BUSINESS RESEARCH

METHODS

Unit I Introduction
Business

Research

Definition

and

Significance the research process Types

of

Research

Research

Exploratory

Theoretical

and

and

causal

empirical

Research Cross- Sectional and time series

Research Research questions / problems
Research objectives Research hypotheses
characteristics Research in an evolutionary
perspective the role of theory in research.

RESEARCH

Research in common parlance refers to a

search for knowledge.
Ex: Sir Isaac Newton- Law of Gravitation
Research

is

an

art

of

scientific

investigation.
Research is essentially an investigation,
a recording and analysis of evidence for
the purpose of gaining knowledge.
Robert Ross

 Systematized effort to gain new

knowledge Redman and Mory

Voyage (journey) of discovery

RESEARCH

Process of finding solutions

to a

problem after a thorough study and

analysis of the situational factors.
Managers
engage

in

organizations

themselves

in

constantly

studying

and

analyzing issues.
Hence they are involved in some form of
research activity as they make decisions
at the workplace.

 To be a successful manager it is
important

to know how to go

about making the right decisions

by being knowledgeable about the
various steps involved in finding
solutions to problematic issues.

 Decision
process

making
of

is

merely

choosing

from

among alternative solutions to

solve a problem.
And research helps to generate
viable alternatives for effective
decision making.

Business Research
Business research is an organized,
systematic,
objective,

data-based,
scientific

critical,

inquiry

or

investigation into a specific problem.

According to McDaniel and Gates,

Business

research

is

the

planning, collection and analysis

of

data

decision

relevant

to

making

business
and

the

communication of the results of

this analysis to management.

Objectives of Research
The purpose of research is to
discover

answers

to

questions

through

the

application

of

scientific

procedures.
The main aim of research is to
find out the truth which is
hidden and which has not been

 The purpose of research is gaining

knowledge, which will be used for
solving

problems

(applied

research)
Or for satisfying ones thirst for
knowledge
research)

(pure

or

basic

The goals of research may be

Discovering new facts
Creation of new concepts
Verification of existing concepts
Finding a solution to a problem
Satisfying ones desire to know.

 To achieve the above said goals

the

researcher

must

collect

evidence.
The evidence may be empirical
(experiential, practical-field study)
or
Printed material or both.

Methods of field study evidence are:

Interview
Questionnaire
Observation
Printed sources are:
Books
Periodicals
Government documents
Masters theses and
Doctoral dissertations

 The evidence has to be collected

through investigation
The collected evidence should be
recorded, processed and presented
in the usable form.

Broad groupings of research

objectives

1. To

gain

familiarity

phenomenon

with

(incident,

happening) or to achieve new

insights

into

it

(exploratory

research)
2. To

portray

accurately

the

characteristics of a particular

3. To determine the frequency with

which something occurs or with
which

it

something

is

associated
else

with

(diagnostic

research)
4. To test a hypothesis of a causal
relationship

between

variables

(hypothesis-testing research)

Features of Research
1. Well defined problems: nature
and scope of the problem must
be stated clearly.
2. Systematic: a good research
should always be a systematic
and critical investigation into a
phenomenon.

3.Scientific: the scientific method

is a process for experimentation
that

is

used

observations

to
and

explore
answer

questions and hence it provides a

logical and systematic model to
conduct research.
4. Observable or empirical: good
research should be based upon

5. Solution seeking: research should

always be directed towards finding
answers to pertinent questions and
solutions to problems.
6. Testable: the research design must
adequately

answer

the

research

questions and test the hypothesis.

7. Identifying variables: relevant
variables must be clearly identified.

8. Purposive: A research is not a mere

compilation,

but

purposive

investigation. So it should always aim at

describing, interpreting and explaining a
phenomenon.
9. Unbiased: the purpose of a good
research should not to arrive at an
answer, which is personally pleasing to
the researcher, but rather one, which
will stand up the test of criticism.

10. Serve the validity needs: the

research design must be structured
in a manner that it fulfills the need of
internal and external validity.

Types of research

Types of research
Basic research : to generate a
body of knowledge by trying to
comprehend how certain problems
that occur in organizations can be
solved.
research.

This

is

called

basic

 Applied
current
manager

research:
problem
in

the

to solve a

face
work

by

the

setting,

demanding a timely solution.

Ex: a particular product may not be
selling well and the manager might
want to find the reasons for this in
order to take corrective action.

Types of research
Exploratory

research

is

loosely

structured and the basic premise is to

provide direction to subsequent, more
structured method of enquiry.
Conclusive research is structured and
definite in orientation. These studies are
usually conducted to validate formulated
hypotheses and specified relationships.

Exploratory vs Conclusive
Research

Conclusive research
Descriptive research: The main goal of

this type of research is to describe the data

and characteristics about what is being
studied.
Causal research: Explores the effect of one

or more variables on other variable(s), with

reasonable level of certainty by controlling
the impact of other influencing variables.

 THEORETICAL RESEARCH
Theoretical

research

means

that

researcher has to use assumptions or

principles to develop theories.
Conceptual research
Conceptual research is that related to
some abstract ideas or theory. It is
generally used by philosophers and
thinkers to develop new concepts or
to reinterpret the existing ones.

EMPIRICAL RESEARCH
Empirical type of research relies on experiment
or observation alone.
It

is

data

based

research

coming

up

with

conclusions which are capable of being verified by

observation or experiment.
It is also known as experimental type of research.
In such research, it is necessary to get the facts
first hand.
Empirical research is appropriate when certain
variables affect other variables in some way.

 Cross-Sectional study is conducted only

once and reveals a snapshot of one point in

time.
Observations at one point in time
Ex: Population census
Frequently used by social scientists
Although it does not capture time, change, or

process, it is often used in explanatory

research.
Cheaper and less time-consuming than time

series analysis

 Longitudinal study Includes

repeated

measures

over

an

extended period of time, tracking

changes in variables over time.
Much more expensive and timeconsuming than cross-sectional
Time-series:

multiple

observations over time of the

A time series design collects

data on the same variable at
regular

intervals

(weeks,

months, years etc.) in the form of

aggregate

measures

of

population.
This allows the researcher to
measure change in variables
over time.

The research process

Define
research
problem

Review o
f
literature

Formulat
e
hypothes
es

Design
Research
Interpret
and
report

Collect
data

Analyze
data

1. Formulating the research problem:

. There

are

two

types

of

research

problems, viz., those which relate to

states of nature and those which relate
to relationships between variables.
.

The best way of understanding the

problem
own

is to discuss it with ones

colleagues

or

with

those

having some expertise in the matter.

2. Extensive literature survey:

Once the problem is formulated, a brief summary at

this juncture the researcher should undertake extensive
literature survey connected with the problem.

For this purpose, the abstracting and indexing journals

and published or unpublished bibliographies are the
first place to go to.
Academic

journals,

conference

proceedings,

government reports, books etc., must be tapped

depending on the nature of the problem of it should be
written down.

3. Development of working
hypotheses:
After

extensive

literature

survey,

researcher should state in clear terms

the working hypothesis or hypotheses.
Working

hypothesis

is

tentative

assumption made in order to draw

out and test its logical or empirical
consequences.

4. Preparing the research

design:
The research problem having been
formulated in clear cut terms, the
researcher

will

be

required

to

prepare a research design, i.e., he

will have to state the conceptual
structure within which research
would be conducted.

The

preparation

of

the

research

design, appropriate for a particular

research problem, involves usually
the consideration of the following:
(i)

the

means

of

obtaining

the

information;
(ii) the availability and skills of the
researcher and his staff (if any);

(iii) explanation of the way in

which selected means of obtaining
information will be organized and
the

reasoning

leading

to

the

available

for

selection;
(iv)

the

time

research; and
(v) the cost

factor

relating to

research, i.e., the finance available

5. Determining sample design:

The researcher must decide the way of
selecting a sample or what is popularly
known as the sample design.
In other words, a sample design is a
definite plan determined before any
data

are

obtaining
population.

actually
a

sample

collected
from

for
given

6. Collecting the data:

There are several ways of collecting the

appropriate data which differ considerably in
context of money costs, time and other resources
at the disposal of the researcher.

Primary data can be collected either through

experiment or through survey. If the researcher
conducts

an

experiment,

he

observes

some

quantitative measurements, or the data, with the

help of which he examines the truth contained in
his hypothesis.

7. Execution of the project:

Execution of the project is a very
important step in the research
process. The researcher should
see that the project is executed in
a systematic manner and in time.

8. Analysis of data:

After the data have been collected, the

researcher

turns

to

the

task

of

analyzing them.
The analysis of data requires a number
of closely related operations such as
establishment

of

categories,

the

application of these categories to raw

data through coding, tabulation and
then drawing statistical inferences.

9. Hypothesis-testing:
After analyzing the data as stated
above, the researcher is in a
position to test the hypotheses, if
any, he had formulated earlier.
Do

the

facts

support

the

hypotheses or they happen to be

contrary?

10.

Generalizations

and

interpretation:
If a hypothesis is tested and upheld
several times, it may be possible
for the researcher to arrive at
generalisation,
theory.

i.e.,

to

build

11. Preparation of the report or

the thesis:
Finally,

the

researcher

has

to

prepare the report of what has

been done by him. Writing of
report must be done with great
care keeping in view the following:

 The main text of the report should

have the following parts:
(a) Introduction: It should contain a
clear statement of the objective of the
research and an explanation of the
methodology adopted in accomplishing
the research. The scope of the study
along with various limitations should as
well be stated in this part.

(b) Summary of findings: After

introduction there would appear a
statement

of

findings

and

recommendations in non-technical
language.

If

extensive,
summarized.

the
they

findings

are

should

be

(c)Main report: The main body of the

report should be presented in logical
sequence

and

broken-down

into

readily identifiable sections.

(d) Conclusion: Towards the end of
the

main

text,

researcher

should

again put down the results of his

research clearly and precisely. In fact,
it is the final summing up.

Research applications in marketing

Market & consumer analysis
Product research
Pricing research
Promotional research
Place research

Research applications in
finance

Risk

assessment,

exchange

rate

fluctuations and foreign investment.

Development

of

accounting procedures

Financial forecasting,

effective

cost

Research applications in
human resources
Employee

behaviors

such

as

performance, absenteeism, and turnover.

Employee

attitudes

such

as

job

satisfaction, and loyalty

Performance

appraisaldesign

evaluation
Incentive and benefits studies

and

Research applications in
production & operations management
Operation planning and design
Demand forecasting and demand estimation
Process planning
Logistics and supply chain-design and
evaluation
Quality estimations and assurance studies

Defining the research

problem

A research problem refers to some

difficulty
experiences

which
in

the

researcher
context

of

either a theoretical or practical

situation and wants a solution for
the same.
Ex: Frank Mcnamara -Diners card

research

problem

can

be

defined as a gap or uncertainty

in the decision makers existing
body

of

knowledge

which

inhibit efficient decision making.

 Research problem is a problem

that

someone

research,

would

like

to

anything that a person

find unsatisfactory.

Defining Research Problem

It

is

important

to

define

the

problem in a precise manner.

A well defined problem is 50%
solution.
It gives the researcher a proper
direction
investigation.

for

carrying

out

 A researcher can focus his efforts

on

collecting

relevant

information, if the problem is

defined properly.
Defining

a problem involves the

tasks of laying down boundaries

within which a researcher shall
study the problem with a predetermined objective in view.

Selecting the Problem

Researchers Interest
Topic of Significance
Novelty of the Idea

Researchers Resources- intelligence,

training,

experience

and

other

facilities such as funds, clerical and

technical assistance, library facilities
Availability of Data

Decision problems

Research problems

Problem identification process

Statement of the problem in a
general way
Understanding

the

nature

of

problem
Surveying available literature

developing
discussion

ideas

through

Research Objectives
A research objective can be specified
broadly or narrowly.
Framing research objectives
Precise
Clear
Operational

The research hypotheses

The term Hypotheses derives from
the Greek word Hyposthenia
meaning to suppose.
Hypotheses

are

tentative

conjecture (assumption) explaining

an observation, phenomenon, or
scientific problem.

hypotheses

is

assumption/presupposition

any
that

the researcher makes about the

probable direction of the results
that might be obtained on the
completion
process

of

the

research

Characteristics of
Hypothesis
i. Clear and precise:
Hypothesis should be clear and
precise. If the hypothesis is not
clear and precise, the inferences
drawn on its basis cannot be taken
as reliable.

2. Capable: Hypothesis should be

capable of being tested. Some
prior

study

researcher

may
in

be

order

done
to

by

make

hypothesis a testable one.

3. State relationship between
variables:

hypothesis

state

relationship between variables, if it

happens

to

be

relational

4. Simple: hypothesis should be

stated as far as possible in most
simple terms, so that the same is
easily understandable.
5. Ability to explain: hypothesis
must explain the facts that gave
rise to the need for explanation.

Sources of Hypothesis
Intuition
Other studies
Theory
Background knowledge
Analogies

Types of Hypothesis
1. Research

Hypothesis:

tentative

about

the

expected

the

variables

statements
outcomes

for

of

the

research study.
Ex: As corrective, disciplinary methods are
increased

in

an

elementary

school,

student achievement will decrease

2. Statistical Hypothesis:
i. Null Hypothesis
ii. Alternative Hypothesis
3.

Directional
directional

and

Non-

Research in Evolutionary Perspective

It has taken a long time to determine how
the world should be investigated.
Arguments cannot determine whether a
statement is correct. Proof is required.
Since the world has learnt to carry-out
experiments

and

perform

observations.
This approach means that results are
universal and may be reproduced.

 Thus, the scientific method was

born,

which

followed

by

was

subsequently

research

behavioral sciences.

in

the

 Philosophers

of

science

have

addressed general methodological

problems.
Copernicus challenged the view
that the earth was at the centre of
the universe,
Newtons
advanced

discoveries
our

greatly

understanding

nature and its patterns.

of

 Hawking suggests that any good

theory

should

satisfy

two

requirements:
i. It must accurately describe a
large class of observations
ii. It

must

make

definite

predictions about the results of

future observations.

 According
physical
provisional

to

Hawking,

theory

is

(temporary)

any
always

in

the

sense that it is only a hypothesis you can never prove it.

In practice, a new theory may be
devised following upon add-ons to
the

previous

modifications.

theory,

through

 When an accepted theory cannot

explain

new

data,

researchers

strive to develop a new theory.

 Knowledge

creation

fundamental

is

to

social

development and is an age old

concept.
Research

can

inventions,

lead
or

to

add

specific
to

the

development of technologies or
develop

new

knowledge.

frameworks

and

Role of theory in research

1. Prediction behaviour:
A theory enables to predict the
behaviour or characteristics
of one phenomenon from the
knowledge
phenomenon

of

another

2. Understanding relationships:
To gain an understanding of the
relationship

among

various

phenomena.
A theory is a coherent set of general
propositions, used as principles of
explanation
relationships
phenomena.

of
of

the

apparent

certain

observed

3. Other roles:
i. Suggests a problem for study
ii. Gives a hypothesis to be tested
iii. Provides simple explanation about

the observed relations

iv. Provides a conceptual model
v. Helps in selection of variables
vi. Makes research findings intelligible

(understandable)