Why Study Business Research?

visits to get specific answers, has become the norm

for information gatherers. This could have a
Researchers are turning to new spaces to understand profound influence on information collection
what motivates people and organizations, and designed to serve the needs of managers who want
understand processes and machines. They are using quick, smaller chunks of information, each of which
new tools to search for new business models, and to is more decision relevant. While this influence is
understand fundamental shifts in human behaviors, expected in quantitative techniques such as surveys,
emotions, and attitudes. qualitative research is also increasingly embracing
Business research smaller iterative engagements with research
subjects to drive research
A systematic inquiry that provides information to
guide managerial decisions. More specifically, it is Shifting global centers of economic activity and
a process of planning, acquiring, analyzing, and competition
disseminating relevant data, information, and The rising economic power of Asia and
insights to decision makers in ways that mobilize demographic shifts within regions highlight the
the organization to take appropriate actions that, in need for organizations to expand their knowledge of
turn, maximize performance. A variety of different consumers, suppliers, talent pools, business models,
types of research projects are grouped under the and infrastructures with which they are less
label “business research,” familiar. This shift increases the value of research
Management Dilemma designs that can accommodate different norms,
values, technologies, and languages. Some in the
The problem or opportunity that requires a research industry believe innovation in research
management decision. Several factors should methodology will come from the developing world,
stimulate your interest in studying research methods not the developed economies, as countries in the
developing world are already embracing
Information overload
mobile/social research methodologies to a greater
Although the Internet and its search engines present degree.
extensive amounts of information, the information’s
Increasingly critical scrutiny of big business.
quality and credibility must be continuously
evaluated. The ubiquitous access to information has The availability of information has made it possible
brought about the development of knowledge for all a firm’s stakeholders to demand inclusion in
communities and the need for organizations to company decision making, while at the same time
leverage this knowledge universe for innovation— elevating the level of societal suspicion.
or risk merely drowning in data. Interconnected global systems of suppliers,
producers, and customers have made the emergence
Technological connectivity
and viability of mega businesses not only possible,
Individuals, public-sector organizations, and but likely
businesses are adapting to changes in work patterns
More government intervention
(real-time and global), changes in the formation of
relationships and communities, and the realization As public-sector activities increase, in order to
that geography is no longer a primary constraint. provide some minimal or enhanced level of social
With the increased acceptance and use of mobile services, governments are becoming increasingly
technology, information snacking, short online aggressive in protecting their various constituencies
by posing restrictions on the use of managerial and other information sources—decision support
business research tools (e.g., Do-Not-Call List, systems and business intelligence—is critical for
understanding how information drives decisions
Spyware Act). relating to organizational mission, goals, strategies,
Battle for analytical talent and tactics.

Managers face progressively complex decisions, Decision Support System (DSS)

applying mathematical models to extract No matter how we define an exchange —a
meaningful knowledge from volumes of data and purchase, a vote, attendance at a function, a
using highly sophisticated software to run their donation to a cause—each exchange, along with the
organizations. strategic and tactical activities designed to complete
Greater computing power and speed it, generates numerous elements of data. If
organized for retrieval, collectively these data
• Lower-cost data collection. Computers and elements constitute.
telecommunications lowered the costs of data
collection, drastically changing knowledge about Business intelligence system (BIS)
consumers both at store and household levels; Designed to provide the manager with ongoing
employees at the position, team, and department information about events and trends in the
levels; suppliers and distributors at the transaction, technological, economic, political and legal,
division, and company levels; and equipment at the demographic, cultural, social, and, most critically,
part, process, and production-run levels. competitive arenas. Such information is compiled
• Better visualization tools. High-speed downloads from a variety of sources
of images allow us to help people visualize complex
concepts; this enriches measurement capabilities.

• Powerful computations. Sophisticated techniques

of quantitative analysis are emerging to take
advantage of increasingly powerful computing
capabilities.

• More integration of data. Computer advances

permit business to create and manage large
electronic storehouses of data that cross functional
boundaries.

• Real-time access to knowledge. Today’s

computers and software offer the power to collect
and analyze data and customize reporting in real
time for much quicker decision making.

Information and Competitive Advantage

Managers have access to information other than that

generated by business research. Understanding the
relationship between business research and these
Strategy Hierarchy of Information-Based Decision
Makers
Defined as the general approach an organization
will follow to achieve its goals. In an earlier
example, a restaurant was receiving comments that
the friendly atmosphere was changing. This
perception may have been the result of a change in
strategy. Perhaps the restaurant decided to switch
from an atmosphere where patrons were encouraged
to linger over their meal a table for a long period of
time while adding incremental revenues with each
additional course) to a new strategy of turning each
table in a shorter time frame by changing food
preparation and the menu.

Tactics

Business research also contributes significantly to

the design tactics —those specific, timed activities
Where Business Collects Research Information?
that execute a strategy. Business research also can
be used to help a manager decide which of several
tactics is likely to successfully execute the desired
strategy. In our earlier example, our restaurant
manager might have changed the menu (marketing
tactic) to feature entrées that could be prepared
faster (operations tactic) and delivered to a table
more quickly. The manager might also have
instituted a new training program (HR tactic) to
implement a new zoned, table coverage structure
(operations tactic), along with a new sales-incentive
program (HR tactic) that discouraged the wait staff
from making small talk with patrons and rewarded
teamwork and efficiency.

All of the above examples demonstrate the purposes

of business research:

• To identify and define opportunities and problems.

• To define, monitor, and refine strategies.

• To define, monitor, and refine tactics.

• To improve our understanding of the various

fields of management.
The Research Process that has little direct or immediate impact on action,
performance, or policy decisions.

What Is Good Research?

Good research generates dependable data that are

derived by professionally conducted practices and
that can be used reliably for decision making. In
contrast, poor research is carelessly planned and
conducted, resulting in data that a manager can’t
use to reduce his or her decision-making risks.
Good research follows the standards of the
scientific method: systematic, empirically based
procedures for generating replicable research.

Purpose clearly defined.

The purpose of the business research—the problem

involved or the decision to be made—should be
clearly defined and sharply delineated in terms as
unambiguous as possible. Getting this in writing is
valuable even in instances in which the same person
serves as researcher and decision maker. The
statement of the decision problem should include its
scope, its limitations, and the precise meanings of
all words and terms significant to the research.
Failure of the researcher to do this adequately may
raise legitimate doubts in the minds of research
report readers as to whether the researcher has
Is Research Always Problem-Solving Based? sufficient understanding of the problem to make a
sound proposal attacking it.
Researchers often are asked to respond to
“problems” that managers needed to solve. Applied Research process detailed
research has a practical problem-solving emphasis.
Whether the problem is negative, like rectifying an The research procedures used should be described
inventory system that is resulting in lost sales, or an in sufficient detail to permit another researcher to
opportunity to increase stockholder wealth through repeat the research. This includes the steps to
acquiring another firm, problem solving is acquire participants, informed consent, sampling
prevalent. The problem-solving nature of applied methods and representativeness, and data gathering
research means it is conducted to reveal answers to procedures. Except when secrecy is imposed,
specific questions related to action, performance, or research reports should reveal with candor the
policy needs. Pure research or basic research is also sources of data and the means by which they were
problem-solving based, but in a different sense. It obtained. Omission of significant procedural details
aims to solve perplexing questions or obtain new makes it difficult or impossible to estimate the
knowledge of an experimental or theoretical nature validity and reliability of the data and justifiably
weakens the confidence of the reader in the research
itself as well as any recommendations based on the
research.

Research design thoroughly planned.

The procedural design of the research, and its

choice among competing designs, should be clearly
described and carefully planned to yield results that
are as objective as possible. A survey of opinions or
recollections ought not to be used when more
reliable evidence is available from documentary
sources or by direct observation. Bibliographic
searches should be as thorough and complete as
possible. Experiments should