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• Problem Definition: The indication of a specific business decision area that will be clarified by answering some research
questions
A problem occurs when there is a difference between the current conditions and a more preferable
set of conditions. In other words, a gap exists between the way things are now and a way that
things could be better. The gap can come about in a number of ways.
1. Experience: The selection of a research topics may arise from the researcher’s experience of and
concern with the general problem of the business. Researchers’ everyday experiences can give
rise to worthwhile problems for investigation
2. Deductions from theory: It can be made from business philosophy generalization embodied in
life in business that the researcher is familiar with. From a theory, the research can formulate
hypothesis stating the expected findings in certain empirical situation.
3. Relevant literature: The selection of a topic for research may emanate from problems located in
the literature in one’s own subject area of interest. An extensive and through review of previous
research often opens up examples of research problems.
• The problem must be suitable for the researcher in several respects namely; genuine interest
and intellectual curiosity, knowledge and experience.