Chapter 1:
Research Methods: An Introduction
Business Research Defined
Business research is defined as the
systematic and objective process of
generating information for aid in making
business decisions.
It is a systematic inquiry that provides
information to guide managerial decisions.
• To provide information regarding market,,
economics, organization (finance, people,
products, management, production
Business Research
• Research information is neither intuitive nor
haphazardly gathered. (systematic. Orderly and
organized process
• Literally, research (re-search) -“search again”
iterative, through patient and careful look at the data
• Scientific method, research must be objective to
generate objective and accurate information.
• Detached and impersonal rather than biased
• It facilitates decision process or problem solving
-Information Reduces Uncertainty.
-Not Performed to support preconceived
ideas but to test them.
Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions.
• The way researchers go about using knowledge and
evidence to reach objective conclusions about world
reality.
The routes of Scientific research
• Prior Knowledge
• Hypotheses
• Observation(Observation or Experimentation)
• Hypothesis test
• Conclusion
(New Knowledge)
Research is scientific method and
process ( utilizes rigorous, logical, systematic, and objective procedures)
• It relies on empirical evidence (observation or Expe)
• It utilizes relevant concepts
• It is committed to only objective considerations
• It presupposes ethical neutrality (Can not
manipulate data to deceive with untruth results)
• Its methodology is made known to all concerned for
critical scrutiny (verifiable, replicable,
generalizable)
• It aims to formulating general scientific theories
Research Process
(1) formulating the research problem;
(2) extensive literature survey;
(3) developing the hypothesis;
(4) preparing the research design;
(5) determining sample design;
(6) collecting the data;
(7) execution of the project;
(8) analysis of data;
(9) hypothesis testing;
(10) generalisations and interpretation, and
(11) preparation of the report or presentation of the results, i.e., formal
write-up of conclusions reached.
Business Research Types (based
on purpose)
Basic (pure or fundamental) research
Applied research
Basic Research (Pure,
Fundamental)
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a pragmatic
problem.
• To test the validity of a general business theory or to
learn about the general business phenomena
• Aimed at generalizations and formulation of theory
that has broad base application
Applied Research
• Conducted when a decision must be made about a
specific real-life problem
• To address a specific decision for a specific firm or
organization
• Aims at finding a solution for an immediate
problem facing a specific organization
Determining When to Conduct
Business Research
• Time constraints
• Availability of data (cost of data)
• Nature of the decision
• Benefits versus costs
Determining When to Conduct
Business
Availability of
Research
Benefits vs.
Time Constraints information Nature of the Decision Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?
No No No No
Do Not Conduct Business Research
Value versus Costs
• Potential Value of a research Effort Should
Exceed Its Estimated Costs
Value Should Exceed
Estimated Costs
Costs
Value • Research
expenditures
• increased certainty
• Delay of business
• Increased likelihood
decision and
of a correct
possible
decision
disclosure of
• Improved business
information to
performance and
rivals
resulting higher • Possible erroneous
profits
research results
Criteria of Good Research
• Clearly defined purpose and common concepts
• Clearly and detail description of the research
procedures
• Properly planned research design targeting objective
results
• Frank reporting, flaws, limitations
• Validity and reliability of data, sufficiently adequate
analysis of data
• Conclusions based on just what the data says
• Experience, reputation and integrity in research
• (systematic, logical, empirical and replicable)
Research in the 21st Century
• Increased globalization
• Growth of the Internet and other
information technologies
Global Research
• Business Research is increasingly global
• Market knowledge is essential
Global Business Research
• General information about country -
economic conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions -
demand estimation
The Internet
Is Transforming Society
• Time is collapsing.
• Distance is no longer an obstacle.
• Crossing oceans is only a mouse click
away.
• People are connected 24 hours a day, seven
days a week.
• "Instantaneous" has a new meaning.
Internet Research
• Seeking facts and figures about an issue
• Surveys on Web sites
Research Ethics
• Voluntary participation and harmlessness
(Informed Consent)
• Anonymity and confidentiality
• Disclosure (Open reporting of the flaws and
mistakes)
• Objectivity, impersonal to safeguard against
bias
• Deliberate manipulation of data in the analysis