Business

Research Methods

The Role of Business Research

Module-1
Contents
Concept of research and its application
in various functions of Management.
Pure and Applied research,
Quantitative and Qualitative approach,
Scientific Method in research.
Problems encountered by researcher &
Precautions for the researcher.

Research Defined
Research is one of the ways to find answers to questions. Literally,
it is re-search. re means again, anew and search means to examine
closely and carefully, to test and try or to probe. Together they
mean a careful, systematic, patient study and investigation in some
field of knowledge, undertaken to establish facts or principles.
Research study implies that the process:
Is being undertaken within a framework of set philosophies and
academic discipline.
Uses procedures, methods and techniques that have been tested
for their validity and reliability.
Is designed to be unbiased and objective.

Business Research
Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.
The definition suggest that:
Research
information
is
neither
intuitive nor haphazardly gathered.
Business research must be objective
Detached and impersonal rather than
biased
It facilitates the managerial decision
process for all aspects of a business.

Business researchDefinition
A process of determining, acquiring,
analyzing,
synthesizing,
and
disseminating
relevant
business
data, information, and insights to
decision makers in ways that
mobilize the organization to take
appropriate business actions that, in
turn,
maximize
business
performance.

Information
Uncertainty

Reduces

It aint the things we dont

know that gets us in
trouble. Its the things we
know that aint so.

Artemus Ward

Characteristics of Good
Research
Clearly
Clearly defined
defined purpose
purpose
Detailed
Detailed research
research process
process
Thoroughly
Thoroughly planned
planned design
design
High
High ethical
ethical standards
standards
Limitations
Limitations addressed
addressed
Adequate
Adequate analysis
analysis
Unambiguous
Unambiguous presentation
presentation
Conclusions
Conclusions justified
justified
Credentials
Credentials
1-7

Application of Research in
Business

General Business Conditions and Corporate Research

Financial and Accounting Research
Management and Organizational Behavior Research
Sales and Marketing Research
Information Systems Research
Corporate Responsibility Research

"The secret of success is to know something

nobody else knows. "
Aristotle Onassis

Business Research Types

Pure/ Basic vs. Applied

Quantitative vs. Qualitative
Descriptive vs. Analytical
Conceptual vs. Empirical

Pure Research
Attempts to expand the limits of knowledge or
to verify the acceptability of a given theory.
Not directly involved in the solution to a
immediate or pragmatic problem.
Examples
Is executive success correlated with high need for
achievement?
Are members of highly cohesive work groups
more satisfied than members of less cohesive
work groups?
Do consumers experience cognitive dissonance in
low-involvement situations?

Applied Research
Research undertaken to answer
questions about specific problems or
to make decisions about a particular
course of action or policy decision.
Examples:
Should McDonalds add Italian pasta dinners to
its menu?
Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?

Qualitative vs. Quantitative

Quantitative research includes designs, techniques
and measures that produce discrete numerical or
quantifiable data. Data analysis is mainly statistical
(deductive process). It is characterized by: causalcomparative,
correlational, experimental and
descriptive research.
Qualitative research deals with designs techniques and
measure that do not produce discrete numerical data.
It involves extensive narrative data in order to gain
insights into phenomena. Data analysis includes the
coding of the data and production of verbal synthesis
(inductive process). Examples include historical
research,
ethnographic
research,
participant
observational research and the case study.

Scientific Method
The scientific method is the result of recognizing that
personal and cultural beliefs influence our perceptions
and interpretations of natural phenomena. Through the
use of standard procedures and criteria, it is possible to
minimize those influences when developing a theory. The
term scientific method denotes the principles that guide
scientific research and experimentation, and the
philosophical bases of those principles.
Scientific methods involve techniques and procedures
used to analyze empirical evidence (facts from
observation or experimentation) to confirm or disprove
prior conceptions.
Both pure and applied research employ scientific method
to answer questions. Use of SM in applied research
assures objectivity in research.
The difference in techniques of basic and applied research
is largely a matter of degree rather than substance.

Scientific Method
The scientific method of inquiry is characterized by the
following convictions:
that the process must be logical and objective to reduce bias in
methods and interpretation of results.
that the process should be systematic in that it ought to
involve certain standard procedures.
enquiry should be conducted through a process of systematic
observation that can be verified by experience (empiricism).
There should be careful recording, documenting, archival and
sharing of all data and methodology (full disclosure) to make it
available for scrutiny by other researchers, thereby allowing
them to verify results by attempting to reproduce them.
It aims at generalizing findings to larger groups by discovering
general principles that will be helpful in predicting future
occurrences. This calls for careful sampling procedures to
ensure that the sample is representative of the larger group.
Parsimony: Extreme care in use of resources and efforts.

The Scientific Method:

An Overview

Assess
relevant
existing
knowledge

Acquire
empirical
data

Formulate
concepts &
Propositions

Analyze &
evaluate
data

Statement
of
Hypotheses

Design
research

Provide
explanationstate new
problem

Deductive Reasoning
The logical process of deriving a
conclusion from a known premise or
something known to be true.
We know that all managers are human
beings.
If we also know that John Smith is a
manager,
then we can deduce that John Smith is a
human being.

Inductive Reasoning
The logical process of establishing a
general proposition on the basis of
observation of particular facts.
All managers that have ever been seen
are human beings;
therefore all managers are human
beings.

Managerial value of Research

The prime managerial value of business
research is that it reduces uncertainty by
providing information that improves the
decision making process.
Decision making process involves following
interrelated stages.

Identifying problems and opportunities

Diagnosis and assessment
Selecting and implementing a course of action
Evaluating the course of action: includes Evaluation
research and Performance monitoring research

Managerial value of
Research
Evaluation Research: is the formal,
objective measurement and appraisal of the
extent to which a given activity, project, or
program has achieved its objectives.
Performance-monitoring Research:
Research that regularly provides feedback
for evaluation and control; Indicates things
are or are not going as planned; Research
may be required to explain why something
went wrong

When to Conduct Business

Research
A manager faced with two or more
possible courses of action faces the
initial decision of whether or not to
conduct research. The determination of
need for research centers on:
Time constraints
Availability of data
Nature of the decision
Benefits versus costs

Determining When to
Conduct Business
Availability ofResearch
Benefits
Time Constraints
Data Nature of the Decision vs. Costs
Is sufficient time
available before
a managerial
decision
must be made?

No

Yes

Is the information already

on hand
inadequate
for making
the decision?

No

Yes

Is the decision
Yes
of considerable
strategic
or tactical
importance?

Does the value

of the research Yes
information
exceed the cost
of conducting
research?

No

Do Not Conduct Business Research

No

Conducting
Business
Research

Value versus Costs

Potential Value of a Business
Research Effort Should Exceed Its
Estimated Costs

Value Should Exceed

Estimated Costs
Costs
Value
Decreased certainty
Increased likelihood
of a correct decision
Improved business
performance and
resulting higher
profits

Research
expenditures
Delay of business
decision and
possible disclosure
of information to
rivals
Possible erroneous
research results

Problems encountered by
researchers in India
Lack of a scientific training (expertise) in research
methodology
Insufficient interaction between the researchers/ research
institutions like university research departments on one side
and the users like business establishments, government
departments on the other side.
Lack of trust between research agencies and users.
Lack of coordination and sharing of research between
different agencies.
There does not exist a code of conduct for researchers
Difficulty of adequate and timely secretarial assistance.
Unsatisfactory Library management, functioning and
inadequate / un-timely availability of published resources.