Chapter 3: Literature Review and Hypothesis Formulation

Topics to be discussed
3.1. Need for literature review
3.2. Sources of literatures
3.3. Methods of reviewing literatures
3.4. Hypothesis formulation
3.5. Relevance of hypothesis formulation
Objective:
This chapter provides detailed explanations of how
to undertake a literature review and why it is a
pivotal element of any research enquiry.
Doing a Literature Review
What is a “Literature Review”?

 “…a literature review surveys scientific articles,

books, journals, dissertations and other sources
relevant to a particular issue, area of research, or
theory, providing a description, summary, and
critical evaluation of each work.”
 A literature review may constitute an essential
chapter of a thesis or dissertation, or may be a self-
contained review of writings on a subject.
3.1. Purpose of Literature Review

The purpose of literature review is to:

 Place each work in the context of its
contribution to the understanding of the subject
under review
 Describe the relationship of each work to the
others under consideration
 Identify new ways to interpret, and shed light on
any gaps in, previous research
Purpose of Literature Review

The purpose of....

 Resolve conflicts amongst seemingly contradictory
previous studies
 Identify areas of prior research to prevent
duplication of effort
 Place one's original work (in the case of thesis or
dissertations) in the context of existing literature
 In any research project it is essential to understand
what has already been done (if anything) in the
specific topic you have chosen and what has been
done in the wider subject area of that topic.
 This is essential for several reasons and the
importance of a literature review can only be
appreciated when we ask ourselves a number of
specific questions.
Essential of Literature review
As a researcher, you need to know the answers to the following
questions concerning the research topic you are considering for
investigation:
 Has the work already been done?
 Who are the experts in the field?
 What are the main theoretical perspectives?
 What are the common research methods in the topic?
 What are the main problems in researching the topic?
 Are there any major controversies in this topic area?
 Is the topic open to hypothesis testing?
 Is the topic a trivial/minor one?
Importance of literature review

Has the work already been done?

 Obviously, if this is the case, then you need to consider changing

your research topic or its focus.

 In most business-related research, it is very rare that a specific

set of research questions or a specific hypothesis has already

been addressed in your specific topic area.
 This is more common in science research. Nevertheless, it is still

important to check that a piece of research already published is

not so close to yours that undertaking your research would not be
worthwhile.
 Clearly, this means that the literature review and dealing with

the first question above is something that needs to start

immediately after you have identified a possible research topic.
Importance of literature review

Who are the experts in the field?

 It should be clear to you now that in many areas of business
research there are indeed experts on specific topics—so how do
you identify them? In fact, this is relatively easy—you could
consult the Social Science or Business citation index by topic
area (on the web) and this will show up the names of authors in
that area. Where a name appears several times then you can be
reasonably certain that the author is very active in that research
topic.
 Alternatively, you could find a published article related to your
topic in an academic journal and consult the reference list at the
end of it—again it is often the case that the same name is
referenced more than once. This is also a good way of
establishing a ‘roadmap’ for your literature review.,
Importance of literature review

What are the main theoretical perspectives?

 Whatever the research topic that you have identified, you need to construct

a conceptual framework within which you will study the topic. This is
critical to the successful implementation of the research work.
 Without theory, it is almost impossible to interpret data. The key point here

is that we need a theory in order to inform us what kind of data we require

in order to answer the research questions we have already set ourselves.
 Where does one find this theory? The answer to this question is easy—

you will find it in the literature related to your research topic. You will also
find critiques of theory there and alternative theories of the same social
behavior.
 It is critical that you are aware of all theories pertaining to your research

topic, their strengths and their weaknesses.

Importance of literature review

What are the Common Research Methods in the Topic?

In reading the published academic literature on or closely related to
your research topic, it is very important to try to identify the
common characteristics of how the research was carried out. There
are a number of aspects of this that need to be clearly understood:
 Is the published research in this topic mainly of a qualitative or a
quantitative nature?
 If qualitative, what is its most common basis?
 If quantitative, what is its most common basis?
 Is the published research usually a mix of qualitative and
quantitative methods?
Importance of literature review

 In business research, quantitative methods tend to be dominated

by statistical analysis.
 You need to be clear on the most common approaches taken
here—is it simple descriptive statistics, non-parametric methods,
parametric methods, multivariate methods or another generally
accepted statistical approach?
 You also need to consider if the published research derives its
data from secondary sources mainly or primary sources—this
will also inform you as to how and where you should be seeking
your own data.
 Also consider what type of data is most commonly used in the
topic: cross-sectional, time-series, or categorical
Importance of literature review

What are the Main Problems in Researching the Topic?

Without a review of the literature, you cannot possibly know this. There
may be many problems and several common problems in researching your
research topic. One of the most common problems is data.
 Does it exist for example?

 If it does, can you get access to it?

 Is it in a format which is easily manipulated?

 Is it trustworthy?

 How old is it?

 Have the variables in the data been measured correctly and consistently?

 All these questions are important. Additionally, is the topic one for which

primary data is essential? If so, can it be collected in a reasonable time and at

low cost? Can it be collected at all if the topic is personally, socially or
politically sensitive?
Importance of literature review

Are there Any Major Controversies in this Topic Area?

 The controversies may be of a methodological, theoretical or

empirical nature.
 They may arise due to mishandling theory, data, methodology,

or choosing improper methods for empirical investigation.

 It is one of the skills of literature reviewing to determine what

the controversies actually are.

 This is also a very fruitful source for deriving your own

research questions since the gaps in your understanding of the

topic will be fairly clear from the debates and controversies
you find in the literature.
Importance of literature review

Is the Topic Open to Hypothesis Testing?

 Not all research questions can be put in the format

of a hypothesis.
 A hypothesis needs to be clear, unambiguous,
focused and testable using an accepted statistical
method.
 If the research topic is mainly investigated using

qualitative methods, then it may be very difficult to

generate testable hypotheses.
Importance of literature review

Is the Topic a Trivial One?

 Research should be concerning itself with problems

which are more significant and with the potential

for the results to be generalisable to at least a
group, an area, a sector of industry, or any other
aggregation.
Importance of literature review

 Gives credits to those who have laid the groundwork for your research.
 Demonstrates your knowledge of the research problem.
 Demonstrates your understanding of the theoretical and research issues
related to your research question.
 Shows your ability to critically evaluate relevant literature information.
 Indicates your ability to integrate and synthesize the existing literature.
 Provides new theoretical insights or develops a new model as the
conceptual framework for your research.
 Convinces your reader that your proposed research will make a
significant and substantial contribution to the literature (i.e., resolving
an important theoretical issue or filling a major gap in the literature).
Literature Review as a Process
Components of Lit. Review

Stages of development of the literature review:

–Problem formulation – already discussed
–Literature search - finding materials relevant to the
subject being explored
–Data evaluation - determining which literature makes
a significant contribution to the understanding of the
topic
–Analysis and interpretation—discussing the findings
and conclusions of pertinent literature along with the
method used
Working with Literature

Working with Literature includes:

1. Find it!
a. Knowing the literature types
b. Using available resources
c. Sharpen your search skills
2. Manage it!
a. Reading efficiently
b. Keeping track of references
c. Writing relevant annotations/notes
3. Use it!
a. Choosing your research topic
b. Developing your question
c. Arguing your rationale
c. Informing your work with theory
d. Designing method
4. Review it!
a. Understanding the literature review’s purpose
b. Ensuring adequate coverage
c. Writing purposefully
d. Working on style and tone
3.2. Sources of Literature

Journal articles:
 These are good sources, especially for up-to-date
information.
 They are frequently used in literature reviews because
they offer a relatively concise, up-to-date format for
research.
 Depending on the publication, these materials may be
refereed (peer reviewed) materials.
 Focus on recent articles without disregarding classic
works in the area of investigation
What about Non-refereed Journals?
 •Non-refereed materials such as Trade Journals,

or magazines use less rigorous standards of

screening prior to publication.
 •Non-refereed materials may not be checked as

intensely as refereed materials, but many can still

be considered useful, although not for scientific
literature and research.
 Books: remember that books tend to be less up-
to-date, as it takes longer for a book to be
published than for a journal article.
 •They are still likely to be useful for including in
your literature review as they offer a good starting
point from which to find more detailed and up-to-
date sources of information.
 Conference proceedings: these can be useful in
providing the latest research, or research that
has not been published.
 •Depending on the criticality of the panel,
proceedings may be as good as referred journals
 •They are also helpful in providing information
about people in different research areas, and so can
be helpful in tracking down other work by the same
researchers.
 Government/corporate reports:
 •Many government departments and corporations
commission carry out research.
 •Their published findings can provide a useful
source of information, depending on your field of
study.
 Thesis and dissertations: these can be useful
sources of information. However there are
disadvantages:
 •They can be difficult to obtain since they are not
published, but are generally only available from the
library or interlibrary systems
 •The student who carried out the research may not be
an experienced researcher and therefore you might
have to treat their findings with more caution than
published research.
 Internet: the fastest-growing source of
information is on the Internet.
 •Bear in mind that anyone can post information on
the Internet so the quality may not be reliable
 •The information you find may be intended for a
general audience and so not be suitable for
inclusion in your literature review (information for
a general audience is usually less detailed)
In assessing each piece, consideration should be given to:

 •Provenance - What are the author's credentials? Are the

author's arguments supported by evidence (e.g. primary
historical material, case studies, narratives, statistics,
recent scientific findings)
 •Objectivity - Is the author's perspective even-handed or
prejudicial Is contrary data considered or is certain
pertinent information ignored to prove the author's point
 •Persuasiveness - is the author's thesis convincing
 •Value - Does the work ultimately contribute significantly
to an understanding of the subject of my research
3.3. Methods of reviewing/Writing Literature

•Three components:
 –The introduction
 –The body
 –The conclusion
Writing the Introduction
 In the introduction, you should:
 •Define or identify the general topic, issue, or area
of concern, thus providing an appropriate context
for reviewing the literature.
 •Point out overall trends in what has been
published about the topic; or conflicts in theory,
methodology, evidence, and conclusions; or gaps in
research
Writing the Body In the body
you should:
 •Group research studies and other types of

literature (reviews, theoretical articles, case studies,

etc.) according to common denominators
 •Summarize individual studies

 •Make comparisons and analyses.

Writing the Conclusion
 In the conclusion, you should:
 •Summarize major contributions of significant studies
and articles to the body of knowledge under review
 •Evaluate the current "state of the art" pointing out
major methodological flaws or gaps in research,
inconsistencies in theory and findings, and areas or
issues pertinent to future study.
 •Conclude by providing some insight into the central
topic of the literature review and your area of study
3.4. Hypothesis Formulation

•Under known facts of the problem, hypothesis is

forwarded to explain relationship between variables
•is a statement subject to verification
•a guess but experienced guess based on some facts
•A researcher calls these assumptions, assertions,
statements hypotheses and they become the basis of an
inquiry.
•In most cases, the hypothesis will be based upon either
previous studies or the researcher’s own or someone
else’s observations
Definition

•A hypothesis is written in such a way that it can be

proven or disproven [of course, we do not say so]
by valid and reliable data
•A hypothesis may be defined as a tentative theory
or supposition set up and adopted provisionally as a
basis of explaining certain facts or relationships
and as a guide in the further investigation of other
facts or relationships
Characteristics

•Hypotheses has the following characteristics:

 A tentative proposition
 Unknown validity
 Specifies relation between two or more variables
3.5. Relevance of hypothesis formulation

•Bringing clarity to the research problem

•Serves the following functions
1. Provides a study with focus
2. Signifies what specific aspects of a research problem
is to investigate
3. What data to be collected and what not to be collected
4. Enhancement of objectivity of the study
5. Formulate the theory
6. Enable to conclude with what is true or what is false
Characteristics

•Simple, specific, and contextually clear

•Capable of verification
•Related to the existing body of knowledge
•Operationalisable
Types of hypothesis

•Three types
1. Working hypothesis
2. Null hypothesis
3. Alternate hypothesis
Working hypothesis

•The working or trail hypothesis is provisionally

adopted to explain the relationship between some
observed facts for guiding a researcher in the
investigation of a problem.
•A Statement constitutes a trail or working hypothesis
(which) is to be tested and conformed, modifies or
even abandoned as the investigation proceeds.
•Example: Population influences the number of bank
branches in a town
Null hypothesis

•A null hypothesis is formulated against the working

hypothesis; opposes the statement of the working
hypothesis
•It is formulated to disprove the contrary of a working
hypothesis
•When a researcher rejects a null hypothesis, he/she
actually proves a working hypothesis
•Example: HO: population do not have any influence on
the number of bank branches in a town.
Alternate hypothesis

•An alternate hypothesis is formulated when a researcher

totally rejects null hypothesis
•The researcher develops such a hypothesis with adequate
reasons
•Example: H1: Population has significant effect on the
number of bank branches in a town. A researcher formulates
this hypothesis only after rejecting the null hypothesis.
 Hypothesis…
44

 Formulating an appropriate and realistic hypothesis is crucial

for a sound research.
Research question: “What is the relationship between the
income opportunities of street vendors and the number of
people interested in working as vendors?”
 What is the relationship between the two quantities above?
Your hypothesis gives a tentative answer.
Hypothesis: The number of street vendors rises when their
income goes up.
 This hypothesis is specific enough that a reader can clearly
understand what the study is trying to assess.
 Hypothesis…
45

Main problems in formulating a working hypothesis:

 Formulation of a hypothesis is not an easy task.
 The main problems that may arise include:
i) The lack of clear theoretical framework
ii)The lack of ability to utilize that theoretical
framework logically
iii)The failure to be acquainted with available
research techniques so as to be able to phrase the
hypothesis properly
 Hypothesis…
46

Characteristics of useable hypotheses:

i) The hypothesis must be conceptually clear.
 This involves two things
 the concept should be clearly defined,
 the hypothesis should be commonly accepted one. In other
words, the hypothesis should be stated in simple terms.
ii) The hypothesis should have empirical references.
 useable hypothesis embody moral judgments.
 while a hypothesis may study value judgment, such a goal must be
separated from a moral preachment or a plea for acceptance of one’s
values.
 Hypothesis…
47

iii) The hypothesis must be specific.

 all the operations and predictions indicated by it should be
spelled out.
iv)The hypothesis should be related to available techniques.
 A theorist who does not know what techniques are available to
test his/her hypothesis is on a poor way to formulate useable
hypothesis or questions.
v) The hypothesis should be related to a body of theory.
 It should possess theoretical relevance.
vi) The hypothesis should be testable.
 Hypothesis should be formulated in such a way that it is possible
to verify it.
 END of chapter 3