APPLIED BUSINESS RESEARCH

SUMMARY OF IMPORTANT CONCEPTS APPLIED BUSINESS RESEARCH

1. Basic Research
Basic research advances fundamental knowledge about the social world. It focuses on
refuting or supporting theories that explain how the social world operates, what makes
things happen, why social relations are a certain way, and why society changes. Basic
research is the source of most new scientific ideas and ways of thinking about the world.
It is true that knowledge produced by basic research often lacks practical applications
in the short term. Yet, basic research provides a foundation for knowledge and
understanding that are generalizable to many policy areas, problems, or areas of study.
Basic research is the source of most of the tools- methods, theories, and ideas that
applied researchers use.
2. Applied Research
Applied researchers conduct a study to address a specific concern or to offer solutions
to a problem of their employer, a club or organization they are affiliated with, their
community or a social movement to which they are committed.
Applied research means a quick, small scale study that provides practical results that
people can use in the short term.
The consumers of applies research findings are practitioners.
3. Deductive Reasoning
Deductive Reasoning is the logical process of deriving a conclusion from a known
premise or something known to be a fact. (Deductive & Inductive Reasoning
compared below)
4. Inductive Reasoning
Inductive Reasoning is the logical process of establishing a general proposition on the
basis of observation of particular facts. (Deductive & Inductive Reasoning compared
below)

Deductive Reasoning VS Inductive Reasoning (MENTIONED ABOVE)

The main difference between inductive and deductive approaches to research is that
whilst a deductive approach is aimed and testing theory, an inductive approach is
concerned with the generation of new theory emerging from the data.
A deductive approach usually begins with a hypothesis, whilst an inductive approach
will usually use research questions to narrow the scope of the study.
Deductive approaches the emphasis is generally on causality, whilst inductive
approaches the aim is usually focused on exploring new phenomena or looking at
previously researched phenomena from a different perspective. Therefore, Inductive
approaches are generally associated with qualitative research, whilst deductive
approaches are more commonly associated with quantitative research.

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5. Literature review
Literature review is the review of previous studies or researches conducted in the past
similar to the topic on which a researcher is currently trying to carryout out his/her own
research.
A literature review is based on the assumption that knowledge accumulates and that we
learn from and build upon what others have done.
Literature review is the best to find out what is already known about a question before
trying to answer it yourself.
After critical analysis or previous studies, the gap analysis and ways to filling the gap
is also provided in literature review by the researcher currently conducting study.
6. Theory development Theoretical framework
Theory development is essentially a process of describing phenomena at increasingly
higher levels of abstraction.
Abstract Level is the level of knowledge expressing a concept that exists only as an
idea or a quality apart from an object.
Empirical level is the level of knowledge reflecting that which is verifiable by
experience or observation.
Concept or Construct is a generalized idea about a class of objects, attributes,
occurrences, or processes that has been given a name. Such names are created or
developed or constructed for the identification of the phenomenon, be it physical or
non-physical.
Variable is a term used as a synonym for construct or concept that is being studied.
Operational definition is the meanings of a concept or construct stated in terms of
specific criteria for testing or measurement.
Proposition is a statement about concepts that may be judged as true or false if it refers
to observable phenomena. Researchers often call a statement derived purely from
reasoning a proposition and distinguish it from a hypothesis, which is a statement
asking for empirical testing.
Theory is a network of multiple propositions.
7. Independent variable is the cause variable, or the one that identifies forces or
conditions that act on something else, is the independent variable.
8. Dependent variable is the variable that is the effect or is the result or outcome of
another variable is the dependent variable (also referred to as outcome variable or effect
variable).
9. Mediating variable or Intervening variable
The mediating or intervening variable, appears in more complex causal relationships.
It comes between the independent and dependent variables and shows the link between
them.
The mediating or intervening variable is a factor which theoretically affects the
observed phenomenon but cannot be seen, measured or manipulated, effects must be
inferred.
10. Moderating variable or Interacting variable
A moderating variable or interacting variable is one that has a strong contingent effect
on the independent variable-dependent variable relationship. That is, the presence of a
third variable (the moderating variable) modifies the original relationship between the
independent and the dependent variable.
A moderating variable is a second independent variable that is included because it is
believed to have a significant contributory or contingent effect on the originally stated
relationship between dependent and independent variables.
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11. Causal models and analysis
Causal model is when there are dependent and independent variables.
Cause and effect relationship may have any type of variables (dependent, independent
etc.).
Cause and effect relationship is associated with regression.
12. Correlational models and analysis
Correlational model is when there are no dependent or independent variables.
Correlational relationship may not have common type of variables (dependent,
independent etc.).
Correlational relationship is associated with correlation.
13. Hypothesis statement
A statement formulated for empirical testing; a hypothetical (tentative or conjectural)
declarative belief or statement that describes the relationship between two or more
variables.
A good hypothesis is adequate for its purpose, Testable, Better than its rivals.
14. Research Design
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.
The design of a study defines the study type (on the basis of purpose), study setting,
time horizon, unit of analysis etc.
15. Purpose of study is the objective that researcher intends or aims to achieve through
research. There are different types of research/study on the basis of its purpose.
16. Exploratory research
Exploratory research rarely yields definitive answers.
Exploratory research addresses the what question.
A researcher may need to conduct an exploratory study in order to know enough to
design and execute a second, more systematic and extensive study.
Exploratory researchers frequently use qualitative techniques for gathering data and
they are less wedded to a specific theory or research question.
17. Explanatory research
Explanatory research is used to find out which competing explanation is better.
Explanatory research determines the accuracy of a principle or theory.
Explanatory research builds and elaborates a theory so it becomes more complete.
Explanatory research provide evidence to support or refute an explanation or prediction.
18. Descriptive research
Descriptive research presents a picture of the specific details of a situation, social
setting, or relationship.
Descriptive research focuses on how and who questions.
The researchers begin with a well defined subject and conducts research to describe it
accurately. The outcome of a descriptive study is a detailed picture of the subject.
Descriptive researcher use most data gathering techniquessurveys, field research,
content analysis, and historical comparative research.
19. Hypothesis testing study
Hypothesis testing study is a type of research where any empirical research is conducted
with the purpose of its statistical testing with the help of hypothesis statements.

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Hypothesis testing is a process by which an analyst tests a statistical hypothesis. The

methodology employed by the analyst depends on the nature of the data used, and the
goals of the analysis. The goal is to either accept or reject the null hypothesis.
20. Study setting defines the arrangement of environment in which research is being
conducted.
21. Contrived study setting
In contrived study settings research is being conducted in controlled environment
Studies done in contrived settings are also known as artificial or lab studies
Causal studies are generally conducted in contrived settings
22. Non-contrived study setting
In contrived study settings research is being conducted in uncontrolled environment
Studies done in non-contrived settings are also known as natural or field studies
Correlational studies are mostly conducted in non-contrived settings
23. Time horizon
Longitudinal research involves observation of people or other units at more than one
time
Cross sectional research involves observation at one point in time is called:
24. Unit of analysis is the major entity that is being analyzed in a study. It is the 'what' or
'who' that is being studied. In social science research, typical units of analysis include
individuals (most common), groups, dyads (pairs of subjects), organizations, cultures,
economies, and social artifacts (books, photos, newspapers), geographical units (town,
census tract, state).

25. Research approach

Research approach refers to plans and procedures for a research which span the steps
from broad assumptions to detailed methods of data collection, analysis, and
interpretation.
26. Qualitative research is designed to reveal a target audience's range of behavior and
the perceptions that drive it with reference to specific topics or issues.
27. Quantitative research is a more logical and data-led approach which provides a
measure of what people think from a statistical and numerical point of view. For
example, if you wanted to know how many of your customers support a proposed
change in your products or service and how strongly (on a scale) they support it.
28. Mixed methods research is an approach using both Qualitative and Quantitative
methods.
A mixed methods research design is a procedure for collecting, analyzing, and mixing
both quantitative and qualitative research and methods in a single study to understand
a research problem.
29. Sources of data refer to the origin of data from where researchers may observe, record
or collect data in any useful form required for certain objective of data analysis.
30. Primary data sources
Primary sources of data refer to a document or record containing first-hand information
or original data on a topic. It may also be a work created at the time of an event or by a
person who directly experienced an event.
Examples include interviews, diaries, letters, journals, original hand-written
manuscripts, newspaper and magazine clippings, government documents, etc.
31. Secondary data sources
Primary sources of data refer to any published or unpublished work that is one step
removed from the original source, usually describing, summarizing, analyzing,

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evaluating, derived from, or based on primary source materials. It is also a source that
provides criticism or interpretation of a primary source.
Examples include textbooks, review articles, biographies, historical films, music and
art, articles about people and events from the past.

32. Population is the complete set of entities or elements or subjects (persons or objects)
with some common characteristic that is under study during a research.
33. Sampling is the process of taking a subset of subjects that is representative of the entire
population under study during a research.
34. Sampling frame is a list of entities or elements or subjects of a population from which
a sample is drawn or taken.
35. Sampling techniques or Sampling methods are classified as either probability or
nonprobability.
36. Probability sampling
In probability samples, each member of the population has a known non-zero
probability of being selected.
The advantage of probability sampling is that sampling error (defined below) can be
calculated. Therefore, the degree to which the sample differs from the population is
known. When inferring to the population, results are reported plus or minus the
sampling error.
Probability sampling methods include random sampling, systematic sampling, and
stratified sampling.
o Random sampling is the purest form of probability sampling. Each member of
the population has an equal and known chance of being selected. When there
are very large populations, it is often difficult or impossible to identify every
member of the population, so the pool of available subjects becomes biased.
o Systematic sampling is often used instead of random sampling. It is also called
an Nth name selection technique. After the required sample size has been
calculated, every Nth record is selected from a list of population members. As
long as the list does not contain any hidden order, this sampling method is as
good as the random sampling method. Its only advantage over the random
sampling technique is simplicity. Systematic sampling is frequently used to
select a specified number of records from a computer file.
o Stratified sampling is commonly used probability method that is superior to
random sampling because it reduces sampling error. A stratum is a subset of the
population that share at least one common characteristic. Examples of stratums
might be males and females, or managers and non-managers. The researcher
first identifies the relevant stratums and their actual representation in the
population. Random sampling is then used to select a sufficient number of
subjects from each stratum. "Sufficient" refers to a sample size large enough for
us to be reasonably confident that the stratum represents the population.
Stratified sampling is often used when one or more of the stratums in the
population have a low incidence relative to the other stratums.
Sampling error (MENTIONED ABOVE & BELOW) is the degree to which a
sample might differ from the population.

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37. Non probability sampling
In nonprobability sampling, members are selected from the population in some
nonrandom manner.
The disadvantage of probability sampling is that sampling error (defined below) is
not calculated. Therefore, the degree to which the sample differs from the population
remains unknown.
Non-probability sampling methods include convenience sampling, judgment sampling,
quota sampling, and snowball sampling.
o Convenience sampling is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth. As the name
implies, the sample is selected because they are convenient. This nonprobability
method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random
sample.
o Judgment sampling is a common nonprobability method. The researcher
selects the sample based on judgment. This is usually and extension of
convenience sampling. For example, a researcher may decide to draw the entire
sample from one "representative" city, even though the population includes all
cities. When using this method, the researcher must be confident that the chosen
sample is truly representative of the entire population.
o Quota sampling is the nonprobability equivalent of stratified sampling. Like
stratified sampling, the researcher first identifies the stratums and their
proportions as they are represented in the population. Then convenience or
judgment sampling is used to select the required number of subjects from each
stratum. This differs from stratified sampling, where the stratums are filled by
random sampling.
o Snowball sampling is a special nonprobability method used when the desired
sample characteristic is rare. It may be extremely difficult or cost prohibitive to
locate respondents in these situations. Snowball sampling relies on referrals
from initial subjects to generate additional subjects. While this technique can
dramatically lower search costs, it comes at the expense of introducing bias
because the technique itself reduces the likelihood that the sample will represent
a good cross section from the population.
38. Mixed methods sampling
The mixed methods sampling focuses on new forms of sampling methods which have
aspects of both probability and non-probability sampling in sampling used within single
study or a series of studied.
The flexibility of mixed methods research strategies makes such approaches especially
suitable for multisite case studies.
o Random purposive is the basic example of mixed methods sampling is random
purposive sampling method that has one aspect of probability sampling
(random) and one aspect of non-probability sampling (purposive).

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39. Sample size
Sample size is the number of observations in a sample or the units selected for contact
for data collection.
Calculation of a sample size is done for known population or unknown population in a
study using different statistical formulas.
A specific sample size is required to get valid data analysis results for the data collected.
A suitable sample size is determined on the basis of nature of research (type of
research), sampling method, data collection tool, data analysis type etc.
40. Measurement instruments or tools are used to observe, record or collect data during
a research that may be presentable in meaningful form later on to reach certain results
or findings.
41. Questionnaire survey
A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions,
or attitudes of some sample of individuals. As a data collecting instrument, it could be
structured or unstructured.
The questionnaire is most frequently a very concise, preplanned set of questions
designed to yield specific information to meet a particular need for research information
about a pertinent topic. The research information is attained from respondents normally
from a related interest area.
The dictionary definition gives a clearer definition: A questionnaire is a written or
printed form used in gathering information on some subject or subjects consisting of a
list of questions to be submitted to one or more persons.
Advantages of questionnaire
o Economy - Expense and time involved in training interviewers and sending
them to interview are reduced by using questionnaires.
o Uniformity of questions - Each respondent receives the same set of questions
phrased in exactly the same way. Questionnaires may, therefore, yield data
more comparable than information obtained through an interview.
o Standardization - If the questions are highly structured and the conditions
under which they are answered are controlled, then the questionnaire could
become standardized.
Disadvantages of questionnaire
o Respondents motivation is difficult to assess, affecting the validity of
response.
o Unless a random sampling of returns is obtained, those returned completed may
represent biased samples.
42. Interview survey
An interview is a direct face-to-face attempt to obtain reliable and valid measures in the
form of verbal responses from one or more respondents. It is a conversation in which
the roles of the interviewer and the respondent change continually.
Advantages of interview
o Allows the interviewer to clarify questions.
o Can be used with young children and illiterates.
o Allows the informants to respond in any manner they see fit.
o Allows the interviewers to observe verbal and non-verbal behavior of the
respondents.
o Means of obtaining personal information, attitudes, perceptions, and beliefs.
o Reduces anxiety so that potentially threatening topics can be studied.
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Disadvantages of interview
o Unstructured interviews often yield data too difficult to summarize or
evaluate.
o Training interviewers, sending them to meet and interview their informants, and
evaluating their effectiveness all add to the cost of the study.

43. Validity refers to how well a test measures what it is purported to measure.
44. Reliability refers to degree to which an assessment tool produces stable and consistent
results.
45. Data analysis and its types
Data analysis is done for the data collected using measurement tool during a research.
46. Regression analysis
Regression analysis involves identifying the relationship between a dependent variable
and one or more independent variables. A model of the relationship is hypothesized,
and estimates of the parameter values are used to develop an estimated regression
equation. Various tests are then employed to determine if the model is satisfactory. If
the model is deemed satisfactory, the estimated regression equation can be used to
predict the value of the dependent variable given values for the independent variables.
47. Correlation analysis
Correlation and regression analysis are related in the sense that both deal with
relationships among variables. The correlation coefficient is a measure of linear
association between two variables. Values of the correlation coefficient are always
between -1 and +1. A correlation coefficient of +1 indicates that two variables are
perfectly related in a positive linear sense, a correlation coefficient of -1 indicates that
two variables are perfectly related in a negative linear sense, and a correlation
coefficient of 0 indicates that there is no linear relationship between the two variables.
For simple linear regression, the sample correlation coefficient is the square root of the
coefficient of determination, with the sign of the correlation coefficient being the same
as the sign of b1, the coefficient of x1 in the estimated regression equation.
48. Univariate Analysis
Univariate data is used for the simplest form of analysis. It is the type of data in which
analysis are made only based on one variable. For example, there are sixty students in
a 10th class of a school. If the variable marks obtained in math were the subject, then in
that case analysis will be based on the number of subjects fall into defined categories
of marks.
49. Bivariate Analysis
Bivariate data is used for little complex analysis than as compared with univariate data.
Bivariate data is the data in which analysis are based on two variables per observation
simultaneously.
50. Multivariate Analysis
Multivariate data is the data in which analysis are based on more than two variables
per observation. Usually multivariate data is used for explanatory purposes.

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