Nature and Scope of

Business Research
Objectives
• Understand what research is
• Have appreciable knowledge on the research process
• Know the various classifications of research
• Understand research paradigms
• Appreciate the features of a good research
• Appreciate how theories are broken down into
concepts and variables.
What is Research?
• Research is an organized and systematic way of finding answers to
questions (Boateng, 2014).
• Research is something that people undertake in order to find out
things in a systematic way, thereby increasing their knowledge
(Saunders, Lewis & Thornhill, 2007).
• Business and management research is undertaken in order to find out
things about business and management.
Uniqueness of Business and Management
Research
• According to Easterby-Smith et al. (2002) (as cited in Saunders, Lewis
and Thornhill, 2007), business and management research is unique
because of the following:
• (a) the way in which managers (and researchers) draw on knowledge
developed by other disciplines;
• (b) the fact that managers tend to be powerful and busy people.
Therefore, they are unlikely to allow research access unless they can
see personal or commercial advantage; and
• (c) the requirement for the research to have some practical
consequence.
Major Topics for Research in Business

• General Business Conditions

• Financial and Accounting Research
• Management and Organizational Behavior Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research
Why do we do Research?
We do research to:
• (a) Discover/Explore;
• (b) Understand
• (c) Describe;
• (d) Explain; and/or
• (e) Predict/create
…social or scientific phenomena
Alternatives to Research
• Without research the common sources of perceptions, information and
knowledge include the following:
• (a) Authority which is accepting something as true or as a fact because it
comes from people of authority;
• (b) Tradition refers to accepting something as true or as a fact because it is
based on the past – passed on from previous generation and become a
norm;
• (c) Common sense refers to ordinary reasoning which may be built from a
person’s experiences and sometimes tradition;
• Media myth refers to arriving at conclusions based on a reality created by
the media
• (e) Personal experience refers to learning through our sensory impressions
and knowledge – ‘seeing is believing’.
Who needs research?
• Research is needed by researchers, practitioners and policy makers.
• Stakeholders of research include organisations, communities,
government and non-governmental institutions and society in
general.
• Research has to fit into a body of knowledge or practice or policy.
The Research Process
More Detailed Research Process
• Selecting a research topic
• Determining the research
problem
• Determining research gaps
• Determining research
hypotheses
• Determining research objectives
• Determining research questions
• Detailed literature review
• Determining research
framework
• Designing the research
• Collecting Data
• Analyzing and interpreting Data
• Informing others (research write
up and publication)
Classifications of Research
• The various types of research are classified according to:
• (a) Application of the research or use of the research results
• (b) Purpose or objective of the research
• ( c) Inquiry procedure of the research including:
• - Paradigm or philosophies underpinning the research;
• - Approach of the research
• -Time dimensions of the research
Type of Research based on application
Type based on the Purpose or Objectives of
the Research
• Exploratory Research
• Descriptive Research
• Explanatory or Causal Research
Inquiry Procedure of the research
Research philosophies and Approach of the Research: Time Dimension of the Research
paradigm:

positivism, Quantitative (Structured) Research Cross-sectional study

interpretivist, Qualitative (Unstructured) Longitudinal Study (Panel or Cohort
realism, Research studies)
relativism and Time Series
critical realism.
Overview of Research Paradigms or Philosophies
ONTOLOGY (What is the nature of Epistemology (What is the nature Methodology (How is knowledge
reality?) of knowledge generated?) created?)
POSITIVISM Value-free. Knowledge generated is Researchers formulate research
There is a single, objective and objective, free of time influences, questions and hypotheses and then
tangible reality and is context independent. test them empirically under
carefully controlled circumstances.
Deductive reasoning.

INTERPRETIVISM Value-Laden. Knowledge generated Knowledge is created through

Multiple realities exist, subject to
human experiences and
interpretation. Reality is socially
constructed
is subjective, time-bound and
context dependent.
researchers identifying the various
interpretations and constructions
of reality that exist and attempting
to establish patterns.
Inductive logic and emergent
design
ONTOLOGY (What is the nature of
reality?)
REALISM
Reality is ‘real’ but only imperfectly and are probably true … researchers needs
probabilistically apprehensible, so
triangulation from many sources is
required to try to know it.
RELATIVISM
Multiple realities exist. Reality as truth
is not “absolute”, it is relative, it is
dependent upon ‘something’ and it
does exist.
CRITICAL REALISM
Two worlds – transitive and
intransitive. Transitive is what we
observe and learn with our mind – the
perceptions of reality. Intransitive
embodies the reality which is
independent of what the mind thinks.
Epistemology (What is the nature of
knowledge generated?)
Value-Cognizant/Value aware. Findings
to triangulate any perceptions collected
The interpretation of the world
requires some form of human
processing
Transitive world is value-laden and
changing continually. Intransitive world
has underlying structures and
mechanisms that are ‘relatively
enduring’ – that is what we want to
study.
Methodology (How is knowledge
created?)
Social phenomenon is understood
through hypotheses which are tested
to establish patterns of associations
and hence, the most possible
explanation. Hypothetico-Deduction
The construction of knowledge is
influenced by worldview and research
paradigm of a researcher. Researchers
should focus more on creating and
developing new ‘useful’ theories –
useful solutions to specific problems.
Researchers seek to deconstruct and
understand the structure and
mechanisms underlying the subjective
realities that exist. Triangulation from
many sources is required to try to know
it. Retroductive reasoning
Characteristics of a Good Research
• Aim
• Rigor
• Testability
• Replicability
• Precision and Confidence
• Objectivity
• Generalizability
• Parsimony
Theory
• A coherent set of general propositions used as principles of
explanation of the apparent relationships of certain observed
phenomena.
Two Purposes Of Theory
• Prediction
• Understanding
Concept (or Construct)
• A generalized idea about a class of objects, attributes, occurrences, or
processes that has been given a name
• Building blocks that abstract reality
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and “inflation”
A Ladder Of Abstraction
For Concepts

Increasingly more abstract

Vegetation

Fruit

Banana

Reality
Scientific Business Researchers Operate at
Two Levels
• Abstract level
• concepts
• propositions
• Empirical level
• variables
• hypotheses
Definitions
• Abstract level -In theory development, the level of knowledge
expressing a concept that exists only as an idea or a quality apart
from an object.
• Empirical level -Level of knowledge reflecting that which is verifiable
by experience or observation.
Theory Building A Process Of Increasing
Abstraction

Theories

Increasingly more abstract

Propositions

Concepts

Observation of objects
and events (reality )
Concepts are Abstractions of Reality

Abstract
CONCEPTS
Level

Empirical OBSERVATION OF OBJECTS

Level AND EVENTS (REALITY)
Abstract Level
• Concepts abstract reality.
• Propositions are statements concerned with the relationships among
concepts.
Proposition at Abstract Level

Concept A Concept B
(Reinforcement) (Habits)

Hypothesis at Empirical
Level
Cedi bonus for
sales volume Always makes
over quota four sales calls
a day
• A hypothesis is a proposition that is empirically testable. It is an
empirical statement concerned with the relationship among variables.
• A variable is anything that may assume different numerical values.
Deductive Reasoning
• The logical process of deriving a conclusion from a known premise or
something known to be true.
• We know that all managers are human beings.
• If we also know that John Smith is a manager,
• then we can deduce that John Smith is a human being.
Inductive Reasoning
• The logical process of establishing a general proposition on the basis
of observation of particular facts.
• All managers that have ever been seen are human beings;
• therefore all managers are human beings.
Scientific Method
The use of a set of prescribed procedures for establishing and
connecting theoretical statements about events and for predicting
events yet unknown.
The Scientific Method:
An Overview

Assess Formulate Statement

Design
relevant concepts & of
research
existing Propositions Hypotheses
knowledge

Acquire Analyze & Provide

empirical evaluate explanation-
data data state new
problem