Business Research Skills

Chapter : Theoretical Framework and Formulation of Hypothesis

Need of Theoretical Framework

Theoretical

Framework is a conceptual model that provides logical relationship between the factors so identified in the research problem.

Need of Theoretical Framework

Improves

the understanding of the situation under study. the variables under study.

Identify Helps

to frame hypothesis that are testable.

Variables- Meaning and Types

variable is anything that can take on differing or varying values. vary for different subjects at same time or for same subject at different times.

Values

Examples of Variables

Production

units Absenteeism Motivation

Types of Variables

Dependent

Variable (DV) Independent Variable (IV) Moderating Variable (MV) Intervening Variable (IVV)

Dependent Variable (DV)

The Also

variable under study which is monitored

referred to as the criterion variable or predicted variable

Examples

Manager

is interested in analyzing DebtEquity Ratio. Sales is not picking up.

Independent Variable (IV)

The

variable that influences the dependent variable in a positive or negative way. variance in the dependent variable is caused by IV. referred to as explanatory or predictor variable.

The

Also

Example:
The success of new product influences the stock price levels.
New product success Stock Market Price

IV

DV

Moderating Variable (MV)

The

variable having strong contingent effects on the independent variable. IV DV

Availability of Reference No. of Defects

Interest and Inclination

MV

Another Example of MV
Work force diversity impacts OE. IV DV
Organizational Effectiveness

Workforce Diversity

Managerial Expertise

MV

Intervening Variable (IVV)

IVV

is the one that starts operating between the time the IV starts operating to influence the DV.

Example of IVV
IV IVV DV

Workforce Diversity

Creative Synergy

Organizational Effectiveness

Extraneous Variable

Infinite

number of variables that might affect a given relationship between IV and DV.

Meaning of Hypothesis

It is a proposition that is formulated for empirical testing. is a statement about observable phenomena that may be judged as true or false.

Proposition

Empirical Testing
The

relationship or the description so stated are tested scientifically using statistical analysis or other qualititative techniques. The reliable information is obtained on the relationship under study. Changes if any may be required.

Formats of Hypotheses

If -Then Statements Directional and Non-Directional Statements

Types of Hypotheses
-

Descriptive Hypotheses Relational Hypotheses Null Hypotheses Alternate Hypotheses

Descriptive Hypotheses
Describes

the existence, size, form or distribution of some variable.

- 60% of investors favors cash dividend. - MBA institutes facing problems in placement

Relational Hypotheses
Describes

the relationship between two or more variables.

The greater the stress experienced in the job the lower the job-satisfaction.( directional) Women are better than men There is a relationship between age and jobsatisfaction. (non-directional)

Relational Hypotheses
Correlational

Hypotheses Only shows the correlation between two or more variables but no claims are made that one causes the other. Explanatory Hypotheses. Claims are made that one variable causes other to occur.

Null Hypotheses
The

definitive statement that explains the relationship. The null hypothesis relates to the statement being tested,

Alternate Hypotheses
All

other permissible relationship refers to the Alternate Hypotheses. The alternative hypothesis relates to the statement to be accepted if / when the null hypothesis is rejected.

Importance of Hypotheses
Guides

the direction of study; Identifies the facts relevant for the study; Helps in the selection of Research Design; Helps in providing the framework in which the results have to be given.

Characteristics of a Good Hypothesis

Adequate for the purpose Should address the original problem Clearly identifies the variables relevant in the study. Helps in knowing the research design Helps in organizing the results of the study.

i) ii) iii) iv)

Characteristics of a Good Hypothesis

Testable Uses acceptable techniques Simple requiring few conditions Explanation can be given from the given theoretical framework.

i) ii) iii)

Characteristics of a Good Hypothesis

Better than its rivals Explains more facts than its rivals Greater variety or scope of facts

i) ii)