Unit 1

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Unit 1 Introduction to Research, Language of Research and Research Process

Concept, nature, scope, need and managerial value of Business research; Manager and Research,
Characteristics of Research, Philosophy in research, Types of Research, Ethics in Research.
Concepts, Constructs, Definitions, Variables, Proposition, Theory, Models, Research Questions,
Review of Literature, Research Process.

What is Business Research


A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant
business data, information, and insights to decision makers in ways that mobilize the
organization to take appropriate business actions that, in turn, maximize business performance.
Business research is defined as the systematic and objective process of generating information to
aid in making business decisions.

Why Study Business Research


i. Business research provides information to guide business decisions.
ii. The primary purpose of research is to reduce the level of risk in a decision.
iii. Research helps in responding to changes in external environment.

Managerial Value of Business Research


The decision-making process associated with the development and implementation of a business
strategy involves four interrelated stages:
1. Identifying problems or opportunities
2. Diagnosing and assessing problems or opportunities
3. Selecting and implementing a course of action
4. Evaluating the course of action
Business research, by supplying managers with pertinent information, may play an important
role by reducing managerial uncertainty in each of these stages.

What’s Changing in Business that Influences Research


Several factors increase the relevance for studying business research.
• Information overload. While the internet and its search engines present extensive
amounts of information, its quality and credibility must be continuously evaluated.
• Technological connectivity. Individuals, public sector organizations, and businesses are
adapting to changes in work patterns (real-time and global), changes in the formation of
relationships and communities, and the realization that geography is no longer a primary
constraint.
• Shifting global centers of economic activity and competition. The rising economic
power of Asia and demographic shifts within regions highlight the need for organizations
to expand their knowledge of consumers, suppliers, talent pools, business models, and
infrastructures with which they are less familiar.
• Increasingly critical scrutiny of big business. The availability of information has made
it possible for all firm’s stakeholders to demand inclusion in company decision making,
while at the same time elevating the level of societal suspicion.
• Computing Power and Speed. Lower cost data collection, better visualization tools,
more computational power, more and faster integration of data, and real-time access to
knowledge.
• New Perspectives on Established Research Methodologies. Older tools and
methodologies, once limited to exploratory research, are gaining wider acceptance in
dealing with a wider range of managerial problems.

Business Planning Drives Business Research


An organization’s mission drives its business goals, strategies, and tactics and, consequently, its
need for business decision support systems and business intelligence.

Information Sources
Apart from business research there can be other sources of information like decision support
system and business intelligence system. When elements of data are organized for retrieval, they
collectively constitute a business decision support system (DSS). This data is often shared over
an intranet or an extranet.
A business intelligence system (BIS) is designed to provide ongoing information about events
and trends in technological, economic, political and legal, demographic, cultural, social, and
competitive areas.
1. Sources of Business Intelligence
• Sources of government information include speeches by elected officials, recordings of
public proceedings, press releases, and agency websites.
• Sources of competitive information include presentations at conferences, literature
searches, press releases, syndicated industry studies, web sites, and business research.
• Sources of economic information include literature searches and government reports.
• Sources of cultural and social information include syndicated studies, public opinion
organizations, business research, and government reports.
• Sources of technological information include patent filings, web sites, syndicated
industry studies, presentations at conferences, and literature searches.
• Sources of demographic information include syndicated studies, government reports, and
business research.
Determining when to Conduct Business Research
■ Time constraints
■ Availability of data
■ Nature of the decision
■ Benefits versus costs
Availability of Benefits
Time Constraints Data Nature of the Decision vs. Costs
Is the infor- Does the value
Is sufficient time Yes Yes Is the decision Yes
mation already of the research Ye
available before of considerable
on hand information
a managerial strategic
inadequate exceed the cost
decision or tactical
for making of conducting
must be made? importance?
the decision? research?

No No No No

Do Not Conduct Business Research

Value of research information should exceed estimated costs - Value of research information
lies in the fact that it helps in decreasing uncertainty, increasing likelihood of correct decision,
improving business performance, and generating higher profits. The value of research
information may be judged in terms of “the difference between the result of decisions made with
the information and the result that would be made without it. Cost of conducting research include
research expenditures, delay of business decision and possible erroneous research results.

Characteristics of Good Research


Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research
process
process
Thoroughly
Thoroughly planned
planned
design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous
presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials
Categories of Research (on the basis of application)

• Applied research applies research to discovering solutions for immediate problems or


opportunities.
• Basic (or pure) research aims to solve perplexing questions or obtain new knowledge of
an experimental or theoretical nature that has little direct or immediate impact on action,
performance, or policy decisions.

Basic Research
■ Attempts to expand the limits of knowledge.
■ Not directly involved in the solution to a pragmatic problem.
For Example
■ Is executive success correlated with high need for achievement?
■ Are members of highly cohesive work groups more satisfied than members of less
cohesive work groups?
■ Do consumers experience cognitive dissonance in low-involvement situations?

Applied Research
■ Conducted when a decision must be made about a specific real-life problem.
For Example
■ Should McDonalds add Italian pasta dinners to its menu?

Types of Research (on the basis of nature of problem)


■ Exploratory
■ Descriptive
■ Causal
Uncertainty Influences the Type of Research
Degree of Problem Definition

Exploratory Research Descriptive Research Causal Resea


(Unaware of Problem) (Aware of Problem) (Problem Clearly Define

“Our sales are declining and “What kind of people are buying “Will buyers pu
possible situation

we don’t know why.” our product? Who buys our our products in a ne
competitor’s product?”
“Would people be interested “Which of two advertising
in our new product idea?”“What features do buyers prefer campaigns is more e
in our product?”

Exploratory Research
i. Initial research conducted to clarify and define the nature of a problem
ii. Does not provide conclusive evidence.
iii. Subsequent research expected.
Methods used are
i. Secondary data
ii. Experience survey
iii. Pilot studies

Descriptive Research
■ Describes characteristics of a population or phenomenon
■ Some understanding of the nature of the problem

Causal Research
■ Conducted to test cause and effect relationships

Based on type of data involved


Quantitative vs Qualitative research

Qualitative Research Quantitative Research


Focus of Understand and interpret Describe, explain, and predict
Research
Research In-depth understanding; theory Describe or predict; build and
Purpose building test theory
Sample Design Nonprobability; purposive Probability
Sample Size Small Large
Research May evolve or adjust during the Determined before
Design course of the project commencing the project
Consistency is not expected Consistency is critical
Data Type and Verbal or pictorial descriptions Verbal descriptions
Preparation
Reduced to verbal codes (sometimes Reduced to numerical codes
with computer for computerized analysis
assistance)
Data Analysis Human analysis following computer Computerized analysis -
or human statistical and mathematical
coding; primarily nonquantitative methods dominate
Longitudinal vs Cross-Sectional research
Cross-sectional studies are carried out once and represent a snapshot of one point in time.
Longitudinal studies are repeated over an extended period. The advantage of a longitudinal study
is that it can track changes over time.

Major Topics for Research in Business


Financial and Accounting Research – For example,
Auditing and Accountability: This includes both private and public sector accounting studies,
analysis of audit regulations; analysis of different audit methodologies; governance and
accountability of audit committees.
Financial Econometrics: This includes modelling and forecasting involatility, risk estimation and
analysis.

Human Resource Management and Organizational Behavior Research – For example


Performance Management: This includes leadership analysis development and evaluation;
organizational climate and work environment studies; talent and aptitude analysis and
management; organizational change implementation, management and effectiveness analysis.
Employee Selection and Staffing: This includes pre - and on-the-job employee assessment and
analysis; staffing studies.
Organizational Planning and Development: This includes culture assessment - either
organization specific or the study of individual and merged culture analysis for mergers and
acquisitions; manpower planning and development.
Incentive and Benefit Studies: These include job analysis and performance appraisal studies;
recognition and reward studies, hierarchical compensation analysis; employee benefits and
reward analysis, both within the organization and industry best practices.

Sales and Marketing Research – For example, Market potential analysis; market segmentation
analysis and demand estimation, Market structure analysis which includes market size, players
and market share of the key players.
Product Research: This would include new product research; product testing and development;
product differentiation and positioning; testing and evaluating new products and packaging
research; brand research.
Pricing Research: This includes price determination research; evaluating customer value;
competitor pricing strategies; alternative pricing models and implications.
Promotional Research: This includes everything from designing of the communication mix to
design of advertisements, copy testing, measuring the impact of alternative media vehicles,
impact of competitors’ strategy.
Place Research: This includes locational analysis, design and planning of distribution channels
and measuring the effectiveness of the distribution network.

Production and Operation Management – For example, Process planning which includes
production scheduling and material requirement management; work design planning and
monitoring; production scheduling and material requirement management; work design planning
and monitoring.
Project management and maintenance management studies.
Logistics and supply chain, and inventory management analysis.
Steps in Research Process – The research process goes through the following steps.

1. Defining the problem


2. Research proposal
3. Planning a research design
4. Collecting the data
5. Analyzing the data
6. Reporting the results

Defining the Problem – It includes following steps.

1. Ascertain the decision maker’s objectives


2. Understand the background of the problem
3. Isolate and identify the problem rather than its symptoms
4. Determine the unit of analysis
5. Determine the relevant variables
6. State the research questions, hypotheses and research objectives.

Management – Research Question Hierarchy

Research Proposal
The research proposal as an activity incorporates decisions made during early project planning
phases of the study and the choices the investigator makes in the preliminary steps.
A written proposal is often required when a study is being suggested. This is especially true if an
outside research supplier is contracted to conduct the research. The written proposal ensures that
the parties agree on the project’s purpose, the proposed methods of investigation, the extent of
analysis, and the timing of each phase as well as of delivery of results. Budgets are spelled out,
as are other responsibilities and obligations. The proposal may serve the purpose of a legally
binding contract.

Research Design

The research design is the blueprint for fulfilling objectives and answering questions. Selecting a
design may be complicated by the availability of a large variety of methods, techniques,
procedures, protocols, and sampling plans. It focuses upon the type and purpose of study. It
involves decisions related to the type of data, sources of data and method of data collection.
Further, it may also decide about the choice of sample, size of sample and techniques of
sampling.
.
Collecting the data

Data are the facts presented to the researcher from the study’s environment. The method selected
will largely determine how the data is collected. Questionnaires, standardized tests, observational
forms and laboratory tests are among the devices used to record raw data. Primary data refers to
the firsthand data gathered by the researcher himself. Secondary data means data collected by
someone else earlier.
Data are edited to ensure consistency across respondents and to locate omissions. In the case of
survey methods, editing reduces errors in the recording, improves legibility, and clarifies unclear
and inappropriate responses. Edited data are then put into a form that makes analysis possible.

Analyzing the data

Managers need information, not raw data. Researchers generate information by analyzing data
after its collection. Data analysis usually involves reducing accumulated data to a manageable
size, developing summaries, looking for patterns, and applying statistical techniques.
Further, researchers must interpret these findings considering the client’s research question or
determine if the results are consistent with their hypotheses and theories.

Reporting the results

Finally, it is necessary to prepare a report and transmit the findings and recommendations to the
manager for the intended purpose of decision making. The researcher adjusts the style and
organization of the report according to the target audience, the occasion, and the purpose of the
research. The results of applied research may be communicated via conference call, letter,
written report, oral presentation, or some combination of any or all of these methods. Reports
should be developed from the manager’s or information user’s perspective.
Language of Research

Theory - A theory is a coherent set of general propositions used as principles of explanation of


the apparent relationships of certain observed phenomena.
Two Purposes of Theory
• Prediction
• Understanding

Concept - A concept is a generalized idea about a class of objects, attributes, occurrences, or


processes that has been given a name. These are the building blocks that abstract reality. For
example -
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and “inflation”

Construct – It is an image or abstract idea specifically invented for a given research and/or
theory-building purpose.

Scientific Business Researchers Operate at Two Levels


• Abstract level
– concepts
– propositions
• Empirical level
– variables
– hypotheses
Abstract level - In theory development, the level of knowledge expressing a concept that exists
only as an idea or a quality apart from an object.
Empirical level - Level of knowledge reflecting that which is verifiable by experience or
observation.

Theory Building - A Process of Increasing Abstraction

Scientific Method - The use of a set of prescribed procedures for establishing and connecting
theoretical statements about events and for predicting events yet unknown.
The scientific method, as practiced in business research, guides our approach to problem
solving.
The essential tenets of the scientific method are:
• Direct observation of phenomena.
• Clearly defined variables, methods, and procedures.
• Empirically testable hypotheses.
• The ability to rule out rival hypotheses.
• Statistical rather than linguistic justification of conclusions.
• The self-correcting process.

Abstract Level
• Concepts abstract reality.
• Propositions are statements concerned with the relationships among concepts.

Hypothesis - A hypothesis is a proposition that is empirically testable. It is an empirical


statement concerned with the relationship among variables.
Hypothesis Formats
A descriptive hypothesis is a statement about the existence, size, form, or distribution of a
variable.
• Descriptive hypotheses encourage researchers to crystallize their thinking about the likely
relationships.
• Descriptive hypotheses are useful for testing statistical significance.

Descriptive Hypothesis Research Question


In Detroit, our potato chip What is the market
market share stands at 13.7%. our potato chips in D
American cities are Are American
experiencing budget experiencing
difficulties. difficulties?

Relational Hypotheses
A relational hypothesis is a statement about the relationship between two variables with respect
to some case. Relational hypotheses may be correlational or explanatory (causal).
A correlational hypothesis is a statement indicating that variables occur together in some
specified manner without implying that one causes the other.
A causal hypothesis is a statement that describes a relationship between two variables in which
one variable leads to a specified effect on the other variable.
Correlational Causal
Young women (under 35) An increase in family
purchase fewer units of our leads to an increase i
product than women who are percentage of income
older than 35. Loyalty to a grocery s
increases the probab
The number of suits sold varies purchasing that store
directly with the level of the brand products.
business cycle.
The Role of Hypotheses

Guide
Guide the
the direction
direction of
of the
the study
study

Identify
Identify relevant
relevant facts
facts

Suggest
Suggest most
most appropriate
appropriate researc
resear
design
design

Provide
Provide framework
framework for
for organ
organ
resulting
resulting conclusions
conclusions
Variable - A variable is anything that may assume different numerical values.
• An independent variable is the variable manipulated by the researcher to cause an effect
on the dependent variable.
• The dependent variable is the variable expected to be affected by the manipulation of an
independent variable.
• Moderating variables are variables that are believed to have a significant contributory or
contingent effect on the originally stated IV-DV relationship. Whether a variable is
treated as an independent or as a moderating variable depends on the hypothesis.
• Extraneous variables are variables that could conceivably affect a given relationship.
Some can be treated as independent or moderating variables or assumed or excluded from
the study. If an extraneous variable might confound the study, the extraneous variable
may be introduced as a control variable to help interpret the relationship between
variables.

Deductive Reasoning - The logical process of deriving a conclusion from a known premise or
something known to be true.
– We know that all managers are human beings.
– If we also know that John Smith is a manager,
– then we can deduce that John Smith is a human being.
Inductive Reasoning - The logical process of establishing a general proposition on the basis of
observation of particular facts.
– All managers that have ever been seen are human beings;
– therefore all managers are human beings.

Model - A model is a representation of a system constructed to study some aspect of that system
or the system as a whole.
Models versus Theories
• A model’s role is to represent or describe.
• A theory’s role is to explain.
Ethics in research

Business ethics is the application of morals to behavior related to the business environment or
context. Everyone involved in business research can face an ethical dilemma. We can divide
those involved in research into three parties:
1. The people actually performing the research, who can also be thought of as the “doers”.
2. The research client, sponsor, or the management team requesting the research, who can be
thought of as the “users” of research
3. The research participants, meaning the actual research respondents or subjects
Each party has certain rights and obligations toward the other parties.

Rights and Obligations of the Research Participant


Most business research is conducted with the research participant’s consent. In these cases,
informed consent means that the individual understands what the researcher wants him or her to
do and consents to the research study. In other cases, research participants may not be aware that
they are being monitored in some way. For instance, a research firm may monitor superstore
purchases via an electronic scanner. The information may assist in understanding how customers
respond to promotions. However, no consent is provided since the participant is participating
passively. The ethical responsibilities vary depending on whether participation is active or
passive.
Participant’s Right to Privacy - The right to privacy is an important issue in business research.
This issue involves the participant’s freedom to choose whether to comply with the investigator’s
request.
Confidentiality means that information involved in the research will not be shared with others.
Protection from Harm - Researchers should do everything they can to make sure that research
participants are not harmed by participating in research.
The Obligation to Be Truthful - When someone willingly consents to participate actively, it is
generally expected that he or she will provide truthful answers. Honest cooperation is the main
obligation of the research participant. In return for being truthful, the subject has the right to
expect confidentiality.

Rights and Obligations of the Researcher - Research staff and research support firms should
practice good business ethics.
Research That Isn’t Research - Consumers sometimes agree to participate in an interview that
is purported to be pure research, but it eventually becomes obvious that the interview is really a
sales pitch in disguise.
Misrepresentation of Research - It should go without saying, but research results should not be
misrepresented. This means, for instance, that the statistical accuracy of a test should be stated
precisely and the meaning of findings should not be understated or overstated. Both the
researcher and the client share this obligation.

Confidentiality - Confidentiality comes into play in several ways. The researcher often is
obligated to protect the confidentiality of both the research sponsor and the research participant.
Conflict of interest - Occurs when one researcher works for two competing companies.

Rights and Obligations of the Client Sponsor (User)

An Open Relationship with Research Suppliers - The client sponsor has the obligation to
encourage the research supplier to objectively seek out the truth. To encourage this objectivity, a
full and open statement of the decision situation, a full disclosure of constraints in time and
money, and any other insights that assist the researcher should be provided. This means that the
researcher will be provided adequate access to key decision makers.

The researcher must provide a research design appropriate for the research question; maximize
the sponsor’s value for the resources expended and provide data-handling and data-reporting
techniques appropriate for the data collected.

Review of Literature
A literature review is a description of the literature relevant to a particular field or topic. It gives
an overview of what has been said, who the key writers are, what are the prevailing theories and
hypotheses, what questions are being asked, and what methods and methodologies are
appropriate and useful.
It is a critical analysis of the existing research relevant to your topic, and you should show how
the literature relates to your topic and identify any gaps in the area of research. Following points
need to be considered while conducting review of literature.
1. What subject areas does your topic fall into?
2. What possible sources could you use?

● Company reports
● Industry profiles
● Market research
● Financial reports
● Newspaper articles
● Journal articles
3. What are the limits? For example, geographical restrictions or time periods.
Benefits of Literature Reviews
● Literature reviews allow you to gain familiarity with the current knowledge in your
chosen field, as well as the boundaries and limitations of that field.
● Literature reviews also help you to gain an understanding of the theory(ies) driving the
field, allowing you to place your research question into context.
● Literature reviews provide an opportunity for you to see and even evaluate successful and
unsuccessful assessment and research methods in your field.
● Literature reviews prevent you from duplicating the same information as others writing in
your field, allowing you to find your own, unique approach to your topic.
● Literature reviews give you familiarity with the knowledge in your field, giving you the
chance to analyze the significance of your additional research.
Choosing Your Sources - When selecting your sources to compile your literature review, make
sure you follow these guidelines to ensure you are working with the strongest, most appropriate
sources possible.
Topically Relevant - Find sources within the scope of your topic.
Appropriately Aged - Find sources that are not too old for your assignment.
Credible - Find sources whose authors have authority on your topic.
Appropriately “Published” - Find sources that meet guidelines (academic, professional, print,
etc.)

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