display the researchers discipline: allow the organization
to assess both the researcher and the proposed design to
make the best selection of the project.
• Comparison of research proposal with project: make it easy
for the organization to decide if the research goal makes
better decision on the management questions.
• Catalyst for discussion: act as a catalyst for discussion
between the researcher and the manager of a respective
organization.
End