HM.

009

Scientific
Research
Methodology

1
Fall 2023
2
 Chapter 5

Theoretical Framework &

Hypothesis Development

Slide 5-3
 HOW THEORY IS GENERATED
- The theoretical framework is the foundation on which the entire
deductive research project is based. It is a logically developed,
described, and elaborated network of associations among the
variables deemed relevant to the problem situation and identified
through such processes as interviews, observations, and literature
review. Experience and intuition also guide the development of the
theoretical framework.
- After identifying the appropriate variables, the next step is to
elaborate the network of associations among the variables, so that
relevant hypotheses can be developed and subsequently tested.

- Based on the results of hypothesis testing (which indicate whether

or not the hypotheses have been supported), the extent to which the
problem can be solved becomes evident. The theoretical framework
is thus an important step in the research process.
Slide 5-4
 HOW THEORY IS GENERATED

The relationship between the literature review and the theoretical

framework is that the former provides a solid foundation for
developing the latter.

The theoretical framework represents and elaborates the

relationships among the variables, explains the theory underlying
these relations, and describes the nature and direction of the
relationships. Just as the literature review sets the stage for a good
theoretical framework, this in turn provides the logical base for
developing testable hypotheses.

Slide 5-5
 The components of the theoretical framework

A good theoretical framework identifies and defines the important

variables in the situation that are relevant to the problem and
subsequently describes and explains the interconnections among these
variables.
The relationships among the independent variables, the dependent
variable(s), and, if applicable, the moderating and mediating variables
are elaborated.
There are three basic features that should be incorporated in any
theoretical framework:
1. The variables considered relevant to the study should be clearly defined.
2. A conceptual model that describes the relationships between the variables in
the model should be given.
3. There should be a clear explanation of why we expect these relationships to
exist
Slide 5-6
 The components of the theoretical framework

Well chosen guiding definitions of concepts are needed, because they

will help you to provide an explanation for the relationships between the
variables in your model. Also, it will serve as a basis for the
operationalization or measurement of your concepts in the data
collection stage of the research process.
It is also important that you explain why you have chosen a particular
definition as your guiding definition.
A conceptual model describes your ideas about how the concepts
(variables) in your model are related to each other.
A schematic diagram of the conceptual model helps the reader to
visualize the theorized relationships between the variables in your
model and thus to obtain a quick idea about how you think that the
management problem can be solved.
Slide 5-7
 The components of the theoretical framework

A theory or a clear explanation for the relationships in your model is the

last component of the theoretical framework. A theory attempts to
explain relationships between the variables in your model: an
explanation should be provided for all the important relationships that
are theorized to exist among the variables.

If the nature and direction of the relationships can be theorized on the

basis of the findings of previous research and/ or your own ideas on the
subject, then there should also be an indication as to whether the
relationships should be positive or negative and linear or nonlinear.

Slide 5-8
 The components of the theoretical framework

From the theoretical framework, then, testable hypotheses can be

developed to examine whether the theory formulated is valid or not.

Note that you do not necessarily have to “invent” a new theory every
time you are undertaking a research project.

In an applied research context you apply existing theories to a specific

context.

However, in a basic research context you will make some contribution

to existing theories and models.

Slide 5-9
 The components of the theoretical framework

Answer

Slide 5-10
 Hypothesis development
Once we have identified the important variables in a situation and
established the relationships among them through logical reasoning
in the theoretical framework, we are in a position to test whether the
relationships that have been theorized do, in fact, hold true.
By testing these relationships scientifically through appropriate
statistical analyses, or through negative case analysis in qualitative
research, we are able to obtain reliable information on what kinds of
relationships exist among the variables operating in the problem
situation.
The results of these tests offer us some clues as to what could be
changed in the situation to solve the problem.

Formulating such testable statements is called

hypothesis development.
Slide 5-11
 Hypothesis
▪ A hypothesis can be defined as a tentative, yet testable,
statement, which predicts what you expect to find in your empirical
data.
▪ Hypothesis: logically conjectured relationships between two or
more variables expressed in the form of testable statements.
▪ A proposition that is empirically testable. It is an empirical
statement concerned with the relationship among variables.
▪ By testing the hypotheses and confirming the conjectured
relationships, it is expected that solutions can be found to correct
the problem encountered.

Slide 5-12
 Example

Slide 5-13
 Example

Diagram of the relationship among the three variables: workforce

diversity, organizational effectiveness, and managerial expertise

Slide 5-14
 Statement of hypotheses: formats

▪ A hypothesis can also test whether there are differences between two
groups (or among several groups) with respect to any variable or
variables.
▪ To examine whether or not the conjectured relationships or differences
exist, these hypotheses can be set either as propositions or in the form
of if–then statements.
▪ The two formats can be seen in the following two examples.
(as propositions)
Young women will be more likely to express dissatisfaction with
their body weight, when they are more frequently exposed to images
of thin models in advertisements.
(if–then statements)
If young women are more frequently exposed to images of thin
models in advertisements, then they will be more likely to express
dissatisfaction with their body weight.
Slide 5-15
 Statement of hypotheses: formats

▪ A proposition that is empirically testable. It is an empirical

statement concerned with the relationship among variables.

▪ Good hypothesis:
▪ Must be adequate for its purpose
▪ Must be testable
▪ Must be better than its rivals

▪ Can be:
▪ Directional
▪ Non-directional

Slide 5-16
 Statement of hypotheses: formats

▪ If, in stating the relationship between two variables or comparing

two groups, terms such as positive, negative, more than, less
than, and the like are used, then these are directional hypotheses
because the direction of the relationship between the variables
(positive/negative) is indicated, as in the first example below, or
the nature of the difference between two groups on a variable
(more than/less than) is postulated, as in the second example.

▪ The greater the stress experienced in the job, the lower the job
satisfaction of employees.
▪ Women are more motivated than men.

Slide 5-17
 Statement of hypotheses: formats

On the other hand, nondirectional hypotheses are those that do

postulate a relationship or difference, but offer no indication of the
direction of these relationships or differences.
There is a relation between arousal‐seeking tendency and consumer
preferences for complex product designs.
There is a difference between the work ethic values of American and
Asian employees.
▪ Nondirectional hypotheses are formulated either because the
relationships or differences have never been explored, and hence
there is no basis for indicating the direction, or because there have
been conflicting findings in previous research studies on the
variables. Whenever the direction of the relationship is known, it is
better to develop directional hypotheses for reasons

Slide 5-18
 Null and alternate hypotheses
- The hypothetico‐deductive method requires that hypotheses are
falsifiable: they must be written in such a way that other researchers
can show them to be false. For this reason, hypotheses are sometimes
accompanied by null hypotheses.
- A null hypothesis is a hypothesis set up to be rejected in order to
support an alternate hypothesis, labeled
- When used, the null hypothesis is presumed true until statistical
evidence, in the form of a hypothesis test, indicates otherwise.
- Typically, the null statement is expressed in terms of there being no
(significant) relationship between two variables or no (significant)
difference between two groups.
- The alternate hypothesis, which is the opposite of the null, is a
statement expressing a relationship between two variables or indicating
differences between groups.

Slide 5-19
 Null and alternate hypotheses
Directional hypothesis
Women are more motivated than men.
-The null hypothesis in respect of group differences

Or

μM is the mean motivational level of the men, and μW is the mean motivational level of
the women.

-The alternate for the above example would statistically be set as follows:

Which is the same as

Slide 5-20
 Null and alternate hypotheses
Nondirectional hypothesis
“There is a difference between the work ethic values of American
and Asian employees,”
-The null hypothesis in respect of group differences

Or

μAM is the mean work ethic value of Americans and μAS is the mean work ethic value of
Asians.
-The alternate for the above example would statistically be set as follows:

Slide 5-21
 Null and alternate hypotheses
Directional hypothesis

“The greater the stress experienced in the job, the lower the job
satisfaction of employees,
-The null hypothesis will be

where ρ represents the correlation between stress and job satisfaction, which in this case
is equal to 0 (i.e., no correlation).
-The alternate hypothesis would statistically be set as follows:

P<0 because the is No correlation,

P for Pearson’s correlation
Slide 5-22
 Null and alternate hypotheses
Nondirectional hypothesis
“There is a relationship between age and job satisfaction,”
-The null hypothesis will be

where ρ represents the correlation between age and job satisfaction, which in this case is
equal to 0 (i.e., no correlation).
-The alternate for the above example would statistically be set as follows:

Having formulated the null and alternate hypotheses, the

appropriate statistical tests (t‐tests, F‐tests) can then be applied,
which indicate whether or not support has been found for the
alternate hypothesis – that is, that there is a significant difference
between groups or that there is a significant relationship between
variables, as hypothesized.
Slide 5-23
 Null and alternate hypotheses

Slide 5-24
 Null and alternate hypotheses
Exercise: 5.9 and 5.11

working conditions

vacation benefits Employees morale

pay happiness

Side
income

Slide 5-25
 Null and alternate hypotheses
Exercise: 5.9 and 5.11
1. H0: There is no relationship between working conditions and the morale of
employees.
HA: If working conditions are improved, then the morale of the employees will also
improve.
2. Ho: There is no relationship between vacation benefits and employees’ morale.
HA: Better vacation benefits will improve employees’ morale.
3. Ho: There is no difference in the relationship between pay and happiness among
those who have side incomes and those who do not.
HA: Only those who do not have side incomes will become happier if their pay is
increased.
4. H0: There is no relationship between happiness and morale.
HA: Happiness and morale are positively correlated.
5. H0: Working conditions, vacation benefits, and pay have no influence on the
morale of employees.
HA: Working conditions, vacation benefits, and pay all have a positive influence on
morale.
Slide 5-26
 Argumentation
▪ Hypothesis testing is strongly associated with designing
experiments and the collection of quantitative data. However,
hypotheses can also be tested with qualitative data.

▪ The expected relationships / hypotheses are an integration

of:
▪ Exploratory research
▪ Common sense and logical reasoning

Slide 5-27
 MANAGERIAL IMPLICATIONS
Knowledge of how and for what purpose the theoretical framework is
developed, and the hypotheses are generated, enables the manager
to be an intelligent judge of the research report submitted by the
consultant.

It also broadens the understanding of managers as to how multiple

factors (IV) may provide possible solutions to the problem.
Also, MV allow the manager to understand that some of the
proposed solutions may not solve the problem for everybody or in
every situation.

Likewise, knowledge of what significance means, and why a given

hypothesis is either accepted or rejected, helps the manager to
persist in or desist from following hunches, which, while making good
sense, do not work.
Slide 5-28
 Exercise 5.12
A production manager is concerned about the low output levels of his
employees. The articles that he has read on job performance frequently
mention four variables as being important to job performance:
(1) skills required for the job, (2) rewards, (3) motivation, and (4) satisfaction.
In several of the articles it was also indicated that only if the rewards
were (attractive) to the recipients did motivation, satisfaction, and job
performance increase, not otherwise. Given this situation:

1. Define the problem.

2. Create a diagram.
3. Develop at least six hypotheses.

Slide 5-29
 Exercise 5.12 Answer
1- Problem Statement
How can the job performance (output) of the employees be
increased through enriched jobs and rewards?

2-

Slide 5-30
 Exercise 5.12 Answer
Hypotheses
HA1: If the job is enriched and utilizes all the skills possessed by the employee,
then employee satisfaction will be high.

HA2: If the job is enriched and utilizes all the skills possessed by the employee,
then employee motivation will also be high.

HA3: There will be a positive correlation between satisfaction and motivation.

HA4: Greater rewards will influence motivation and satisfaction only for those
employees who find the rewards valent; not for the others.

HA5: Satisfaction and motivation will positively influence performance.

HA6: The more enriched the job and the greater the skills utilized by the job, the
higher the level of employee performance.
Slide 5-31
 Exercise (1)
Develop a conceptual model with the hypotheses for the following
framework:

Service Customer
quality switching

Switching
cost

Slide 5-32
 Exercise (2)
Develop a conceptual model with the hypotheses for the following
framework:

Service Customer Customer

quality satisfaction switching

Slide 5-33