HM.

009

Scientific
Research
Methodology

Fall 2023
 Chapter 5
Theoretical Framework &
Hypothesis Development

Slide 5-3
 Theoretical Framework

▪ This chapter highlights the importance of theory

development in deductive research and explains how
theory is developed.
▪ Foundation deductive research project!
▪ The entire deductive research project rests on the basis of
the theoretical framework.
▪ Deductive research: moving from the general (a theory) to
the specific (observations).

Slide 5-4
 Theoretical Framework

▪ A theoretical framework represents your

beliefs on how certain phenomena (or
variables or concepts) are related to each
other (a model) and an explanation on
why you believe that these variables are
associated to each other (a theory).

Slide 5-5
 Theoretical Framework
▪ The process of building a theoretical framework includes
basic steps:
▪ Identify and label the variables correctly
▪ State the relationships among the variables:
formulate hypotheses
▪ Explain how or why you expect these relationships.
▪ Since a theoretical framework involves the identification of
the network of relationships among the variables considered
important to the study of any given problem situation, it is
essential to understand what a variable means and what the
different types of variables are.

Slide 5-6
 Variable
▪ A variable is anything that can take on differing or varying
values. The values can differ at various times for the same
object or person, or at the same time for different objects or
persons.
▪ Examples of variables: are production units, absenteeism,
and motivation.
▪ Any concept or construct that varies or changes in value.
▪ Main types of variables:
▪ Dependent variable (criterion or effect variable)
▪ Independent variable (predictor or cause variable)
▪ Moderating variable (contingent effect)
▪ Mediating variable (intervening variable)
▪ Each of these variables can be discrete (separate) (e.g.,
male/female) or continuous (e.g., the age of an individual).
Slide 5-7
 Dependent Variables
▪ Dependent variable (DV)
▪ Is of primary interest to the researcher. The goal of the
research project is to understand, predict or explain the
variability of this variable (viable or practical factor).
▪ Exp: Sales, debt to equity, organizational loyalty.
▪ It is possible to have more than one dependent variable
in a study (quality and volume of output, low‐cost
production and customer)

DV: reaction to new information

DV: product desirability.

Slide 5-8
 Independent Variables
▪ Independent variable (IV)

▪ Influences the DV in either positive or negative way. The

variance in the DV is accounted for by the IV.

▪ When the independent variable is present, the

dependent variable is also present, and with each unit of
increase in the independent variable, there is an
increase or decrease in the dependent variable. In other
words, the variance in the dependent variable is
accounted for by the independent variable

Slide 5-9
 Independent Variables
To establish that a change in the independent variable causes
a change in the dependent variable, all four of the following
conditions should be met:

1. The independent and the dependent variable should covary

(associated change)
2. The independent variable (cause) should precede the
dependent variable (time sequence) often in experimental
designs.
3. No other factor should be a possible cause of the change in
the dependent variable. (control for the effects of other
variables).
4. A logical explanation (a theory) is needed and it must explain
Slide 5-10
why the independent variable affects the dependent variable.
 Independent Variables
Diagram of the relationship between
the availability of reference manuals
that manufacturing employees have
access to and the product rejects

Diagram of the relationship between

the independent variable (new
product success) and the dependent
variable (stock market price)

Diagram of the relationship between

the independent variable
(managerial values) and the
dependent variable (power distance)
Slide 5-11
 Exercise Independent Variables

convince

Slide 5-12
 Moderators
▪ Moderating variable: is one that has a strong contingent
effect on the independent variable–dependent variable
relationship. That is, the presence of a third variable (the
moderating variable) modifies the original relationship
between the independent and the dependent variables.

▪ Moderator is qualitative (e.g., gender, race, class)

or quantitative (e.g., level of reward) variable that
affects the direction and/or strength of relation
between independent and dependent variable.

Slide 5-13
 Moderators
▪ Example
(a)
Diagram of the relationship
between the independent
variable (availability of
reference manuals) and the
dependent variable (rejects);

(b)
diagram of the relationship
between the independent
variable (availability of
reference materials) and the
dependent variable (rejects) as
moderated by the moderating
variable (interest and inclination
(tendency-desire)
Slide 5-14
 Moderators
▪ Example
Diagram of the relationship among the
three variables: workforce diversity,
organizational effectiveness, and
managerial expertise

This synergy can be exploited, however, only if managers know how to harness
the special talents of the diverse work group; otherwise they will remain
untapped.
Contingent on the skill of the managers
 Moderators
Q: List and label the variables in these two exercises and explain and illustrate by means of
diagrams the relationships among the variables
 Mediating Variable
▪ Mediating variable (or intervening variable)(
▪ surfaces between the time the independent variables
start operating to influence the dependent variable and
the time their impact is felt on it.

▪ Example

Slide 5-17
 Mediating Variable

Situation 1
Motivation to Work as an Independent Variable
The performance of employees is influenced by their motivation to work.

Situation 2
Motivation to Work as an Intervening Variable (Mediating)
Employees perform better when they are given challenging jobs, because such jobs
tend to motivate them to work.

Situation 3
Motivation to Work as a Moderating Variable (Contengent)
The performance of employees with low levels of motivation to work will not
improve despite increases in job challenge.
 Mediating Variable

Following Accounting
Principles
Confusion Problems

IV Intervening (Mediator) V DV

Experience in
Book Keeping
Moderating variable
Mediating Variable

Diagram?
 Variables
It is now easy to see what the differences are among an independent
variable, a mediating variable, and a moderating variable.

The independent variable helps to explain the variance in the

dependent variable; the moderating variable has a contingent effect
on the relationship between two variables ; and the mediating variable
surfaces (Intervening) at time t2 as a function of the independent
variable, which also helps us to conceptualize the relationship between
the independent and dependent variables.
To put it differently, while the independent variable explains the
variance in the dependent variable, the moderating variable has an
interaction effect with the independent variable in explaining the
variance , that is, unless the moderating variable is present, the
theorized relationship between the other two variables considered will
not hold. Whereas the mediating variable does not add to the variance
already explained by the independent variable.
 Exercise

Slide 5-22
 Exercise Answer
Problem

The auditing firm of manager Andersen is not attractive enough for

customers. Manager Anderson is interested in how she can increase the
attractiveness of her organization.

The model:
Dependent variable: attractiveness of the auditing firm
Independent variables: perceived service quality, fees charged,
reputation, proximity (nearness).
Moderating variable: firm size (reputation – attractiveness)
Mediating variable: possibility to personally meet (proximity
(nearness) – attractiveness)
Slide 5-23
Diagram?