Chapter 5

1. “An exploratory study is just as useful as a predictive study”. Discuss this statement.

Without exploratory studies, new areas of knowledge cannot be developed. Every theory
we now have must at one time have started as an exploratory research study. Exploratory
research lays the groundwork for understanding new phenomena, and developing new
measures to test these. The exploratory studies of today blossom into the predictive
studies of tomorrow, and in that sense both types of study are useful and essential to
generate knowledge, understanding, and prediction of business phenomena.

2. Why is the unit of analysis an integral part of the research design?

The unit of analysis is an important issue to be considered to find the right answers to the
research questions posed. The unit of analysis also determines the sample size. For
example, if one is interested in researching the factors that influence the stock market in

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three different European countries, it is the behavior of stock markets in those three

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countries that are of central interest to the study, and not the individual stock market within

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each country. At the time of data analysis, the data gathered from each of the stock
markets within each country will somehow have to be meaningfully aggregated, and only

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those three data points, which will form the three samples, have to be taken into
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consideration. Thus, the unit of analysis is a function of the research question posed, and
is an integral part of the research design. As will be seen later, research design decisions
relating to sampling also depend on the unit of analysis. Let us say a researcher decides
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to have a sample size of 30 for a study. Sampling 30 individuals in an organization when

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the unit of analysis is individuals, is not as problematic as sampling 30 organizations when

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the unit of analysis is organizations, or sampling 30 countries when the unit of analysis is
countries. Thus, the unit of analysis influences other decisions such as the sampling
design, the sample size, data collection methods, etc.
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3. Discuss the inter-relationships among: non-contrived setting, purpose of the study, type
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of investigation, researcher interference, and time horizon of the study.

A non-contrived setting simply indicates that the research is conducted where the flow of
events normally takes place – i.e. in the natural system. Such research could be either
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field studies or field experiments. The purpose of the field study could be for exploration
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and understanding of phenomena, for describing phenomena, or for hypothesis-testing.

The field study is a correlational study, and not usually initiated to explore cause and
effect relationships. Researcher interference in field studies is minimal. Field studies could
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be either cross- sectional or longitudinal. Field experiments, on the other hand, are
undertaken to establish cause and effect relationships, are longitudinal in nature, and
researcher interference in field experiments is much more than in field studies, since the
independent variable will have to be manipulated. These are mostly hypothesis-testing
studies, though they could be exploratory in nature, as well.

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 4. Below are three scenarios. For each, indicate how the researcher should proceed with
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.

Scenario A
Ms. Joyce Lynn, the owner of a small business (a woman’s dress boutique), has invited a
consultant to tell her how she is different from similar small businesses within a 60-mile
radius, in regard to her usage of the most modern computer technology, sales volume,
profit margin, and staff training.

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Answer

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This will be a descriptive study (describing how she compares with the others). Data will

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be collected from small businesses on the use of computers, sales volume, profit margin,

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and training programs and comparisons made. Some of these descriptions might be
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qualitative, as for example, in describing training methods. This will be a field study (using
many similar small businesses), and researcher interference will be minimal. It will be a
one-shot study, and the unit of analysis will be small business systems.
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Scenario B
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Mr. Paul Hodge, the owner of several restaurants is concerned about the wide differences
in the profit margins of the various restaurants. He would like to try some incentive plans
for increasing the efficiency levels of those restaurants that are lagging behind. But,
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before he introduces this, he would like to be sure that the idea will work. He asks a
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researcher to help him on this issue.

Answer Scenario B
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This would be a causal, hypothesis-testing study. It will be a field experiment, using one or
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two restaurants to manipulate incentive plans and see if this causes an increase in profit
margins in those restaurants. Because of the manipulation, there will be some researcher
interference with the natural flow of events. The time horizon for the study would be
longitudinal since data will be obtained on sales, profits, etc., both before and after the
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manipulation. The unit of analysis would be the restaurant.

Scenario C

A manager is intrigued why some people seem to derive joy from work and get energized
by it, while others find it troublesome and frustrating.

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 This would be a correlational, hypothesis-testing, field study with minimal
researcher interference. It will be a one-shot study and the unit of analysis will be
individuals.

Chapter 6

1. Define measurement.

2. What is meant by operational definition, when is it necessary, and why is it necessary?

Operational definition refers to the process of defining an abstract concept in such a

manner that it can be measured. It is necessary because it allows us to measure
subjective characteristics and phenomena which do not lend themselves to objective
measurement.

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3. Is it useful to draw on existing measures to measure abstract and subjective constructs

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such as for instance customer loyalty? Why (not)?

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The use of existing measurement scales has several advantages. First, it will save you a
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lot of time and energy. Second, it allows you to verify the findings of others and to build on
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the work of others (this is very important in scientific research but impossible if you would
use measures that differ from the measures that our predecessors have used!). Hence, if
you want to measure something, see if it has been measured before and then use this
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measure (adapt it to your specific needs whenever this is needed).

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