RESEARCH METHODS FOR BUSINESS:

A SKILL BUILDING APPROACH

UME-SEKARAN AND ROGER BOUGIE (5th Edition)

CHAPTER 5:
ELEMENTS OF RESEARCH DESIGN

Ali Raza Sultani (Doctoral Candidate - ABD)

 Topics Discussed
2

1. The research design

2. Purpose of the study: exploratory, descriptive, hypothesis
testing, case study analysis
3. Type of investigation: causal versus correlational
4. Extent of researcher interference with the study
5. Study settings: contrived versus non-contrived
6. Unit of analysis: individuals, dyads, groups,
organizations, cultures
7. Time horizon of study: cross-sectional versus longitudinal

Ali Raza Sultani (Doctoral Candidate - ABD)

 Chapter Objectives
3

After completing Chapter 5 you should be able to:

1. Understand the different aspects relevant to designing a
research study.
2. Identify the scope of any given study and the end use of
the results.
3. Decide, for any given situation, the type of investigation
needed, the study setting, the extent of researcher
interference, the unit of analysis, and the time horizon of
the study.
4. Identify which of the two, a causal or a correlational
study, would be more appropriate in a given situation.

Ali Raza Sultani (Doctoral Candidate - ABD)

 4

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Having identified the variables in a problem situation and

developed the theoretical framework, the next step is to design
the research in such a way that the requisite data can be gathered
and analysed to arrive at a solution.
 It includes:
 Issues relating to decisions regarding the purpose of the study
(exploratory, descriptive, hypothesis testing, or case study),
 Its location (i.e., the study setting),
 The type it should conform to (type of investigation),
 The extent to which it is manipulated and controlled by the
researcher (extent of researcher interference),
 Its temporal aspects (time horizon), and
 The level at which the data will be analyzed (unit of analysis).

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Purpose/Nature of Study:
 Exploratory Study
 An exploratory study is undertaken when not much is known about the
situation at hand, or no information is available on how similar problems
or research issues have been solved in the past. In such cases, extensive
preliminary work needs to be done to gain familiarity with the phenomena
in the situation, and understand what is occurring, before we develop a
model and set up a rigorous design for comprehensive investigation.
Exploratory studies are also necessary when some facts are known, but
more information is needed for developing a viable theoretical framework.
 In sum, exploratory studies are important for obtaining a good grasp of the
phenomenon of interest and advancing knowledge through subsequent
theory building and hypothesis testing. Pilot studies on a small scale, by
interviewing individuals or gathering information from a limited number of
occurrences, are not uncommon in exploratory research.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Purpose/Nature of Study:
 Descriptive Study
 A descriptive study is undertaken in order to ascertain and be able to
describe the characteristics of the variables of interest in a situation.
 Descriptive studies are undertaken in organizations to learn about and
describe the characteristics of a group of employees, for example, the age,
educational level, job status, and length of service of employees.
 The goal of a descriptive study, therefore, is to offer to the researcher a
profile or to describe relevant aspects of the phenomenon of interest from
an individual, organizational, industry-oriented, or other perspective.
 Descriptive studies are also undertaken to understand the characteristics
of organizations that follow certain common practices.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Purpose/Nature of Study:
 Hypothesis Testing
 Studies that engage in hypothesis testing usually explain the nature of
certain relationships, or establish the differences among groups, or the
independence of two or more factors in a situation.
 For example, A marketing manager wants to know if the sales of the
company will increase if he doubles the advertising dollars. Here, the
manager would like to know the nature of the relationship that may be
established between advertising and sales by testing the hypothesis: If
advertising is increased, then sales will also go up.
 Hypothesis testing offers an enhanced understanding of the relationship
that exists among variables. It may also establish cause-and-effect
relationships. Hypothesis testing can be done with both qualitative and
quantitative data.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Purpose/Nature of Study:
 Case Study
 Case studies involve in-depth, contextual analyses of matters relating to
similar situations in other organizations.
 Case studies, as a problem-solving technique, are not frequently resorted
to in organizations because finding the same type of problem in another
comparable setting is difficult due to the reluctance of companies to reveal
their problems.
 Case studies that are qualitative in nature are, however, useful in applying
solutions to current problems based on past problem-solving experiences.
 Case studies are also useful in understanding certain phenomena and
generating further theories for empirical testing.
 Case studies are generally qualitative in nature and are sometimes used as
a tool in managerial decision making.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Type of Investigation:
 Causal Study
 A study in which the researcher wants to delineate the cause of one or
more problems is called a causal study. It is done when it is necessary to
establish a definitive cause-and-effect relationship (Impact of
independent variable on dependent variable). A causal study question:
Does smoking cause cancer?
 Correlational Study
 When the researcher is interested in delineating the important variables
associated with the problem, the study is called a correlational study
(relationship between independent variable and dependent variable). A
correlational study question: Are smoking and cancer related?

Note: Whether a study is causal or correlational thus depends on the type

of research questions asked and how the problem is defined.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Type of Investigation - Extent of researcher interference:
 Causal Study
 In studies conducted to establish cause-and-effect relationships, the
researcher tries to manipulate certain variables so as to study the effects of
such manipulation on the dependent variable of interest.
 As an example, a researcher might want to study the influence of lighting on
worker performance; hence he manipulates the lighting in the work
situation to varying intensities.
 Correlational Study
 A correlational study is conducted in the natural environment of the
organization with minimal interference by the researcher with the normal
flow of work.
 For example, if a researcher wants to study the factors influencing training
effectiveness (a correlational study), all that the individual has to do is
develop a theoretical framework, collect the relevant data, and analyse them
to come up with the findings.
Ali Raza Sultani (Doctoral Candidate - ABD)
 The Research Design
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 Study Setting:
 Contrived
 Organizational research can be done in artificial environment that is
known as contrived settings. Most rigorous causal studies are done in
contrived lab settings.
 Non-contrived
 Organizational research can be done in the natural environment where
work proceeds normally that is known as non-contrived settings.
Correlational studies are invariably conducted in non-contrived settings.
 Field Experiment Vs. Lab Experiment Vs. Field Study
 Field Experiment: Non-contrived setting but with researcher interference
to a moderate extent.
 Lab Experiment: A contrived setting with researcher interference to an
excessive degree.
 Field Study: A non-contrived setting with minimal researcher interference.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Study Setting - Field Experiment Vs. Lab Experiment Vs. Field

Study:
 Field Experiment
 Studies conducted to establish cause-and-effect relationships using the
same natural environment in which employees normally function are
called field experiments.
 Lab Experiment
 Experiments done to establish a cause-and-effect relationship beyond the
possibility of the least doubt require the creation of an artificial, contrived
environment in which all the extraneous factors are strictly controlled.
Similar subjects are chosen carefully to respond to certain manipulated
stimuli. These studies are referred to as lab experiments.
 Field Studies
 Correlational studies done in organizations are called field studies.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Unit of Analysis: The unit of analysis refers to the level of

aggregation of the data collected during the subsequent data
analysis stage.
 Individuals
 If the problem statement focuses on how to raise the motivational levels of
employees in general, then we are interested in individual employees in
the organization. Here the unit of analysis is the individual.
 Dyads
 If the researcher is interested in studying two-person interactions, then
several two-person groups, also known as dyads, will become the unit of
analysis.
 Analysis of husband–wife interactions in families and supervisor–
subordinate relationships in the workplace are good examples of dyads as
the unit of analysis.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Unit of Analysis:
 Groups
 If the problem statement is related to group effectiveness, then the unit of
analysis will be at the group level.
 For example, if we wish to study group decision-making patterns, we will
probably be examining such aspects as group size, group structure,
cohesiveness, and the like, in trying to explain the variance in group
decision making. Here, our main interest is not in studying individual
decision making but group decision making, and we will be studying the
dynamics that operate in several different groups and the factors that
influence group decision making. In such a case, the unit of analysis will
be groups.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Unit of Analysis:
 Organizations
 If we are comparing different organizations, then the data analysis will be
done at the organization level – that is, the individuals in the
organizations will be treated as one unit – and comparisons made by
treating the organizations as the unit of analysis.
 Culture/Nations
 If we want to study cultural differences among nations, we will have to
collect data from different countries and study the underlying patterns of
culture in each country. In such a case, the unit of analysis will be
culture/nation.

Ali Raza Sultani (Doctoral Candidate - ABD)

 The Research Design
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 Time Horizon:
 Cross-sectional Studies
 A study can be undertaken in which data are gathered just once, perhaps
over a period of days or weeks or months, in order to answer a research
question. Such studies are called one-shot or cross-sectional studies.
 For example, data were collected from stock brokers between April and
June of last year to study their concerns in a turbulent stock market. Data
with respect to this particular research had not been collected before, nor
will they be collected again for this research.
 Longitudinal studies
 Researcher might want to study people or phenomena at more than one
point in time in order to answer the research question. For instance, study
employees' behaviour before and after a change in the top management.
Here, data are gathered at two different points in time. Such studies, as
when data on the dependent variable are gathered at two or more points in
time to answer the research question, are called longitudinal studies.
Ali Raza Sultani (Doctoral Candidate - ABD)
 Exercise 1
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 A foreman thinks that the low efficiency of the machine tool

operators is directly linked to the high level of fumes emitted in
the workshop. He would like to prove this to his supervisor
through a research study.
1. Would this be a causal or a correlational study? Why?
2. Is this an exploratory, descriptive, or hypothesis-testing (analytical
or predictive) study? Why?
3. What kind of a study would this be: field study, lab experiment, or
field experiment? Why?
4. What would be the unit of analysis? Why?
5. Would this be a cross-sectional or a longitudinal study? Why?

Ali Raza Sultani (Doctoral Candidate - ABD)

 Exercise 2
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 Many were concerned about the operations of the infamous

BCCI, the international banking institution. If the government
had wished to probe into the details, would this investigation
have called for:
1. A causal or correlational study? Why?
2. An exploratory, descriptive, or hypothesis-testing study or case
analysis? Why?
3. A field study, lab experiment, or field experiment? Why?
4. A cross-sectional or longitudinal study? Why?

Ali Raza Sultani (Doctoral Candidate - ABD)

 Exercise 3, 4 & 5
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 You want to examine how exposure to thin or heavy models in

advertisements influences a person's self-esteem. You believe that the
effect of exposure to models in advertisements depends on the
extremity of the model's thinness or heaviness. Discuss the design
decisions that you as a researcher will make to investigate this issue,
giving reasons for your choices.
 You want to investigate the specific effects of specific emotions on
customers' behavioural responses to failed service encounters across
industries. Discuss the design decisions that you as a researcher will
make to investigate this issue, giving reasons for your choices.
 Dr Larry Norton of Memorial Sloan-Kettering Cancer Center predicts
that cancer treatment will undergo major changes. Several drugs are
being developed to battle cancer without harming healthy tissue. It is a
question of discovering which of these drugs does the job best. Design a
study that would help find which drug would do the trick.
Ali Raza Sultani (Doctoral Candidate - ABD)
 Discussion Questions
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1. What are the basic research design issues? Describe them in some
detail.
2. Why is it important to consider basic design issues before conducting
the study and even as early as at the time of formulating the research
question?
3. Is a field study totally out of the question if one is trying to establish
cause-and-effect relationships?
4. “An exploratory study is just as useful as a predictive study.” Discuss
this statement.
5. Why is the unit of analysis an integral part of the research design?
6. Discuss the interrelationships among non-contrived setting, the
purpose of the study, type of investigation, researcher interference,
and time horizon of study.

Ali Raza Sultani (Doctoral Candidate - ABD)

 Discussion Questions
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7. Below are three scenarios. Indicate how the researcher should

proceed in each case; that is, determine the following, giving reasons:
a. The purpose of the study
b. The type of investigation
c. The extent of researcher interference
d. The study setting
e. The time horizon for the study
f. The unit of analysis

Ali Raza Sultani (Doctoral Candidate - ABD)

 Scenarios
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 Ms Joyce Lynn, the owner of a small business (a women's dress

boutique), has invited a consultant to tell her how her business is
different from similar small businesses within a 60-mile radius with
respect to use of the most modern computer technology, sales volume,
profit margin, and staff training.
 Mr Paul Hodge, the owner of several restaurants on the East Coast, is
concerned about the wide differences in their profit margins. He would
like to try some incentive plans for increasing the efficiency levels of
those restaurants that lag behind. But before he actually does this, he
would like to be assured that the idea will work. He asks a researcher to
help him on this issue.
 A manager is intrigued as to why some people seem to derive joy from
work and get energized by it, while others find it troublesome and
frustrating.

Ali Raza Sultani (Doctoral Candidate - ABD)