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Research
in Business

McGraw-Hill/Irwin
Business Research Methods, 10e Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.
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Four Sources of Information

Intuition

Decision
Authority Experience
Making

Research
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“The secret of success is to

know something nobody
else knows.”

Aristotle Onasis
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Learning Objectives

Understand . . .
• What business research is and how it differs from
business decision support systems and business
intelligence systems.
• Trends affecting business research and the
emerging hierarchy of business decision makers.
• The distinction between good business research
and research that falls short of professional quality.
• The nature of the research process.
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Business Research Defined

• 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
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Why Study Business Research?

Business
research
provides
information to
guide business
decisions
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Research Should Reduce Risk

The primary
purpose of
research is to
reduce the
level of risk of
a decision
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What’s Changing in Business
that Influences Research

New
New Information Technological
Technological
Research
Research Overload Connectivity
Connectivity
Perspectives
Perspectives
Computing
Computing Shifting
Shifting
Power
Power && Global
Global
Speed
Speed Economics
Economics
Factors
Factors
Battle
Battle for
for Critical
Analytical
Analytical Scrutiny of
Talent
Talent Business
Government
Government
Intervention
Intervention
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Why research is important?

• Collect more information before making a

decision

• Conduct high quality research

• Understand research designs

• Evaluate and correct current management

dilemma

• Make research a career

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Information Sources

Decision Support Business Intelligence

Systems Systems
• Numerous elements of • Ongoing information
data organized for collection
retrieval and use in • Focused on events,
business decision trends in micro and
making macro-environments
• Stored and retrieved via
– Intranets
– Extranets
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Sources of Business Intelligence

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Hierarchy of Business Decision Makers

All research based

Develop own method
Access to the whole company
Visionaries
Visionaries
Some research based
Tested methods
Standardized Limited access
Decision Makers
Experience based
Decision supported by
secondary data
Intuitive Decision Makers
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Two Categories of Research

• Applied Research Applied

• Evaluate opportunities
• Improve a current situation

• Basic Research
• Solving theoretical problems
• No direct impact to actions, Basic (Pure)
performance or policy
decisions
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Four Types of Studies

Reporting Descriptive

Explanatory Predictive
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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
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Characteristics of Good Research

1. Clearly Defined Purpose

• Must contain problem, decision
to be made, scope, limitations
and definition of key terms
• Ch 4 and 5

2. Detailed research process

• Each step must be detailed with
the sources of data clearly
explained
• Ch 4, Appendix A
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… continued

3. Thoroughly planned design

• Sampling and observations must
be accurate and carefully designed
• Ch 3,4,5, 6 - 14

4. High Ethical standards

• Must make sure respondents do
not experience physical or
emotional pressure
• Ch 2, 20
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… continued

5.Limitations addressed
• There is no perfect research
• Ch 6, 14, 15, 20

6.Adequate analysis
• Validity and reliability is
checked
• Ch 15 -20
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… continued

7. Unambiguous presentation
• Style of presentation,
language and terms must be
simple and concise
• Ch 15 - 20

8. Conclusions justified
• Conclusions must be based
on evidence and not
experience
• Ch 15 - 20
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… continued

9. Credentials
• Experience and
credentials of the
researcher plays a role
• Ch 20
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Characteristics of Bad Research

• Fishing Trip
• Plagiarizing others work
• Falsifying data
• Presenting information which is
not true
• Misleading respondents
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Limitations in doing research

• Time constraint
• Availability of data
• Type of decision to be made
• Cost and Benefit
• Payback
• Improve quality
• Use of resources
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What is Important in this Chapter?

• Definition
• Why research is important?
• Benefits of research knowledge
• Characteristics of good and bad research
• When research is not feasible?