Business Research Methods

Third European edition

Edited by:
Boris Blumberg, Donald R. Cooper and Pamela S. Schindler

Summary:
11-sept-2011






































Chapter 1: the nature of business and management research

Why study research?
Business research may be defined as a systematic inquiry whose objective is to provide the
information that will allow managerial problems to be solved.
A management dilemma is any problem or opportunity that requires a management decision.

What is research?
A reporting study may be produced simply to provide an account or summation of some data, or
to generate statistics. A reporting study calls for knowledge and skill in using information
sources and dealing with their gatekeepers.

A descriptive study tries to discover answer to the questions who, what, when where and,
sometimes, how. The researcher attempts to describe, or define, a subject, often by creating a
profile of a group of problems, people or events. The descriptive study is popular in business
research because of its versatility across disciplines.

An explanatory stud goes beyond description and attempts to explain the reasons for the
phenomenon that the descriptive study has only observed. In an explanatory study, the
researcher uses theories, or at least hypotheses, to account for the forces that caused a certain
phenomenon to occur.

A predictive study is rooted as much in theory as in explanation. Once we can explain and
predict a phenomenon, we would like to be able to control it. Being able to replicate a scenario
and dictate a particular outcome is the objective of control. Control is a logical outcome of
prediction.

Is research always problem-solving based?
Applied research has a practical problem-solving emphasis, although the need for problem-
solving is not always generated by a negative circumstance. The problem-solving nature of
applied research means that it is conducted in order to reveal answers to specific questions
related to action, performance or policy needs.
Pure research or basic research aims to solve perplexing questions of a theoretical nature that
have little direct contact on action, performance or policy needs.

What makes good research?
Good research generates dependable data, which is derived through practices that are
conducted professionally and that can be used and relied upon. Good research follows the
structure of the scientific method:
1. Purpose clearly defined
2. Research process detailed the research should be replicable.
3. Research design thoroughly planned research should be planned carefully to yield
results that are as objective as possible.
4. High ethical standards applied
5. Limitations frankly revealed the researcher should report any flaws in procedural
design, and estimate their effect on the research findings.
6. Adequate analysis for decision-makers needs analysis of the data should be extensive
enough to reveal its significance, and the methods of analysis used should be
appropriate.
7. Findings presented unambiguously
8. Conclusions justified conclusions should be limited to those for which the data provide
an adequate basis.
9. Researchers experience reflected the research report should always contain
information about the qualifications of the researcher.

Research philosophies
Positivism is a research philosophy adopted from the natural sciences. Its three basic principles
are:
The social world exists externally and is viewed objectively
Research is value-free
The researcher is independent, taking the role of an objective analyst.
According to positivism, knowledge develops by investigating the social reality through
observing objective facts.

The three basic principles of interpretivism are:
The social world is constructed and is given meaning subjectively by people
The researcher is part of what is observed
Research is driven by interests.
Interpretivists argue that simple fundamental laws are insufficient to understand the whole
complexity of social phenomena.

Realism is a research philosophy sharing principles of positivism and interpretivism.

Deduction is a form of inference that purports to be conclusive. For a deduction to be correct, it
must be both true and valid:
Premises (reasons) given for the conclusion must agree with the real world (true)
The conclusion must necessarily follow from the premises (valid)

To induce something is to draw a conclusion from one or more particular facts or pieces of
evidence. The conclusion explains the facts, and the facts support the conclusion.

Induction and deduction are used in research reasoning in a sequential manner. This process is
described by John Dewey as the double movement of reflective thought. Induction occurs when
we observe a fact and ask, Why is this? In answer to this question, we advance a tentative
explanation (hypothesis). The hypothesis is plausible if it explains the event or condition (fact)
that prompted the question. Deduction is the process by which we test whether the hypothesis
is capable of explaining the fact.

Understanding theory: components and connections
A concept is a generally accepted collection of meanings or characteristics associated with
certain events, objects, conditions, situations and behaviours. When we adopt new meanings or
develop new labels, we begin to develop a specialized jargon or terminology. Concepts are basic
to all thought and communication, yet in everyday use we pay scant attention to the problems
encountered in their use. Abstract concepts are often called constructs.

Researchers must struggle with two types of definition: dictionary definitions and operational
definitions. In a dictionary definition, a concept is defined with a synonym. An operational
definition is one stated in terms of specific testing or measurement criteria.

In practice, the term variable is used as a synonym for construct, or the property being studied.
In this context, a variable is a symbol to which we assign a numeral, or value. Researchers are
most interested in relationships among variables. In each relationship, there is at least one
independent variable (IV) and one dependent variable (DV). It is normally hypothesized that, in
some way, the IV causes the DV to occur.
A moderating or interaction variable (MV) is a second independent variable that is included
because it is believed to have a significant contributory or contingent effect on the original IV-
DV relationship.
An almost infinite number of extraneous variables (EVs) exists that might conceivably affect a
given relationship. If we want to check whether results are influenced by them, we include them
as control variables (CVs) in our investigation to ensure that our results are not biased by not
including them. Exteraneous variables are also called confounding variables (CFVs), if they affect
a relation between an IV and the DV or between a moderator (MV) and the DV.

An intervening variable (IVV) is a conceptual mechanism through which the IV and MV might
affect the DV. It van be defined as a factor that theoretically affects the DV but cannot be
observe or has not been measured.

Propositions and hypotheses
A proposition is a statement about concepts that may be judged as true or false if it refers to
observable phenomena. When a proposition is formulated for empirical testing, we call it a
hypothesis.
Correlational hypotheses state merely that the variables occur together in some specified
manner without implying that one causes the other. With explanatory (causal) hypotheses,
there is an implication that the existence of, or a change in, one variable causes or leads to a
change in the other.

In a research, a hypothesis serves several important functions:
It guides the direction of the study
It identifies those facts that are relevant and those that are not
It suggests which form of research design is likely to be most appropriate
It provides a framework for organizing the conclusions.

Theory
A theory is a set of systematically interrelated concepts, definitions and propositions that are
advanced to explain and predict phenomena (facts).

The term model is defined as the representation of a system that is constructed to study some
aspects of that system or the system as a whole.
Chapter 2: The research process and proposal

The research process
A research dilemma triggers the need for investigating how the dilemma can be solved.

Management research and measurement questions
The process begins at the most general level with a management/research dilemma, which is
usually a symptom of an actual problem.
The manager must move from management/research dilemma to management question in
order to proceed with the research process.

Management question can be categorized:
Choice of purpose or objectives what do we want to achieve?
Generation and evaluation of solutions how can we achieve the ends we seek?
Troubleshooting or control situation involves monitoring or diagnosing various ways in
which an organization is failing to achieve its established goals.

An exploration usually begins with a search of published data. Once the researcher has a clear
statement of the management question, she must work with the manager to translate it into a
research question. A research question is the hypothesis of choice that best states the objective
of the research study.
Once the research question(s) has been selected, the researchers thinking needs to move to a
more specific level that of investigative questions. These questions reveal the specific pieces of
information that the manager feels he or she needs to know in order to answer the question.

Measurement questions should be outlined by completion of the project-planning activities, but
usually await pilot testing for refinement. There are two types of measurement question:
1. Pre-designed or pre-tested questions those that have been formulated and tested by
previous researchers, are recorded in the literature, and may be applied literally or
adapted to the project at hand.
2. Custom-designed questions

Research process
Scientific research always involves theory and therefore you need to ensure that some
theoretical considerations are available addressing your research problem.
Scientific research should address non-trivial problems.
Good research problems are narrowly defined and are relevant.

The data-gathering phase of the research process typically begins with pilot testing.

Ex-post facto evaluation is the measurement of the value of research and is usually done as an
after-the-fact event. Another evaluation option is prior or interim evaluations.

The research proposal
The research proposal is an activity that incorporates decisions made during the early project
planning phases of the study, including the management research question hierarchy and
exploration. Every proposal should include two basic sections:
1. Statement of the research question
2. Brief description of the research methodology.

The purpose of the research proposal is to:
Present the management or research question to be researched and relate its
importance
Discuss the research efforts of others who have worked on related management
questions
Suggest the data necessary for solving the question and how the data will be gathered.
A proposal is also knows as a work plan. The proposal tells us what, why, how and where the
research will be done, and whom it will approach.
In general, research proposals can be divided into those generated for internal and external
audiences. External proposals can be classified further as either solicited or unsolicited. A
solicited proposal is often in response to an request for proposal (RFP). There are three general
levels of complexity: exploratory studies, small-scale studies and large-scale studies. The large-
scale study is the most complex proposal we deal with here.

The structure of the research model:
Executive summary quickly understand the thrust of a proposal.
Problem statement this section needs to convince the sponsor to continue reading the
proposal. You should capture the readers attention by stating the management
dilemma, its background, its consequences and the resulting management question.
Research objectives this module addresses the purpose of the investigation.
Literature review this section examines recent research studies, company data or
industry reports that act as a basis for the proposed study.
Importance/benefits of the study the benefits that will accrue from your study are
fully described. The importance should be emphasized. It is particularly important to the
unsolicited external proposal.
Research design the design module describe what you are going to di in technical
terms.
Data analysis you describe your proposed handling of the data and the theoretical
basis for using the selected techniques.
Nature and form of results you should specify the types of data to be obtained and the
interpretations that will be made in the analysis.
Qualifications of researchers past research experience is the best barometer of
competence, followed by the highest academic degree earned.
Budget the budget should be presented in the form the sponsor requests.
Schedule the major phases of the project, their timetables and the milestones that
signify completion of a phase. If a project is large and complex, a critical path method
(CPM) of scheduling may be included.
Facilities and special resources
Project management the purpose of the project management section is to show the
sponsor that the research team is organized in a way that will enable it to do the project
efficiently.
Bibliography
Appendices the researcher should include a glossary of term whenever there are many
words not understood by the general management community
Measurement instrument
Chapter 3: Literature review

Aims and objectives of a review
Some studies just reconfirm previous knowledge, often in slightly different settings.
The first function of a literature review is to embed the current study in the existing structure of
knowledge. The literature reviews allows you to show the reader your understanding of the
problem and its structure.

Assessment of a good literature review
As new research often bridges fields that are as yet unconnected, or extends the applicability of
a theory to a new field, it is not surprising that reviews often discuss literature that does not
completely tie in with the objective of the current study.
In a literature review it is important to discuss new theories alongside the result of previous
studies. The literature review should be sued to demonstrate how well the current study fits in
with previous studies and to highlight the new contributions it makes.

Process and organization
Writing a literature review is an iterative process of three tasks:
Searching information (literature)
Assessing the information obtained
Synthesizing the assessment of information.
The preparation of a literature review will start with a literature search. The main problem is not
finding literature that is related to a certain topic, but filtering the really relevant and good
literature, and distinguishing it from irrelevant literature and dubious sources.

Peer-reviewed publications only publish articles after other scholars peers- have evaluated
and approved the scientific quality of the work.

Literature can be found in both primary and secondary sources:
Primary sources are full-text publications of theoretical and empirical studies, and
represent the original work.
Secondary sources are compilations of information, either in printed or digital form.

A specific study is often pre-published. Such pre-publications serve two functions. First, authors
circulate an unpolished manuscript to receive comments, which helps them to improve the
study. Second, the author can claim that he or she had a particular theoretical thought or
empirical finding at the time of the pre-publication and not later on.

By writing an article, it should contain at least the following elements:
The aims and objectives of the review
The audience for the review
A brief summary of your main points
A draft outline
A list of the main material you have selected

A review is more than a well-structured summary of the literature; a good review also contains
considerable insight from the writer, as it is not only a prcis, but a well-reasoned piece of
criticism too.
Chapter 5: Quantitative and qualitative research

Qualitative and quantitative studies
Quantitative studies rely on quantitative information, while qualitative studies base their
accounts on qualitative information.

Research design classifications
The design is an activity- and time-based plan
It is based on the research question
It guides the selection of sources and types of information
It is a framework for specifying the relationships among the studys variables
It outlines procedures for every research activity

Exploratory studies tend towards loose structures with the objective of discovering future
research tasks. The formal study begins where exploration leaves off. The goals is to provide a
valid representation of the current state and to test the hypotheses or answer the research
question posed.

Monitoring includes studies in which the researcher inspects the activities of a subject. In the
interrogation/communication study, the researcher question the subjects and collects their
response by personal or impersonal means.

With an ex-post facto design, investigators have no control over the variables in the sense of
being able to manipulate them.

If the research is concerned with finding out who, what, where, when or how much, then the
study is descriptive. If it is concerned with learning why that is, how one variable produces
changes in another it is causal.

Cross-sectional studies are carried out once and represent a snapshot of one point in time.
Longitudinal studies are repeated over an extended period.

Statistical studies are designed for breadth rather than depth. Case studies place more emphasis
on a full contextual analysis of fewer events or conditions and their interrelations.

Designs also differ as to whether they occur under actual environmental conditions (field
conditions) or under staged or manipulated conditions (laboratory conditions) or even artificially
(simulations).

Exploratory, descriptive and causal studies
The exploratory study is particularly useful when researchers lack a clear idea of the problems
they will meet during the study. Studies made by others for their own purposes represent
secondary data.

In contrast to exploratory studies more formalized studies are typically structured with clearly
stated hypotheses or investigative questions.

If we consider the possible relationships that can occur between two variables, we can conclude
that there are three possibilities:
Symmetrical two variables fluctuate together but we assume the changes in neither
variable are due to changes in the other.
Reciprocal two variables mutually influence or reinforce each other.
Asymmetrical changes in one variable (IV) are responsible for changes in another
variable (DV).
Chapter 6: Sampling strategies

Unit of analysis
The unit of analysis describes the level at which the research is performed and which objects are
researched.

The nature of sampling
The basic idea of sampling is that by selecting some of the elements in a population, we may
draw conclusions about the entire population.
A population element is the subject on which the measurement is being taken.
A population is the total collection of elements about which we wish to make some
inferences
A census is a count of all the elements in a population

There are several compelling reasons for sampling:
Lower cost
Greater accuracy of results
Greater speed of data collection
Availability of population elements

Sample versus census
Two conditions are appropriate for a census study:
Feasible when the population is small
Necessary when the elements are quite different from each other
When the population is small and variable, any sample we draw may not be representative of
the population from which it is drawn.

Representativity of a sample depends on two considerations:
Accuracy the degree to which bias is absent from the sample. There is no systematic
variance the variation in measures due to some known or unknown influences that
cause the scores to lean in one direction more than another - with an accurate sample.
Precision measured by the standard error of estimate, a type of standard deviation
measurement; the smaller the standard error of estimate, the greater the precision of
the sample.

Types of sample design
Probability sampling is based on the concept of a random selection a controlled
procedure which ensures that each population element is given a known non-zero
chance of selection.
Non-probability sampling is arbitrary (non-random) and subjective.

Steps in sampling design
1. What is the relevant population?
2. What are the parameters of interest?
Population parameters are summary descriptors of variables of interest in the
population. Sample statistics are descriptors of the relevant variables computed from
sample data. The population proportion of incidence is equal to the number of elements
in the population belonging to the category of interest, divided by the total number of
elements in the population.
3. What is the sampling frame?
The sampling frame is the list of elements from which the sample is actually drawn.
4. What is the type of sample?
5. What size sample is needed?
6. How much will it cost?

Complex probability sampling
Four alternative probability sampling approaches are considered:
Systematic sampling every k
th
element in the population is sampled, beginning with a
random start of an element in the range of 1 to k.
Stratified sampling the process by which the sample is constrained to include elements
from each of the segments.
o In proportionate stratified sampling, each stratum is properly represented so
that the sample drawn from it is proportionate to the stratums share of the
population.
o Disproportionate stratified sampling suggest the consideration how a sample
will be allocated among strata.
Cluster sampling population can be divided into groups of elements with some groups
randomly selected for study. Cluster sampling divides the population into many sub-
groups with each only a few elements in it, whereas stratified sampling divides the
population into a few sub-groups with each many elements in it.
o Area sampling may be used when population can be identified with some
geographic area.
Double sampling Sequential sampling or multi-phase sampling suggest that previous
information is used as the basis for selecting a sub-sample for further study.

Non-probability sampling
Convenience samples are non-probability samples that are unrestricted.
Purposive sampling is a non-probability sample that conforms to certain criteria.
o Judgement sampling occurs when a researcher selects sample members to
conform to some criterion.
o Quota sampling is used to improve representativeness. It suggests that certain
relevant characteristics describe the dimensions of the population.
In the initial stage of snowball sampling, individuals are discovered, and may or may not
be selected through probability methods.

Sampling on the Internet
Conducting data collection through the Internet has a considerable cost advantage as the
sending and returning of questionnaires is virtually without cost. One problem that needs to be
considered is whether the response rates are comparable to the expected response to mail or
telephone surveys.
Chapter 7: Survey research

Characteristics of the communication approach
The communication approach involves surveying people and recording their response for
analysis. The great strength of the survey as a primary data-collecting approach is its versatility.

Choosing a communication method
Three broad conditions must be met in order to have a successful survey:
o The participant must posses the information being targeted by the investigative
questions.
o The participant must understand his or her role in the interview as the provider of
accurate information.
o The participant must perceive adequate motivation to cooperate.

In communication studies, non-response error occurs when the responses of participants differ
in some systematic way from the responses of non-participants. This occurs when the
researcher cannot locate the person to be studied or is unsuccessful in encouraging that person
to participate.

Personal interviewing
A personal interview is a two-way conservation initiated by an interviewer to obtain information
from a participant.

The technique of stimulating participants to answer more fully and relevantly is termed probing.

When the data reported differ from the actual data, response error occurs.
o Participant-initiated error occurs when the participants fails to answer fully and
accurately.
o Interviewer error is also a major source of response bias.

Telephoning interviewing
Computer-assisted telephone interviewing (CATI) is used in research organizations throughout
the world.

Random dialling procedures normally require choosing telephone exchanges or exchange blocs
and then generating random numbers within these blocks for calling.

Self-administered surveys
The self-administered questionnaire has become ubiquitous in modern living.

Web-based surveys
Web-based surveys are a special form of self-administered surveys and their advantages and
disadvantages are rather similar to those of mail surveys.
o Target web survey
o Self-selected web survey the researcher has no or very limited control on who is
responding to the survey.