BUSINESS RESEARCH

METHODS
Unit I Introduction

Business Research Definition and

Significance the research process Types
of Research Exploratory and causal
Research Theoretical and 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 in organizations constantly
engage themselves in 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 making is merely a
process of 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, data-based, critical,
objective, scientific inquiry or
investigation into a specific problem.
According to McDaniel and Gates,
Business research is the
planning, collection and analysis
of data relevant to business
decision making 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 (pure or basic
research)
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 with a
phenomenon (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 is associated with
something else (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 to explore
observations and 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 a 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. This is called basic
research.
 Applied research: to solve a
current problem face by the
manager in the work 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 a

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 time-
consuming 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 a
population.
This allows the researcher to
measure change in variables
over time.
 The research process

Formulat
Define Review o
e Design Collect
research f
hypothes Research data
problem literature
es

Interpret
Analyze
and
data
report
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 is to discuss it with ones
own 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
selection;

(iv) the time available for

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 actually collected for
obtaining a sample from a given
population.
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, i.e., to build a
theory.
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 the findings are
extensive, they should be
summarized.
(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 effective cost

accounting procedures

Financial forecasting,
 Research applications in
human resources
Employee behaviors such as
performance, absenteeism, and turnover.
Employee attitudes such as job
satisfaction, and loyalty
Performance appraisaldesign and
evaluation
Incentive and benefits studies
 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 which researcher
experiences in the context of
either a theoretical or practical
situation and wants a solution for
the same.
Ex: Frank Mcnamara -Diners card
 A 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 would like to
research, 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 for carrying out
investigation.
 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 pre-
determined 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 ideas through

discussion
 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 a tentative
conjecture (assumption) explaining
an observation, phenomenon, or
scientific problem.
 A hypotheses is any
assumption/presupposition that
the researcher makes about the
probable direction of the results
that might be obtained on the
completion of the research
process
 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 may be done by
researcher in order to make
hypothesis a testable one.

3. State relationship between

variables: hypothesis state
relationship between variables, if it
happens to be a 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
statements about the expected
outcomes for the variables 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 and Non-
directional
 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 was subsequently
followed by research in the
behavioral sciences.
 Philosophers of science have
addressed general methodological
problems.
Copernicus challenged the view
that the earth was at the centre of
the universe,
Newtons discoveries greatly
advanced our understanding of
nature and its patterns.
 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 to Hawking, any
physical theory is always
provisional (temporary) 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 theory, through
modifications.
 When an accepted theory cannot
explain new data, researchers
strive to develop a new theory.
 Knowledge creation is
fundamental to social
development and is an age old
concept.
Research can lead to specific
inventions, or add to the
development of technologies or
develop new frameworks and
knowledge.
Role of theory in research
1. Prediction behaviour:

A theory enables to predict the

behaviour or characteristics
of one phenomenon from the
knowledge of another
phenomenon
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 of the apparent
relationships of certain observed
phenomena.
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)