BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 1

Dr. Ashok Kumar Jha

Professor in Management
MMCD, Tribhuvan University
UNIT 1: INTRODUCTION
Meaning of research
Scientific research- features
Types of research
The scientific research processes
Approaches to research:-
Paradigm shifts- Positivist vs. Interpretive philosophies,
Management Research- Concept, Nature, and Value in business decision making,
Applying Scientific thinking to Management Problems,
Ethical concerns in research.

1.1 Meaning of Research

Research refers to a search for knowledge. It is a scientific and systematic search for
information on a particular topic or issue. Several social scientists have defined research in
different ways, so it is also known as the art of scientific investigation. The Advanced
Learner’s Dictionary of Current English lays down the meaning of research as, “a careful
investigation or inquiry especially through search for new facts in any branch of Knowledge”.
Research has a number of characteristics:
 Data are collected systematically.
 Data are interpreted systematically.
 There is a clear purpose: to find things out.
We can therefore define research as something that people undertake in order to find
out things in a systematic way, thereby increasing their knowledge. Two phrases are
important in this definition: ‘systematic way’ and ‘to find out things’. ‘Systematic’ suggests
that research is based on logical relationships and not just beliefs and ‘To find out things’
suggests there are a multiplicity of possible purposes for your research.
Research comprises "creative work undertaken on a systematic basis in order to
increase the stock of knowledge, including knowledge of humans, culture and society, and
the use of this stock of knowledge to devise new applications”. It is used to establish or
confirm facts, reaffirm the results of previous work, solve new or existing problems, support
theorems, or develop new theories. A research project may also be an expansion on past work
in the field. Redman and Mory (1923) stated that “Research is a systematized effort to gain
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 2

new knowledge”. It is an academic activity and therefore the term should be used in a
technical sense.

Definition of Research

1. Redman and Mory defined research as a,” Systematized effort to gain new knowledge”. Some
People consider research as a movement, a movement from the known to the unknown.
2. According to Clifford woody, “Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions collecting, organizing and evaluating data,
making deductions and reaching conclusions to determine whether they fit the formulating
hypothesis”.
3. Creswell stated that "Research is a process of steps used to collect and analyze information to
increase our understanding of a topic or issue".

Conclusion

Thus, from the above definitions, it is concluded that:

a. Research means search for knowledge.
b. It aims at finding out truth.
c. Art of Scientific investigation.
d. Way of thinking, critically examining aspects of daily life.
e. Fact finding process.
f. A movement from the known to unknown.
g. Research is an organized and systematic way of finding the answers to questions.
Characteristics of Research
1. Reliability 2. Validity 3. Accuracy
4. Credibility 5. Generalizability 6. Empirical
7. Systematic approach 8. Controlled.

Concept of Business Research

Business research is defined as “The systematic and objective process of collecting,

recording, analyzing and interpreting data for aid in solving managerial problems”.

Business aspect: Research issues

Consumer behavior. Buying habits, brand preference, consumer attitudes.

Human resources. Employee attitudes, staff retention, material incentives.
Promotion. Media research, public relations studies, product recall through advertising.
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 3

Product. Test markets, concept studies, performance studies.

Marketing. Advertising, promotion, product, pricing.
Finance. Forecasting, budgeting, efficiency of accounting software.

1.2 Research Methods versus Research Methodology

‘Research “methods”’ usually refers to specific activities designed to generate data (e.g.
questionnaires, interviews, focus groups, observation) and ‘Research “methodology’ is
more about researcher’s attitude to and researchers understanding of research and the
strategy or approach researchers choose to answer research questions.

Differences between Research Methods and Research Methodology

Following differences are introduced between the two:

1. Research methods are the methods by which you conduct research into a subject or a
topic, but Research methodology explains the methods by which, researcher may proceed
with your research
2. Research methods involve the conduct of experiments, tests, surveys and the like, but
research methodology involves the learning of the various techniques that can be used in
the conduct of research and in the conduct of tests, experiments, surveys and critical
studies.
3. Research methods aim at finding solutions to research problems, whereas research
methodology aims at the employment of the correct procedures to find out solutions.

1.3 Concept of Scientific Research

Scientific research is a systematic way of gathering data and harnessing curiosity.

This research provides scientific information and theories for the explanation of the nature
and the properties of the business world. It makes practical applications possible. Scientific
research is a widely used criterion for judging the standing of an academic institution, such as
business schools.
Scientific research is the systematic process of collecting and analyzing information
to increase our understanding of Systematic observation of the phenomena for the purpose
of learning new facts or testing the application of theories to know facts.
The research aims at seeking answers to problems through the application of scientific
mythology which guarantees that the information is reliable and unbiased.
Examples of Scientific Research (current research)
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 4

o Effect of GPS satellite on health,

o Effect of genetically modified food on health,
o Studying the effect of global warming on see levels and wild life,
o Effect of mobile radiation on memory power,
o Changing aptitude of consumers in jeans pants.

1.3.2 Features of Scientific Research

Scientific research is a form of social activity is a form of social labor and has the following
characteristics:

1. Newness. The process of scientific research is the process of creating new things, so it is
newness.- The process of scientific research without repeating the experiment or something
has to be done before. Novelty in scientific research shall be construed as though achieve a
new discovery, the researchers still have towards, explore new things than.
2. Informative. Products of scientific research can be a scientific paper, scientific work, can
also be a specimen, new products, but even if that product is what it's all typical information
from the behavior of the phenomena, information technology processes and parameters
associated.
3. Objectivity. Objectivity is characteristic of scientific research and is also the standard of
scientific research. If the scientific research that is not objective science research products
will not be accurate and not worth anything.
4. Reliability. The research results are called trust if it is capable of verification by any
person in any case, what are conditions like for a similar result?
5. Calculated Risk. Scientific research is the process of finding new ones, so it can succeed
or fail, Successful early or very late success. So its risk is very high.
6. Inheritance. Inheritance has important implications in terms of scientific research
methods. Most research directions are derived and inherited from the results achieved
previously.
7. Individuality. Although there may be a group of people together to undertake research,
the role of individuals in creative and decisive

1.4. Objectives of Research:

1. To gain familiarity with a phenomenon or to achieve new insights into it. (exploratory or
Formulate research studies)
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 5

2. To describe accurately the characteristics of a particular individual, situation or a group.

(descriptive research)
3. To determine the frequency with which something occurs or with which it is associated
with something else. (studies with this object known as diagnostic research)
4. To test a hypothesis of a causal relationship between variables. (Such studies are known as
hypothesis testing research).

1.5 Types of Research

There are different types of research. They are as follows:

1. Applied/ Decisional and Pure/ Basic/ Fundamental Research

Applied Research
Research can also be applied or fundamental in nature. An attempt to find a solution
to an immediate problem encountered by a firm, an industry, a business organization, or the
society is known as applied research. It seeks to solve practical problems. It is used to find
solutions to everyday problems, cure illness, and develop descriptive research innovative
technologies, rather than to acquire knowledge for ethnographic research knowledge sake. It
is also known as Decisional Research and uses existing knowledge as an aid to the solution
of some given problem or set of problems.
As for example,
 Improve new mobile set,
 Treat or cure specific ill products, disease,
 Improve the energy efficiency of homes, offices, or modes.
Characteristics of Applied Research
1. Applied research is solution-specific and addresses practical questions.
2. It involves collection and analysis of data to examine the usefulness of theory in solving
practical educational problems.
3. It can be explanatory but usually descriptive.
4. It involves precise measurement of the characteristics and describes relationships between
variables of a studies phenomenon.

Fundamental research

Basic/ Fundamental research is frequently called basic or pure research, seeks to extend the
boundaries of knowledge in a given area with no necessary immediate application to existing
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 6

problems mainly concerns generalizations and formulation of a theory. Likewise, studies

focusing on human behavior also fall under the category of fundamental research.
Generally, this type of research demands a very high order of intellectual caliber as
well as intuition. The knowledge obtained thus expands the theoretical base of a subject.
Basic research is conducted by intellectuals at academic institutions who are specially
commissioned for this purpose.
Thus, while the principal objective of applied research is to find a solution to some
pressing practical problem, the objective of basic research is to find information with a broad
base of application and add to the already existing organized body of scientific knowledge.

Examples of Basic Research

 How did the universe begin?
 What are protons, neutrons, and electrons composed of?
 How do slime molds reproduce?
 What is the specific genetic code of the fruit fly?
 Why the green shows green?
 What are the reasons for poor financial performance?
 The development of new plastics that can be recycled.
 The design of new batteries for electric cars.
 The study of natural compounds in sea animals to look for new molecules that can be
used for medicine.

Characteristics of Basic Research

1. It is based on the belief ‘knowledge for knowledge’s sake.’

2. It involves collection and analysis of data to develop or enhance theory.
3. It leads to advancement of knowledge.
4. It takes place in a sterile environment.
5. It is carried out for understanding theoretical relationship between variables.
6. It is explanatory in nature.
7. Its application may or may not have any bearing on any application in the immediate
future or even after a long time.
8. Basic research lays down the foundation for the applied science that follows.

Difference between Basic and Applied research

BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 7

S. Basis Basis Research Applied Research

No.
1 Problem Individual researcher Employer or sponsor
selection by
2 Motivation Intellectual curiosity and Commitment to promote public
for satisfaction in advancing welfare
researcher knowledge
3 Goal Generalised theoretical Cost-effective reduction of social
understanding, tools, techniques problems
4 Research Laboratory Real world setting
Arena
5 Nature Analytical Synthetic

6 Application Not concerned with applicability Acton-oriented and concerned

of results of results of the research
7 Use of The research starts without any
predetermine predetermined norms, hypothesis
d norms and theories
8 Commercial No commercial value related to
Value results
9 Dependence Doesn’t depend on applied
research
10 Purpose • Expand knowledge of processes
of business and management.
• Results in universal principles
relating to the process and its
relationship to outcomes
• Findings of significance and
value to society in general.
with applicability of results of the
research
Based on predetermined
conditions, objectives, hypothesis
and theories
Commercial value related to
results
Depends on related basic research
for principles, fundamentals,
theories, etc.
• Improve understanding of
particular business or
management problem.
• Results in solution to problem.
• Findings of practical relevance
and value to managers in
organizations.

Descriptive verses Analytical research

Descriptive research. It consists of surveys and fact-finding enquiries of different types. It

tries to discover answers to the questions who, what, when and sometimes how. Here the
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 8

researcher attempts to describe or define a subject, often by creating a profile of a group of

problems, people, or events.
Descriptive research is “aimed at casting light on current issues or problems through a
process of data collection that enables them to describe the situation more completely than
was possible without employing this method.”
The main objective of descriptive research is describing the state of affairs as it
prevails at the time of study. The term ‘ex post facto research’ is quite often used for
descriptive research studies in social sciences and business research.
The methods of research adopted in conducting descriptive research are survey
methods of all kinds, including correlation and comparative methods.
Examples of Descriptive Research
 Research questions in descriptive studies typically start with ‘What is…”. Examples of
research questions in descriptive studies may include the following:
 What are the most effective intangible employee motivation tools in A graded
commercial banks in Nepal in the 21stcentury?
 What is the impact of viral marketing on consumer behavior in consumer amongst
college students in Pradesh No. 1?
 Do corporate leaders of multinational companies in the 21 stcentury possess moral
rights to receive multi-million bonuses?
 What are the main distinctive traits of organizational culture of ……………..?
 What is the impact of the Nepalese financial crisis of 2017 – 2019 on fitness industry
in the Nepal?

Analytical research. In it, the researcher has to use the already available facts or
information, and analyze them to make a critical evaluation of the subject. The researcher has
to use facts or information already available, and analyze these to make a critical evaluation
of the material.
2. Quantitative verses Qualitative research

Quantitative research. It relates to aspects that can be quantified or can be expressed in

terms of quantity. It involves the measurement of quantity or amount. Various available
statistical and econometric methods are adopted for analysis in such research. Which
includes correlation, regressions and time series analysis etc,
Qualitative research. It is concerned with qualitative phenomena. This type of research
aims at discovering the underlying motives and desires, using in depth interviews for the
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 9

specific purpose. Attitude or opinion research i.e., research designed to find out how people
feel or what they think about a particular subject or institution is also qualitative research.
Statistics derived from quantitative research can be used to establish the existence of
associative or causal relationships between variables. Quantitative research is linked with the
philosophical and theoretical stance of positivism.
For example, an important type of qualitative research is ‘Motivation Research’,
which investigates into the reasons for certain human behavior. It finds underlying motives
and desires of human beings by using in-depth interviews. The other techniques employed
in such research are story completion tests, sentence completion tests, word association tests,
and other similar projective methods.

4. Conceptual verses Empirical research

Conceptual research. The research related to some abstract idea or theory is called
conceptual research. It is that related to some abstract ideas or theory. It is generally used by
philosophers and thinkers to develop new concepts or to reinterpret existing ones. Generally,
philosophers and thinkers use it for developing new concepts or for reinterpreting the
existing ones.

Empirical research. It relies on the observation or experience with hardly any regard for
theory and system. It is appropriate when proof is sought that certain variables affect other
variables in some way. Evidence gathered through experiments or empirical studies is today
considered to be the most powerful support possible for a give hypothesis. In this type of
research, the researcher first formulates a hypothesis, and then gathers sufficient facts to
prove or disprove the stated hypothesis. He/she formulates the experimental design, which
according to him/her would manipulate the variables, so as to obtain the desired information.
5. Other types
They are as follows:
i. Futuristic research. Futures research is the systematic study of possible future conditions.
It includes analysis of how those conditions might change as a result of the implementation
of policies and actions, and the consequences of these policies and actions.
ii. Explanatory research. Explanatory research goes beyond description and attempts to
explain the reasons for the phenomenon that the descriptive research only observed. The
research would use theories or at least hypothesis to account for the forces that caused a
certain phenomenon to occur.
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 10

The following are examples of research objectives for causal research design:
 To assess the impacts of foreign direct investment on the levels of economic growth
in Nepal.
 To analyse the effects of re-branding initiatives on the levels of customer loyalty.
 To identify the nature of impact of work process re-engineering on the levels of
employee’s motivation.

iii. Predictive research. If we can provide a real explanation for an event after it has
occurred, it is desirable to be able to predict when and in what situations the event will
occur. This research is just as rooted in theory as explanation. This research calls for a
high order of inference making. In business research, prediction is found in studies
conducted to evaluate specific courses of action or to forecast current and future values.

Other Base for Classification

On the basis of the fundamental objectives of the research, we can classify research into
two types:
i) Exploratory research
ii) Conclusive research

i) Exploratory research. Exploratory research, as the name implies, intends merely to

explore the research questions and does not intend to offer final and conclusive solutions to
existing problems. This type of research is usually conducted to study a problem that has not
been clearly defined yet.
It aims to explore the research area and they do not attempt to offer final and conclusive
answers to research questions. Three typical approaches in exploratory research are:
 the literature survey,
 the experience survey and
 the analysis of "insight-stimulating examples.
Examples of Exploratory Research Design
 A study into the role of social networking sites as an effective marketing
communication channel,
 An investigation into the ways of improvement of quality of customer services within
hospitality sector in Dharan,
 An assessment of the role of corporate social responsibility on consumer behaviour in
pharmaceutical industry in the Nepal.
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 11

ii) Conclusive research. Conclusive research is used for this purpose of testing the
hypotheses generated by exploratory research. Conclusive studies aim to provide final and
conclusive answers to research questions.
Conclusive research can be classified as either:
a) Descriptive Research
b) Experimental Research

a. Descriptive research. Descriptive research as the name suggests is designed to

describe something, as for example, the characteristics of users of a given product, the degree
to which product use varies with income, age, sex or other characteristics; or the number who
saw a specific television commercial. Descriptive studies are again classified into two sub
types:
i. Longitudinal
ii. Cross sectional
i. Longitudinal research. It involves fixing a panel consisting of fixed sample of
subjects that are measured repeatedly. The panel members are those who have agreed to
provide information at specific intervals over an extended period.
For example, data obtained from panels formed to provide information on market
shares are based on an extended period of time, but also allow the researcher to examine
changes in market share over time. New members may be included in the panel as an when
there is a dropout of the existing members or to maintain representativeness. Panel data is
analytical and possess.

ii. Cross-sectional research. It is the most predominantly and frequently used

descriptive research design in marketing. Cross sectional design may be either single or
multiple cross sectional design depending on the number of samples drawn from a
population. In single cross sectional design, only one sample respondents are drawn whereas
in multiple cross sectional designs, there are two or more samples of respondents.

b. Experimental research. Experimentation will refer to that process of research in

which one or more variables are manipulated under conditions which permit the collection of
data which show the effects. In this research, the researcher can control the factors which are
present in a given situation; they can obtain more conclusive evidence of cause and effect
relationships between any two of them. Thus the ability to set up a situation for the express
purpose of observing and recording accurately the effect on one factor when another is
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 12

deliberately changed permits researchers to accept or reject hypothesis beyond reasonable

doubt.

1.6 Scientific Research Process/ Step

Several authors have attempted to enumerate the steps involved in the research process,
however, inconclusive. Nevertheless, the research process broadly consists of the following
steps and predominantly follows a sequential order:
1. Problem formulation/ identification
2. Development of an approach to the problem
3. Research Design
4. Selection of Data collection techniques
5. Sampling techniques
6. Fieldwork or Data Collection
7. Analysis and interpretation.
8. Report preparation and presentation.
The above mentioned steps may be placed in the six groups as follows:
First, there is initiating or planning of a study, Problem definition, Second Research
design, Third Data collection techniques and sampling techniques. Fourth, there is Data
analysis related to fieldwork/ project work Fifth, there is interpretation of the data/ result and
Last report preparation and presentation.
The above processes of research involve the following steps:

1) Problem definition. First of all, one should be clear about the problem we are facing. The
definition of problem is composed of three aspects: (a) the specification of the unit of
analysis for the study, (b) the identification of the particular units within the scope of the
study and (c) the specification of the kind of information sought concerning problem. What
would Making researcher likes to know if information were free and without error? A
complete answer to this question defines the initial research problem. It may later be refined
and redefined because of cost or time considerations or because of measurement difficulties,
but it establishes a starting point.

2) Research design. The second step in research is the research design, i.e. the blue print for
the research. The basic issues addressed in research design are:

a) Should the research environment be internally disturbed by the researcher in specified

ways-an experimental design-or should the environment be studied as it exists without
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 13

such disturbances?
b) How many observations should be made on each unit in the study? When?
c) Should a single sample be chosen from the total population or should a series of
samples be chosen from various subgroups of the population?
d) Should a probability or non-probability sampling procedure be adopted for the study?

3) Data collection. The next step in the research is the collection of relevant data. Data has
two types- primary data and secondary data. Data collection looks forward to data analysis.
Data requirements for various analytical techniques must be anticipated in the data collection
phase. Special care must be taken in the collection phase to avoid sources of understatement
or overstatement for the various characteristics.

The collection phase must consider the diverse tasks of assignment and recruitment of
staff, ways of increasing response rates, costs and bias sources under alternative collection
approaches, and proper training of personnel. The effect of each of these on accuracy,
monetary costs, and time constraints must be evaluated. Finally, the collection phase must be
supervised as well as planned. Compare the following four questions.
o Do researchers use brand X?
o Have researchers ever used brand X?
o Do researchers regularly use brand X?
o Is brand X researcher’s favorite brand?
What frequency of use corresponds to each of above four questions? Does the fourth
correspond to frequency in any way?
The researcher should not ignore the possibility that relevant data are already
available. A vast amount of historical as well as current statistics, ranging from various
census publications to special purpose survey of particular industries, and products are
already available through government publications.
Primary data for which the researcher defines the terms and exercises the supervision
of the project - must not be automatically construed as "more accurate than secondary data".
The secondary data sources may be more capable of generating the required data. It may
have the resources to obtain more representative and larger samples. It may have interviewers
and measuring instruments with unique capabilities in specialized fields.
Errors associated with data are typically classified into two categories- Sampling and
non-sampling errors.
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 14

Sampling errors are differences that arise because a sample rather than a census is
employed. Different samples composed of different units would yield different results. The
magnitude of the differences among the possible samples is an indication of the amount of
sampling error associated with the research plan.
Non-sampling errors arise because the data collection procedures, question wordings,
etc. would not yield the "correct" result even if a census were employed. Non-sampling errors
cannot be mathematically appraised.

4) Data Analysis. The fourth step in research is the analysis. In this stage the collected data
are processed in order to summaries the results, whether they may be statements with respect
to single characteristics or relationship among characteristics. Data analysis seeks to
determine how the units covered in the research project respond to the items under
investigation. The data should be analyzed in a manner that is satisfactory for testing the
hypothesis.
Data analysis can be conveniently classified as under:
 Univariate analysis
 Bivariate analysis
 Multivariate analysis
Univariate analysis deals with a single characteristic of interest, Bivariate analysis deals with
two characteristics of interest, and Multivariate analysis deals with more than two
characteristics of interest. More on this can be found on another unit under marketing
research.

5) Interpretation of results. Interpretation of results is the "so what?" of research. Research

is wasted and useless unless it influences actions. It seems elementary to say that research
results must have relevance for the decision to be made. We state it only because it is ignored
so much in practice.

The results should be interpreted into action of recommendations and the

recommendations must also be communicated to the executive in an understandable manner.
Results should be presented in as simple a manner as possible. If the researcher cannot make
the results comprehensible to the executive the researcher may not have sufficient
understanding of the problem to warrant adoption of the recommendation.
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 15

1.7 Approaches to Research

Paradigm Shift: Positivist versus Interpretivist

Positivism and interpretivism are the two basic approaches to research methods in Social
science/ scientific research. Positivist prefers scientific quantitative methods, while
interpretivists prefer humanistic qualitative methods.

1.7.1 Positivist/ Positivism

Positivism began in the nineteenth century and asserts a deterministic and empiricist
philosophy, where causes determine effects, and aims to directly observe, quantitatively
measure and objectively predict relationships between variables.
Positivism depends on quantifiable observations that lead to statistical analyses. It has
been noted that “as a philosophy, positivism is in accordance with the empiricist view that
knowledge stems from human experience. It has an atomistic, ontological view of the world
as comprising discrete, observable elements and events that interact in an observable,
determined and regular manner”.
Moreover, in positivism studies the researcher is in independent form to study and
there are no provisions for human interests within the study. Crowther and Lancaster
(2008) argue that as a general rule, positivist studies usually adopt deductive approach,
whereas inductive research approach is usually associated with a phenomenology philosophy.
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 16

Positivism depends on quantifiable observations that lead themselves to statistical

analysis. It has been noted that “as a philosophy, positivism is in accordance with the
empiricist view that knowledge stems from human experience. It has an atomistic,
ontological view of the world as comprising discrete, observable elements and events that
interact in an observable, determined and regular manner”
A positivist approach is usually associated with natural science research and
involves empirical testing. Positivism states that only phenomena which we can know
through our senses (sight, smell, hearing, touch, taste) can really produce “knowledge”.
It promotes the idea of experimentation and testing to prove or disprove hypotheses
(deductive) and then generates new theory by putting facts together to generate “laws” or
principles (inductive)..
The five main principles of positivism philosophy can be summarized as the following:
i) There are no differences in the logic of inquiry across sciences.
ii) The research should aim to explain and predict.
iii) Research should be empirically observable via human senses.
iv) Science is not the same as the common sense. The common sense should not be allowed
to bias the research findings.
v) Science must be value-free and it should be judged only by logic.
Examples
The following are a few examples for studies that adhere to positivism research philosophy:
 A study into the impact of the global economic crisis of 2014 – 2018 on the brand equity
of listed companies in Nepal.
 An analysis of effects of foreign direct investment on GDP growth in Nepal
 A study of relationship between diffusion of innovation of mobile applications and
saturation of applications in a country.

Criticisms of the Positivist Approach to Social Research

a) Treats individuals as if they passive and unthinking – Human beings are less
predictable than Positivists suggest
b) It focuses only subjective issues not objective.
c) By remaining detached, we actually get a very shallow understanding of human
behavior.

1.8.2 Interpretivism
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 17

Interpretivism, also known as interpretivist involves researchers to interpret elements of the

study, thus interpretivism integrates human interest into a study. Accordingly, “interpretive
researchers assume that access to reality (given or socially constructed) is only through social
constructions such as language, consciousness, shared meanings, and instruments”.
Development of interpretivist philosophy is based on the critique of positivism in
social sciences. It emphasizes qualitative analysis over quantitative analysis.
Interpretivism is “associated with the philosophical position of idealism, and is used
to group together diverse approaches, including social constructivism, phenomenology and
hermeneutics (the branch of knowledge). According to interpretivist approach, it is important
for the researcher as a social actor to appreciate differences between people.  Moreover,
interpretivism studies usually focus on meaning and may employ multiple methods in order
to reflect different aspects of the issue.
Within the interpretive paradigm there are a number of research methods that could be
used when collecting data including:
 Action Research
 Observations
 Questionnaires
 Interviews.
Following are the principles of Interpretivism concept of paradigm:
i) An Interpretivist approach to social research would be much more qualitative, using
methods such as unstructured interviews or participant observation
ii) Interpretivists, or anti-positivists argue that individuals are not just puppets who react to
external social forces as Positivists believe.
iii) Intepretivist research methods derive from ‘social action theory‘.
iv) Intereptivists actually criticise ‘scientific sociology’ (Positivism) because many of the
statistics it relies on are themselves socially constructed.
v) Interpretivists argue that in order to understand human action we need to achieve
‘Verstehen‘, or empathetic understanding – we need to see the world through the eyes
of the actors doing the acting.

Differences between the positivist and interpretivist paradigms

Positivist Paradigm Interpretivist Paradigm

Tends to produce quantitative data Tends to produce qualitative data
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 18

Uses large samples Uses small samples

Concerned with hypotheses testing Concerned with generalizing theories
Data is highly specific and precise Data is rich and subjective
Location is artificial Location is natural
Reliability is high Reliability is low
Validity is low Validity is high
Generalizes from sample to population Generalizes from one setting to another

1.8 Concept of Management Research

Management Research can be broadly defined "as a form of systematic inquiry that
contributes to knowledge in the field of management". It is also about searching
systematically for solutions to management problems.
Business and management research is a systematic inquiry that helps to solve business
problems and contributes to management knowledge. It Is an applied research.
According to Zimkund, “Management research is scientific and objective process of
gathering, recording and analyzing data for aid in making business decisions”.
Four factors (Easterby- Smith, 2008) combine to make business and management a
distinctive focus for research:
 Tran discipline approach,
 Information access is difficult since managers see information as competitive,
 advantage on the market,
 Managers are educated and want some information produced by the classical research
method,
 Finding must resolve practical management problems.
Trends in Management Research
(Pant P. R., 2019, Seminar)
 Management research has gained tremendous heights over the years.
 Management research has been emerging as “career opportunity” in the corporate
sector.
 Management research has given upward thrust to the quality and relevance of
management education and training.
 Management research has now been more focused on allied disciplines like
environmental analysis, intellectual property, knowledge management, gender issues,
policy analysis, ICT and so on.

1.9 Value of Management Research in Business Decision Making

BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 19

Management research must be considered both in terms of the competitive environment of

business schools and the role of research in the management education process. It is
particularly important to examine how research can energize and re-engage the brain and the
voice of business schools in achieving a more effective strategic positioning in the context of
the modern university.  Ongoing debates suggest that there is a gap or imbalance between
theory and practice in both management research and in management teaching. Business
schools may also need a renewed focus and engagement with the needs of practitioners. The
rapid change in the size and stature of research in business schools has engendered passionate
dialogue and debate.
Today’s managers have a growing need to understand scientific findings and
incorporate them into decision making. Research always facilitates effective management.
At many government organizations research drives every aspect of major decision making.
In some organizations, research is so fundamental that management makes hardly any
significant decision without the benefit of some kind of research. The decision making
process associated with the development and implementation of a strategy involves four
interrelated stages.
a. Identifying problems or opportunities.
b. Diagnosing and assessing problems or opportunities.
c. Selecting and implementing a course of action.
d. Evaluating the course of action.
The value of management research in business decision making can be studied as follows:
1. Testing of new products. Business research tests the possible success of fresh products.
Businesses need to know what kinds of services and products consumers want before they
produce them. Research will reduce risk- Research can help design a new product or service,
figuring out what is needed and ensure that the development of a product is highly targeted
towards demand.
2. Guaranteeing adequate distribution.  Businesses can also use research to guarantee
sufficient distribution of their products. For instance, a consumer products’ company might
want to speak with merchants about the various brands they offer. The outcomes of the
business research can help managers decide where they need to increase their product
distribution.
3. In-house research is required for professional and self-development of the workers
through training and mentoring. Organizational research and analysis would also be
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 20

needed for assessment of performance management, process re-engineering, departmental

assessment and well-being of staff members.
4. Undertaking research can help a company avoid future failure. Carrying out research
can also help a business determine whether now is the right time to expand into another town
or whether it needs to apply for a new loan. It may also help a small business decide if a
process should be altered or if more needs to be done to meet the requirements of the
customer base.
5. Studying the competition. Businesses frequently make use of research to study key rivals
in their markets. Businesses will often begin with secondary research information or
information which is currently accessible. Research is important for any organization to
remain competitive in the market. The top function of research is to supply a business with an
outlet to correctly determine its customers. With the help of surveys, an organization can
analyze the preferences of its target consumers. Furthermore, these studies could also provide
a business the chance to examine its competitors in the industry and analyze and emulate key
strategies which could help in its operations.
6. It can also help in the recruitment of employees. It’s through proper research that
human resource managers are able to determine and recruit qualified manpower. Recruitment
of workers with the right skills and attitudes aids the company to improve its productivity
levels. Research for the right staff members can be done via the internet, consultancy firms
and institutions of higher learning.
A proper knowledge of the employees and healthy conversation would be important
factors for a manager to boost performance of the individuals in the team. A good approach,
winning attitude and behaviour of the manager with proper systems set up would certainly
call for sound research to understand and improve the system.
In addition to what has been stated above, the significance of research can also be understood
keeping in view the following points:
i. To those students who are to write a master’s or Ph.D. thesis, research may mean a
careerism or a way to attain a high position in the social structure;
ii. To professionals in research methodology, research may mean a source of livelihood;
iii. To philosophers and thinkers, research may mean the outlet for new ideas and insights;
iv. To literary men and women, research may mean the development of new styles and
creative work;
v. To analysts and intellectuals, research may mean the generalizations of new theories.
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 21

Thus, research is the fountain of knowledge for the sake of knowledge and an important
source of providing guidelines for solving different business, governmental and social
problems. It is a sort of formal training which enables one to understand the new
developments in one’s field in a better way.

1.10 Role of Research in important Management Areas

Through research, an executive can quickly get a synopsis of the current scenario which
improves his information base for making sound decisions affecting future operations of the
enterprise. The following are the major areas in which research plays a key role in making
effective decisions.
Marketing. Marketing research has become very crucial in taking sound marketing
decisions. Marketing research involves the process of systematic collection, compilation,
analysis, and interpretation of relevant data for marketing decisions. Research tools are
applied effectively for studies involving demand forecasting, consumer buying behaviour,
measuring advertising effectiveness, media selection, test marketing, product positioning, and
new product potential.
Production. Research enables an organization to decide on what to produce, how much to
produce, when to produce, and for whom to produce in the field of production. Research tools
are also of immense help in quality control, and setting up optimum inventory level.
Banking. Banking institutions have found it useful to setup research departments for the
purpose of gathering and analyzing information both for their internal operations and for
making in-depth studies on economic conditions of business. Nepal Rashtra Bank has setup
an excellent research department for planning and management reporting.
Materials. The materials department uses research to frame suitable policies regarding
where to buy, how much to buy, when to buy, and at what price to buy.
Human resource development. The human-resource development department uses research
to study wage fates, incentive schemes, cost of living, employee turnover rates, employment
trends, and performance appraisal. It also uses research effectively for its most important
activity namely manpower planning.

Applying Scientific Thinking to Management Problems

Sources of Knowledge
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 22

• Empiricists attempt to describe, explain, and make predictions through

observation.
• Rationalists believe all knowledge can be deduced from known laws or
basic truths of nature.
• Authorities serve as important sources of knowledge, but should be
judged on integrity and willingness to present a balanced case.

The Essential Tenets of Science

• Direct observation of phenomena

• Clearly defined variables, methods, and procedures
• Empirically testable hypotheses
• Ability to rule out rival hypotheses
• Statistical justification of conclusions
• Self-correcting process

Ways to Communicate

 Exposition: descriptive statements that merely state and do not give reason
 Argument: allows us to explain, interpret, defend, challenge, and explore meaning

Important Arguments in Research

 Deduction is a form of inference that purports to be conclusive.

 Induction draws conclusions from one or more particular facts.    
What is a Construct?
A construct is an image or idea specifically invented for a given research and/or theory-
building purpose.
Types of Variables
Independent, Dependent Moderating, Extraneous, Intervening.
The Role of the Hypothesis
 Guides the direction of the study
 Identifies facts that are relevant
 Suggests which form of research design is appropriate
 Provides a framework for organizing the conclusions that result
What is a good hypothesis?
• A good hypothesis should fulfill three conditions:
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 23

• Must be adequate for its purpose

• Must be testable
• Must be better than its rivals
The value of a theory
 Narrows the range of facts we need to study
 Suggests which research approaches will yield the greatest meaning
 Suggests a data classification system
 Summarizes what is known about an object of study
 Predicts further facts that should be found.

1.11 Ethical Concerns in Research

Concept of Ethics

Ethics is a set of principles that determine the right and acceptable conduct. Ethics is the
branch of philosophy that involves systematizing, defending, and recommending concepts of
right and wrong conduct. The term ethics is derived from the Ancient Greek word ‘ethikos’
(habit, “custom”).

Research ethics is the application of moral rules and professional codes of conduct to
the collection, analysis, reporting, and publication of information about research subjects, in
particular active acceptance of subjects right to privacy, confidentiality and informed consent.

Especially in research, where the practical aspects of a study (e.g. how and when
to meet people for interview, which data to sample, how to deal with someone changing
their mind about being part of a study and the potential isolation of researchers as the
researcher (not being in a group or class all doing the same thing, but following
researchers own research with researchers own objectives and contacts).
Sometimes it can be quite a shock, when researchers have been used to being
given pretty clear ideas about how to do something, to find researchers have to make
researchers own decisions about how things will be done. An obvious example would be
when, as a very honest student, we start to collect some data together and realize that
one source of data is completely out of step with the rest. As a professional researcher,
that is an interesting challenge, which will create its own new pattern of research and
investigation. But as a business student with a fast approaching hand-in deadline, the
temptation to lose the odd data can be great.
Thus, research ethics involves:
 BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 24

a) Rules of behavior based on ideas about what is morally good and bad.
b) It is concerned with a set of social and moral principles that guide research.
c) Ethics in research provides rules that specify and appropriate and inappropriate
behavior in the conduct of research and application of findings.
d) All researchers have been challenged to meet ethical principles and underlie the
research endeavour.

Components of Ethics in Research

Following are the components:

i) Truthfulness. It is because of the very purpose of Science, which is searching for
answers to questions, honesty is of utmost importance, as for example- Fraud &
Misconduct
ii) Courtesy. Ethics in research also includes courtesy in dealing with respondents, as for
example- Asking permission.
iii) Respect for human rights. Related to showing respect for the respondents is the
ethical implications of eliciting information from respondents. As for example- Respect
for Human Dignity.

Basic Principles of Ethical Practice

a) Informed consent,
b) No pressure on individuals to participate,
c) Respect individual autonomy,
d) Avoid causing harm,
e) Maintain privacy and confidentiality,
f) Take particular care in management research with vulnerable groups.

Home Assignments

1. Define Research and business research.

2. What do you mean by Scientific research? Describe silent features of it.
3. Discuss the concept and features of the following types of research:
a. Applied/ Decisional and Pure/ Basic/ Fundamental Research,
b. Descriptive verses Analytical research
c. Quantitative verses Qualitative research,
d. Conceptual verses Empirical research
BUSINESS RESEARCH METHODS- UNIT 1- INTRODUCTION 25

4. Make differences between Applied and fundamental research

5. Explain the processes of the scientific research.
6. What do you mean by the following in paradigm concept of research?
a. Positivist philosophy of research and
b. Interpretive philosophy of research
7. Explain about Management Research. Mention Value in business decision making.
8. Discuss the scientific thinking to management problems.
9. State ethical concerns in research.