BUSINESS RESEARCH METHODS

LECTURE HOURS : 75 FULL MARKS : 50

 Unit 1 : Introduction
 Unit 2 : Literature Searching And Theoretical Framework

 Unit 3 : Research Design

 Unit 4 : Measurement, Scaling And Sampling

 Unit 5 : Data Collection And Analysis

 Unit 6 : Research Proposal And Report Writing

 UNIT 1
 1.1 Meaning of Research
 1.2 Definition of Scientific Research
 1.2.1 The hallmarks or Features of Scientific
Research
 1.2.2 Processes of Scientific Research

 1.3 Types of Research

 1.4 Paradigms of Research

 1.5 Approaches to Reserch

1.1 MEANING OF RESEARCH
Research is the process of finding solutions to a
problem after a thorough study and analysis of the
situational factors. Literally the meaning is again
search or repeated investigation(re+ search).

Research is a serious academic activity with a set of objectives to

explain or analyse or understand a problem or finding solution(s)
for the problem(s) by adopting a systematic approach in collecting,
organizing and analyzing the information relating to the problem.

( Business research is defined as the systematic and objective

process of generating information for aid in making business
decisions including financial research, operational research,
marketing research. Business Research provides the needed
information that guides managers to make informed decisions to
successfully deal with problems.)
Research is carried out for two purposes: either for
finding solution to a problem or to know something
more. It leads to a principle.
 Definition
“Research is a systematic, controlled, empirical and critical investigation
of hypothetical propositions about the presumed relations among natural
phenomena.” – Fred Kerlinger and H.B. Lee

According to CLIFFORD WOODY, “research comprises; defining and

redefining problems formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and
reaching conclusions; and as carefully testing the conclusions to
determine whether they fit the formulating a hypothesis.

Research may be defined; as the systematic and objective analysis and

recording of controlled observation that may lead to the developments or
generalizations, principles or theories, resulting in prediction and possibility of
ultimate control of events”.

Sometimes research is defined as a movement, a movement from the known

to the unknown. It is an effort to discover something. Some people say that
research is an effort to know “ more and more about less and less.”
 CHARACTERISTICS
 Research originates with a question or problem.
 Research requires a clear articulation of a goal.
 Research follows a specific plan of procedure.
 Research usually divides the principal problem
into more manageable subproblems.
 Research is guided by the specific research
problem, question, or hypothesis.
 Research accepts certain critical assumptions.
 Research requires the collection and
interpretation of data in attempting to resolve
the problem that initiated the research.
 Research is, by its nature, cyclical; or more
exactly helical.
 1.2 DEFINITION OF
SCIENTIFIC RESEARCH

Scientific Research focusing on solving problems and pursues

a step by step logical, organized and rigorous method to
identify the problems, gather data, analyzethem and draw
valid conclusions there from.

“Scientific Research is a systematic, controlled, empirical and

critical investigation of hypothetical propositions about the
presumed relations among natural phenomena.” – Fred
Kerlinger and H.B. Lee
 WHY SCIENTIFIC RESEARCH?
 This research is not based on hunches, experience
and intuition.
 It is purposive and rigorous.
 Enables all those who are interested in
researching and knowing about the same or
similar issues to come up with comparable
findings when data are analyzed.
 Findings are accurate and confident.
 Apply solutions to similar problems.
 It is more objective.
1.2.1 THE HALLMARKS OR FEATURES
OF SCIENTIFIC RESEARCH

1. Purposiveness
2. Rigor
3. Testability
4. Replicability
5. Precision and Confidence
6. Objectivity
7. Generalizability
8. Parsimony
 1. PURPOSIVENESS
Research has to start with a definite aim or purpose.
Research without specific purpose leads the dye nowhere.
The purpose of research directly influences the whole
activities of the research. It forms basis for procedures,
influences methods and affects the interpretation of the
findings. Errors can be minimized by following purpose of
the research carefully and hence meaningful research can
be carried out.
 2. RIGOR
Scientific research is a rigorous process. A good theoretical
base and sound methodological design would add rigor to
the purposive study. Rigor adds carefulness, scrupulousness
and the degree of exactitude in research. It enables the
researcher to collect the right kind of information from an
appropriate sample with the minimum degree of bias and facilitate
suitable analysis of the data gathered. This supports the other
features too.
Example:
A manager asks 10-12 employees how to increase the level of
commitment. If solely on the basis of their responses the manager
reaches several conclusions on how employee commitment can be
increases, the whole approach to the investigation would be
unscientific. It would lack rigor for the following reasons:
1. Based on few employees
2. Bias and incorrectness
3. There might be other influences on commitment which are ignored
and are important for a researcher to know
Thus, Rigorous involves good theoretical base and carefully thought out
methodology.
 3. TESTABILITY
Testability refers to the test of hypotheses. Without developing
and testing the hypotheses, research studies don’t meet the
criteria of scientific research. Using several statistical techniques
and tools , the probable solutions are tested. Thus The ultimate
outcome of scientific investigation is to see whether the
hypotheses are tested or not.
 4. REPLICABILITY

Replicability means that it can be used again if

similar circumstances prevails. The replicable
research is accepted and considered as scientific
research.

Example:
The study concludes that participation in
decision making is one of the most important
factors that influences the commitment, we will
place more faith and credence in these finding
and apply in similar situations. To the extent that
this does happen, we will gain confidence in the
scientific nature of our research.
 5. Precision and Confidence
Precision refers to the closeness of the findings to “reality” based on a sample. It
reflects the degree of accuracy and exactitude of the results of the sample.
Example: If a supervisor estimated the number of production days lost during the
year due to absenteeism at between 30 and 40, as against the actual of 35, the
precision of my estimation more favorably than if he has indicated that the loss of
production days was somewhere between 20 and 50.

Confidence refers to the probability that our

estimations are correct. That is, it is not merely
enough to be precise, but it is also important
that we can confidently claim that 95% of the
time our results would be true and there is only
a 5% chance of being wrong. This is also
known as confidence level.
 6. OBJECTIVITY

The conclusions drawn through the interpretation of the results of

data analysis should be objective; that is, they should be based on
the facts of the findings derived from actual data, and not on our
subjective or emotional values. The more objective the analysis
and interpretation of the data is, the more scientific the research
becomes.

Example: If we had a hypothesis that stated that greater

participation in decision making will increase organizational
commitment and this was not supported by the results, it makes no
sense if the researcher continues to argue that increased
opportunities for employee participation would still help!
 7. GENERALIZABILITY

It refers to the scope of applicability of the research findings

in one organization / situation setting to other settings. The
more generalizable the research is, the greater its usefulness
and value will be.

Example: If a researcher’s findings that participation in

decision making enhances organizational commitment are
found to be true in a variety of manufacturing, industrial and
service organizations, and not merely in the particular
organization studied by the researcher, then the
generalizability of the findings to other organizational
settings in enhanced.
 8. PARSIMONY
Simplicity in explaining the phenomenon or problems that occur,
and in generating solutions for the problems, is always preferred
to complex research frameworks that consider an unmanageable
number of factors.
1.2.2 PROCESSES OF SCIENTIFIC RESEARCH

Step 1: Realizing a Problem / Observation

Step 2: Problem Identification
Step 3: Theoretical Framework / Literature Review
Step 4: Hypotheses Formulation
Step 5: Research Design
Step 6: Data Collection
Step 7: Data Analysis
Step 8: Interpretation and Generalization
 STEP 1
REALIZING A PROBLEM / OBSERVATION

Observation is the first stage, in which one senses

that certain changes are occurring or that some
new behaviors, attitudes and feelings are surfacing
in one’s environment (i.e., the work place). We may
not exactly know what is happening but we can
realize something is going wrong. It helps us to
identify an issue to be studied.

“The formulation of the problem is often more

essential than its solution” Albert Einstein
 STEP 2
PROBLEM IDENTIFICATION
This step is a minor research itself. It involves the seeking of
information in depth of what is observed.
After we come to realization of a problem, we need to focus
on the exact problem. Unless the problem is well defined,
the whole effort on carrying out a research will go in vain
that becomes just a waste of time ,money and labour. So all
the related factors are to be carefully studied to collect
authentic information and hence the problem can be
perfectly defined.
 STEP 3
THEORETICAL FRAMEWORK / LITERATURE REVIEW

It is an attempt to integrate all the information in a logical

manners so that the factors responsible for the problem can be
conceptualized. The theoretical framework formulated is often
guided by experience and intuition. In this step, the critical
variables are identified and examined as to their contribution or
influence in explaining why the problem occurs and how it can be
solved. It also includes the study of previous researches on a
similar topic so as to find the appropriate methodology to
enhance the research. Putting the variables and their association
together, a theoretical framework is developed. Theoretical
framework is the foundation on which the entire research project
is based. It is logically developed , described , and elaborated
network of associations among the variables relevant to the
problem situation.
 STEP 4
HYPOTHESES FORMULATION (HYPOTHESIZING)
It is the next logical step after theory formulation.
A hypothesis is a tentative statement that
proposes a possible explanation to some
phenomenon or event. A useful hypothesis is a
testable statement which may include a
prediction. A hypothesis should not be confused
with a theory. From the theorized network of
associations among the variables, certain
testable hypotheses or educated conjectures can
be generated.

Hypothesis testing is called deductive research.

Sometimes, hypotheses that were not originally
formulated do get generated through the
process of induction.
 FORMULATING HYPOTHESES
(ADDITIONAL)
 A hypothesis is an explicit statement by the researcher of how
phenomena of interest are related to one another.
 Characteristics of a good hypothesis
 It is an empirical statement.
 It is stated as a generality.
 It is plausible.
 It is specific.
 It is testable. Said differently, it must be falsifiable.

 An empirical statement. Suppose a researcher posits that “Democracy

is the best form of government.” This is not an empirical statement.
Rather, it is a normative statement which cannot be tested with
empirical data.
 The hypothesis needs to be a statement about how concepts are related
to one another. For example. “Democracy produces higher economic
development.” would be a good hypothesis.
 STEP 5
RESEARCH DESIGN
Research design a master plan for conducting a research. It is
framework for action because it describes the general
framework for collecting and analysing a data. It also specifies
methods and procedures as it gives a decision about one of the
research designs to be carried out. However, the research
design type is based on the nature of research project. Research
design can be thought of as the structure of research -- it is the
"glue" that holds all of the elements in a research project together.
 STEP 6
DATA COLLECTION

Data collection is also known as fieldwork. The success of

research to a greater extent depends on the data collection.
If appropriate and authentic data is not collected, the
findings of the research will be no more valid and reliable.
Different sorts of measurements and tools are used to collect
the data that have been stated in research design such as
questionnaire, interview, observation etc. Data sources can
be primary or secondary and data with respect to each
variable in the hypotheses need to be obtained. Further data
are collected to test the hypotheses that are generated in the
study.
 STEP 7
DATA ANALYSIS

Data gathered are statistically analyzed to see if the hypotheses

that were generated have been supported. The data analysis
involves three major steps;
 Cleaning and organizing the data for analysis (Data Preparation )
 Describing the data (Descriptive Statistics; i) measure of central
tendency: mean, median, mode etc ii) measure of dispersion:
range, standard deviation etc )
 Testing hypotheses and models (Inferential Statistics; t-test, z-test
etc )
However, which tool is to be used depends on ; purpose of the
research, research design and the nature of the collected data.
 STEP 8
INTERPRETATION AND GENERALIZATION
This final step is the process of arriving at conclusions by
interpreting the meaning of results of the data analysis. With
the findings, the existing theories or practices may be refined
or modified. The carefully carried out research following
scientific procedure reduces errors and gives a meaningful
outcome so that it can be generalized.

Research originates with a question or problem and ends at an

empirical generalization The generalization as an ending of
one research becomes the beginning for the next research.
Thus, research is, by its nature, cyclical; or more exactly
helical.
 1.3 TYPES OF RESEARCH
Generally research is categorized into two types with
respect to it’s purpose.

1. Applied Research:

Applied Research is conducted to solve a current

problem faced in the work setting with demanding a
timely solution. Applied research is designed to solve
practical problems of the modern world, rather than to
acquire knowledge for knowledge's sake. One might
say that the goal of the applied scientist is to improve
the human condition for example, applied researchers
may investigate ways to: improve agricultural crop
production, treat or cure a specific disease etc.
2. Basic Research (Fundamental, Pure):

Basic Research is to generate a body of knowledge by trying to

comprehend how certain problems that occur in organizations
can be solved. The findings of such research contribute to the
building of knowledge in the various functional areas of
business. Basic research is driven by a scientist's curiosity or
interest in a scientific question. The main motivation is to
expand man's knowledge , not to create or invent something.
There is no obvious commercial value to the discoveries that
result from basic research.. For example, basic science
investigations probe for answers to questions such as:
How did the universe begin? What are protons,
neutrons, and electrons composed of?
 1.4 PARADIGMS OF RESEARCH

A paradigm is a “worldview” or a set of assumptions about how things

work. It is ‘a school of thought’ or ‘a framework for thinking’ about how
research ought to be conducted to find out the truth. Rossman & Rollis
define paradigm as “shared understandings of reality.” All research
investigations are based on such assumptions about how the world is
perceived. There are two major schools of thought ; Positivism and
Interpretivism.
1) Positivism: Throughout the 19th and mid-20th century
positivism remained a dominant philosophy of research. It is
based on the works of French philosopher Auguste Comte. It is
associated with quantitative research. It involves hypothesis
testing to obtain “objective” truth. It is also used to predict what
may happen at a future date. It holds that science or knowledge
creation should be based on what can be observed and directly
measured. Critical realism is a subtype of positivism that
incorporates some value assumptions on the part of the
researcher. Researchers primarily rely on quantitative data to do
this. Positivism explains a phenomena.
2) Interpretivism : It is associated with qualitative
research. It is used to obtain an understanding of the
word from an individual perspective. Critical
Humanism is a subtype of the Interpretive paradigm.
The critical humanism approach is one in which the
researcher involves people studied in the research
process. Data is used for social change. Interpretivism
understands a phenomena.

However a new approach has taken place these days.

Mixed or Triangulation : This is the new emerging
approach of research ; the integrated view of positivism
and interpretivism that combines both qualitative and
quantitative methods.
 1.5 APPROACHES TO RESEARCH
1) Quantitative Research : It is used to quantify the problem by way of generating
numerical data or data that can be transformed into useable statistics. It is used to
quantify attitudes, opinions, behaviors, and other defined variables – and generalize
results from a larger sample population. Quantitative data collection methods are
much more structured than Qualitative data collection methods. Quantitative data
collection methods include various forms of surveys – online surveys, paper
surveys, mobile surveys , face-to-face interviews, telephone interviews, longitudinal
studies, website interceptors, online polls, and systematic observations.
2) Qualitative Research : It is primarily used in exploratory research. It is used to
gain an understanding of underlying reasons, opinions, and motivations.
The researchers aim to gather an in-depth understanding of human behavior and
the reasons that govern such behavior. It provides insights into the problem or helps
to develop ideas or hypotheses for potential quantitative research. Qualitative data
collection methods vary using unstructured or semi-structured techniques. Some
common methods include focus groups (group discussions), individual interviews,
and participation/observations. The sample size is typically small, and respondents
are selected to fulfill a given quota.
 In a nutshell, quantitative research generates numerical data or information that
can be converted into numbers. Qualitative Research on the other hand generates
non-numerical data.
 QUANTITATIVE VERSUS QUALITATIVE
Quantitative Research Strategy
•Investigation aims to assess a pre-stated
theory (Deductive Reasoning)
•Often involves hypothesis testing
•Attempts to minimise the influence of
the researcher on the outcome
•Researcher uses tools (questionnaires or
equipment) to collect data.
•Quantitative data infers statistics
•Data collection therefore requires
‘closed’ responses
•Quantitative data is more efficient, able to
test hypotheses, but may miss contextual data
and more able to be generalised.
Qualitative Research Strategy
•Investigation aims to create a novel
theory (Inductive Reasoning)
•Researcher becomes an inherent part of
the study – ethnography
•Researcher is the data gathering instrument.
•Qualitative data infers complex
statements or opinions
•Data collection therefore permits ‘open’
responses
•Qualitative data is more difficult, time
consuming, and less able to be generalised.
 1.6 MANAGEMENT RESEARCH
Management and Business research is defined as the systematic and objective
process of generating information for aid in making business decisions including
financial research, operational research, marketing research. Business Research
provides the needed information that guides managers to make informed decisions
to successfully deal with problems.
“Management Research is the systematic and objective process of gathering,
recording and analyzing data for aid in making business decisions.” –
Zikmund(2007)
“ Business Research is a systematic inquiry whose objective is to
provide information to solve managerial problems.”- Donald Cooper and
Schindler(2011)
Management Research is a systemic organized investigation conducted
to resolve problematic issues in, or interrelated among , the different
areas of management.” – Uma Sekaran and Bougie(2013)
Business and management research is a systematic inquiry that helps
to solve business problems and contributes to management knowledge.
It is an applied research.(Wikipedia)
1.6.1 NATURE OF MANAGEMENT RESEARCH
Definition:

‘Something that people undertake in order to find things out

in a systematic way, thereby increasing their knowledge’
Saunders et al. (2009)

Characteristics:

 Data are collected systematically

 Data are interpreted systematically

 There is a clear purpose to find things out

1.3.TYPES OF BUSINESS RESEARCH.
 1.Applied research
 Is to solve a current problem faced by the
manager in the work setting,demanding a
timely solution.
 2.Basic research (fundamental, pure)

 Is to generate a body of knowledge by trying to

comprehend how certain problems that occur
in organizations can be solved.
 The findings of such research contribute to the
building of knowledge in the various functional areas
of business.
OTHER TYPES OF RESEARCH
 Case studies and action
research are sometimes
used to study certain
types of issues.
1. Case Studies
2. Action Research
CASE STUDIES
 Case studies involve in depth, contextual
analyses of similar situations in the other
organizations, where the nature and
definition of the problem happen to be the
same as experienced in the current situation.
 Case study, as a problem solving technique,
is not often undertaken in organizations
because such studies dealing with problems
similar to the one experienced by a particular
organization of a particular size and in a
particular type of setting are difficult to come
by.
ACTION RESEARCH
 The researcher begins with a problem that
is already identified and gathers relevant
data to provide a tentative problem
solution.
 This solution is then implemented, with
the knowledge that there may be
unintended consequences following such
implementation.
 The effects are then evaluated, defined
and diagnosed and the research continues
on an ongoing basis until the problem is
fully resolved.
1.4.MANAGER AND RESEARCHER.
 Solve problems
 Decision making tool

 Competition

 Risk

 Investment

 Hire researchers and consultants more effectively

1.5 ETHICS AND BUSINESS
RESEARCH
 Ethics in business research refers to a code of
conduct or expected societal norm of behavior
while conducting research.
 Ethical conduct applies to the organization and
the members that sponsor the research, the
researchers who undertake the research, and the
respondents who provide them with the
necessary data.