RESEARCH

METHODOLOGY
(Business Research Methods)

Week 1

MBA III (Research Methodology)

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How This Course Will Be Conducted
 Comprehensive introduction to Research Methodology (Business
Research Methods)

 Knowledge acquisition‫ ا الكتساب‬and application of subject matter to

real-life situations

 Course literature

 Use of multimedia visual aids (MS PowerPoint slides)

 Reference to case studies when desirable

 Encouragement of questions, comments and constructive criticism

‫ ا لنقد‬from course participants

 Analytical and critical thinking, inquisitiveness‫ ا لفضول‬as well as

common sense from course participants also expected

MBA III (Research Methodology) 2

 Course Highlights
• Introduction to research
methodology
• Research Terminology and the
Scientific Method
• Designing and implementing a
research project
• Ethics in Research
• Types of Research
• Measurements in Research
• Primary and Secondary Data
• Analyzing primary and
secondary data (quantitative
techniques)
• Communicating Research
Results
• Undertaking Research Project by
the course participants
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 What is Business Research?

• Business Research may be defined as the “systematic

and objective process of gathering, recording and
analyzing data for aid in making business decisions”
(Zikmund, Business Research Methods, 2002, p. 6)

• Systematicness and Objectivity are its distinguishing

features of Business Research, which is important tool
for managers and decision-makers in corporate and non-
corporate organizations

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 When is Business Research Used?

Typically, business research methods are used in

situations of uncertainty, that is, when decision-makers
face two or more courses of action and seek to select
the best possible alternative under the circumstances.
Business Research is hence aimed at improving the
quality of decision-making which, in turn, benefits the
organization and helps ensure its continuity and
efficiency

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 Typical Users of Business Research Methods

• Businesses and Corporations

• Public-Sector Agencies
• Consulting Firms‫ا لشركات‬
• Research Institutes
• Non-Governmental Organizations NGO
• Non-Profit Organizations
• Independent Researchers and Consultants
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 Common Business Research Methods &
Techniques
• Surveys
• Interviews
• Observation
• Experiments
• Archival and Historical Data
• Qualitative Analysis
• Quantitative Analysis

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Fields Where Business Research is Often Used – (1)
General Business Conditions and Corporate Research
• Short- & Long-Range Forecasting
• Business and Industry Trends ‫ا تّإلجاهات‬
• Global Environments
• Inflation and Pricing
• Plant and Warehouse Location
Management and Organizational Behaviour Research
• Total Quality Management
• Morale and Job Satisfaction
• Leadership Style
• Employee Productivity
• Organizational Effectiveness
• Structural issues
• Absenteeism‫ ا لغياب‬and turnover
• Organizational Climate 8
Fields Where Business Research is Often Used – (2)
Financial and Accounting Research

• Forecasts of financial interest rate trends ‫ت وقع اتاتجاهاتأسع ار ا لفائدة ا لما لية‬
• Stock ‫ا لسهم‬,bond ‫ ا لسّند‬and commodity ‫ ا لسلع ة‬value predictions
• capital formation alternatives‫ب دائلت كوينرأسا لما ل‬
• mergers and acquisitions ‫ت الندماج وا الستحواذ‬ ‫عمليا ا‬
• risk-return trade-offs‫ا لمخاطر وا لع وائد ا لمقايضات‬
• portfolio analysis
• impact of taxes‫ت أثير ا لضرائب‬
• research on financial institutions
• expected rate of return ‫ا لمع دلا لمتوقع ل لع ائد‬
• capital asset pricing models ‫ن ماذج ت سعير ا ألصولا لرأسما لية‬
• credit risk‫مخاطر ا الئتمان‬
• cost analysis‫ت حليلا لتكا ليف‬

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Fields Where Business Research is Often Used – (3)
Sales and Marketing Research
• Market Potentials‫ت لسوق‬ ‫إمكانا ا‬
• Market Share ‫س وقا السهم‬
• Market segmentation‫ت جزئة ا لسوق‬
• Market characteristics
• Sales Analysis
• Establishment of sales quotas‫ت حديد حصصا لمبيع ات‬
• Distribution channels
• New product concepts ‫مفاهيم‬
• Test markets ‫أسواقا الختبار‬
• Advertising research
• Buyer behaviour
• Customer satisfaction
• Website visitation rates ‫مع دالتزيارة ا لموقع‬

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Fields Where Business Research is Often Used – (4)
Information Systems Research
• Knowledge and information needs assessment ‫مع رفة ومعلوماتت قييم‬
‫ا الحتياجات‬
• Computer information system use and evaluation‫استخدام ن ظام ا لمعلومات‬
‫ا لحاسوبية وا لتقييم‬
• Technical suppot satisfaction
• Database analysis‫ت حليلق اعدة ا لبيانات‬
• Data mining‫استخراج ا لبيانات‬
• Enterprise resource planning systems‫ن ظم ت خطيط موارد ا لمؤسسات‬
• Customer relationship management systems ‫ت لعمالء‬ ‫ن ظم إدارة عالقا ا‬

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Fields Where Business Research is Often Used – (5)

Corporate Responsibility Research

‫بحوث مسؤولية الشركات‬

• Ecological Impact‫ا ألثر ا لبيئي‬

• Legal Constraints on advertising and promotion‫ا لقيود ا لقانوني ة عل ىا إلعالن‬
‫وا لترويج‬
• Sex, age and racial discrimination / worker equity ‫ا لجن سوا لعم ر وا لتميي ز‬
‫ عاملا إلنصاف‬/‫ا لعنصري‬
• Social values and ethics‫ا لقيم ا الجتماعية وا ألخالق‬

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 Selected Examples of Real-Life Situations in
Which Business Research Methods are Used
 A firm ‫ ش ركة‬wants to produce and market a new product but first wants to
ascertain if there is a potential consumer demand for this product in markets
x, y and z
 a multinational firm‫ ش رك ة متع ددة ا لجنسيات‬wants to establish a production facility
in another country after determining its technical and economic feasibility
 A government agency wants to ascertain the satisfaction level of its
employees, the causes for any possible discontent ‫استياء‬, and propose a
scheme for enhancing this level
 A financial institution wants to invest in commodities ‫ ا لسلع‬and commissions a
study to determine the past trends and forecast future returns in a portfolio of
commodities ‫ت لع وائد ا لمستقبلية ف يمجموعة منا لسلع‬
‫ت لسابقة وتوقع ا ا‬
‫ت حديد ا التجاها ا‬
 The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan
to redefine his organization’s priorities

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 SWOT Analysis
SWOT analysis (alternatively SWOT
Matrix) is a structured planning method
used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats
involved in a project or in a business
venture ‫مغ امرة‬. A SWOT analysis can be
carried out for a product, place, industry or
person. It involves specifying the objective
of the business venture or project and
identifying the internal and external factors
that are favorable and unfavorable to
achieving that objective.

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 Basic and Applied Research

Basic Research aims to expand the frontiers ‫ا لحدود‬

of science and knowledge by verifying or disproving‫ ب طالن‬the
acceptability of a given theory or attempting to discover more
about a certain concept (non-specificity)

Applied Research focuses on a real-life problem or

situation with a view to helping reach a decision how to deal
with it (Specificity)

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 Science and the Scientific Method

Science has been defined as “the methodological and systematic

approach to acquisition‫ اكتساب‬of new knowledge” (Geoffrey
Marcyzk, David DeMatteo, David Festinger, Essentials of
Research Design and Methodology, John Wiley & Sons, 2005, p.
4).

The scientific method, which has evolved since the 13th century,
concerns the set of tools, techniques and procedures used by
basic and applied researchers to analyze and understand
phenomena and prove or disprove prior conceptions.

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 The Essence ‫جوهر‬
of the Scientific Method

Characteristics of the Scientific Method

Objectivity Elements of the
Systematic Analysis Scientific Method
Logical Interpretation of Results
Empirical Approach
Observations
Questions
Hypotheses
Basic General Laws Experiments
Research
Scientific

Analysis
Method

Conclusion
Applied Information or Replication ‫ا إلستنساخ‬
Research Ideas for alternative
Courses of action
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The Value of Business Research for Managers–(1)

Reduction of uncertainty and improvement in the quality of

decision-making with several consequent advantages (e.g.
strategic, operational) and benefits for organizations

Business Research Methods can be employed in each of the

following four stages:

(1) Identification of problems and/or opportunities

Useful for strategy planning, analysis of internal and
external organizational environment

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The Value of Business Research for Managers – (2)
(2) Diagnosing and Assessment of problems and/or opportunities
Its purpose is to gain insight into the underlying reasons and
causes for the situation. If there is a problem, it asks what
happened and why? If there is an opportunity, it seeks to
explore, clarify and refine the nature of the opportunity and, in
the case of multiple opportunities, seeks to set priorities

(3) Selection and Implementation‫ ت طبيق‬of Courses of Action

After alternative courses of action have been determined,
selection of the best possible course.

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The Value of Business Research for Managers – (3)
An important consideration is the quality of forecasting
which is an essential tool of research

(4) Evaluating the Course of Action

Business Research Methods are used after a course of
action has been implemented in order to determine whether
activities have been properly implemented and have
accomplished what they intended to do

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The Value of Business Research for Managers – (4)
Evaluation Research – It is the formal objective measurement and
evaluation project or program has achieved its goal of the extent
which an activity, and the factors which influence performance. It is
also the formal objective measurement and evaluation of the extent
to which on-going activities, projects or programs are meeting their
goals (performance-monitoring research)

Examples of performance-monitoring research:

(1) Are railway passengers satisfied with the level of service the
railway company is providing? If not, then research may need to
be undertaken to ascertain the reasons for customer
dissatisfaction and propose corrective measures

(2) What are the trends‫ ا تّإلجاهات‬in retail and wholesale sector? Can
research suggest new ways to improve efficiency in purchase
transactions?
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When Should Business Research be Undertaken?
Is sufficient time
available?

Yes

Is information
adequate? NO Do not
undertake Business Research
Yes

High importance
of decision?

Yes

Research benefits
greater than costs? Undertake Business Research

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 Value and Costs of Undertaking Business
Research

VALUE COSTS

Decreased Uncertainty Research Costs

Higher Likelihood of Delay in Making
Correct Decisions Business Decisions
Better Business Disclosure of
performance Information to Rivals
Higher Profits ‫المنافسون‬
Better Reputation Possibility of Error

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 The Building Blocks of Research

Blend ‫ خليط‬of information, experience and in-sights that

KNOWLEDGE provides a framework that can be thoughtfully‫ب شكلمدروس‬
evaluated when assessing new information or evaluating
relevant situations

Determination of relationship amongst data with a

view to facilitating understanding of the phenomena,
INFORMATION
their relationships and decision-making
(e.g. past and predicted future sales trends)

DATA Measurements of phenomena

(e.g. sales statistics of a department store)

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 Demands on Data & Information
• Relevance to the problem or situation at hand
• Must be available in a timely manner to the right person (manager
or decision-maker)
• Completeness
• Accuracy
• Accessibility‫س هولة ا لمنا ل‬
• Affordability
• Ability into decision-support system ‫ا لقدرة ف ين ظام دعم ا لقرار‬

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 Global Information Support Systems
A Global Information System may be defined as “ an
organized collection of computer hardware, communication
equipment, software, data, and personnel designed to
capture, store, update, manipulate, analyze, and immediately
display information about worldwide business activities”

A Global Information System is a tool for providing past,

current and projected information on internal operations and
external activity. It organizes and integrates‫ي كام ل‬
data from production, operations, marketing, finance,
accounting and other business functions

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 Decision-Support System
• A computer-based system that helps decision makers confront
problems through direct interaction with databases and analytical
software programs

• The purpose of a decision support system is to store data and

transform them into organized information that is easily accessible
to decision-makers

• Decision-Support Systems are integrated‫ متكامل‬in Global Information

Systems. They are aimed usually for assisting managers and
decision-makers in specific organizational business units (e.g.
divisions, departments and functional areas) by providing organized
and adaptable information

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 Databases & Software
• Databases are collections of raw data which have been arranged
in a logical manner and which can be stored and processed
electronically

• Software are programs that allow complex operations to be

undertaken on data and which give information for managers and
decision-makers

• Data Warehousing & Data Mining‫مخازنا لبياناتواستخراج ا لبيانات‬

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 Data and Information Sources for Business
Researchers – (1)
 Internal Records
Example: Data about costs, shipments, inventory ‫ا لجرد‬, sales, and other
aspects of regular operations which are collected from various functional
areas of an organization

 Proprietary Business Research

Example: New data and information from projects which are undertaken to
study specific company problems

 Business intelligence Systems

Example: Information about nonrecurring ‫ غير رجوع‬developments in the
external business environment stemming‫تئصا ل‬ ‫ا إلس‬
from a network of sources and regular procedures

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Data and Information Sources for Business
Researchers – (2)
 On-Line Databases
Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones
News Retrieval Services, CompuStat

 Internet
Examples: World Wide Web search engines (Google, Yahoo, Altavista,
Lycos, Excite etc.)

 All Other Sources

Examples: Research Institutions, Libraries, Books, Journals, Periodicals,
Newspapers, Chambers of Commerce and Industry

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Business Research in the International Context
Business Research is being increasingly applied in an international
context in the wake of globalization and the consequent freedom of
movement of the resources of labor, capital and information of
businesses and corporations:

• Frame overseas market potential

• Joint ventures and relocating production lines overseas
• work considerations for investment and trade (e.g. culture, legal
environment, security, physical infrastructure, availability and quality
of human resources, logistics, political stability, trade and
investment incentives)

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 Data and Information Sources for Business
Researchers (Pakistan)
• Federal and provincial ministries of commerce, industries and
production
• Federal, provincial and city Chambers of Commerce and Industry
• State Bank, local and foreign banking institutions
• Stock Exchanges
• National Investment Board
• Export Promotion Bureau
• Manufacturers, Traders and Exporters Associations
• Research Institutes (e.g. Institute of Development Economics)
• Newspapers and Magazines
• Business and Trade Directories
• Internet
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 Business Recorder
(www.brecorder.com)

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