JIGJIGA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF ACCOUNTING AND FINANCE
ADVANCED RESEARCH METHODS

INTRODUCTION TO BUSINESS RESEARCH

Dr. Abenet Yohannes

CHAPTER-1

INTRODUCTION TO
BUSINESS RESEARCH
 Learning objective

Upon the completion of this chapter, you will be able to:

❑ Define Business Research
❑ Explain the Purposes of Business Research
❑ list Applications of business Research
❑Understand Features of a Good Business Research
❑Understand different kinds of Research
❑Understand the business research process

Dr.Abenet Yohannes
RESEARCH QUOTE

"The secret of success is to

know something nobody else
knows. "
Aristotle
Dr.Abenet Yohannes
RESEARCH QUOTE

“Somewhere, something incredible is

waiting to be known”.
Carl Sagan

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 INTRODUCTION

Progress in almost every field of science depends on the

contributions made by systematic research; thus research is often
viewed as the cornerstone of scientific progress. the purpose of
research is to answer questions and acquire new knowledge.

Dr.Abenet Yohannes
 INTRODUCTION

There Are Five Types Of People

Those that did not

Those who think Those who
Those who makes Those who watch know that any
they make things wondered what
things happen things happen thing had
happen happened
happened

Research enables you to be the first company

Dr.Abenet Yohannes
 Meaning of Research
Research is an Organized and Systematic way of Finding answers to Questions

Organized
Research Study

Systematic

Materials Resources

To discover new things

To establish facts

To reach conclusion

Dr.Abenet Yohannes
 Meaning of Research

Systematic: because there is a

Organized : because there is a
specific set of procedures and
structure or method in going
steps which you will follow.
about doing research. It is a
There are certain things in the
planned procedure, not a
research process which are
spontaneous one. It is focused
always done in order to get the
and limited to a specific scope.
most accurate results.

Dr.Abenet Yohannes
 Meaning of Research

• Finding Answers : is the end of all research.

Whether it is the answer to a hypothesis or
even a simple question, research is successful
when we find answers. Sometimes the answer
is no, but it is still an answer.
• Questions : are central to research. If there is
no question, then the answer is of no use.
Research is focused on relevant, useful, and
important questions. Without a question,
research has no focus, or purpose.

Dr.Abenet Yohannes
 1.3. DECISION MAKING AND RESEARCH

• Decision making is central to life, Career and

business

• Always in life, Career and business we are

faced with more number of alternatives from
which we need to choose the best one

• This act of choosing the best alternative is

decision making

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 DECISION MAKING AND RESEARCH ….

• For effective decision making one should have

good knowledge of all the alternatives, so that
one can choose the best one.

• Research is inevitable to help in making logical

decision, particularly when the outcome of the
decision is either Uncertain or Risky

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PROBLEMS AND RESEARCH
The challenges we face in life, career and
business are termed as problems
However problems and opportunities are like the
two sides of the same coin called challenges

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 PROBLEMS AND RESEARCH
Challenge

Problem Opportunity

How can we make the company

How can we reduce our
so attractive that staff would
staff turnover rate? (P)
want to stay? (O)

Researchers provides knowledge to the business decision makers in identifying

the business problems and opportunities and help in making effective decision
Dr.Abenet Yohannes
 Purposes Of Research
To obtain new information
To look at relationships between variables
To develop new knowledge
To verify existing knowledge
To develop new theories or expand on existing theories
To explain situations or problems
To utilize or apply a new technique or technology
To understand, predict, or control a result

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 Methods of Acquiring Knowledge

05 THE SCIENTIFIC METHOD

04 REASONING

03 EXPERIENCE

02 TRADITION
AUTHORITY
01

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 Methods of Acquiring Knowledge

01 AUTHORITY

When knowledge is obtained from individuals who are

qualified producers of knowledge.
E.g. knowledge about religion from sheiks and Priests
Students get knowledge from teachers, etc...

Dr.Abenet Yohannes
 Methods of Acquiring Knowledge
TRADITION
02

When we accept without questioning the traditions,

customs or culture of our forefathers or the society.
E.g. it is not culturally accepted for males to wear
females’ dresses.

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 Methods of Acquiring Knowledge
Experience
03
Our personal experience or our observation of the
experiences of other people
We need no one to tell us about it.
E.g. we know rainy months in a year from our
experience.
Limitations:
–Rather relative, depends on who went through the experience
–Experience without efficiency

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 Reasoning: Knowledge can be obtained based on some rules and forms of logic
04
A. Deductive reasoning:-is a thinking process in which one will go from
general statements to specific statements. from the known to the
The process unknown.
of deduction

It consists :
Theory I. Major premise: a previously
established fact
II. Minor premise: a particular
Hypothesis case to which the fact can
be applied
III. A conclusion
Data Collection e.g. All animals are mortal
Cat is an animal
Cat Is Mortal
Findings

Hypotheses confirmed or rejected

Waterfall
Revision of theory

(Bryman, 2006, p11)

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B. Inductive reasoning: we need to go from specific to general ideas.
Example
The Process
Mammals are mortal of Induction
Insects are mortal
Birds are mortal
Theory
Fishes are mortal
Plants are mortal
Draw Conclusion
Reptiles are mortal
All living things are mortal Test & Analyse

Form Hypotheses Hill Climbing

Observations

State the Question

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 05 THE SCIENTIFIC METHOD

• It integrates the most important aspects of the inductive

and deductive methods.

❑knowledge will be obtained through a step by step

process of:

• collecting data

• analyzing it and

• reaching at a conclusion

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 OBJECTIVES OF RESEARCH

05 Comparing phenomena

04 Controlling phenomena

03 Predicting phenomena

02 Explaining phenomena

01 Describing phenomena

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 1.Descriptive research

❖ In description, the researcher attempts to find answers to the questions

“what,” “who,” and “where?”
❖ The main characteristic of this method is that the researcher has no
control over the variables; S/he can only report what has happened or
what is happening.
❖ E.g. Who is homeless, how many are there?
❖ E.g. If a researcher collects data about women’s participation in politics
and reports their level of participation based on the data collected, then
we can say that females’ participation in politics has been described.

Dr.Abenet Yohannes
 2.Explanatory research

• It involves understanding the cause – and – effect relationship

between phenomena. Attempts have been made to answer the
question “why?”

• E.g. Why do females fail to actively participate in politics? Here the

researcher attempts to answer the causes of low level of
participation females in politics. Is there causal link between
gender and level of participation in politics?

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 3. Prediction

• In research, generalization is made not only to explain the past

but also to predict what will happen in the future.

• E.g., Females’ empowerment improves their level of participation

in politics.

Dr.Abenet Yohannes
 4.Control

• Researchers are also interested in influencing or changing a particular

event or condition for different purposes.

• E.g. If educational level and male dominance are identified as the

causes of low participation of females in politics and if the researcher
predicted that an intervention program that raises females’ educational
level and changes males’ attitude increases females’ level of
participation in politics, the researcher will introduce the intervention
package to bring about the desired change.

Dr.Abenet Yohannes
 5. Comparison

• The researcher may also be interested in comparing two or more

groups on a certain behavior.

• The purpose here is to explore whether two or more groups are

similar or different with respect to the occurrence of certain event.

• E.g. Is there gender difference in terms of level of participation in

politics?

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 SIGNIFICANCE OF RESEARCH

❑ Throws light on risks and uncertainty

❑ Identify alternative courses of action

❑ Helps in economic use of resources

❑ Helps in project identification

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 SIGNIFICANCE OF RESEARCH

❑ Solves investment problems

❑ Solves pricing problems
❑ Solves allocation problems
❑ Solves decision making issues in Human
resource management
❑ Solves various operational and planning
problems of business and industry
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 SIGNIFICANCE OF RESEARCH

❑ Provides the basis for all government policies in our

economic system.

❑ Helps social scientists in studying social relationships

and in seeking answers to various social problems.

❑ For students, research means a careerism or a way to

attain a high position in the social structure.

❑ For professionals in research, it may mean a source of

livelihood.
Dr.Abenet Yohannes
 SCIENTIFIC METHOD
 ‘Science’ refers to the body of systematic and organised
knowledge which makes use of scientific method to acquire
knowledge in a particular field of enquiry.
 Scientific method is the systematic collection of data (facts)
and their theoretical treatment through proper observation,
experimentation and interpretation.
 Scientific method attempts to achieve a systematic interrelation
of facts by experimentation, observation, and logical arguments
from accepted postulates and a combination of these three in
varying proportions.
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 BASIC POSTULATES IN SCIENTIFIC METHOD

 It relies on empirical evidence.

 It utilizes relevant concepts.

 It is committed to only objective considerations.

 It presupposes ethical neutrality.

 It results into probabilistic predictions.

 The methodology is made known.

 Aims at formulating scientific theories.

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 CRITERIA OF A GOOD RESEARCH
 Purpose clearly defined.
 Research process detailed.
 Research design thoroughly planned.
 High ethical standards applied.
 Limitations frankly revealed.
 Adequate analysis for decision maker’s needs.
 Findings presented clearly.
 Conclusions justified.
 Researcher’s experience reflected.
Dr.Abenet Yohannes
 QUALITIES OF A GOOD RESEARCH

• Systematic

• Logical

• Empirical

• Replicable

• Creative

• Use of multiple methods

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 Characteristics of Research
Research is directed towards the solution of a problem.
Research is based upon observable experience or empirical
evidence.
Research demands accurate observation and description.
Research involves gathering new data from primary sources or
using existing data for a new purpose.
Research activities are characterized by carefully designed
procedures.
Research requires expertise i.e., skill necessary to carryout
investigation, search the related literature and to understand and
analyze the data gathered. Dr.Abenet Yohannes
 Characteristics of Research
Research is objective and logical – applying every
possible test to validate the data collected and
conclusions reached.
Research involves the quest for answers to unsolved
problems.
Research requires courage.
Research is characterized by patient and unhurried
activity.
Research is carefully recorded and reported.
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TYPES OF RESEARCHES

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 BASIC RESEARCH

– Fundamental Research which is also known as basic or pure research is undertaken for
the sake of knowledge without any intention to apply it in practice.
– It is undertaken out of intellectual curiosity and is not necessarily problem-oriented.
For example
• How did the universe begin?
• What are protons, neutrons, and electrons composed of?
• inventions like steam engine, telecom.

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 APPLIED RESEARCH

• Applied Research or Action Research is carried out to find solution to a real life
problem requiring an action or policy decision.
• Applied research is used to find solutions to everyday problems, cure illness, and develop innovative
technologies, rather than to acquire knowledge for knowledge's sake.
• For example, applied researchers may investigate ways to:
• Improve agricultural crop production
• Treat or cure a specific disease
• Improve the energy efficiency of homes, offices, or modes of transportation

Dr.Abenet Yohannes
 Descriptive vs Analytical Research

Descriptive Research is a fact finding investigation which is aimed at

describing the characteristics of individual, situation or a group (or) describing
the state of affairs as it exists at present.
For 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
finding the most frequent disease that affects the children of a town.

Analytical Research is primarily concerned with testing hypothesis and

specifying and interpreting relationships, by analyzing the facts or information
already available.
For example, to test the hypothesis “ Listening to music lowers blood pressure levels” there are 2 ways of conducting
research

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 Conceptual vs Empirical
Research

Empirical Research is a data

Conceptual Research is generally
based research which depends
used by philosophers and
on experience or observation
thinkers to develop new
alone. It is aimed at coming up
concepts or to reinterpret
with conclusions without due
existing ones.
regard for system and theory.

Dr.Abenet Yohannes
 Quantitative research

• is based on the measurement of quantity or amount. It is

applicable to phenomena that can be expressed in terms of
quantity.
• Creswell (1994) “a type of research that is `explaining
phenomena by collecting numerical data that are analyzed
using mathematically based methods (in particular statistics).”

Dr.Abenet Yohannes
 Qualitative research

• Is concerned with qualitative phenomenon, i.e., phenomena relating to or

involving quality or kind.
• It is concerned with developing explanations of social phenomena
• It aims to help us to understand the world in which we live and why things are
the way they are.
• It is concerned with finding the answers to questions why? how? in what way?

Dr.Abenet Yohannes
Dr.Abenet Yohannes
Dr.Abenet Yohannes
Dr.Abenet Yohannes
 RESEARCH QUOTE
To do successful research, you don’t have
to know everything, you just need to know
one thing that isn’t known

Dr.Abenet Yohannes