Hypotheses Development

and Developing your

Conceptual Framework
Hypotheses development
 Hypotheses development
• A hypothesis explain a phenomenon or predict a relationship in a proposed
study.
• You need to indicate the direction of your proposed relationship (e.g,
positive/negative). E.g., H4. SI has a positive significant relationship with BI
to adopt mobile devices to purchase tourism products.
• The issue of black-box theory. In this example of (e.g, "According to study
findings of Chau and Lai (2003) regarding contributing factors towards the
customers’ adoption of internet banking concluded that PU was found as a
significant factor in developing a positive attitude towards adoption of
internet banking services").
• In fact, this section is not about knowing the statistics of those relationships,
but is about the process. Readers would like to know the key question: “the
process of how PU contribute towards the customers' adoption?".
 Type of Variables
• Independent
• Dependent
• Moderating
• Mediating
• Higher Order Constructs
 Independent and Dependent
• Predictor vs. criterion
• Presume caused vs. presumed effect
• Stimulus vs. response
• Predictor from vs. predictor to
• Antecedent vs. consequence
• Manipulated vs. measured outcome
• Exogenous vs. endogenous
 Independent and Dependent
• Predictor vs. criterion
• Presume caused vs. presumed effect
• Stimulus vs. response
• Predictor from vs. predictor to
• Antecedent vs. consequence
• Manipulated vs. measured outcome
• Exogenous vs. endogenous
Independent and Dependent

Independent Variable Dependent Variable

Independent and Dependent

Independent Variable Dependent Variable

Independent and Dependent

Independent Variable Dependent Variable

 Moderating and Mediating
• Researchers usually start with bivariate relationships (relationship
between two variables) between IV and DV.
• As the findings mature, researchers often go beyond the simple account
of the bivariate relationship.
• Researchers attempt to understand what alters the magnitude or direction
of the relationship (moderation) and what bridges the relationship
(mediation).
• Three types of effects of IV on DV
• direct effect
• mediated effect
• moderated effect
 The direct effect is when the effect of IV on DV can be explained by the
bivariate relationship.
 Moderators and mediators are third variables, whose purpose is to
enhance a deeper and more refined understanding of a relationship
between an independent variable and a dependent variable.
Taylor’s Graduate 13
School
 Moderator
• A moderator is a third variable that affects the strength and/or
direction of the relationship between an independent variable and a
dependent variable.
• How do we identify a moderator?
• A review of the relevant articles published in reputable journals
• Discussion with experts in the same field and industry

Continuous vs Categorical
Moderator moderators
 Moderator
IV Moderator DV
Alcohol consumption Social Context (e.g., party; Social Acceptance
pub; church; workplace)
Performance Extent to which Satisfaction
Performance is Rewarded

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Moderator
Moderator
Moderator
Moderator
Moderator
Moderator
Moderator
Moderator
Moderator
 Moderator
• Remember to explain on the moderating effect (e.g., gender) in
your;

Introduction;
• Research Problem
• Contribution of study (theoretical)
 Moderator
• Contribution of study (methodological)
 Moderator
• Contribution of study (practical)
Moderator
 Mediator
• A mediator is a third variable through which the independent
variable affects the dependent variable through one or more
intervening variables called mediator.
• A mediational models advance an IV->M->DV causal sequence, and
seek to illustrate the mechanisms through which X and Y are related.
• Shadish and Sweeney (1991) stated that ‘the independent variable
causes the mediator which then causes the outcome’.
• The appropriate role a third variable plays should be determined
primarily by the theory used to develop the research framework.

Mediator

Predictor Outcome Variable

(IV) (DV)
 Mediator
• A mediator variable explains the relationship between a predictor
and an outcome.
• Seeking a more accurate explanation of the causal effect the
antecedent (predictor) has on the DV (criterion outcome) – focus on
mechanisms that make causal chain possible.

Achievement
Watching TV
Level

Time spent Achievement

Watching TV
on homework Level

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 Mediator
A mediator identifies and explain the mechanism
or process that underlies an observed
relationship between an independent
variable and a dependent variable via the
inclusion of a third hypothetical variable
 Mediator
IV Mediator DV
Extraverted personality Greater Socialising More Friends
Education Better Paying Job More Expensive House
Brushing teeth Nicer Breath Partner more willing to kiss
Skills and ability Performance Promotion
Watching TV Time spent on homework Achievement Level
Wide social networks Hearing about more job Better Job
opportunities

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 Mediator

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 Mediator

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 Mediator

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 Mediator

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 Mediator

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 Mediator

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 Mediator

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 Mediator
• What if is not a mediator?
Mediator
 46

Reflective vs Formative
Reflective Formative
 Indicators are representative or  The causes the latent
manifestation of the latent variable. indicators
 Indicators are highly correlated  Indicators
variable. are not
and interchangeable. interchangeable.*
 Removal of any indicators will not alter  Indicators be positively,
the meaning of the latent variable can
negatively or not correlated.
 E.g., Satisfaction of UCSI  Removal of any indicators will alter the
meaning of the latent variable*
 E.g., Satisfaction of UCSI

Reflective Formative
I am satisfied with UCSI Lecturers
I am pleased with UCSI Cost
I am happy with UCSI Fee
Reflective – Formative
 47

Reflective vs Formative
Reflective Formative

indicators indicators

Construct
Construct
Domain
Domain

Focuses on maximizing the Focuses on minimizing the

overlap between overlap between
interchangeable indicators complementary indicators
Reflective - Formative
 Higher Order Constructs
• A number of recent papers have presented second order construct
models.
• As suggested by Hair et al. (2014) one of the main reasons to include
second order construct in research is to reduce the number of relationships
in the structural model, making the PLS path model more parsimonious
and easier to grasp.
• There are 4 possible types of second-order constructs.
Type 1: Reflective-Reflective
Type 2: Reflective- Formative
Type 3: Formative-Formative
Type 4: Formative-Reflective
Higher Order Constructs
Higher Order Constructs
Higher Order Constructs
Higher Order Constructs
Higher Order Constructs
Higher Order Constructs
Higher Order Constructs
 Hypotheses development
• What to include?
– Define the variable in your thesis
– The objectives of the paper
– Describe on the methodologies, testing procedure, targeted
respondents.
– Finding and limitation of study
– Evaluate and synthesize
 Hypotheses development
• Define the variable in your thesis
Perceived compatibility (PC) refers to the extend the new system or innovation is
considered to be consistent with the potential individual existing needs, value,
experience and technological infrastructure (Rogers, 1995). In other words, they
takes into account whether the behavioral patterns, beliefs, lifestyle and
experiences of consumers are reconcilable with the existing innovation or
technology (Peng, Xiong & Yang, 2012). As such, consumers must perceived the
innovation as compatible with the way they think act and leads their lives to be
regarded as compatible (Hernandez & Mazzon, 2007).

• The objectives of the paper

Schierz, Schilke and Wirtz (2010) extended TAM with MPC, PR, individual mobility
and SN. Further, Yang et al., (2012) developed a framework which consists of the
characteristic and usage contexts of mobile payment services in China to test on
potential adopters (483 samples) and current adopters (156 samples).
 Hypotheses development
• Describe on the methodologies, testing procedure, targeted respondents.
• Finding and limitation of study
Their findings of students using structural equation modelling revealed that
MPC (β=0.015) has a positive significant relationship with BI. They argued
that since mobile payment is an evolution of electronic payment system, the
finding is not surprising as it has already been blended into the consumers'
lifestyle and habits. A recent study by Wong et al., (2015a) in Malaysia also
found that MPC via neural network approach also influence BI (β=0.2917) to
use mobile social networking sites for learning whereby the authors
suggested that marketing campaigns should be concentrated with strong
emphasis on compatibility
Conceptual framework