Nature and Scope of Business Research

Objectives• Understand what research is • Have appreciable knowledge on the research process• Know the various classifications of research• Understand research paradigms• Appreciate the features of a good research• Appreciate how theories are broken down into

concepts and variables.

What is Research?• Research is an organized and systematic way of finding answers to

questions (Boateng, 2014).• Research is something that people undertake in order to find out

things in a systematic way, thereby increasing their knowledge (Saunders, Lewis & Thornhill, 2007).

• Business and management research is undertaken in order to find out things about business and management.

Uniqueness of Business and Management Research• According to Easterby-Smith et al. (2002) (as cited in Saunders, Lewis

and Thornhill, 2007), business and management research is unique because of the following:

• (a) the way in which managers (and researchers) draw on knowledge developed by other disciplines;

• (b) the fact that managers tend to be powerful and busy people. Therefore, they are unlikely to allow research access unless they can see personal or commercial advantage; and

• (c) the requirement for the research to have some practical consequence.

Major Topics for Research in Business

• General Business Conditions• Financial and Accounting Research• Management and Organizational Behavior Research• Sales and Marketing Research• Information Systems Research• Corporate Responsibility Research

Why do we do Research?We do research to:• (a) Discover/Explore;• (b) Understand• (c) Describe;• (d) Explain; and/or• (e) Predict/create…social or scientific phenomena

Alternatives to Research• Without research the common sources of perceptions, information and

knowledge include the following:• (a) Authority which is accepting something as true or as a fact because it

comes from people of authority;• (b) Tradition refers to accepting something as true or as a fact because it is

based on the past – passed on from previous generation and become a norm;• (c) Common sense refers to ordinary reasoning which may be built from a

person’s experiences and sometimes tradition;• Media myth refers to arriving at conclusions based on a reality created by the

media• (e) Personal experience refers to learning through our sensory impressions and

knowledge – ‘seeing is believing’.

Who needs research?• Research is needed by researchers, practitioners and policy makers.• Stakeholders of research include organisations, communities,

government and non-governmental institutions and society in general.

• Research has to fit into a body of knowledge or practice or policy.

The Research Process

More Detailed Research Process• Selecting a research topic• Determining the research

problem• Determining research gaps• Determining research

hypotheses• Determining research objectives• Determining research questions• Detailed literature review

• Determining research framework• Designing the research• Collecting Data• Analyzing and interpreting Data• Informing others (research write

up and publication)

Classifications of Research• The various types of research are classified according to:• (a) Application of the research or use of the research results• (b) Purpose or objective of the research• ( c) Inquiry procedure of the research including:• - Paradigm or philosophies underpinning the research;• - Approach of the research• -Time dimensions of the research

Type of Research based on application

Type based on the Purpose or Objectives of the Research• Exploratory Research• Descriptive Research• Explanatory or Causal Research

Inquiry Procedure of the researchResearch philosophies and paradigm:

Approach of the Research: Time Dimension of the Research

positivism, interpretivist, realism, relativism and critical realism.

Quantitative (Structured) Research Qualitative (Unstructured) Research

Cross-sectional studyLongitudinal Study (Panel or Cohort studies)Time Series

Overview of Research Paradigms or PhilosophiesONTOLOGY (What is the nature of reality?)

Epistemology (What is the nature of knowledge generated?)

Methodology (How is knowledge created?)

POSITIVISMThere is a single, objective and tangible reality

Value-free. Knowledge generated is objective, free of time influences, and is context independent.

Researchers formulate research questions and hypotheses and then test them empirically under carefully controlled circumstances. Deductive reasoning.

INTERPRETIVISMMultiple realities exist, subject to human experiences and interpretation. Reality is socially constructed

Value-Laden. Knowledge generated is subjective, time-bound and context dependent.

Knowledge is created through researchers identifying the various interpretations and constructions of reality that exist and attempting to establish patterns. Inductive logic and emergent design

ONTOLOGY (What is the nature of reality?)

Epistemology (What is the nature of knowledge generated?)

Methodology (How is knowledge created?)

REALISMReality is ‘real’ but only imperfectly and probabilistically apprehensible, so triangulation from many sources is required to try to know it.

Value-Cognizant/Value aware. Findings are probably true … researchers needs to triangulate any perceptions collected

Social phenomenon is understood through hypotheses which are tested to establish patterns of associations and hence, the most possible explanation. Hypothetico-Deduction

RELATIVISMMultiple realities exist. Reality as truth is not “absolute”, it is relative, it is dependent upon ‘something’ and it does exist.

The interpretation of the world requires some form of human processing

The construction of knowledge is influenced by worldview and research paradigm of a researcher. Researchers should focus more on creating and developing new ‘useful’ theories – useful solutions to specific problems.

CRITICAL REALISMTwo worlds – transitive and intransitive. Transitive is what we observe and learn with our mind – the perceptions of reality. Intransitive embodies the reality which is independent of what the mind thinks.

Transitive world is value-laden and changing continually. Intransitive world has underlying structures and mechanisms that are ‘relatively enduring’ – that is what we want to study.

Researchers seek to deconstruct and understand the structure and mechanisms underlying the subjective realities that exist. Triangulation from many sources is required to try to know it. Retroductive reasoning

Characteristics of a Good Research• Aim• Rigor• Testability• Replicability• Precision and Confidence• Objectivity• Generalizability• Parsimony

Theory• A coherent set of general propositions used as principles of

explanation of the apparent relationships of certain observed phenomena.

Two Purposes Of Theory• Prediction• Understanding

Concept (or Construct)• A generalized idea about a class of objects, attributes, occurrences, or

processes that has been given a name• Building blocks that abstract reality • “leadership,” “productivity,” and “morale”• “gross national product,” “asset,” and “inflation”

Vegetation

Fruit

Banana

Reality Incr

easi

ngly

mor

e ab

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A Ladder Of Abstraction For Concepts

Scientific Business Researchers Operate at Two Levels• Abstract level

• concepts • propositions

• Empirical level• variables• hypotheses

Definitions• Abstract level -In theory development, the level of knowledge

expressing a concept that exists only as an idea or a quality apart from an object.

• Empirical level -Level of knowledge reflecting that which is verifiable by experience or observation.

Theory Building A Process Of Increasing Abstraction

Theories

Propositions

Concepts

Observation of objectsand events (reality )

Incr

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mor

e ab

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ct

CONCEPTS

OBSERVATION OF OBJECTS AND EVENTS (REALITY)

EmpiricalLevel

AbstractLevel

Concepts are Abstractions of Reality

Abstract Level• Concepts abstract reality.• Propositions are statements concerned with the relationships among

concepts.

Always makes four sales calls

a day

Cedi bonus for sales volume

over quota

Concept B(Habits)

Hypothesis at Empirical Level

Concept A(Reinforcement)

Proposition at Abstract Level

• A hypothesis is a proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables.

• A variable is anything that may assume different numerical values.

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.

Scientific Method The use of a set of prescribed procedures for establishing and

connecting theoretical statements about events and for predicting events yet unknown.

Assessrelevant existing

knowledge

Formulateconcepts &

Propositions

Statementof

Hypotheses

Design research

Acquire empirical

data

Analyze &evaluate

data

Provide explanation-

state newproblem

The Scientific Method: An Overview