B TECH Open Elective (VII SEM)

Research Methodology in Management

Theoretical Framework and

Hypothesis Development

1
 Theoretical framework

 Foundation deductive research project!

 Deductive research: moving from the general (a theory) to the

specific (observations).
 Theoretical Framework and Hypothesis
development

A theoretical framework is the foundation of

hypothetico‐deductive research as it is the basis of the hypotheses
that you will develop.

 The development of a theoretical framework is crucial in deductive,

theory‐testing, causal research (but not in exploratory or
descriptive research where one does not develop a theoretical
framework to develop and test hypotheses).

 A theoretical framework represents your beliefs on how certain

phenomena (or variables or concepts) are related to each other (a
model) and an explanation of why you believe that these variables
are associated with each other (a theory).
 Theoretical Framework and Hypothesis
development- Process

The process of building a theoretical framework includes:

1) Introducing definitions of the concepts or variables in your model.

2) Developing a conceptual model that provides a descriptive

representation of your theory.

3) Coming up with a theory that provides an explanation for

relationships between the variables in your model.

 VARIABLES

 A variable is anything that can take on differing or varying values.

The values can differ at various times for the same object or
person, or at the same time for different objects or persons.
 Examples of variables are production units, absenteeism, and
motivation.
 Example:
 Production units: One worker in the manufacturing department
may produce one widget per minute, a second might produce two
per minute, a third might produce five per minute. It is also
possible that the same member might produce one widget the
first minute and five the next minute. In both cases, the number of
widgets produced has taken on different values, and is therefore a
variable becomes measurable.
 Example:

 Absenteeism: Today, three members in the sales department may

be absent; tomorrow, six members may not show up for work; the

day after, there may be no one absent. The value can thus

theoretically range from “zero” to “all” being absent, on the

absenteeism variable.
 Example
Motivation:
The levels of motivation of members to learn in the class or in a work team
might take on varying values ranging from “very low” to “very high.” An
individual’s motivation to learn from different classes or in different work
teams might also take on differing values.

Now, how one measures the level of motivation is an entirely different

matter. The factor called motivation has to be reduced from its level of
abstraction and operationalized in such a way that it becomes measurable.
 Variable
 Any concept or construct that varies or changes
in value

 Main types of variables:

– Dependent variable
– Independent variable
– Moderating variable
– Mediating variable
 (In)dependent variables

 Dependent variable (DV)

– Is of primary interest to the researcher. The goal of the
research project is to understand, predict or explain the
variability of this variable.

 Independent variable (IV)

– Influences the DV in either positive or negative way. The
variance in the DV is accounted for by the IV.
 Example

Availability of # of rejects
reference manuals
Types of Variables

Dependent variable

The dependent variable is the variable of primary interest to the researcher.

The researcher’s goal is to understand and describe the dependent variable or to

explain its variability, or predict it. Through the analysis of the dependent variable

(i.e., finding what variables influence it), it is possible to find answers or solutions

to the problem.

For this purpose, the researcher will be interested in quantifying and measuring the

dependent variable, as well as the other variables that influence this variable.

E.g., A manager is concerned that the sales of a new product, introduced after test

marketing it, does not meet his expectations.

Dependent variable in this case is…………..

Types of Variables

Independent variable

It is generally assumed that an independent variable is one that influences the

dependent variable in either a positive or negative way.

 Types of Variables

Independent variable
To establish that a change in the independent variable causes a change in the dependent
variable, all four of the following conditions should be met:

1. The independent and the dependent variable should covary: in other words, a change
in the dependent variable should be associated with a change in the independent
variable.

2. The independent variable (the presumed causal factor) should precede the dependent
variable. In other words, there must be a time sequence in which the two occur: the
cause must occur before the effect.
 Types of Variables
Independent variable

To establish that a change in the independent variable causes a change in the dependent
variable, all four of the following conditions should be met:

3. No other factor should be a possible cause of the change in the dependent variable.
Hence, the researcher should control for the effects of other variables.

4. A logical explanation (a theory) is needed and it must explain why the independent
variable affects the dependent variable.
 List and label the variables
1. A manager finds that off‐the‐job classroom training has a great impact on the
productivity of the employees in her department.
2. A manager of an insurance company finds that “fear appeals” in commercials
are positively associated with consumers’ behavioral intentions to insure their
house.
 Moderators
 Moderating variable
– Moderator is qualitative (e.g., gender, race, class) or
quantitative (e.g., level of reward) variable that
affects the direction and/or strength of relation
between independent and dependent variable.
 Example

Availability of # of rejects
reference manuals

Interest &
inclination
 Types of Variables – Moderating variable
The moderating variable is one that has a strong contingent effect on the
independent variable–dependent variable relationship. That is, the presence of a third
variable (the moderating variable) modifies the original relationship between the
independent and the dependent variables.
 Mediating variable
 Mediating variable
– surfaces between the time the independent variables start
operating to influence the dependent variable and the time
their impact is felt on it.

 Example

Employee Customer Customer

responsiveness satisfaction loyalty
Types of Variables – Mediating variable
A mediating variable (or intervening variable) explains the relationship between the
dependent variable and the independent variable. Bringing a mediating variable into
play helps you to model a process.

Creative
Synergy Organization
Workforce diversity al
effectiveness

Independent Mediating Variable Dependent Variable

Variable
Types of Variables

Mediating & Moderating variable -A mediating variable (or intervening variable)

is one that surfaces between the time the independent variables start operating to
influence the dependent variable and the time their impact is felt on it. There is thus a
temporal quality or time dimension to the mediating variable.

Organization
Creative
Workforce diversity al
Synergy
effectiveness

Independent Mediating Variable Dependent Variable

Variable
Manageria
l expertise

Moderating
Variable
 Hypothesis
 A proposition that is empirically testable. It is an
empirical statement concerned with the relationship
among variables.

 Good hypothesis:
– Must be adequate for its purpose
– Must be testable
– Must be better than its rivals

 Can be:
– Directional
– Non-directional
Definition of a hypothesis

A hypothesis can be defined as a tentative, yet testable, statement, which

predicts what you expect to find in your empirical data. Hypotheses are derived
from the theory on which your conceptual model is based and are often relational
in nature.

E.g., 1. Workforce diversity has a positive effect on organizational effectiveness.

2. The greater the stress experienced on the job, the lower the job
satisfaction of employees.
 Exercise
Give the hypotheses for the following framework:

Service Customer
quality switching

Switching
cost
 Exercise
Give the hypotheses for the following framework:

Service Customer Customer

quality satisfaction switching
 Argumentation
 The expected relationships / hypotheses are an
integration of:
– Exploratory research
– Common sense and logical reasoning
 Statement of hypotheses: formats

If–then statements
 If youngsters are more frequently exposed to images of thin models in advertisements, then they will
be more likely to express dissatisfaction with their body weight.

Directional and nondirectional hypotheses

The greater the stress experienced in the job, the lower the job satisfaction of employees.
Women are more motivated than men.
There is a difference between the work ethic values of American and Asian employees.
 Null and alternate hypotheses

 The hypothetico‐deductive method requires that hypotheses are falsifiable, they must be
written in such a way that other researchers can show them to be false.
 A null hypothesis (𝐻 ) is a hypothesis set up to be rejected in order to support an alternate
hypothesis, labelled 𝐻
 The alternate hypothesis, which is the opposite of the null, is a statement expressing a
relationship between two variables or indicating differences between groups.