Shablil Hussain Alhadi

BBA, Major in Accounting and Information System, Research Methodology

Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Chapter 1: The Role of Business Research

 Definition of Research
 Research is the process of finding solution to a problem after a thorough study and
analysis of the situational factor.
 “The systematic investigation into and study of materials, sources, etc., in order to
establish facts and reach new conclusions” Oxford English dictionary
 “A process of finding out information and investigating the unknown to solve a
problem” Maylor and Blackmon (2005).
 “Something that people undertake in order to find out things in a systematic way,
thereby increasing their knowledge” Saunders et al (2007, p.5).

 Business Research Defined

Business research is the application of the scientific method in searching for the truth
about business phenomena.
The process includes: • idea and theory development • problem definition • searching for
and collecting information • analyzing data • communicating the findings and their
implications. This definition suggests that business research information is: • not
intuitive or haphazardly gathered • accurate and objective • relevant to all aspects of the
business • limited by one’s definition of business • Not-for-profit organizations and
governmental agencies can use research in much the same was as managers in for-profit
organizations.

Applied business research:

• conducted to address a specific business decision for a specific firm or organization.
Example: • Should McDonald’s add Italian pasta dinners to its menu? • Which health
insurance plan should a business provide for its employees?

Basic business research (also called pure research):

• conducted without a specific decision in mind that usually does not address the needs
of a specific organization. • Attempts to expand the limits of knowledge in general. • Not
aimed at solving a pragmatic problem.
Example: • Do consumers experience cognitive dissonance in low-involvement
situations? • Does employee tenure with a company influence productivity?
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

When is Business research used?

 Typically, business research methods are used in situations of uncertainty, that is,
when decision-makers face two or more courses of action and seek to select the best
possible alternative under the circumstances. For example, a company is considering
launching a new product, and the decision-makers are unsure about which features
will be most appealing to customers. They have two options: Option A with one set of
features and Option B with a different set. In this uncertain situation, business
research methods can be employed to gather data, analyze customer preferences, and
provide insights into which set of features is likely to be more successful in the market.
 Business Research is hence aimed at improving the quality of decision-making which,
in turn, benefits the organization and helps ensure its continuity and efficiency.
Continuing with the example: Suppose the business research reveals that customers
strongly prefer the features in Option A. The decision-makers can now confidently
choose Option A, improving the quality of their decision-making. By making informed
decisions, the organization is more likely to succeed in the market, leading to benefits
such as increased sales and customer satisfaction. This, in turn, contributes to the
organization's continuity and efficiency, as it is adapting to market demands based on
reliable information rather than making decisions blindly.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Users of Business Research Methods

• Businesses and Corporations • Public-Sector Agencies • Consulting Firms • Research
Institutes • Non-Governmental Organizations • Non-Profit Organizations • Independent
Researchers and Consultants.
Scientific Method:
The scientific method is a systematic approach that researchers follow to investigate
phenomena in the world. It involves a series of steps, including observation, hypothesis
formulation, experimentation, and analysis of results. Researchers use their existing
knowledge and gather evidence through rigorous methods to draw objective and reliable
conclusions about the real world.
In the scientific method, researchers rely on empirical evidence, which consists of facts
obtained through observation or experimentation. This evidence is analyzed and
interpreted to either confirm or disprove initial hypotheses or preconceived ideas. The
key here is that scientific conclusions are based on evidence and are subject to
verification through rigorous testing, rather than being solely reliant on preconceived
notions or beliefs.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Scientific method investigation

1. Observation:
 The process begins with careful observation of a phenomenon or a set of
circumstances in the natural world.
 Researchers identify something interesting or noteworthy that prompts further
investigation.
2. Identification of Problem Area:
 Based on observations, researchers identify a specific problem or area of interest that
they want to explore in-depth.
 This step involves narrowing down the focus to a particular aspect of the observed
phenomenon.
3. Theoretical Framework:
 Researchers review existing theories and literature relevant to the identified problem
area.
 They establish a theoretical framework that helps guide the research and provides a
foundation for understanding the context of the study.
4. Hypothesis:
 A hypothesis is a testable statement predicting the relationship between variables.
 Researchers formulate a hypothesis based on the theoretical framework,
representing an educated guess about what they expect to find in their study.
5. Research Design:
 Researchers plan the overall approach to the study, including the type of research
(e.g., experimental, observational, survey), the sampling strategy, and the data
collection methods.
 This step involves outlining the logistics of how the research will be conducted.
6. Data Collection:
 Actual gathering of data according to the research design.
 This could involve experiments, surveys, observations, interviews, or any other
method chosen to obtain relevant information.
7. Data Analysis:
 The collected data is analyzed using statistical or qualitative methods, depending on
the nature of the study.
 Researchers look for patterns, trends, or relationships in the data that can help
answer the research questions or test the hypothesis.
8. Data Interpretation:
 Researchers interpret the results of the data analysis in the context of the study's
objectives.
 This step involves drawing conclusions, discussing implications, and considering the
broader significance of the findings.
9. Implementation:
 If applicable, researchers implement the insights gained from the study into practical
applications or recommendations.
 This step is particularly relevant in fields where research findings can have direct
implications for solving real-world problems.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

The managerial value of business research

The managerial value of business research lies in its contribution to each stage of the
decision-making process. It helps managers make informed choices, addressing
problems, and leveraging opportunities effectively in the development and
implementation of a business strategy. This systematic approach enhances the likelihood
of success and adaptability in the dynamic business environment.
1. Identifying problems and opportunities:
 In this stage, managers use business research to identify challenges or
opportunities that the organization may face. This could involve analyzing market
trends, consumer behavior, competition, or internal processes.
 Example: A retail company notices a decline in sales in a specific product category.
Through business research, they identify changing consumer preferences as a
problem and an opportunity to introduce new products that align with current
trends.
2. Diagnosing and assessing problems or opportunities:
 Once identified, managers use research to diagnose and assess the nature and
scope of the identified problems or opportunities. This involves a deeper
understanding of the factors influencing the situation.
 Example: After identifying changing consumer preferences, the retail company
conducts surveys and market research to understand specific features or qualities
customers now prefer. This diagnosis helps in formulating a more targeted
strategy.
3. Selecting and implementing a course of action:
 Based on the research findings, managers choose a suitable course of action to
address the identified problems or capitalize on opportunities. This step involves
strategic decision-making.
 Example: The retail company, based on the research, decides to collaborate with
a popular designer to create a new line of products that aligns with the current
consumer preferences. The implementation involves product development,
marketing, and distribution strategies.
4. Evaluating the course of action:
 After implementing the chosen strategy, managers evaluate its effectiveness by
monitoring key performance indicators and comparing them with the initial goals
and expectations.
 Example: The retail company tracks the sales and customer feedback for the new
product line. If the sales increase and customers respond positively, the strategy
is considered effective. If not, further adjustments or a new course of action may
be necessary based on additional research.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Common Business Research Methods & Techniques

Surveys:
 Description: Surveys involve collecting data from a sample of individuals or
organizations through standardized questionnaires, either in written form,
online, or through interviews.
 Example: A company conducting a customer satisfaction survey to gather
feedback on its products and services.
Interviews:
 Description: Interviews involve direct interaction between a researcher and a
participant, usually in a one-on-one or small group setting. The researcher asks
questions to gather detailed information.
 Example: Human resources conducting job interviews to assess the suitability of
candidates for a position.
Observation:
 Description: Observation involves systematically watching and recording
behaviors, events, or processes in a natural setting without interference.
 Example: Retailers observing customer behavior in-store to understand
shopping patterns and optimize product placement.
Experiments:
 Description: Experiments involve manipulating variables to observe the effect
on an outcome. It's a controlled method to establish cause-and-effect
relationships.
 Example: A company testing different pricing strategies to see how they impact
consumer purchasing behavior.
Archival and Historical Data:
 Description: Researchers analyze existing records, documents, and historical
data to gain insights into trends, patterns, or events.
 Example: A financial analyst using historical financial statements to assess a
company's financial performance over several years.
Qualitative Analysis:
 Description: Qualitative analysis involves the examination of non-numerical
data, such as text, images, or audio, to identify themes, patterns, or meanings.
 Example: Analyzing open-ended responses from customer surveys to identify
common themes and sentiments.
Quantitative Analysis:
 Description: Quantitative analysis involves the examination of numerical data
using statistical methods to identify patterns, relationships, or trends.
 Example: Analyzing sales data to identify correlations between marketing
efforts and sales performance.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

The factors mentioned in the figure—time constraints, availability of data, nature of the
decision, and benefits versus costs—are important considerations when determining
when to conduct business research.
1. Time Constraints:
 Description: Time is a critical factor in business decision-making. Some decisions
require quick responses to capitalize on opportunities or address urgent issues.
 Example: A company considering whether to launch a new product in response to a
sudden market trend might need to conduct a rapid survey to gauge consumer
interest within a short timeframe.
2. Availability of Data:
 Description: The availability of relevant and reliable data is essential for effective
research. If existing data is sufficient to make an informed decision, conducting
additional research may be unnecessary.
 Example: Before deciding to expand into a new market, a company might review
existing market reports and competitor analyses to assess the potential risks and
benefits.
3. Nature of the Decision:
 Description: The complexity and significance of the decision at hand influence the
need for research. More critical and complex decisions often warrant thorough
research.
 Example: A company considering a major strategic shift, such as a merger or
acquisition, is likely to conduct extensive research to understand the potential impact
on operations, finances, and market positioning.
4. Benefits Versus Costs:
 Description: Assessing the potential benefits of research against the associated costs
is crucial. In some cases, the benefits of obtaining additional information may not
justify the time and resources required.
 Example: A small business owner may weigh the cost of conducting a customer
satisfaction survey against the potential gains in customer loyalty and repeat
business.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Major Topics for Research in Business

• General Business Conditions and Corporate Research • Financial and Accounting
Research • Management and Organizational Behavior Research • Sales and Marketing
Research • Information Systems Research • Corporate Responsibility Research
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Why should a Manager Know Research?

Understanding and knowing research is valuable for managers for several reasons:
1. Facilitate Good Decision Making:
 Managers often face complex decisions. Knowledge of research methods allows them
to gather and analyze relevant data, providing a foundation for informed decision-
making. This can lead to more effective strategies and better outcomes for the
organization.
2. Become Discriminating About Research Findings:
 With knowledge of research methods, managers can critically evaluate the quality of
research findings. This discernment helps in distinguishing between robust, reliable
research and studies that may lack validity or applicability to their specific context.
3. Issues of Inside Versus Outside Researcher:
 Managers may need to collaborate with both internal and external researchers.
Understanding research methods allows them to communicate effectively with
researchers, whether they are part of the organization or external consultants,
fostering productive collaboration.
4. To Share Relevant Information with Researchers:
 When working with researchers, managers need to communicate their organizational
needs, goals, and challenges. A manager with knowledge of research methods can
provide more precise guidance to researchers, ensuring that the research aligns with
the organization's objectives.
5. Understand Complex Issues, Variables, Calculate Risk, Probabilities, etc.:
 Many managerial decisions involve dealing with complexity, uncertainty, and risk.
Research methods equip managers with the skills to understand and analyze complex
issues, identify relevant variables, and calculate probabilities. This analytical ability is
crucial for effective decision-making.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

In summary, a manager who is knowledgeable about research methods is better

equipped to navigate the complexities of decision-making. They can leverage research
findings, critically assess the quality of information, collaborate effectively with
researchers, and make informed choices in the face of uncertainty. This knowledge
enhances the manager's ability to contribute to the organization's success and adapt to
changing circumstances.

Internal Researcher
An internal researcher refers to an individual within an organization who conducts
research activities as part of their responsibilities within the company. This person is
typically an employee or a member of the organization's staff.
Advantages of Internal Researchers:
1. Better acceptance from the staff:
 Internal researchers often have a better understanding of the organizational culture,
which can lead to greater acceptance of the research findings and recommendations
by the staff.
2. Knowledge about the organization:
 Internal researchers have intimate knowledge of the organization's operations,
processes, and history, which can contribute to a deeper and more contextually
relevant research approach.
3. Integral part of implementation and evaluation:
 Being part of the organization, internal researchers can play a crucial role in the
implementation and evaluation of research recommendations, ensuring a seamless
transition from research findings to practical application.
Limitations of Internal Researchers:
1. Less fresh ideas:
 Due to their close association with the organization, internal researchers may be
influenced by existing norms and perspectives, potentially leading to a limitation in
generating innovative and fresh ideas.
2. Power Politics:
 Internal researchers may be subject to power dynamics and politics within the
organization, which can influence the research process and compromise objectivity.
3. May not be valued as experts by staff:
 Some staff members may perceive internal researchers as insiders with biases,
leading to skepticism about their expertise and the credibility of their findings.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

External Researcher:
An external researcher refers to an individual or entity that is not directly affiliated with
the organization under study or investigation. These researchers are external to the
company or institution and are typically brought in to conduct research, provide insights,
or offer expertise on specific issues.
Advantages of External Researchers:
1. Experience from Several Situations:
 External researchers often bring a wealth of experience from working with various
organizations. This diverse background allows them to offer insights and solutions
based on a broader range of situations.
2. Better Technical Training:
 External researchers may possess specialized technical skills and training that are not
readily available within the organization. This expertise can enhance the quality and
depth of the research conducted.
Limitations of External Researchers:
1. Time to Understand the Organizational System:
 External researchers may require time to familiarize themselves with the intricacies
of the organizational system, its culture, and internal processes. This learning curve
can potentially delay the research process.
2. Cooperation from the Staffs is not Easy:
 Staff members within the organization may be hesitant or resistant to cooperate with
external researchers, especially if there is a perceived threat to job security or if the
researchers are seen as outsiders. This lack of cooperation can hinder the research
process.
3. Not Available for Evaluation After Implementation:
 Once the external researcher completes the project and leaves, there may be limited
availability for ongoing evaluation or follow-up. This lack of continuity can make it
challenging to assess the long-term impact of the implemented recommendations.
4. Cost:
 Hiring external researchers often involves additional costs, including fees for their
services, travel expenses, and any other related expenses. This can be a limitation,
especially for organizations with budget constraints.
 Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Differences between Business Research and Management Research

Aspect Business Research Management Research

Focuses on issues related to the

Focuses on issues related to the
Focus management and administration of a
overall business environment.
business.

Generally used to improve Generally used to improve

Objectives
business performance. managerial performance.

Employs a wide range of research Employs research methods such as

methods such as surveys, case case studies, observation, and
Methodology
studies, experiments, and surveys, and may use statistical
statistical analysis. analysis.

Generally has a broader scope and Generally has a narrower scope and
Scope may include macro-level analysis focuses on the management of
of the industry or market. specific departments or functions.

Used to inform management

Used to inform business strategy,
decisions related to operations,
Application marketing, and product
human resources, finance, and other
development decisions.
areas of business.

May involve participants from Typically involves participants who

various levels of the organization are managers, executives, or other
Participants
and external stakeholders such as decision-makers within the
customers or suppliers. organization.

Outputs may include reports,

Outputs may include reports, white
Output presentations, and recommendations
papers, and academic publications.
for managerial action.

Important for companies to stay Important for managers to make

Importance competitive and adapt to changes informed decisions that support the
in the business environment. organization's goals and objectives.

Market research, consumer Leadership studies, organizational

Examples behavior studies, competitive behavior research, performance
analysis. management studies.
Shablil Hussain Alhadi
BBA, Major in Accounting and Information System, Research Methodology
Shahjalal University of Science and Technology, Sylhet. Course Code: BUS339
MOBILE +8801793109920.

Cross-functional Teams:
 Description: Cross-functional teams consist of individuals from different
organizational departments, bringing together diverse skills and expertise to
collaborate on a specific project or task.
 Example: A product development team in a company might include members from
engineering, production, finance, and marketing departments working together to
create and launch a new product.

Business Research in the 21st Century:

 Increased Globalization: The growing interconnectedness of economies and
markets worldwide.
 Growth of the Internet and Other Information Technologies: The widespread use
of the internet and advanced technologies for data collection, analysis, and
communication in the business research process.

Global Research:
 Business Research is Increasingly Global: Organizations conduct research on a
global scale to understand international markets and make informed decisions.
 Market Knowledge is Essential: Comprehensive understanding of global markets,
consumer behaviors, and competitive landscapes is crucial.
 Example: A global research firm like A.C. Nielsen conducts more than 67% of its
business internationally, emphasizing the global nature of contemporary business
research.

Global Business Research:

 General Information about Country: Researching economic conditions, political
climate, and other contextual factors in different countries.
 Cultural and Consumer Factors: Understanding cultural nuances and consumer
behaviors that influence business strategies.
 Market and Competitive Conditions: Estimating demand, analyzing market trends,
and assessing competitive conditions on a global scale.

The Internet Is Transforming Society:

 Time is Collapsing: Rapid communication and information exchange reduce the time
required for various activities.
 Distance is No Longer an Obstacle: Virtual connectivity enables collaboration and
communication across the globe.
 Example: Businesses can conduct virtual meetings with international partners
without the need for physical travel, saving time and resources.

Internet Research:
 Seeking Facts and Figures about an Issue: Using online resources to gather
information and data relevant to a specific research topic.
 Surveys on Websites: Conducting surveys through online platforms to collect
responses and opinions from a wide audience.
 Example: A company might use internet research to gather customer feedback
through online surveys, helping them make data-driven decisions.