Business Research 2013, Adapted from Dr. Solomon A.’s and Habite A.

’s compiled material

Chapter one

Introduction

Research is most frequently used terminology in different academic and business institutions.
Research as conscious and creative human activity involves discovering and learning new things.
Where there is a problem there is always a research. It is an essential tool for understanding the
events and structures of the social world. Research can mean different things to different people.
People have defined research differently according to their perception. Here under we will see
different definitions and perceptions of individuals about research.

1.1 Research defined

Different authors in many ways have defined the word research. Research commonly refers to a
search for knowledge. Some people consider research as a movement from known to unknown.
It is indeed a voyage of knowledge. For some people on the other hand research implies an art of
scientific investigation to the state of nature or phenomenon. Authors are increasingly adding
new names and definition for different kinds of research. Some of the major definitions given by
scholars are:

1. “Research is a systematized effort to gain new knowledge.”

2. Research is also defined as a movement- movement from known to unknown.
3. Research is the application of human intelligence in a systematic manner to a problem
whose solution is not immediately available.
4. “Research comprises of defining and redefining problems, formulating hypothesis or
suggested solutions; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis”
5. “Research is an honest, exhaustive, intelligent searching for facts and their meanings or
implications with reference to a given problem. The product or findings of a given piece
of research should be an authentic, verifiable and contribution to knowledge in the field
studied.” He has emphasized the following characteristics of research in his definition:
 It is an honest and exhaustive process.
 The facts are studied with understanding.

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 The facts are discovered in the light of problem. Research is problem-centered.

 The findings are valid and verifiable.
 Research work should contribute new knowledge in that field.

In sum, any research endeavor demands the pursuit of scientific process in purposive manner and
any research undertaking needs to be systematic (follow logical sequence not belief or common
sense approaches).

1.2 Business Research

It is defined as the systematic and objective process of gathering, recording, and analyzing data
for aid in making business decisions (Zikmund, 2003).

Business research can be described as a systematic and organized effort to investigate a problem
encountered in the work setting that needs a solution (Sekaran, 2006: pp 5)

Business research is the application of the scientific method in searching for the truth about
business phenomena (Zikmund et al., 2008). These activities include defining business
opportunities and problems, generating and evaluating alternative courses of action, and
monitoring employee and organizational performance. Accordingly, the objective is to facilitate
the managerial decision making process for all aspects of a business- finance, marketing, and
personnel and so on.

Business Research= marketing research+ Financial research+ Operations/production Research+

Human recourses research + Materials management research+ Risk Management research+
other business functions research.

When Is Business Research Needed?

The need to make intelligent, informed decisions ultimately motivates an organization to engage
in business research. Not every decision requires research. Thus, when confronting a key
decision, a manager must initially decide whether or not to conduct business research. The
determination of the need for research centers on (1) time constraints, (2) the availability of data,
(3) the nature of the decision to be made, and (4) the value of the research information in relation
to costs.

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1.2 Objectives of research

The broader objectives of research are:

A. Theoretical Objective

Those researches whose objectives are theoretical formulate the new theories, principles or laws.
Such type of research is explanatory because it explains the relationships of certain variables.
These researches contribute some basic knowledge to the human knowledge. The researches in
different disciplines i.e., Physics, Chemistry, Mathematics etc. have the theoretical objective.

B. Factual Objective

Those researches whose objective is factual find out new facts. This objective is by nature
descriptive. These researches describe facts or events which happened previously. Such type of
research is done in history.

C. Application Objective

The research having application objective does not contribute a new knowledge in the fund of
human knowledge but suggests new applications. By application we mean improvement and
modification in practice. For example if anyone gives a new application of electricity then such
type of research has application objective.

Motivation of doing research (self-reading)

Research is not a trouble-free duty rather it is time consuming, tiresome and expensive undertaking.
Despite these all difficulties many people especially in academic institute would like to carry out research
at least once in their life. What are the possible motives of individuals to undertake research work?

The possible motives for doing research can be either one or a combination of the following:

• Desire to get degree with its consequential benefit. The graduate and postgraduate students are
required to carry out research project as a partial fulfillment to obtain their master and Ph.D. Degree.
Research is therefore, a prerequisite to complete their study.

• Desire to get respect and promotion (to own respect in society). In academic and research
institutions publication is crucial for promotion and academic rank. “Publish or perish” is a phrase
commonly used in experienced and well-established academic institutes. This implies an individual
should carry out a research activity and publish his findings in scientific or international journal in order

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to get respect and academic rank. If not the individual will "perish" meaning no proportion or academic
rank and hence no respect is possible for that individual in the academic environment

• Desire to face a challenge in solving the unsolved problem. Concern over a particular problem
initiates a researcher.

• Desire to get intellectual joy of doing some creative work.

• Directive of government. Government sometimes gives directives to its employees to carry out a
particular study and investigation for better decision-making ground. Ideally any policy before
implementation requires detail study and analysis of its impact on different parts of the society.

• Employment condition. Some employers set as criteria at least one publication in international
journal.

1.3 Types of research

There are different basis of classification of research:

1. On the basis of the outcome of research

Basic/pure / fundamental research: - concerns the principles or laws or fundamental rules and
aims the quest for achieving the knowledge for its own sake. It is concerned with the
development of theoretical frame for a particular phenomenon for which so far no generalized
principles are available.

 Basic research attempts to expand the limits of knowledge.

 It does not directly involve the solution to a particular pragmatic problem.
 Basic research findings generally cannot be immediately implemented.

Applied research:-

Applied research encompasses those studies undertaken to answer questions about specific
problem or to make decisions about a particular course of action or policy. Aims at searching
solutions to pressing social problems

2. On the basis of purpose

a. Exploratory research/preliminary research (pilot survey)

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 Conducted to clarity ambiguous problems need to gain better understanding of the

dimension of problem(s).i.e. it is conducted with view to clarify and define the existence
and nature of a problem.
 Uncovering conclusive evidence to determine a particular course of action is not the
purpose of exploratory research
 Usually, exploratory research is conducted with the expectation that subsequent research
will be required to provide conclusive evidence. The area of investigation may be so new
or so vague that a researcher needs to do an exploration just to learn something about the
area.
b. Descriptive research: -

The major purpose of descriptive research is to describe characteristic of a population or

phenomenon. Descriptive researches seek to determine the answers to who, what, when, where
the problem is occurred. Unlike exploratory research, descriptive studies are based on some
previous understanding of the nature of the research problem. Its purpose is to describe the state
of affairs as it is. It usually uses survey method to accurately and precisely describe the research
population.

C. Analytical research

Aims at critical evaluation of the given phenomena or problems expressed in facts, figures, and
narrative information. The researcher looks beyond the facts and figures already collected; and
assumes that behind the accumulated data there is something more important and relevant than
the facts and figures. The analyst needs to have a thorough knowledge of the data, because
without penetrating and insightful knowledge analysis is worthless.

D. Causal research: - the main goal of causal research is to identify cause-and-effect

relationships among variables.

e.g.
 Influence of price, packaging, advertising on sales,
 Training Vs productivity.

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3. On the basis of data analysis

a. Qualitative research: - applicable for phenomenon that cannot be expressed in
terms of quantity- things related to kind and quality
b. Quantitative research: - based on the measurement of quantity or amount. It is
applicable for phenomenon that can be expressed in terms of quantity.

4. On the basis of environment in which the research is carried out

a. Field research- carried out in fields. They are also common in social science,
Agricultural science, History and Archeology.
b. Laboratory research: - carried out in laboratory; they are commonly experimental
researches
c. Simulation research
5. On the basis of time required to complete the research
a. One time research: - research limited to a single time period
b. Longitudinal research: - research carried out over several time periods. Such
research is also called ongoing research

1.5 Science and Scientific Methods

For clear understanding of the term research, we better know the meaning of scientific method.
The two terms, research and scientific methods are closely related. The researcher is not
interested in particular results; rather he is interested in the repeatability and validity of results
and their application to more complicated and general solutions.

Research methodology and technique are mostly different from one science to another or can be
different from research to research. The philosophy common to all research methodology and
technique is called Scientific methods.

As Pearson (1968) put it, “the scientific method is one and the same in the branches (science)
and that method is the methods of all logically trained minds”

Steps in scientific method: scientific method is the philosophy common to all research
methodology and technique in any research in any branch of science. The steps in scientific
methods are summarized as follows.

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1. Observation: the first or initial step in the scientific method is a minute and careful
observation of the subject matter of research.

2. Recording: The next step to observation in scientific method is a careful recording of all
information (data) obtained in the first step, i.e., observation.

3. Classification: the collected data (information) have to be classified and organized. This
is a serious step; according to “the classification of facts, the recognition of their sequence and
relative significance, is the function of science”. The classification implies systematically
arranging and organizing the recorded data on the logical basis so that they will become viable
for the analysis and to make generalization.

4. Generalization: It is an extension of general laws and principles on the basis of the

pattern exhibited by the classified material. This general law is known as scientific law.

5. Verification: the scientific method does not stop only at the formulation of general law.
The general principle must be also verified. The validity of scientific principles can be confirmed
by examination.

Forms of scientific methods

There are six primary forms of scientific methods.

 Induction: the movement of knowledge from particular facts to general rule or principle.
To make generalization based on our knowledge from a particular event or assessment.

E.g. Socrates is mortal and Socrates is a man; therefore, man is mortal.

 Deduction: a movement in knowledge from a general rule to a particular case.

E.g. Man is mortal and Socrates is a man; therefore, Socrates is mortal

 Historical: historical method is a back ward movement in knowledge to trace the cause of
a phenomenon. Darwin theory of evolution and Marx’s law of economic determinism are
example of historic forms of scientific method.

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 Comparative: This method is used for the analysis and comparison of two contemporary
(coexisting and present) phenomenon. It is always undertaken in order to discover new
facts or relations. Studies of two government or political system
 Structural: a study of what a things, what are its outline and significant feature is a
structural study (the composition of a thing). Anatomy is a structural study
 Functional: in contrast to the structural method, functional method studies the processes
and their cause, that is, how and why of a thing. Physiology is a good example

Methods versus Methodology

Research Techniques: Refers to the behavior and instruments we use in performing research
operation such as making observation, recording data, techniques processing data and the like.

Research Methodology: can be understood as all those approaches and techniques that are
used in conducting a particular research. Research methodology; thus, refer to the techniques
researchers use in performing research operations.

Research methodology can be put into three groups:

• The first group includes approaches or techniques of data collection

• The second group consists of those statistical techniques used to established relationship
between variables

• The third group consists of those techniques involved in evaluating the accuracy of the
result obtained

Methods: is a way to systematically solve the research problem. Method can be understood as a
science of studying how research is done scientifically.

It is necessary for the researcher to know not only the research methodology and techniques how
to conduct research but also the methods. that is, researcher not only need to know how to
develop certain indices or test, how to calculate the mean, the mode, the median or the standard
deviation or chi-square or in general how to apply particular research techniques, but they also
need to know which of these methodology or techniques, are relevant and what would they mean

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and indicate the way. Researcher also needs to understand the assumption underlining various
techniques.

Generally speaking, one can say that research methods have many dimension and research
methodology constitute only a part of the research methods.

1.6 The research process (overview)

Before starting the details of research methods, it is appropriate to have a brief overview of the
research processes. Research processes consist of a series of actions or steps, which are
necessary to successfully carry out research activities.

The research processes consist of a number of closely related activities. These activities (steps)
can overlap continuously rather than following a strictly prescribed sequence. The first step can
determine the nature of the last step to be undertaken. These steps are not separate and distinct.
They do not necessarily follow each other in any specific order Kothari (1990).

However, the following order of steps provides a useful procedural guideline regarding the
research processes.

 Identification and formulating the • Generalization and interpretation

research problem
• Reporting the result
• Extensive literature survey

• Developing working hypothesis

• Preparing the research design

• Determine sample design

• Collecting data

• Execution of the project

• Analysis of the data

• Hypothesis testing

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