CHAPTER ONE

Business Research
Methods: Introduction

Mulugeta Kebede, A PhD Scholar

July 2017
 1. Research Methods: An Introduction

Meaning of Research
• Search for Knowledge and fact
• A voyage of knowledge
• A movement from known to unknown
• An art of scientific investigation to the state of
nature or phenomenon.
Research Defined
• Research is the application of human intelligence in a
systematic manner to a problem whose solution is
not immediately available.
-Herz-
• Research as an activity comprises of defining and
redefining problems, formulating hypothesis,
collecting, organizing and evaluating data; making
deduction and reaching at conclusion to determine
whether they fit the formulated hypothesis.
-Woody-
 Cont….
• Research is original and creative intellectual activity,
carried out in the laboratory, the library or in the
field which endeavors to discover new facts and to
apprise and interpret them properly in the light of
previous knowledge.
-Klopsteg-
– It also revises previously accepted conclusion,
theories and laws (not always discover new facts)
• Kothari also defined research as the pursuit of
truth with the help of study, observation,
comparison and experiment.
Business Research
• It is the systematic and objective process of
generating information for aid in making business
decisions.
• It is the application of scientific method in search
of the truth about business phenomena.
• Activities include:
– Defining business opportunity and problems
– Gathering and evaluating ideas
– Monitoring performance
– Understanding the business process
 Cont…
From the above definition:
• Research information is neither intuitive nor
haphazardly gathered.
– Literally, research (re-search) -“search again”
• Business research must be objective
– Detached and impersonal rather than biased
• It facilitates the managerial decision process for
all aspects of a business.
– Can decrease the risk of making wrong decisions
by reducing uncertainty
 Motivation of doing research
• The possible motives of doing research include:
– Desire to get degree with its consequential benefit
– Desire to get respect and promotion (to own
respect in society and – “publish or perish”)
– Desire to face a challenge in solving the unsolved
problem (Concern over a particular problem)
– Desire to get intellectual joy of doing some
creative work (Professional content)
– Directive of government (Responsibility)
– Employment condition (Criterion)
Cont…
The Hallmarks of Scientific Research
• The hallmarks or distinguishing characteristics of
scientific research may be listed as follows:
1. Purposiveness
2. Rigor
3. Testability
4. Replicability
5. Precision and Confidence
6. Objectivity
7. Generalizability
8. Parsimony
• Example: Consider a manager who is interested in investigating
how employees commitment can be increased
 Cont…

1. Purposiveness
– Having a definite aim or purpose
– Example: Focus is increasing employees’ commitment
to the organization. But why?
2. Rigor
– Having a good theoretical base and sound
methodological design
– Rigor adds carefulness, scrupulousness and the degree
of exactitude in research.
 Cont…
Example:
• A manager asks 10-12 employees how to increase
the level of commitment. If solely on the basis of
their responses the manager reaches conclusions on
how employee commitment can be increased, the
whole approach to the investigation would be
unscientific.
• It would lack rigor for the following reasons:
1. Based on few employees (bad conclusion)
2. Bias and incorrectness (questions)
3. Other influences on commitment are ignored
 Cont…
3. Testability
– Logically developing hypothesis and testing it to see
whether the data supports it or not
– Example: H0: Participation in decision making
increases employees commitment
4. Replicability
– It means that it can be used again if similar
circumstances prevails.
– The hypothesis test should be reflective of the true
state of affairs in the population
 Cont…
5. Precision and Confidence
• Precision
– The closeness of the findings to “reality” based on a
sample.
– It reflects the degree of accuracy and exactitude of
the results of the sample.
– Example: If a supervisor estimated the number of
production days lost during the year due to
absenteeism at between 30 and 40, as against the
actual of 35, the precision of the estimation is more
favorable than if he has indicated that the loss of
production days was somewhere between 20 and 50.
 Cont…
• Confidence
– The probability that our estimations are correct.
– That is, 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 would be true and there is
only a 5% chance of our being wrong.
• Precision and confidence are attained through
appropriate scientific sampling design.
6. Objectivity
• The conclusions should be based on the facts derived
from actual data, and not on our subjective values.
 Cont…
7. Generalizability
• the scope of applicability of the research findings in
one organization setting to other settings.
• To be widely generalizable:
– The sampling design should be logically developed
– The procedure in data collection should be carefully
followed
8. Parsimony
• Simplicity in explaining the phenomenon, and in
generating solutions for the problems
 Cont…
– For instance, if 2-3 specific variables in the work
situation are identified, which when changed would
raise the organizational commitment of the
employees by 45%, that would be more useful to the
manager than changing 10 different variables to
increase organizational commitment by 48%.
• Economy is achieved when we use a lesser number
of variables that would explain the variance far
more effectively than a complete set of variables
that would only marginally add to the variance
explained.
 Research and Scientific method
• The researcher is interested in the repeatability and
validity of results and their application to general
solutions.
• Research is careful, detailed and systematic study of
a thing.
– learning something new about it or studying it from a
new perspective
• The philosophy common to all research methodology
and technique is called Scientific methods.
• Scientific method is the pursuit of truth as determined
by logical considerations, observation and exper.
 Steps in scientific method
1. Observation –of the subject matter of the research
2. Recording—of all information obtained via observation
3. Classification
– systematically arranging and organizing the recorded
data on the logical basis
4. Generalization
– extension of general laws and principles on the basis of
the pattern exhibited by the classified material.
5. Verification
– Confirming the validity of scientific principles and laws
by examination.
 Methods versus Methodology
• According to Greener
– Research Methods refer to scientific activities designed to
generate data (data collection tools)
– Research Methodology is more about one’s attitude and
understanding of research and the strategy you choose to
answer the RQs.
• According to Kothari
– Research methods refer to the methods the researchers use
in performing research operations.
• Include: data collection methods, statistical techniques and
finding accuracy evaluation techniques
– Research methodology is a way to systematically solve the
problem (the philosophy that guides your study)
 Types of Research

I. On the basis of the outcome of the research:

– Whether the research tries to solve a particular
problem or makes a general contribution to the
knowledge, research can be
a) Fundamental Research:
– also called academic or basic or pure research.
– It is aimed at investigating or search for new principles
and laws.
– It is mainly concerned with formulation of a theory.
– It is organized only for the attainment of knowledge
and truth
 Cont…
• Example
– The relationship b/n crime and economic status
– The relationship b/n executive success and high need for
achievement.
– Newton’s Law of Motion
– Einstein Theory of Relativity
b) Applied Research:
– A research aimed at finding a solution for an
immediate problem facing a society or organization.
– It discovers the application of theories in solving some
social, economical or any other problems.
 Cont…

• Conducted when a decision must be made about a

specific real-life problem
• Example
– The improvement of safety in the working place
– The reduction of wastage in the working places
• Types of applied research
i. Social impact Analysis
ii. Evaluation research
iii. Need assessment
iv. Cost benefits analysis
 Cont…
II. On the basis of the purpose
– The reason why a research is conducted
a) Exploratory research (Pilot Survey)
– also called preliminary research
– is aimed at discovering, identifying and formulating a
research problem and hypothesis.
– needed when there are few or no studies that can be
referred
b) Descriptive Research
– Its aim is description of the state of nature or affairs, as
it exists at present
 Cont…
– also called ex-post facto research
– the researcher has no control over the variables; he can
only report what has happened or what is happening.
• Example:
– What is the absentee rate in a particular office?
– What is the profile of employees in an organization?
– Frequency of shopping
– Preferences of people
• It provides background information, accurate profile and a
verbal or numerical picture about a phenomenon
 Cont…
c) Analytic research
– uses facts already available, and analyzes them to make
a critical evaluation of the material.
– Not only describes the characteristics, but also analyzes
and explains why and how it happened or is happening.
– The information or facts used here can be either
Qualitative or Quantitative.
• Example
– How can we reduce the # of complaints by customers?
– How can we expand the range of our services?
– How can we improve the delivery time?
 Cont…
• Types of analytic research
i. Case studies
– When a researcher examines many features of a very
few elements in-depth.
– Case can be individual, group, organization, movement,
events, or geographic units.
– The data are usually more detailed, varied, extensive
and qualitative.
ii. Tracer Study
– also known as follow up study
– aims at investigating the subsequent development of
individuals after a specified treatment or condition.
 Cont…
– predicts what is likely to take place to the future.
– It is designed to establish patterns of change in the past
in order to predict future patterns
• Example: to know whether all of the former graduates are
employed or absorbed by the labor market
d) Predictive research
– goes beyond explaining why and how things happened.
– It predicts (forecasts) the probability of happening
similar situation in other places & time.
 Cont…
• Example
– How would an increase in interest rate affects our
profit margin?
– What type of packaging will improve the sales of our
products?
III. On the basis of the process of research
– on the basis of data used in the research process
a) Qualitative research
– applicable for phenomenon that cannot be expressed
in terms of quantity.
– Research designed to find out how people feel or what
they think about a particular subject
 Cont…

b) Quantitative research
– It is applicable for phenomenon that can be expressed
in term of quantity.
– It is based on the measurement of quantity or amount.
IV. On the basis of the environment
– the environment in which the research is carried out
a) Field research
– Conducted in the field
– common in social science, agricultural science, history
and archeology.
 Cont…

b) Laboratory research
– commonly experimental research.
– are common in medical science, agriculture and in
general in natural sciences.
c) Simulation research
– uses models to represent the real world.
– common in physical science, economics and
mathematics.
 Cont…

V. On the basis of the time duration

– time required to complete the research
a) One -time research
– limited to a single time period
– Also called cross-sectional study
– Data will be collected at a given point in time
b) Longitudinal research
– also called on-going research.
– carried out over several time periods.
Objectives of Research
1. To gain familiarity with a phenomenon or to achieve
new insights into it (exploratory or formulative
studies);
2. To portray accurately the characteristics of a
particular subject of study(descriptive research
studies);
3. To determine the frequency with which something
occurs or associations between things (diagnostic
studies);
4. To test a hypothesis of a causal relationship
between variables (hypothesis-testing Studies)
 Common objectives of a research in general include:

• To generate new knowledge, principle & scientific law

• To review and validate existing knowledge.
• 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 a new procedure and new system
The Research Process

1. Identification and Formulation of the research problem

2. Extensive and critical literature review
3. Developing working hypothesis
4. Understanding the philosophy and approach
5. Formulation of the research design
6. Determination of the sample design
7. Data collection
8. Analysis of the data (Qualitative & Quantitative Methods)
9. Generalization and interpretation
10. Reporting the result
The Research Process
 Recommended Texts

• Saunders M, Research Methods for Business

Students, Prentice Hall (2002)
• Sukaran U, Research Methods for Business: A
skill building approach, Wiley (1992)
• Kothari C R, Research Methodology, Methods
and Techniques, New Age Publisher (2004)
• Zikmund W, et al., Business Research Methods,
8th ed. McGraw Hill (2008)
 The End

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