Mekelle University

College of Business and Economics

Department of Management

Postgraduate program

Business Research Methods

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
1
Program; Business Research Methodology.
Chapter 1
Business Research Methods :
An Overview
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
2
Program; Business Research Methodology.
Chapter outline

1.1. Meaning and Concepts of Research

1.2. Objectives and Significance of Research
1.3. Research Strategies and Designs
1.4 Stages in the Research Process
1.5 Characteristics of Scientific Business Research

Mekelle Uiniversity, College of Business and Economics,

Dept. of Management, MBA Program; Business 3
Research Methodology. AcYr 2019/20
 1.1 Definitions and Basic
Concepts of Research
Research Definition
➢The word research is composed of two syllables, re
and search.
➢Literally the meaning of research is searching again.
❖Research, in simple terms, refers to a search for
knowledge
❖It is also known as a scientific and systematic
search for information on particular topic or issue.

o But note that information is power, the basis for decision

making (specially to managers).
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
4
Program; Business Research Methodology.
➢Research may be defined as ‘ the systematic
and objective process of planning, gathering,
recording, analyzing and interpreting data for
some purpose, for example, to prove or
disprove a hypothesis (Zikmund, 2000). ‘

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
5
Program; Business Research Methodology.
 Important Points in the Definition:
✓Research is a process that involves planning,
gathering, recording, processing, analyzing and
interpreting data; the data can be primary or
secondary.
✓Research is systematic that it is based on scientific
techniques of inquiry and analysis; it does not refer
haphazard and subjective processes.
✓Research is objective that it is reliable and can be
repeated by the same or other researchers; consider
the qualitative research.
✓Research is purposeful that it aims, for example,
at testing a hypothesis or a tentative solution

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
6
Program; Business Research Methodology.
1.2 Objectives & Significances of Research

1.2.1 Objectives of Research

• The objective of research is to
discover answers to questions by
applying scientific procedures.

• Although every research study has

its own specific objectives,
research objectives may be broadly
grouped as follows:
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
7
Program; Business Research Methodology.
✓To gain familiarity with a phenomenon or to
achieve new insights into it (studies with this
object in view are termed as exploratory research
studies);
✓To portray accurately the characteristics of a
particular individual, situation or a group
(studies with this object in view are known as
descriptive research studies);
✓To test a hypothesis of a causal relationship
between variables (such studies are known as
explanatory research), etc.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
8
Program; Business Research Methodology.
1.2.2 Significance of Research
• “All progress is born of inquiry”
• Doubt is often better than overconfidence, for it leads
to inquiry, and inquiry leads to invention“(Wilkinson
and Bhandarkar 1979).
• Generally, research is:
✓the basis for nearly all government policies
✓Solving various operational and planning
problems
✓Studying social relationships and it is seeking
answers to various social problems.
✓the out let for new ideas and insights
Is Conducting Research Necessary?
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
9
Program; Business Research Methodology.
 Decision Making Situations
• Certainty: • The decision maker knows the exact
nature of the business problem or
opportunity.
• Uncertainty means that decision
makers grasp the general nature of
• Uncertainty the objectives they wish to achieve,
: but the information about
alternatives is incomplete.
• Ambiguity means that the nature of
the problem to be solved is unclear.
• The objectives are vague and the
• Ambiguity: alternatives are difficult to define

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
10
Program; Business Research Methodology.
• In what decision making situations is
business research needed?

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
11
Program; Business Research Methodology.
• Can research be used/ done by
all types of organizations/
organs? Why or why not?
➢Academics
➢Students
➢Government organizations
➢Business organizations
➢Consultants
➢Others

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
12
Program; Business Research Methodology.
When Business Research can be conducted?
Yes Yes Yes

Yes Conduct it !
Is sufficient Is the Is the Does the
time informatio decision of value of the
available n already considerabl research
before a on hand e strategic or information
managerial inadequate tactical exceed the
decision for making importance? cost of
must be the conducting
made? decision? research?

No

Not to be Conduced
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
13
Program; Business Research Methodology.
1.3 Research Strategies and Designs
(For detail refer chapter-3)
1.3.1.Research Strategies: Quantitative
Vs Qualitative
• useful way of classifying methods of
social research two distinctive
clusters of research strategies:
✓quantitative, and
✓qualitative

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
14
Program; Business Research Methodology.
1.3.2.Research Designs (For
detail, refer chapter-3)
• Cross sectional design
• Longitudinal design
• Case study design
• Comparative design
• Experimental design
• Observation design

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
15
Program; Business Research Methodology.
1.4 Classification of Research
✓Research can be classified from three
perspectives:

→Application of research study

→Objectives in undertaking the research
→Approaches Utilized/ Data Utilized

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
16
Program; Business Research Methodology.
1.4.1 Types of Research: Based on
Application of Research Study:

✓Pure or Basic Research

✓Applied Research

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
17
Program; Business Research Methodology.
Pure or Basic Research
✓Conducted only to increase our knowledge of
what is being studied.

✓It is made for the sake of research and is not

applied.
✓It is “Gathering knowledge for knowledge’s
sake is termed ‘pure’ or ‘basic’ research.”

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
18
Program; Business Research Methodology.
✓Attempts to expand the limits of
knowledge.

✓Not directly involved in the solution

to a pragmatic problem.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
19
Program; Business Research Methodology.
Applied Research
✓It is conducted to be applied in solving socio-
economic or industrial problems; and thus
have policy implication.
✓Applied research is done to solve specific,
practical questions; for policy formulation,
administration and understanding of a
phenomenon.
✓Applied research is concerned with the
discovery of solutions to practical problems.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
20
Program; Business Research Methodology.
1.4.2 Types of Research from the
View Point of Objectives:

✓Descriptive Research
✓Exploratory Research
✓Correlational Research
✓Explanatory Research

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
21
Program; Business Research Methodology.
Descriptive Research
✓It aims only at describing a situation
or a set of circumstances.
✓It tries to answer questions like how
many, how, and what is happening.
✓Example: providing information
about, living condition of a
community, or describing attitudes
towards an issue.
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
22
Program; Business Research Methodology.
✓The main characteristic of this
method is that the researcher has no
control over the variables; he can
only report what has happened or
what is happening.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
23
Program; Business Research Methodology.
Correlational Research
• Correlational research attempts to discover or
establish the existence of a relationship/
interdependence between two or more aspects
of a situation.
• But it doesn’t show causality
Price Quantity
• Example
10 1500
12 1600
14 1300

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
24
Program; Business Research Methodology.
Explanatory Research
➢It aims at explaining the relationship
between or among variables.
➢It answers the question of why?
➢It attempts to clarify why and how there is a
relationship between two or more aspects of a
situation or phenomenon.
➢It is deeper in the sense that it describes
phenomena and attempts to explain why
behaviour is the way it is.
➢It shows causality between/among variables
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
25
Program; Business Research Methodology.
Exploratory Research
✓The purpose of exploratory research is
making available what is not basically
available.
✓Often it is not an independent research by
itself.
✓The purpose of exploratory research is to
collect unavailable basic information on a
certain phenomena or issue, on the basis of
which it would be possible to formulate a
hypothesis and tests it at a later date.
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
26
Program; Business Research Methodology.
✓Exploratory research is undertaken to explore
an area where little is known or to investigate
the possibilities of undertaking a particular
research study (feasibility study/ pilot study).
✓Exploratory research is undertaken when few or
no previous studies exist.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
27
Program; Business Research Methodology.
1.4.3 Types of Research Based on the
Approaches Utilized/ Data Utilized:

✓Structured Approach/ Quantitative

Research
✓Unstructured Approach/ Qualitative
Research
✓Mixed Research

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
28
Program; Business Research Methodology.
Structured Approach/ Quantitative Research

➢The structured approach to inquiry is usually

classified as quantitative research.
➢Quantitative research involves analysis of
quantifiable or statistical data that is often
measurable.
➢It is applicable to phenomena that can be
expressed in terms of quantity.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
29
Program; Business Research Methodology.
•The common research
design is survey
•numerical and statistical
data
•deductive theory testing

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
30
Program; Business Research Methodology.
Unstructured Approach/ Qualitative Research

➢The unstructured approach to inquiry is

usually classified as qualitative research.
➢Qualitative research is used to analyze
qualitative variables such as attitude,
behavior, feeling, satisfaction, belief, etc.
➢It is more appropriate to explore the nature of
a problem, issue or phenomenon without
quantifying it.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
31
Program; Business Research Methodology.
➢Qualitative research is more
subjective in nature than
Quantitative research and involves
examining and reflecting on the less
tangible aspects of a research subject,
e.g. values, attitudes, perceptions.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
32
Program; Business Research Methodology.
common methods:
interviews, ethnography
data are words, texts and
stories
inductive approach: theory
emerges from data

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
33
Program; Business Research Methodology.
Mixed Research
• Mixed methods research is an intellectual and
practical synthesis based on qualitative and
quantitative research; it is the third
methodological or research paradigm (along with
qualitative and quantitative research).

• It recognizes the importance of traditional

quantitative and qualitative research but also
offers a powerful third paradigm choice that
often will provide the most informative,
complete, balanced, and useful research results.
(Johnson et al. 2007: 129).
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
34
Program; Business Research Methodology.
1.4 Stages in the Research
Process
1. Problem Identification
and/or Topic selection
2. Problem Definition
3. Literature review
• Familiarize yourself with existing
research and theory on the topic
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
35
Program; Business Research Methodology.
4. Redefine the problem
• (Based on evidence from literature)
5. Develop Research Questions/
Objectives/Formulate
Hypothesis
• What do you intent to test?
• What is the r/s b/n the variables?

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
36
Program; Business Research Methodology.
6. Select a Research Design
• Choose one or more research methods
• Census, survey, experiment,
observation, case study.
7.Carryout the Research.
• Gathering data
• Processing data
• Analyzing data

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
37
Program; Business Research Methodology.
8. Interpret Results
• Work with implications of the data
collected and analyzed.
9. Report Research Findings
• What is the significance
• How do they relate to previous finding
and/or existing theory)

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
38
Program; Business Research Methodology.
1.5 Characteristics of Scientific
Business Research
∆Directed towards the solution of a problem or
to exploit an opportunity
∆Based on empirical evidence/ Based upon
observable experience
∆Requires expertise

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
39
Program; Business Research Methodology.
❖ The purpose of the research, or
the problem involved, should
be clearly defined
❖ The research procedures used
should be described in
sufficient detail to permit
another researcher to repeat the
research.

Mekelle Uiniversity, College of Business and

Economics, Dept. of Management, MBA
40
Program; Business Research Methodology.
❖ The procedural design of the
research should be carefully
planned to yield results that are
as objective as possible.

❖ The researcher should report,

with complete frankness, flaws
in procedural design and
estimate their effect upon the
findings.
Mekelle Uiniversity, College of Business and
Economics, Dept. of Management, MBA
41
Program; Business Research Methodology.
❖ Analysis of the data should be
sufficiently adequate to reveal its
significance, and the methods of
analysis used should be
appropriate.

❖ Conclusions should be confined to

those justified by the data of the
research and limited to those for
which the data provide an
adequate basis.
Mekelle University, College of Business and
Economics, Dept. of Management, MBA Program; 42
Business Research Methodology. AcYr 2019/20