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Module 1: Introduction to Business Research

Learning Outcomes:

After studying this module, the student should be able to:

1. define business research;

2. understand the difference between qualitative and quantitative business research and the
difference between basic and applied research;
3. know the kinds of business research;
4. determine the criteria for a good business research; and
5. distinguish the different formats of business research.

What is business research?

Business research is a type of scientific research that tries to address the concerns of the
firm and/or the industry. It offers (recommends) solution/s to the affected functional area
(marketing, management, human resource, finance, entrepreneurship, etc.) or analysis about
the perception, preference, and behavior of the customers, employees, and other stakeholders.
The processed result of the business research (information) becomes the basis for making
decisions. If the result of the business research is intended only for a particular company use,
then it is a contracted business research. If the result is intended for general application and
appreciation of the business, the industry, and the academic community, then it is an
institutional research.

Difference between qualitative and quantitative research

Basic business quantitative research uses survey questionnaire for collecting primary
data (perception and preference of respondents), whereas business qualitative research uses
observation (behavior of respondents) or depth interview (opinion and ideas of respondents)
for collecting data. However, the findings of qualitative business research cannot be generalized
across the population, as it is treated like a case study; meanwhile, quantitative business
research can be generalized across the population, if the sampling method was done randomly.
Can quantitative and qualitative business methods be combined?
Yes. The result of qualitative business research can be used to validate the result of
quantitative business research. This process is called triangulation. An example of triangulation
is the use of survey to respondents and interview to another group of respondents within the
same study. A specific example is when a researcher tries to evaluate the Human Resource
Practices of a certain company. Employees will evaluate the services and functions of the HR
Department using a survey questionnaire, and HR Practitioners will be interviewed to check on

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the details of their services and functions rendered to employees. The researcher will compare
the results of the study and will have to come up with various levels of analysis.

Difference between basic business research and applied business research

Basic (Academic) business research is strict on APA compliance, whereas applied

business research is lenient and would depend on the preference of the client (for their easy
interpretation and decision).

Basic business research is dependent on the problematic situation identified by the

researcher and the findings are expected to be generalized across the population of the study.
Applied business research is dependent on the problem that the client would want to be solved
and the findings cannot be generalized as it is just a case study.

Kinds of business research

1. Conclusive (for quantitative business research) – designed to help managers make decisions
based on the information provided by business research. Through it, the manager or decision
maker makes informed decisions. Informed decisions rely on researched information as basis
for making decisions. Conclusive research can be applied through descriptive research,
correlational research, causal research, or a combination of descriptive research with
correlational or causal research.

a) Descriptive research – is a kind of quantitative research that describes the problem or

phenomenon that the researcher or client wants to address or know. It answers the
questions who, what, when, where, why, and how in the statement of the problem. Most
business studies are done using descriptive research. If the client would want to address
many of the areas of business operations through descriptive research, then this kind of
research would be lengthy and time consuming. The results are presented through
frequency count, percentage, ratio, rank, some descriptive statistics, or mean (by
interpreting the scale, its level and meaning).

b) Correlational research – is a kind of quantitative research that measures the relationships

of variables statistically to determine its dependence or interdependence. It could simply
be done using correlations or t-test and ANOVA. It could also be done using some
multivariate techniques like factor analysis, multiple regression analysis, cluster analysis,
perceptual mapping, or conjoint analysis. The results can be inferred (deduce and
conclude with statistical basis). In most business studies, descriptive research and
correlational research are combined to have a comprehensive result.

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c) Causal research – is a kind of quantitative research that hypothesizes the cause and effect
of variables. It is intended to address the complicated relationships of variables. It uses
multivariate tools like covariance-based structural equation modeling (CB-SEM) or partial
least squares structural equation modeling (PLS-SEM).

2. Exploratory (for qualitative business research) – is designed to find more information about
the problem, issue, or phenomenon. It is also intended to reduce the research options to a
manageable size. Exploratory research can be applied through depth interview, focus group
discussion, and ethnographic research.

a) Depth interview – is a kind of exploratory research where the researcher conducts a

detailed personal interview (with guide questions that the respondent is aware of earlier)
with the respondent. The activity is normally recorded so that the transcript can be
printed and used as a support for the depth interview. The raw transcript will be
summarized and interpreted by the researcher. Because the activity relies on the expert
opinion of the respondents, only a handful of respondents are included in the interview –
around 8–10. If a quantitative research is done with similar concerns or problems, the
result of the depth interview (qualitative research) can be used to validate the result of
the quantitative research. The process is called triangulation.

b) Focus group discussion (FGD) – is a kind of exploratory research where the researcher
solicits ideas about a particular topic or problem from the target respondents. The
researcher selects around 10–12 respondents (representing the population) in one area
and serves as the facilitator. The researcher asks questions to the respondents and allows
them to process the questions, while recording it for documentation purposes. There
must be some identifier for the respondents (but not the name of the respondent) for
purposes of documentation. The raw transcript is summarized and used as basis for
qualifying a particular concern (e.g., a product, idea, or variable) in the quantitative
research.

c) Ethnographic or observation research – is a kind of qualitative research where the

researcher observes the respondent or respondents directly. It is done through:
1. direct observation (with the respondent informed beforehand of such observation)
2. direct observation (with the respondent uninformed of such observation)

There are issues and concerns here:

1) If the respondent is made aware of such observation, he or she may be conscious of his
or her behavior, thus defeating the purpose of observing the behavior normally.
2) If the respondent is not made aware of such observation (assuming a spy eyeglasses
with video-recording capability is applied), there is an ethical issue involved – intrusion
of privacy.

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3) If the observation is successful, could the researcher interpret the observed behavior? In
this regard, we need experts like a psychologist to interpret perception, motivation, etc.;
we need a sociologist to interpret social behavior; and we need an anthropologist to
interpret culture and symbols.

3. Business case analysis – involves the study of a particular company, group, or person
through personal interviews and published literature. The personality of those involved in the
case (company officers or personnel) is reflected and discussed in the case to make it
interesting. The case is written for purposes of class discussion. The case is intended to elicit
the students’ participation by applying whatever concepts they have learned from the
business courses they have taken. It cannot be generalized as it is about a particular company
only.

Criteria for a good business research

1. For quantitative basic business research, it must be grounded on theory and empirically
verifiable, especially if the research model is confirmatory in nature, where the findings
should validate the variables of the theory; if it is exploratory in nature and no existing
theory is available, then some valid explanation would suffice, but subject to hypothesis
testing and more empirical testing (to avoid accidental generalization).
2. It must contribute to the advancement of knowledge in business and management.
3. It results in scientific knowledge that is ethically neutral (not offensive).
4. For qualitative basic business research, the observation could be interpreted by the experts
(psychologist, sociologist, or anthropologist). Their interpretation serves as the basis for the
managers to understand the customers to pave the way for a correct strategy.

Format of a business research

In general, the format for basic business research is still based on the traditional format,
which is known as Format A. Format A has five chapters. The American Psychological
Association (APA) has come up with its format called Format B. Format B, meanwhile, has four
chapters. The chapters 1 and 2 in format A are merged into one chapter in format B; that is why
it is comprised of four chapters only. Some schools are also modifying the research format to
suit their specific research requirements.
There is no standard format for applied research. It still incorporates some chapters and
components of the traditional format, but it is much more simplified to suit the needs of the
clients. In addition, the institutional format of the university has to be observed by the
students.

Learning Activity 1.1

1. How useful is Business Research for a manager in any organization?
2. Which method would you prefer in Research, is it qualitative, quantitative or both? Why?

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Learning Activity 1.2

1. Why do you consider Business research a scientific endeavor?
2. When is Exploratory method necessary in a research?
Learning Activity 1.3
1. Based on your readings, what are the criteria of a good Business Research?
2. When do you use a Business Case study?
Questions for Critical Thinking
1. What is Triangulation method and when is it necessary?
2. Explain why the findings of qualitative business research cannot be generalized across the
population?

Reference:
Business Research with Statistical Applications
Danilo M. Te, DBA, *Divina V. Sabanal, DBM, *Jovelyn A. Castro, LPT, DM * Christhoffer P.
Lelis, LPT, PhD