You are on page 1of 30

RESEARCH

METHODOLOGY
(Business Research Methods)

Demands on Course Participants


The essence of knowledge is having it to apply it - Confucius
Acquisition and careful application of knowledge
Analytical and critical thinking, innovation, inquisitiveness
Holistic perspective

Quizzes &
Sessionals

Project Work
(each course participant is expected to show that he or she is able to
apply the research skills learned in this course)

Examination
(case study in which each course participant is expected to demonstrate
his or her indepth understanding of research methodology and apply the knowledge
acquired in the course to a
real-life situation)

(proof that the course participant is familar with the essentials


of research methodology)

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

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)
System and Objectivity are its distinguishing
features of Business Research, which is
important tool for managers and decision-makers
in corporate and non-corporate organizations
4

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
5

Typical Users of Business Research Methods


Businesses and Corporations
Public-Sector Agencies
Consulting Firms
Research Institutes
Non-Governmental Organizations
Non-Profit Organizations
Independent Researchers and Consultants
6

Common Business Research Methods &


Techniques

Surveys
Interviews
Observation
Experiments
Archival and Historical Data
Qualitative Analysis
Quantitative Analysis
7

Fields Where Business Research is Often Used (1)


General Business Conditions and
Corporate Research

Short- & Long-Range Forecasting,


Business and Industry Trends
Global Environments
Inflation and Pricing
Plant and Warehouse Location
Acquisitions
Management and Organizational
Behaviour Research

Total Quality Management


Morale and Job Satisfaction
Leadership Style
Employee Productivity
Organizational Effectiveness
Structural ssues
Absenteeism and turnover
Organizational Climate

Financial and Accounting Research

Forecasts of financial interest rate


trends,
Stock,bond and commodity value
predictions
capital formation alternatives
mergers and acquisitions
risk-return trade-offs
portfolio analysis
impact of taxes
research on financial institutions
expected rate of return
capital asset pricing models
credit risk
cost analysis

Fields Where Business Research is Often Used (2)


Information Systems Research

Sales and Marketing Research

Market Potentials
Market Share
Market segmentation
Market characteristics
Sales Analysis
Establishment of sales quotas
Distribution channels
New product concepts
Test markets
Advertising research
Buyer behaviour
Customer satisfaction
Website visitation rates

Knowledge and information needs


assessment
Computer information system use and
evaluation
Technical suppot satisfaction
Database analysis
Data mining
Enterprise resource planning systems
Customer relationship management
systems
Corporate Responsibility Research

Ecological Impact
Legal Constraints on advertising and
promotion
Sex, age and racial discrimination / worker
equity
Social values and ethics

Selected Examples of Real-Life Situations in


Which Business Research Methods are Used
A firm wants 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 wants 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, and propose a scheme
for enhancing this level
A financial institution wants to invest in commodities and commissions a
study to determine the past trends and forecast future returns in a portfolio
of commodities
The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan
to redefine his organizations priorities

10

Basic and Applied Research


Basic Research aims to expand the frontiers of science and knowledge by
verifying or disproving the acceptability of a given theory or attempting to
discover more about a certain concept (non-specificity)
Example: How does motivation affect employee performance?

Applied Research focusses on a real-life problem or situation with a view to


helping reach a decision how to deal with it (Specificity)
Example: Should Corporation X adopt a paperless office environment?

11

Science and the Scientific Method


Science has been defined as the methodological and
systematic approach to acquisition of 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 13 th
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

12

The Essence of the Scientific Method


Characteristics of the Scientific Method

Basic
Research
Applied
Research

Scientific
Method

Objectivity
Systematic Analysis
Logical Interpretation of Results

General Laws

Information or
Ideas for alternative
Courses of action

Elements of the
Scientific Method

Empirical Approach
Observations
Questions
Hypotheses
Experiments
Analysis
Conclusion
Replication

13

Features of Research: Basic and Applied

Sources: Easterby-Smith et al. (2008); Hedrick et al. (1993)

What does systemically and to find out suggest?

Systematic suggests that research is based on logical


relationships and not just beliefs.

To find out things suggests multiplicity of possible


purposes of research e.g.
describing,
explaining,
understanding,
criticizing, and
analyzing

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
16

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 of Courses of Action
After alternative courses of action have been
determined, selection of the best possible course.
29 August 2005

MBA III (Research Methodology)

Course Instructor: Dr. Aurangzeb Z. Khan

17

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

18

The Value of Business Research for Managers (4)


Evaluation Research It is the formal objective measurement
and evaluation of the extent which an activity, project or
programme has achieved its goal, and the factors which
influence performance (e.g. audits). It is also the formal
objective measurement and evaluation of the extent to which
on-going activities, projects or programmes 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

19

The Value of Business Research for Managers (5)


(2) What are the trends in retail and wholesale sector?
Can research suggest new ways to improve efficiency
in purchase transactions?

20

When Should Business Research be Undertaken?


Is sufficient time
available?
Yes
Is information
inadequate?

NO

Do not
undertake Business Research

Yes
High importance
of decision?
Yes
Research benefits
greater than costs?

Undertake Business Research


21

Value and Costs of Undertaking Business


Research
VALUE

COSTS

Decreased Uncertainty

Research Costs

Higher Likelihood of
Correct Decisions

Delay in Making
Business Decisions

Better Business
performance

Disclosure of
Information to Rivals

Higher Profits

Possibility of Error

Better Reputation

22

The Building Blocks of Research

KNOWLEDGE

Blend of information, experience and in-sights that


provides a framework that can be thoughtfully evaluated
when assessing new information or evaluating
relevant situations

INFORMATION

Determination of relationship amongst data with a


view to facilitating understanding of the phenomena,
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)

23

Figure 1: Process of Research Steps wise

Contd

Source: Mark Saunders, Philip Lewis and Adrian Thornhill 2006

Things to consider
The impact of your personal feelings and beliefs
Access to data
Time and other resources
Validity and reliability of the data
Ethical issues

Research Proposal
Purpose
Determine what the researcher wants to do?
Why the research is important, convincing, and
worth undertaking?
How the researcher wish to undertake it?
What benefit will result from the effort or attempt?

Elements of Research Proposal


Introduction to area and questions
Study objectives
Proposed research design
The setting of the study
Instruments planned to be used

Elements of Research Proposal


A sample design and a sample size
Outline the proposed chapters for the dissertation
Study's problems, limitations and future areas of
research
A proposed time frame

Figure 2: Research Onion

You might also like