BUSINESS RESEARCH

METHOD

Esubalew Almaw
 CHAPTER ONE
INTRODUCTION TO RESEARCH METHODOLOGY
1

 The term Research‘ consists of two words:

Research = Re + Search
 “Re” means again and again and “Search” means to find out something.

Observes Collection of data

Person Phenomena Conclusions
Again and again Again and again
Conti…
2

 Research is simply the process of finding solutions to a problem after

through study and analysis of the situational factors. It is gathering
information needed to answer a question, and thereby help in solving a
problem.
 Research is all about a careful and systematic investigation of
situations to establish facts and principles in any branch of knowledge.
 Research is all about a systematized effort to gain new knowledge.
 Research is all about a search for knowledge through objective and
systematic methods of finding solution to a problem.
 Cont…
3

 Research is an organized inquiry carried out to provide information

for the solution of a problem.
 Research is an organized and systematic way of finding answers to
questions about reality.
 Research is the application of human intelligence to problems
whose solutions are not available immediately (Hertz)
 Research is the process of identifying problems, collecting data,
organizing data, analyzing and interpreting data, and finding
solutions to a problem.
 Cont…
4

 Research is identifying the relationship between variables, develop

scientific facts, theories and principles that may predict future
occurrences based on existing evidence.
 Research is a systematic, controlled, empirical and critical method
consisting of enumerating the problem, formulating a hypothesis,
collecting the facts or data, analysing the facts and reaching certain
conclusions either in the form of solutions towards the concerned
problem or in certain generalizations for some theoretical
formulation.
 Important points in the definition
5

 Research is a process: It comprises a series of steps designed and

executed, with the goal of finding answers to the issues that are of
concern to the manager in the work environment.
 Research is systematic: research is based on logical relationships and
not just beliefs.
 Research is objective: data to be collected and analysed need to be
accurate, and the business research must be objective
 Research is purposeful: its purpose is to facilitate the rational
decision-making
 What Research Is Not?
6

 Research isn’t information gathering:

 Gathering information from resources such books or
magazines isn’t research.
 No contribution to new knowledge.
 Research isn’t the transportation of facts :
 Merely transporting facts from one resource to another
doesn’t constitute research.
 No contribution to new knowledge although this might
make existing knowledge more accessible.
Objective of Research
7

 The main purpose of research is to discover answers to questions

through scientific procedures in order to find the truth that has not
been discovered yet.
 Research objectives can fall into broad groupings such as

 To gain familiarity with a phenomenon or to achieve new insights

into it (exploratory research studies)

 To portray accurately the characteristics of a particular individual,

situation or a group (descriptive research studies)
Cont’d…
8

 To determine the frequency with which something occurs or with

which it is associated with something else (studies with this
object in view are known as diagnostic research studies)

 4To test a hypothesis of a causal relationship between variables

(such studies are known as hypothesis-testing research studies)
 Research studies aim to either explore a phenomenon, describe
characteristics, diagnose, or test relationships between variables.
 Cont’d….
9

 To generate new knowledge, principle and scientific law

 To review and synthesize existing knowledge. That is, to
verify the validity of the previous work.
 To investigate some existing situation or problem
 To explain new phenomenon
 To examine the cause of the problem
 To examine the nature of the problem
 To provide solution to a problem
 To construct or create a new procedure and new system
 A combination of any one of the above
 Characteristics of Good Research

10

The main distinguishing characteristics of scientific research:

1. Good research is Systematic: because there is a definite set o procedures and

steps which you will follow. There are certain things in the research process
which are always done in order to get the most accurate results.
 The steps are as follows:
 Formulating the research problem
 Review of Literature
 Define Research objectives
 Preparing Research Design
 Collection and analysis of data
 Cont’d…
11

 Interpretation of data
 Preparation of report
 Follow-up of report

2.Purposiveness : research started with definite purpose.

E.g to increase employee commitment

3. Rigor: good theoretical base and methodological design add Rigor to the
purpose of the study. Rigor connotes carefulness. If we used inappropriate sample
for example our conclusions will be misleading.

4 .Testability : scientific research tends itself to testing logically developed

hypothesis to see whether or not the data support our hypothesis.
Cont’d….
12

4. Replicability: we can find the same result if we conduct the same

method (data collection) in some other organization.

E.g if we get a result that participation in decision making has

positive impact of the commitment of the employees. We could find
the same result in other organization.

5. Precision means closeness of findings to reality based on sample. It

is the confidence interval. (E.g. estimation of defects : between 30 &
40 and 20 &50 which one is more precise).
Cont’d….
13

6. Confidence refers to the probability of our estimate are correct. It

is not merely enough to be precise, but it is also important that we can
confidently claim that 95% of the time our results will be true and
there is only 5% chance of wrong.
 The narrower the limits in which we estimate (more precise our
findings) and the greater confidence we have in our study.
 In social science researches 95% cl is good. The greater precision
and confidence, the more scientific our study.
Cont’d…
14

7. Objective: the conclusions drawn through interpretation of the

results of data analysis should be based on facts of findings from
actual data not on our subjective /emotional values.

8. Generalizability: it is the scope of the applicability of the findings

of the study in other organization. If we used appropriate
methodology and design (sampling design and data collection
methods) the result well be more generalizable.
Cont’d….
15

9. Controlled: Exploring causality in relation to two variables, set the study to

minimizes the effects of other factors affecting the relationship.

10. Empirical: Any conclusion drawn are based upon hard evidence gathered
from information collected from real life experiences or observations.

 It implies that research is related basically to one or more aspects

of a real situation and deals with concrete data that provides a basis
for external validity to research results.
 Cont’d…
16

11. Critical: critical scrutiny of the procedures used and the methods
employed is crucial to a research enquiry.
 The process of investigation must be fool proof and free from
drawbacks.
 The process adopted and the procedures used must be able to withstand
critical scrutiny.

12. Logical: This implies that research is guided by the rules of logical
reasoning and the logical process of induction and deduction are of great
value in carrying out research.
1.2. Research Methods vs Methodology
17

 Research Methods may be understood as all those

methods/techniques that are used for conducting research.
 Research methods, thus, refer to the methods the
researchers use in performing research operations.
 In other words, all those methods which are used by the
researcher during the course of studying his/her research
problem are termed as research methods.
Conti….
18

In short, research methods can be put into the following three groups:

a. Those methods which are concerned with the collection of Date

(i.e., methods of data collection)

b. Those methods / statistical techniques which are used for

establishing relationship between the data and the unknowns (i.e.,
methods of analysis)

c. Those methods which are used to evaluate the accuracy of the result
obtained
 Cont’d….
19

• Research Methodology is a way to systematically solve the

research problem. It may be understood as a science of studying

how research is done scientifically.

• In it, we study the various steps that are generally adopted by a

researcher in studying his research problem along with the logic

behind them.

• It is necessary for the researcher to know not only the research

methods/techniques but also the methodology.

Cont’d….
20

 Researchers not only need to know how to develop certain indices

or tests, how to calculate the mean, the mode, the median or the
standard deviation or chi-square, how to apply particular research
techniques, but they also need to know which of these methods or
techniques are relevant and which are not, and what would they
mean and indicate and why.
 Methodology is the study of how research is done, how we find out
about things, and how knowledge is gained.
 Cont’d….
21

 In other words, methodology is about the principles that guide our

research practices.
 Methodology therefore explains why we‘re using certain methods
or tools in our research.
 Research methodology has many dimensions and research methods
do constitute a part of research methodology.
 The scope of research methodology is wider than that of research
method.
 Cont’d….
22

 Why research study has been undertaken?

 How the research problem has been defined?
 Why the hypotheses has been formulated and in what way?
 What data have been collected and what particular method has
been adopted? And why not others?
 Why particular method of analysis has been used? And

A host of other similar questions are usually answered when we talk

of research methodology concerning a research study
 Motivation of Doing Research
23

 What makes people to undertake research? This is a question of fundamental

importance. The possible motives for doing research may be either one or

more of the following:

1. Desire to get a research degree along with its consequential benefits;

2. Desire to face the challenge in solving the unsolved problems, i.e., concern

over practical problems initiates research;

3. Desire to get intellectual joy of doing some creative work;

4. Desire to provide service to society;

5. Desire to get respectability.

 Significance of Research
24

 Research provides the basis for nearly all government policies in

our economic system.
 Research has its special significance involving various operational
and planning problems of business and industry.
 Research is equally important for social scientists in studying social
relationships and it‘s seeking answers to various social problems.
 To philosophers and thinkers research may mean the out let for new
ideas and insights.
Cont’d...
25

 To professional in research, it may mean a source of insights.

 To analysis and intellectuals, it may mean the development of new
theories.
 To literary men & women, it may mean development of new styles
& creative work.
 To managers it helps to get information as basis for making certain
decisions.
 1.3. CLASSIFICATION OF RESEARCH
26

 Research can be classified based on different ways in to the

following

1. Based On Outcome Of The Research: whether the research tries

to solve a particular problem or makes a general contribution to the
knowledge, research can be classified on the following traits.
A. Basic/Pure/Fundamental Research: Fundamental research is
also called academic or basic or pure research. Such research is aimed
at investigating or search for new principles and laws. It is mainly
concerned with generalization and formulation of a theory.
 Cont’d...
27

 Fundamental research is organized only for the attainment of

knowledge and truth. With change of time and space, it is
necessary to make in the fundamental principles in every branch
of science.
 Thus, this type of research also verifies the old established
theories, principles and laws.
 In general, fundamental research is concerned with the
theoretical aspect of science.

Example. - Darwin theory of Evolution

 Cont’d...
28

B. Applied Research: A research aimed finding a solution for an

immediate problem facing a society, a group or industry (business
organization).
 While pure research discovers principles and laws, applied research
discovers their application in solving some social, economical or any
other problems.
 The results of such research would be used by either individuals
or groups of decision-makers or even by policy makers.

Example. The improvement of safety in the working place

Cont’d...
29

2. Based On Objectives of the study : The reason why are we conducting

the research:

A. Descriptive research : it describe characteristics of population,

phenomenon, situation, problem, service or programme, or provides
information about the living conditions of a community, or describes
attitudes towards an issue.
 it tries to answer questions like, who, how, what, when where questions.
 The major purpose of descriptive research is description of the state of
affairs as it exists at present.
 Cont’d….
30

 In social science and business research we quite often use the term
Ex post facto research for descriptive research studies.
 The main characteristic of this method is that the researcher has
NO control over the variables; he can only report what has
happened or what is happening.
 Most ex post facto research projects are used for descriptive
studies in which the researcher seeks to measure such items as, for
example, frequency of shopping, preferences of people, or similar
data.
Cont’d...
31

 Descriptive research deals with demographic characteristics of the

consumer.
 For example, trends in the consumption of soft drink with respect to
socio-economic characteristics such as age, family, income, education
level etc.
 Another example can be the degree of viewing TV channels, its variation
with age, income level, and profession of respondent as well as time of
viewing.
Cont’d...
32

 Example
◦ What is the absentee rate in a particular office?
◦ What is the qualification of different groups of employment?
◦ Frequency of shopping
◦ Preferences of people
◦ Who are the main consumers of organic foods?
◦ How many students read the prescribed course literature?
◦ Where do most holiday-makers travelling overseas go?
◦ When do petrol stations tend to raise their prices?
Cont’d….
33

B. Exploratory Research (Pilot Survey)

 also called preliminary research.
 The main purpose is to explore a new topic, generate insights, and gain a
preliminary understanding of an issue.
 It aims to generate ideas, hypotheses, and insights rather than testing
specific relationships.
 When there are few or no studies that can be referred such research is
needed.
Example: Child-Care support programme for employees
 Cont’d….
34

 Exploratory research often relies on:

 secondary research
 qualitative approaches (informal discussions)
 and more formal approaches through in-depth interviews, focus
groups, projective methods, case studies or pilot studies.
 The results of exploratory research are not usually useful for
decision-making by themselves, but they can provide significant
insight into a given situation.
Conti….
35

C. Explanatory (causal) research: is conducted to determine the cause and effect

relationship between the two variables.
 Analytical (causal or explanatory) research- identifies the cause or effect
relationship between variables where the research problem has already been
narrowly defined.
 It explains why and how a phenomenon is happening and has happened. This
type of research attempts to explain,
 Example, why stressful living results in heart attacks; Effect of advertisement
on sales
 Effect of advertisement on sales.
 Which of two advertising strategies is more effective?
 Cont’d….
36

 Explanatory research builds on both exploratory and descriptive

researches. It involves:
 Explaining things not just reporting.
 Determining which of several explanations is best.
 Determining the accuracy of the theory; test a theory's predictions
or principle.
 Providing evidence to support or refute/disprove an explanation or
prediction.
 Testing a theory's predictions or principles
 d) Predictive research

37

 goes beyond explaining why and how things happened.

 It predicts (forecast) the possible (probability) of happening
similar situation in other places

E.g.,
 How would an increase in interest rate affect our profit margin?
 What type of packaging will improve the sales of our products?
cont’d….
38

3. On The Basis Of The Process Of Research That is, on the basis of

data used in the research process research an be:
A. Quantitative research is based on the measurement of quantity or
amount. It is applicable to phenomena that can be expressed in
terms of quantity.
 It is typically concentrates on measuring or counting and involves
collecting and analyzing numerical data and applying statistical
tests.
 It involves surveys and experiments.
Cont’d…..
39

B. Qualitative research: applicable for phenomenon that cannot be

expressed in terms of quantity.
 Things related to quality and kind.
 In qualitative research data are often in the form of descriptions,
not numbers.
 Research designed to find out how people feel or what they
think about a particular subject or institution is an example of
such research.
Cont’d…..
40

 It involves:
 in-depth interviews,
 group discussions,
 projective techniques,
 Observations without formal measurement.
 A case study, which is an in-depth examination of one person, is
a form of qualitative research.
C. Mixed Research
41
Cont’d….
42

4. On The Basis Of The Environment: in which the research is carried out

can be:

A. Field Research - It is a research carried out in the field. Such research is

common in social science, agricultural science, history and archaeology.
B. Laboratory Research - It is a research carried out in the laboratory.
These are commonly experimental research. Such researches are common in
medical science, agriculture and in general in natural sciences.

C. Simulation Research - Such research uses model to represent the real

world. Simulation is common in physical science, economics and
mathematics
 Cont’d…..
43

5. Classification based on number of times of data collected

A. Cross-sectional field surveys,

 A type of study that involve observation of all of a population, or a
representative subset, at one specific point in time.
 It is descriptive in its nature and is opposite of longitude research
 independent and dependent variables are measured at the same
point in time (e.g., using a single questionnaire).
 One –time research: it is a research limited to a single time period
Cont’d…..
44

 B. Longitudinal research: Such research is also called on-going

research.
 It is a research carried out over several time periods.
 It involves repeated observations of the same items over long periods
of time.
 Longitudinal research is an observational technique that involves
studying the same group of individuals over an extended period of
time.
 Dependent variables are measured at a later point in time.
 Cont’d….
45

6. Based on logic: is the research from specific to general or vice versa.

A. Deductive Research: is a study in which conceptual and the critical

structures is developed and then tested by empirical observation.
 It is moving from the general to particular.
 Say something about a specific event standing from the general
idea/problem/event

B. Inductive Research: is a study in which theory is developed from the

observation of empirical reality
 The information obtained from the sample, we can infer/conclude about the
population.
 1.4. Stages in the Research Process
46

 Before embarking on the details of research methodology and

techniques, it seems appropriate to present a brief overview of the
research process.
 Research process consists of series of actions or steps necessary
to effectively carry out research and the desired sequencing of
these steps.
 The chart shown in the next Figure well illustrates a research
process.
Fig 1: The Research Process
47

• Research process consists of series of actions or steps necessary to

effectively carry out research.
• It is also classified in to initial phase, Middle Phase and Final Phase.

Review
concepts Formulate
and hypotheses
Define theories Design Interpret
research Or Analyse
research Collect data
Review data and report
(proposal)
problem previous research
Literature Question
s
 Cont’d….
48

 The research can be categorized in to eight major stages:

1. Formulating research problem

 It is the first and most important step in the research process.
 The researcher must single out the problem s/he want to study.

a. understanding the problem thoroughly

 In other words, a problem defined is half solved.

b. Rephrasing the same in to meaningful terms from analytical point of

view.
 Research problem may be formulated from practices, theory, and research
and so on.
Cont’d….
49

Formulation of a problem involves the following steps:

 Statement of the problem in a general way
 Understanding the nature of the problem
 Surveying the available literature
 Developing the idea through discussion
 Rephrasing the research problem into a working proposition.
 Cont’d….
50

2. Extensive Literature Survey:

 The researcher should undertake extensive literature survey
connected with the problem.
 Literature review has three functions:
 Bringing clarity and focus to the research problem
 Improving the methodology
 Broadening the researcher knowledge in the research area.

3. Developing Objectives and working Hypotheses:

 begin by writing down broad and general goals of the study.
 Hypotheses should be very specific and limited to the piece of research
in hand because it has to be tested
 Cont’d….
51

4. Preparing a research Design (creating research Design):

 a blueprint or detailed plan for how a research study is to be
completed. It is the complete scheme or program of the research.
 A research design should include the following:
 The study design
 The logistical arrangements that you purpose to undertake
 The measurement procedures
 The sampling strategy
 The frame of analysis
 Time frame
 Cont’d….
52

5. Determining Sample Design

 clearly define the target population.
 Determine the sample size
 Determine sample design to select the appropriate sampling
techniques (probability and /or non-probability sampling)

6. Collecting the Data

 Collect data that are appropriate though observation, interview,
questionnaire, and schedule.
Cont’d….
53
7. Analysis of Data:
 select the method of analysis based upon the purpose and the
availability of skill
 The analysis of data requires a number of closely related
operations such as:
 Establishment of categories (Classification)
 Editing
 Coding,
 Transcription or decoding and Tabulation
 Drawing statistical value
 Cont’d…..
54

A. Analysis of data: Descriptive analysis

 Percentage
 Average
 Time series analysis
 Index number analysis
 Use of other statistical tools if necessary
B. Hypothesis testing: inferential analysis
 Chi-Square test
 F-test
 Z-test
 T-test.
 Regression and correlation analysis.
 Cont’d….
55

8. Interpretation and reporting the results:

 the explanation of findings on the basis of some theory.

Draw meaning from the analysis


 Reach to the conclusion and compare your conclusion against your set
hypothesis.
 See whether conclusions are applicable universally
 Make generalization.

Report Writing:
 The preliminary pages with Roman Numbers.
 Main text:

 Introduction (use Arabic Numbers for pagination).

 Main reports
 Summary and findings
 Conclusion and recommendation
 1.5. Business Research
56

 Business research is defined as the systematic and objective process

of gathering, recording, and analyzing data for aid in making
business decisions.
 Business research is a process of planning, acquiring, analyzing,
and disseminating relevant data, information, and insights to
decision makers in ways that mobilize the organization to take
appropriate actions that, in turn, maximize performance.
 It connotes patient study and careful look at data to discover all
that can be known about the subject of study
 When is Business Research Used?
57

 Typically, business research methods are used in situations of

uncertainty, that is, when decision-makers face two or more
courses of action and seek to select the best possible alternative
under the circumstances.
 Business Research is hence aimed at improving the quality of
decision-making which, in turn, benefits the organization and
helps ensure its continuity and efficiency
 When Should Business Research be Undertaken?
58

Is sufficient time
available?
Yes

Is information
NO Do not
adequate?
undertake Business Research
Yes

High importance
of decision?

Yes

Research benefits
greater than costs? Undertake Business Research
 When Research Should be Avoided
59

 When information cannot be applied to a critical managerial

decision
 When managerial decision involves little risk
 When management has insufficient resources to conduct a study
 When the cost of the study outweighs the level of risk of the
decision
 When there isn't sufficient time available.
 1.6. Managerial value of business research
60

 Research facilitates effective management

 Identifying the existence of problems and opportunities.
 Diagnosis and assessment
 Selecting and implementing a course of action
 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.

1.8. Major topics for research in business
61

 The following are the major research areas in business:

 General Business, Economic, and corporate Research
 Studies of business and industry trends
 Inflation and pricing studies
 Financial and Accounting Research
 impact of taxes
 Portfolio analysis
 Research on financial institutions
 Management and Organizational Behavior Research
 Credit risk management in corporates
 Absenteeism and turnover
 Sex, age, and racial discrimination worker-equity studies
 New-product concept tests etc…
 1.9. Business research in a global activity
62

 Business research, like all business activity, has become

increasingly global.
 Companies that conduct business in foreign lands must
understand the particular nature of those markets and determine
whether they require customized business strategies
 1.10. Ethics in Research
63

 In the early period conducting study on animals for human

problem was common, but now it is becoming un ethical on
the side of animal right protections group.
 Conducting a study on humans have also an ethical issue.
 Ethical Issues in Conducting Study
64

1. Informed consent: the potential participants of the research

should always be informed in advance about the procedures,
risk, potential benefit, inconvenience and obligations
associated with the research.

2. Voluntary Participation: the participants of the research should

be willing to be incorporated in the study and they have the
right to withdraw at an time, at any data.
 Cont’d….
65

3. Professional Integrity: the researcher has to respect the

professional code of conducts and respect guidelines of a project.
He/ she must be honest about the purpose and content of the
research.

E.g health related studies and business secrets.

4. Duty to avoid harm: researchers must protect participants from

risks of any harm either physically or psychologically from any
personal or organizational attacks that raised because of the
research.
 Cont’d….
66

5. Confidentiality: except written consent is given, researchers

should respect and preserve the confidentiality of participants
identities and data at all times.
 Researchers shall not allow third party who is not directly
concerned with the result of the study to access information from
participants.

6. Right to service: researchers has to organize a process of remedy

when service is to be cut from control group from experimentation.
Because respondents has a right for equal access to service.
67

Thank
You.