CHAPTER ONE

INTRODUCTION
NATURE AND PURPOSE OF RESEARCH

Although research is central to both academic and

business activities, there is no consensus in the literature
on how it should be defined. One reason for this is that
research means different things to different people.
However from many definitions offered, there is general
agreement that research is :-
Process of inquiry and investigation
Systematic and methodical, and
Increase knowledge
Looking the nature of research, this tells us that researcher
need to use appropriate methods for collecting and
analyzing research data, and to apply than rigorously.
Definition

Research is a systematic and

methodical process of inquiry and
investigation with a view to
increase knowledge.
Classifying research

Studying the various characteristics of the deferent types of

research helps us to identify and examine the similarities
and differences. Research can be classified according to
the:-
Purpose of research - the reason why it was conducted
Process of the research the way in which the was
collected
Logic of the research whether the research logic moves
from the general to the
Outcome of the research - whether the expected outcome
is the solution to particular problem or more general
contribution to knowledge

 Exploratory research
Purpose Descriptive research

Analytical research

Predictive research

Quantitative
Process qualitative

Applied
Outcome Basic (pure)

Deductive Research
Logic Inductive research
PRELIMINARIES
TITLE PAGE
DECLARATION A
DECLARATION B
DEDICATION PAGE (optional)
ACKNOWLEDGMENTS
TABLE OF CONTENTS
LIST OF TABLES AND FIGURES
LIST OF ABBREVIATIONS
ABSTRACT (in English and Somali)

 CHAPTER ONE
INTRODUCTION
1.1 Background of the study
A research background has main dimensions
Historical background
The researcher describes in short and precise
paragraph the relationships between the variables in
the study in historical prospective. Any research issue
is not being investigated for the first time. The
researcher should provide a brief history of the issues
been investigated.
The research should starts with the following
Global wise
Regional wise
National wise
Conceptual background
In this section the researcher provides definition of
the terms in the topic. There are three main
definitions:
Literal definitions
This informs the reader of the literature meaning of
the terms or variables in the study. So that the
reader understands their usual meanings. The
definitions should be authoritative sources, which
must be indicated probably (books and directors
etc)
Working definition
The working definition is the literal meaning of the
term adopted by the researcher. One of the literal
definitions is accepted wholesome as the definition of
the concept. The researcher must provide a
justification for the wholesome adoption of one
definition out of several possible definitions.

Operational Definition
the words, phrases, or passages that come before and
after a particular word or passage in a speech or piece
of writing and help to explain its full meaning
The contextual background
In the contextual background, the researcher describes
the problems in each operation of the variable in the
context of the study. The researcher describes the
problem in each isolated variable, pointing out of the
gaps that need to be filled by the study. The contextual
background is presented in several paragraphs.
For operational variable the researcher should:
Provide a literal definition of the variable. One
definition is sufficient here
Provide the ideal relationships between the variables
Expose the gaps in the context of the study by
comparing the actual to the idea
1.2 Problem statement
A problem statement is specific statement that clearly conveys the
purpose of the research study. Statement focuses on the phenomenon
that the researcher desires to describe, predict, control, or explain.
The researcher starts with a brief introductory section. In this section,
the researcher introduces briefly the general area of the study. The
researcher then narrows down to specific problem to be studies.
A good problem statement has the following characteristics:
It is clearly and in such a way that readers interest is captured
immediately
The specific problem identified in the problem statement is objectively
researchable
The scope of the specific research problem is indicated
The importance of the study in adding new knowledge is stated clearly
The problem statement must give the purpose of the research
The researcher describes three main sections
The ideal (expected performance, status, conditions
or relationships between variables)
Facts around the problems (defining the problem)
The gab (discrepancy between the ideal and the gab)
To indentify the research problem, the researchers
should answer a YES to the following questions:
Is there a perceived inconsistency between what is
and what should be if yes answer leads to the
second question
Why there is discrepancy? If YES the problem exist
Are there possible and reasonable solutions or
answers to the research question /objectives
 Theory/Practice
/Experience

What is and what should be (Ideal

and Actual)

Differences YE
S

N
O
Go
Is there ? Why there is YE
discrepancy? S ahead
N
O
A
Solution exist:
problem
no research Exist

Are there possible & reasonable YE

explanations to the problem?
S

NO

It cant be researched
1.3 The Purpose

The purpose is the research aim or general

objective. It describes the general attention
and identities the goal of the study. It
establishes the direction of the study, it
captures in single line or paragraph.
1.4 Specific objectives

Research objectives, questions and hypothesis have the

same characteristics but different in wording.
Objectives are the specific aims or goals arising directly
from the purpose of the study. They are statements of
intended specific outcomes of the study and specify
more directly what researcher is going to do.
A good research objective has three basic characteristics:-
SMART
Clearly indicate the target population (i.e. where the
study will be conducted).
Clearly indicate the variables to be investigated and the
relationship between them
There are three approaches or models to
research objectives:
The researcher breaks down the IV but retains
the DV
The researcher breaks both the IV and DV and
then relates each individual aspect of the IV to
the DV.
The researcher retains the IV but relate it to
separate elements of the DV
Many to one
To determine the relationship between radio
advertising and customer satisfaction
To explore the impact of tv ads on customer
satisfaction
To describe the relationship between cinema
ads and customer satisfaction
1.5 Research Question /hypothesis
Research question
Research question and hypothesis are usually
used interchangeably. A researcher uses
questions when he or she is not sure of the
possible solutions to the research problem. So
the researcher posses question such that if
answered. The responses will help achieve the
objectives. To write research questions a
researcher simply states each objective in
question form.
Avoid question that require YES /NO answers.
Hypothesis
Is a proposal about a solution to a problem: it is an
intelligent or educated guess or a tentative solution to a
problem. They are declarative statements on the
relationship between two or more variables on the nature
of some phenomenon. Hypothesis from the elements from
testing to an able the researcher make an opposition
about certain phenomenon being investigated.
Types of hypothesis
Null Hypothesis
Null is sometimes referred to as a statistical hypothesis. A
null hypothesis always states that no real relationship or
differences exists. Any relationship between two variables
or difference between groups is merely due to chance or
error.
Alternative Non Directional Hypothesis
Alternative Non Directional Hypothesis is also
referred as research hypothesis. The type of
hypothesis states that there is a relationship
or differences but the researcher does not
know the nature of such a difference or
relationship.
It is suitable where previous research findings
are conflicting or where a strong rational to
support or predict the relationship does not
exist. Stating the hypothesis in non-
directional form is conservative approach.
Alternative Directional Hypothesis
Alternative directional hypothesis specifies
the nature of the relationship or deference
between variables. This means that a
relationship may be stated as being greater
than, less than, increase, decrease, higher
than, lower than, etc.
1.6 Significance of the
study
It refers to the relevance of the study in terms of
the academic contribution and practical use that
may be made of the findings. It always stated as
suggestions or intended expectation from the
study. It is a rational for the importance of the
study highlighting the contributions of the research
to other researchers, practitioners and policy
makers.
It is best considered in terms of usage, benefits or
advantages that may be gotten of the findings,
recommendations and conclusions from the study.
Intended or expected benefits or usage should
be targeted to:
Beneficiary
Immediate community, persons or societies
that will be suited or will involved in the study
National community, groups or persons.
International community
The significance of the study outlines the
justification for carrying out the study.
Knowledge contribution
Why and how the study will contribute
scholarly research and literature (i.e. its
contributions to extension of the knowledge
and other related studies )
Why and how the study will help to improve
practice
Why and how the study will help to improve
policy
1.7 Scope of the study

Scope of the Study:

The scope has four dimensions: content scope, theoretical
scope, geographical scope and time scope.
Content scope: the study explored the relationship
between Collateral Asset and Credit Management in
Mogadishu, Somalia. The research study was done to offer
relevant information about Collateral Asset credit
management in selected micro financial institutions for the
purpose of formulating strategies of mitigating credit risks
and developing plan and policy for credit risk
management.

Theoretical scope: The study focused on structural approach of

credit management by Merton which focuses on the structure of the
loan, the credit criteria, credit culture and business experiences
toward credit history. Merton suggested that the good credit
management depends on good structure collateral, credit culture and
credit criteria.
Geographical scope: this study conducted in Micro financial
institutions in Mogadishu, the capital city of Somalia.
Time scope: This study covered the period between February 2011 to
2010. And the planned duration of the study was limited to six
months.
The respondents in the research did employee and managers in
the selected Micro financial institutions in Mogadishu, Somalia.

PRELIMINARIES

A.TITLE PAGE
B.DECLARATION A
C.DECLARATION B
D.DEDICATION PAGE (optional)
E.ACKNOWLEDGMENTS
F.TABLE OF CONTENTS
G.LIST OF TABLES AND FIGURES
H.LIST OF ABBREVIATIONS
I.ABSTRACT (in English and Somali)