BUSINESS RESEARCH METHODS

MBA FALL 13

Todays Agenda
Defining Research
Types of Research
Purpose/context Functions

Research Paradigms
Research Approaches

What is Research?

Defining Research
Research is one way of answering questions

about the world

Are all the ways of answering questions are

examples of Research?
NO What makes something Research?

What makes something Research?

o Research is systematic
Implies that you set out to answer your question

with a plan in mind collecting information you expect to lead you to an answer and arranging this in a logical, sensible way.
o Research is to find out

Implies that there are multiplicity of possible purposes of research these may be describing, explaining, criticizing and analyzing. Research has a clear purpose

What makes something Research?

o Research is a critical inquiry/process

implies careful analysis, testing and evaluation of the information collected. nothing is accepted without questions. argue why results obtained are meaningful and explain any limitations associated with it.

What makes something Research?

Based on above discussion we can summarize

that Research has following characteristics:

Data are collected systematically Data are interpreted systematically and critically There is a clear purpose Research design is critically evaluated

Defining Research
A systemic, critical inquiry or examination to discover new information or relationships and to expand/verify existing knowledge for some specified purpose
(Bennett, 1991: pg 68)

OR Business Research is defined as the systematic and objective process of generating information for aid in making business decisions.

Business Research Types

Basic research Applied research

based on the purpose and context of the

problem

Basic Research
Basic / Fundamental Research also known

as pure research
Research

done to enhance the understanding of a phenomena or problems that commonly occur in organizational settings and seek methods of solving them in general.
Example: A study on the influence of different compensation systems such as pay by piece-work versus salary-plusbonus structure on productivity.

Applied Research
Applied Research Applied Research has a practical problem

solving emphasis. Research done with the intention of applying the results of the findings to solve specific problems currently being experienced in the organization.
Example: A study undertaken by organization ABC to decide on an acquisition to increase stockholder wealth.

Basic & Applied Research

Basic Research
Purpose
Expand

Applied Research
Purpose
business
Improve understanding of particular

knowledge of processes and management

business and management problem.

Results in solution to problem related to action, performance or policy needs.
Findings of practical relevance and

Results in universal principles relating

to the process and its relationship to outcomes

Findings of significance and value to

society in general.

value to manager(s) in organization(s)

Context
Conducted by people in universities

Context
Conducted by people in universities and organizations Tight timescales Objectives originator negotiated with the

Flexible timescales Choice of topic and objectives determined by the researcher

Determining When to Conduct Business Research

Time constraints

Availability of data
Nature of the decision Benefits versus costs

Determining When to Conduct Business Research

Availability of Data Benefits Time Constraints Nature of the Decision vs. Costs
Is sufficient time available before a managerial decision must be made?
Yes

Is the information already on hand inadequate for making the decision?

Yes

Is the decision Yes of considerable strategic or tactical importance?

Does the value of the research Yes information exceed the cost of conducting research?

Conducting Business Research

No

No

No

No

Do Not Conduct Business Research

Value versus Costs

Potential Value of a Business Research Effort

Should Exceed Its Estimated Costs

Value Should Exceed Estimated Costs

Costs Value
Decreased uncertainty Increased likelihood of a correct decision Improved business performance and resulting higher profits Research expenditures Delay of business decision and possible disclosure of information to rivals Possible erroneous research results

Types of Business Research

Research can be classified into 3 types respect to the objectives it serves: with

Descriptive Research
Explanatory Research Evaluative Research

Types of Business Research

1. Descriptive Research

has no other purpose then to describe an event or characteristic may be through distributions. Does not attempt to understand or explain the situation or to predict what it might be in the future or how it might be changed. Descriptive studies have a broad appeal to the administrator and policy analysts for planning. Asks Who, what, When, Where questions. E.g. Census study E.g. Do Pakistanis support cricket more than hockey?

Types of Business Research

2. Explanatory Research
Goes beyond description and attempts to explain the

reasons for the phenomenon that the descriptive study only observed. Tries to explain why things are as they are. Searches for explanations. Asks Why or How questions E.g. (How) Is the popularity of a sport influenced by the amount of TV coverage it gets?

Explanatory research can be correlational or

Causal/Predictive.

Types of Business Research

Explanatory Research
Correlation Research Implies relationship between variables

Causal Research Sequence of events: when we do one thing another follows (temporal sequence)

Types of Business Research

3. Evaluative Research
Done to make judgments on the success or effectiveness of

policies, strategies, practices or programs. E.g. whether the recently introduced compensation policy has helped in increasing motivational levels of employees.

Research Paradigm
Research Paradigm is basically a researchers

belief or view point about the development of knowledge.

set of principles or beliefs that guide the way research is

conducted within the discipline

Research Paradigm
Types of Research Philosophy/paradigms:
Positivism Interpretivism

Research Paradigm
1.

Positivism Paradigm

This paradigm is also known as scientific method as it adopts the philosophical stance of the natural sciences. Emphasizes highly structured methodology to facilitate replication o o o o World is objective and external to researcher. Researcher provides objective description and explanation of a phenomena. Social reality is explained on the basis of facts and observations that are quantitative in nature and lend themselves to statistical analysis. End product of such research is a law-like generalizations.

Underlying Assumptions:

Research Paradigm
2.

Interpretivism Paradigm

This paradigm is also known as social constructionism as it adopts the view that reality should be socially constructed and subjective. This paradigm focus on its subjects how they make sense of the social world through their experiences, cultures and social interactions.

Underlying Assumptions: o Researcher is part of the social reality under investigation not independent of it (his own subjectivity). o Researchers recognize that their own backgrounds shape their interpretation. o Researcher provides explanations of behaviors or situations through the point of view of research participant (subjects interpretations) . o Social reality is explained subjectively through perceptions of the actors involved in a given social setting. o emphasis is to have rich insight of the complex and unique situation.

Research Approaches
The research approach selected by the

researchers will depend on the extent to which they are clear about the theory at the beginning of research. The two approaches to research are:
1.
2.

Deductive Research Inductive Research

Research Approaches
1.

Deductive Research
Explanation Data Analysis

The process begins by drawing propositions from what is

known to be true about a particular domain and then the proposition is subject to empirical scrutiny.

Research Approaches
2.

Inductive Research
Data Analysis Explanation/Theory

Propositions are established on the basis of observation of

particular facts.

Research Approaches
Deductive
o Leans more to positivism o o Moving from theory to data o o Explain causal relationships

Inductive
Leans more to interpretivism Moves from data to theory Explain meaning human attach to events (allows alternative explanations) Collection of qualitative data (non-numerical data) Flexible structure Less concern with the need to generalize

o between variables o Collection of quantitative data (numerical data) o Application of controls to test o the hypothesis o Sample sizes are generally large to generalize o conclusions
o