Objectives of the Course

At the end of the course, the student will be able to:

• Understand principles of research;

• Acquire practical research skills for business and
academic research;
• Conduct scientific research;
• Link the research process with theories of your
specialist areas: and
• Review scientific research articles

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 Chapter one

Introduction Business Research Method-I

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 1.1. Sources of Knowledge
Each of us possesses a great deal of knowledge.
We know about ourselves;
we know about the world around us;
we know about abstract concepts and ideas.
 Philosophers have often wondered where this
knowledge ultimately comes from?
What, then, is the most fundamental way of
acquiring knowledge?
The most fundamental way of acquiring
knowledge includes
•Personal Experience
•Logic/Reason
•Authority
•Revelation
•Intuition
•Common Sense
•Culture/tradition
•Research (the scientific method)
 1. Tradition
–Doing things as they have always been done
–Limitations
• Traditions are often based on an idealized past
• Traditions can be distant from current realities and the
complexities associated with them
–Truth is true because one believes it even in front of
contradicting evidence.
• 2. Personal experience
–Relying on one’s knowledge of prior experiences
–Limitations
• How one is affected by an event depends on who one is
• One frequently needs to know something that cannot by
learned through experience
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• 3. Experts or authorities(Method of Authority: Religion)

– Truth is true because an authority says so.

– Relying on the expertise or authority of others

– Limitations

• Experts can be wrong

• Experts can disagree among themselves, as in a

“second opinion”

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• 4. Logic
• Inductive reasoning
– Reasoning from the specific to the general
– Limitations
• In order to be certain of a conclusion one must observe all
examples
• All examples can be observed only in very limited situations where
there are few members of the group
• Deductive reasoning
– Reasoning from the general to the specific
– Limitations
• You must begin with true premises in order to arrive at true
conclusions
• Deductive reasoning only organizes what is already known.
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• 5. Scientific Method
• Method of Science

– Science is a method of seeking truth. This method only

accounts for solvable problems that have empirical solutions
based on observable events.
• The goal of the scientific method is to explain, predict, and/or
control phenomena
• This involves the acquisition of knowledge and the development
and testing of theory.
• The use of the scientific method is more efficient and reliable
than any other source of knowledge 8
• Five steps in the scientific method

– Recognition and definition of the problem

– Formulation of hypotheses

– Collection of data

– Analysis of data

– Stating conclusions

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Why research become important?
1. Adds knowledge about issues
2. Improves practice
3. Informs policy issues
4. Becomes a catalyst in professionals for
complex thinking, informed communication
and a toleration for competing paradoxes

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 1.2. MEANING OF BUSINESS RESEARCH
What do you mean by research?

How do you describe research?

How does it differ from the other sources of

knowledge?
What is business research?
 Meaning of Research
Research can be defined in many ways. Lets focus on the
following definition of research.
 Research is an organized and systematic way of
finding answers to questions or solutions to problems.
1. Systematic because there is a definite set of scientific
procedures and principles which the researcher will
need to follow in order to get reliable and accurate
results.
2. Organized because there is a structure or method for
doing research. The research process has a number of
steps to guide the researcher.
Research is an organized and systematic way of
finding answers/ solutions to questions/ problems.
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 Meaning of Research-Cont’d
3. Finding answers/solutions because every research
seeks to answer a question or to solve problems.
Sometimes the answer is no, but it is still an answer.
4. Question/Problems are central to research. If there is
no question/problem, then how do we begin the
research? Research is focused on relevant, useful, and
important questions or problems which need answer
or solution.
Without a question, research has no focus, drive, or
purpose.

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• Basically, it is a way of “re-searching” or looking again at the
world and making sense of it.
• a systematic process of collecting, analyzing, and interpreting
information (data) to increase understanding of a phenomenon
about which we are interested.
• “A careful, systematic , patient study and investigation in some
field of knowledge, undertaken to establish facts or principles”
(Grinnell, 1993:4)
• It is a discovery (Rediscovery); A voyage from the known to the
unknown
• An effort to be closer to the truth
• This involves knowledge and some understanding of “what is
knowledge”.
• “How do we know, what we know”

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Research is a systematic and scientific way of gathering,
analyzing, and interpreting data to reach sound, reliable,
and valid conclusions.
It is concerned with finding answers for questions.
But every attempt to search for answers to questions is
not a research.
To be considered as research, it should be scientific, i.e
data gathering, analysis and interpretation should be
systematic, reliable, objective, and valid.
Knowledge from research is dependable, reliable,
objective, valid, and verifiable since research is systematic
and scientific.
But knowledge from common sense and other sources of
knowledge such as, expert opinion, authority, personal
experience, logic, and tradition is not as such dependable,
reliable, objective, valid, and verifiable since they are not
systematic and scientific.

What is Business Research?

Business Research is defined as the systematic and
objective process of gathering, recording and analyzing
data for aid in making business decisions
 1.4. Basic Features of Business Research
• Research is directed towards the solution of a
problem.
• Research emphasizes the development of
generalizations, principles, or theories to predict future
occurrences.
• Research is based upon observable experiences or
empirical evidence.
• Research demands accurate observation and
description.
• Research involves gathering new data primary or first-
hand sources or using existing data for a new purpose.
• Research is characterized by carefully designed
procedures, always applying rigorous analysis.
• Research requires expertise.
• Research strives to be objective and logical,
applying every possible test to validate the
procedures employed, the data collected, and the
conclusions reached.
• Research is characterized by patience and
unhurried activity.
• Research is carefully recorded and reported.
 1.5. Objectives of research
 The main objective of research is to discover answers
to questions through the application of scientific
procedures.
• To gain familiarity with a phenomenon or to
achieve new insights into it = exploratory
research studies.
• To portray accurately the characteristics of a
particular individual, situation or a group =
descriptive research studies.
• To determine the frequency with which something
occurs or with which it is associated with something
else = diagnostic research studies
• To test a hypothesis of a causal relationship
between variables = hypothesis- testing research
studies.
 1.6. The Research Process : Steps in Conducting Research
Steps Selecting and
Defining a
Problem

Literature review

Describing
Methodology of
Research

Collecting Data

Analyzing Data
and
Interpreting
writing the research report. Results
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• “All progress is born of inquiry. Doubt is often

better than overconfidence, for it leads to

inquiry, and inquiry leads to invention”

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 1.7. Criteria of Good Research
Characteristics of good research are as follows:
Systematic - definite set of scientific procedures and principles
Logical - Guided by rules of logical reasoning & logical process of
induction & deduction
Empirical- Provides a basis for external validity to results
(validation)
Replicable - Verified by replicating the study
Self Correcting - open to public scrutiny by fellow professionals
Objective-well described, free from bias/subjectivity
Parisomy – Simple explanations
Probabilistic thinking – Probability terms of findings
Research is NOT
Mere information gathering

Mere transportation of facts from one location to

another

Merely rummaging for information

A catchword used to get attention

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 OVERVIEW OF SCIENCE AND THE SCIENTIFIC
METHOD

science can be defined as a methodological and

systematic approach to the acquisition of new

knowledge.
Specifically, rather than relying on mere casual
observations and an informal approach to learn about the
world, scientists attempt to gain new knowledge by
making careful observations and using systematic,
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 scientific knowledge is not based on the opinions,
feelings, or intuition of the scientist.
 Instead, scientific knowledge is based on
objective data that were reliably obtained in the
context of a carefully designed research study.
 In short, scientific knowledge is based on the
accumulation of empirical evidence.
 The defining characteristic of scientific research
is the scientific method .
 The scientific method is best thought of as an
approach to the acquisition of new knowledge,
and this approach effectively distinguishes
science from nonscience.
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 The Scientific Method and characteristics
Although some disagreement exists regarding the exact
characteristics of the scientific method, most agree that

it is characterized by the following elements:

 Empirical approach
 Observations
 Questions
 Hypotheses
 Experiments
 Analyses
 Conclusions
 Replication
 Precision
 Falsifiability
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 Research Methods versus Methodology
• Research methods may be understood as all those
methods/techniques that are used for conduction of research.
e.g source of data, method of data collection……..
• Research methods or techniques, thus, refer to the methods
the researchers use in performing research operations.
• Research methodology is a science of studying how research
is done scientifically.
• The various steps that are generally adopted by a researcher
in studying his research problem along with the logic behind
them.
• The scope of research methodology is wider than that of
research methods
• consider the logic behind the methods we use in the context
of our research study and explain why we are using a
particular method or technique.
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 1.8. Types of Research
 Research can be classified into various
classes based on various criteria.
The criteria for classification of research
are as follow.
1. Application of research
2. Objective of research
3. Approach to research
4. Time perspective of research
5. Setting of research
6. Research design
7. Starting point of research
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 Types of Research

From the viewpoint of

Application Objectives Inquiry mode

Pure Descriptive Exploratory Quantitative

research research research research

Correlational Explanatory
Applied research research Qualitative
research research

05/13/23 29
 Classification of Research by Application of Research

 Research is classified as basic, applied and action

research by application of research.
1. Basic research: undertaken for increasing knowledge.
 It is conducted to satisfy any curiosity, such as: what
makes things happen, why society changes and why
social relations are in a certain way.
 Its aim is to generate a body of knowledge.
 Applied research: It is use of basic research or past
theories, knowledge and methods for solving an
existing problem. It deals with practical problems.
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 Classification of Research by Research Design
Research is classified as Experimental and Non-
experimental based on research design
1. Experimental Research: research based on experimentation
or observation (evidence) which is mostly conducted to test
a hypothesis.
 In an experimental design the researcher manipulates
independent variable to see its effect on a dependent
variable.
 In other words, the investigator has some control over
what will happen to the subjects by systematically
imposing or withholding specified conditions.

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The researcher then makes comparisons between
subjects who have had the independent variable or
treatment (the experimental group) and others who
have not had (the control group) the treatment.
Purpose of Experimental designs is to investigate
cause-and-effect relationships between manipulated
conditions and measured outcomes.
There are many different types of experimental
designs: pure experimental and quasi-experimental methods
Pure Experimental method: where the researcher
manipulates one variable, and control/randomizes the rest of the
variables.
Quasi experimental method: A quasi-experimental method is one
that looks a bit like an experimental but lacks the key ingredient -
random assignment.
Mr. Tola wanted to investigate the effects of problem
solving method and discovery learning method on
students’ academic performance. The investigator
classified the students in to three groups (A,B, and C) by
assigning to the groups equal number of students from
different achievement levels and thought group ‘A’ by
discovery learning method, group ‘B’ by problem solving
method and group ‘C’ by neither of the two methods.
Finally he compared the results by finding out the
difference between (A- C) and (B- C). In this
experimental research what is/are
1. Dependent variable(s)?
2. Independent variable(s)?
3. Experimental group(s)?
4. Control group(s)?
5.Controlled variable(s)?
Mr. Kuma wanted to examine the effects of servant
leadership and transformational leadership on employees’
overall satisfaction. The researcher classified the
employees into three groups (A,B, and C) by assigning to
the groups equal number of employees from both sexes
and led group ‘A’ servant leadership, group ‘C’ by
transformational leadership and group ‘B’ by neither of
the two leadership styles. Finally he compared the results
by finding out the difference between (A- B) and (B- C).
In this experimental research what is/are?
1. Dependent variable(s)?
2. Independent variable(s)?
3. Experimental group(s)?
4. Control group(s)?
5. Controlled variable(s)?
2. NON-EXPERIMENTAL DESIGNS
Non-experimental designs describe something
that has occurred, or examine relationships
between things without suggesting direct cause-
and-effect relationships.
In Non-Experimental Research, There is no
manipulation.
This includes
descriptive research,
correlational research,
Survey research,
Case study etc.
 DESCRIPTIVE RESEARCH
Research using a descriptive design simply
describes an existing phenomenon by using words or
numbers to characterize individuals or a group.
It assesses the nature of existing conditions.
The following questions could be answered by
means of descriptive designs: What are the students'
attitudes toward school discipline? What is the
reading achievement level of different ethnic groups
in the school?
Descriptive research follows a naturalistic paradigm:
Observing  recording describing.
CORRELATIONAL DESIGN
Correlational design is concerned with assessing
relationships between two or more phenomena (or
variables).
This type of study usually involves a statistical
measure of the degree of relationship, called
correlation.
A positive correlation means that high values of
one variable are associated with high values of a
second variable.
The relationship between height and weight,
between IQ scores and achievement test scores, and
between self-concept and grades are examples of
positive correlation.
A negative correlation or relationship means that
high values of one variable are associated with low
values of a second variable.
Examples of negative correlations include those
between exercise and heart failure, between
successful test performance and feelings of
incompetence, and between absence from school and
school achievement, and between price and demand.
SURVEY DESIGN
In survey research the investigator selects a sample
of subjects and administers a questionnaire or
conducts interviews to collect data.
Surveys are used frequently in business research to
describe attitudes, beliefs, opinions, and other types of
information.
Usually the research is designed so that information
about a large number of people (the population) can
be inferred from the responses obtained from a smaller
group of subjects (the sample).
 Surveys are used for a wide variety of purposes.
CASE STUDY DESIGN
A case study is an in-depth, usually longer-term,
investigation of single individual, family, group, project,
institution, agency, or society for either descriptive or
hypothesis testing purposes.
It is basically intensive investigations of the
factors that contribute to characteristics of the
case.
For example a physician who follows up the
health conditions of a patient is performing a case
study.
 Classification of Research by Research Objective
 Research is classified as descriptive, correlation,
explanatory and exploratory based on research
objective.
1. Descriptive research: addresses about what is going on.
 It attempts to describe systematically a situation, problem,
phenomenon, service or programme, or provides
information about living condition of a community, or
describes about the issue under investigation.
 Example: what are the living conditions in the farming
communities in Ethiopia.
2. Correlational research: attempts to discover or establish the
existence of a relationship/ interdependence between two
or more aspects of a situation. 42
Classification of Research by Research Objective
3. Explanatory research: attempts to clarify why and how
there is a relationship between two or more aspects of a
situation or phenomenon.
Explanatory research seeks explanations of observed
phenomena, problems, or behaviors.
 For example: A marketing manager wants to know if
the sales of the company will increase if the company
doubles the advertising dollars
4. Exploratory research: is undertaken to explore an area
where little is known .
Example: New product development
 In practice, most studies are a combination of the first
three categories. 43
 Classification of Research by Research Approach
 Research is classified as quantitative, qualitative and
mixed based on research approach.
Quantitative:
o to determine the extent of a problem or the existence of a
relationship between aspects of a phenomenon by quantifying
the variation.
o Methods include survey.
Qualitative:
o to explore the meanings, attitudes, values, beliefs people
associate with a phenomenon in order to establish a better
understanding, rather than to test to support or disprove a
relationship.
o Useful for describing social phenomena or the nature of the
variation.
o Methods include case study .
Mixed-Methods:
o Combines the strengths of both quantitative and qualitative
research 44
While there has been much debate about the two approaches,
it is helpful to introduce the terms on two levels of discourse.
At one level, quantitative and qualitative refer to distinctions
about the nature of knowledge: how one understands the world
and the ultimate purpose of the research.
On another level of discourse, the terms refer to research
methods – how data are collected and analyzed – and the type
of generalizations derived from the data.
The emphasis in quantitative data is on facts, relationships,
and causes.
Quantitative researchers place great value on outcomes and
products.
Qualitative researchers have great concern for the impact of
the process as well, typically more so than quantitative
researchers.
QUANTITATIVE IDEAL QUALITATIVE

Research process is Research process is

deductive. inductive.
Measure objective facts. Document social reality,
meaning is constructed.
Focus on variables. Focus on in-depth meaning.

Firewall between research Values are present & explicit

process and researchers’ (empathy).
values.
Cross-contextual. Contextual dependence.
Many cases. Few cases.
QUANTITATIVE IDEAL QUALITATIVE

Statistical analysis Thematic analysis

Highly structured research Loosely structured

process. research process.

Particularistic, specific Holistic perspective

Separation from data Intimacy with data

Generalize to population Generalization to properties

and contexts
Generally, it is better to view quantitative and
qualitative researches not as dichotomous and
opposing but as various tools and complementary.
 Classification of Research by Time Perspective
Research is classified as cross-sectional, and
longitudinal based on time dimension of
Research.
Time influences research in manner in which data
is collected with respect to time. As a result, the
number of different types of research, namely:
• Cross-Sectional Study
• Longitudinal Study

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Classification of Research by Time Perspective

Cross-sectional Study
• A researcher collects information from a sample drawn from
a population. The data you obtain is derived from a cross-
section of the population at one point of time.

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 Classification of Research by Time Perspective
Longitudinal Study
• Researcher can identify a sample from the beginning and follow
the specific respondents over a specified period of time to
observe changes in specific respondents and highlight the reasons
why these respondents have changed.
Example: Age vs Volunteering: Same units over time

52
 Classification of Research by Starting Point
 Research is classified as deductive and inductive based
on starting point.
1. Deduction: Deduction follows an approach which is “top-down”
or “from general to specific”. THEORY

HYPOTHESIS

OBSERVATION

CONFIRMATION

• Deduction: Goes from general (theories) to specific (facts)

• Premise * Honest people do not steal
• Premise * John is honest
• Conclusion: John does not steal 53
 Classification of Research by Starting Point
2. Induction: is “bottom-up” in nature or from
specific to general. THEORY
o It is a way of theory building. HYPOTHESIS

PATTERN
• Induction: Goes from facts to generalizations (theories)
OBSERVATION
• Facts: Abebe, Ayele, Almaz and Aweke died.
• Facts: Abebe, Ayele, Almaz are human-beings
• Generalization: Human-beings are mortal.
NB: If the premises are true, the conclusion is correct.

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 Classification of Research by Research Setting
 Research is classified as laboratory and field based on
Research Setting.

1. Laboratory research
2. Field research
3. Simulation research

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 End of the Chapter - 1
Thank for your Attention!!!

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