Chapter 1-Introduction To Research

Business Research Methods All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2012 1– 1

PART 1
CHAPTER 1
Introduction to Business
Research

LEARNING OUTCOMES
After studying this chapter, you should be able to:
1.1. Describe what research is and how it is defined
1.2. Know the importance and scope of business research
1.3. Know the eight distinguished characteristics of a scientific research
1.4. Define different types of research.
1.5. Know the importance of research to a manager
1.6. Know when business research is needed
1.6. Describe the ethical issues involved in business research

1.2 What is Research?
 Research is a process of systematic inquiry that entails

collection of data; documentation of critical information;
and analysis and interpretation of that data/information, in
accordance with suitable methodologies set by specific
professional fields and academic disciplines.

1.2. Importance of Business
Research
Research is important to any business organization:
To stay competitive in the market (growth and maturity)
To accurately identify or understand its customers (value co creation)
To scrutinize its rivals in the industry (competitive advantage)
To analyze and emulate key strategies (target and goals)
To keep in line on all aspects of the business (such as sustainability)

1.2. Scope of Business Research
 Scope of Business Research Includes the Following Areas

 Production Management: The research performs an important function in product development,
diversification, introducing a new product, product improvement, process technologies, choosing a
site, new investment etc.
 Personnel Management: Research works well for job redesign, organization restructuring,
development of motivational strategies and organizational development.
 Marketing Management: Research performs an important part in choice and size of target market,
the consumer behavior with regards to attitudes, life style, and influences of the target market. It is
the primary tool in determining price policy, selection of channel of distribution and development of
sales strategies, product mix, promotional strategies, etc.
 Financial Management: Research can be useful for portfolio management, distribution of
dividend, capital raising, hedging and looking after fluctuations in foreign currency and product
cycles.
 Materials Management: It is utilized in choosing the supplier, making the decisions relevant to
make or buy as well as in selecting negotiation strategies.
 General Management: It contributes greatly in developing the standards, objectives, long-term
goals, and growth strategies
1.3. Characteristics of a
Scientific Research
A scientific research has eight hallmarks:

1. purposive
2. rigour
3. testability
4. replicability
5. accuracy
6. objectivity
7. generalizability
8. parsimony

1.3.1 Purposive
 Helps the management know the customers’ expectation as well as

perception in terms of critical factors in delivering services
 Provides insights as to what areas need to be emphasized
 Provides guidelines to develop proper strategies and react to the

changes

1.3.2 Rigour
 Should have a good theoretical base and sound methodological

design

1.3.3. Testability
 Developing a set of research questions or hypotheses to be tested,

must be testable and analysable

1.3.4 Replicability
 Results of the test of research objectives should be supported

again and again when the same type of research is being repeated
in other similar circumstances

1.3.5 Accuracy
 Research should be designed in such a manner that it ensures

findings are very close to reality

1.3.6 Objectivity
 Conclusion drawn for the study should be based on the facts

derived from the results of data analysis, and not based on one’s
own subjective or emotional values

1.3.7 Generalizability
 Refers to the applicability of research in one

organizational setting to other settings.

1.3.8 Parsimony
 parsimony is the principle that the simplest explanation that can

explain the data is to be preferred

1.4 Types of Business Research:

1.4 Managerial Value of Business
Research
 To make right decisions in timely manner
 Well informed and up-to-date in their own area of specialization
 Recent developments in particular industries
 Understand, predict and control the environment of the organization

1.5 When is Business Research
Needed?
 The manager’s decision as to whether or not research should be

conducted for a problem encountered in the organization depends
on various 4 factors:

1.6 Ethical Consideration in
Research
 The goal of ethics in research is to ensure that no one is harmed or
suffers adverse consequences while following any stage of
research.


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Business Research Methods All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2012 1– 1

Business Research Methods All Rights Reserved

After studying this chapter, you should be able to:

1.1. Describe what research is and how it is defined

1.2. Know the importance and scope of business research

1.3. Know the eight distinguished characteristics of a scientific research

1.4. Define different types of research.

1.5. Know the importance of research to a manager

1.6. Know when business research is needed

1.6. Describe the ethical issues involved in business research

 Research is a process of systematic inquiry that entails

Business Research Methods All Rights Reserved

Research is important to any business organization:

To stay competitive in the market (growth and maturity)

To accurately identify or understand its customers (value co creation)

To scrutinize its rivals in the industry (competitive advantage)

To analyze and emulate key strategies (target and goals)

To keep in line on all aspects of the business (such as sustainability)

Business Research Methods All Rights Reserved

 Scope of Business Research Includes the Following Areas

A scientific research has eight hallmarks:

Business Research Methods All Rights Reserved

 Helps the management know the customers’ expectation as well as

 Provides insights as to what areas need to be emphasized

 Provides guidelines to develop proper strategies and react to the

Business Research Methods All Rights Reserved

 Should have a good theoretical base and sound methodological

Business Research Methods All Rights Reserved

 Developing a set of research questions or hypotheses to be tested,

Business Research Methods All Rights Reserved

 Results of the test of research objectives should be supported

Business Research Methods All Rights Reserved

 Research should be designed in such a manner that it ensures

Business Research Methods All Rights Reserved

 Conclusion drawn for the study should be based on the facts

Business Research Methods All Rights Reserved

 Refers to the applicability of research in one

Business Research Methods All Rights Reserved

 parsimony is the principle that the simplest explanation that can

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

 To make right decisions in timely manner

 Well informed and up-to-date in their own area of specialization

 Recent developments in particular industries

 Understand, predict and control the environment of the organization

Business Research Methods All Rights Reserved

 The manager’s decision as to whether or not research should be

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

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