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Research Process and Steps Involved in Data Analysis

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Journal of Xidian University https://doi.org/10.37896/jxu16.3/001 ISSN No:1001-2400

Research Process and Steps Involved in Data Analysis

Rahat Sabah
Ph.D. Scholar, Greenwich University, Karachi, Pakistan.

Dr. Masood Hassan

Ph.D., Institute of Business Management (IoBM), Karachi, Pakistan and Visiting Faculty, Greenwich University, Karachi, Pakistan.

Syed Salman Qadri

Ph.D.Scholar, Greenwich University, Karachi, Pakistan.
Abstract:
Background: Research process and data analysis has been studied widely in academic and business surrounding since its starting point but the
most students do not care about the book learning of concept, need and direction of the research. To move the new area of exploration in every
fields of life, the student need to acquire/develop awareness about recognition, description and solutions of the problems regarding decision
making process. The aim of this study is to review the process of research and steps involved in data analysis. This study teaches how to select a
research design, how to make conceptual framework, and how to plan analysis of data .This study guides to understand the evaluation of
assumption of research, assess the fitness of model and interpretation of variables. This study provides proper knowledge about research plans
and statistical software’s such as AMOS, SPSS and EViews, which help the student and researchers to integrate the methods in all area of
research process so that, they could successfully complete their research projects and articles.
Purpose of the Research: The purpose of this study is to provide the familiarity and necessary skills for the students and researchers in
completing their research project and decision making process .The main objective of this study is to put emphasis on the need of learning
research process for the student of developing nations and help the students, managers, researchers and, policy makers to learn how to conduct
research and prepare reports or present suggestions to solve the problems and improve the performance of their related filed.
Design/Methodology/Approach: This is a literature based review study and articles and case studies have been reviewed for this study.
Finding: This study gives emphasize the need of learning the process of research. A good student always think about all the problems present in
him/her Society and look into all alternates than try to give best solution of these problems. This study give emphasizes to follow the research
ethics though out our research work and help the students and researchers about how to explain the problem, how to define the purposes of the
research, how to identify the variables and relate them with the objectives of the results as well as it teach how to collect and analyze the data to
produce valuable suggestions from the results of your research work.
Implications/Originality/Value: It is concluded that without learning an appropriate research mythology and data analysis, a student could not
write a research project successfully and a manger may damage the performance of his/her organization by taking wrong decision. So this study
motivate the reader to conduct research before decision making process, .it stress that

Introduction:
Habib & Maryam (2014) have suggested that, the students complete a research assignment step by step to provide the useful information and
skill to all researcher and students. To follow these steps anyone can solve his/her problem to make a satisfactory decision or write a research
proposal for business or academic purpose. Every student needs to gain sufficient knowledge and understanding in research not only to complete
his/her research project but to become a good researcher and administrator of his/her field. To look into the problem critically and with aim a
good researcher need to know the statistical evidence regarding the area of research (Denscombe, 2017). We conduct research work to bring
betterment in our society.In other words the R&D is an effort through we find the way to make advance or improve our product and services.
The value of your research is determined by the objective and the nature of your research problem (Horton, 2003).

Step 1: Set The direction of your research: Research objectives are the elements of study, which research want to achieve and research
questions are help to clear the confusion arising in any research project, while hypotheses is a prediction concerning the research problem in the
study (Rossman & Rallis, 2011).
a) Understand the Nature of a problem (Rise the Research Question): Cope (2005) has described that a researcher need to know that,
what the main issue in surrounding the problem. For this purpose he/she have to gather some information and undertake consultancy
work to find out the symptom of those problems. The study of related data gives some important hint to you about the problem faced by
your organization or industry. A good researcher separate the causes of the problems form its symptoms (Blumberg & Schindler, 2014).
b) Identifying the Variables (Symptom of the problem): Identify the symptom of the problem through the dependent variables and
independent variables with detail in process of research, we must educate the reader about how to measure these variables and what scale
is used in measuring theses variables, for example decreasing in sale of a product is not a problem, it is symptom of problem. Problem
may be present in quality, service or design of a product (Awang, 2012).
c) Research Objectives (what to we want to accomplish) : Every researcher or students have their specific objectives to do a research.to
achieve these objectives they have to learn some uncertainties concerning variables, elements that effecting the variables and their nature
of relationship amongst variables in our study ( Zuo et al.,2015)) and the researcher must have the ability to convert these uncertainties
into research questions and again tells the readers or audience that what he/or she is going to archives. Setting of the objectives helps to
decide about what step is need to be taken. Most objectives are started from the word to, which means to achieve something, to explore
something, to investigate something and to identify something (Corbin & Strauss, 2014).
d) Research hypotheses (Intelligent Forecast): Basically the hypotheses are an intelligent expectation or forecasts made by the researchers
regarding the problem of research (Ary et al., 2018) and an intelligent scholar could manage hypotheses come with help of several related
the problem on which he/she is working. Hypotheses also follow the research questions and explain how the independent could effect or
could change the direction of the dependent variables (Lokesh, 1984).
Step 2: Select the Appropriate Design for your Research:
Designing the research work, it is essential to identify the target and style of the study, the kind of knowledge and data needed sampling and
the way information is collected and analyzed (Rouse, 1997).
a) Historical Design: The researcher examines happenings or situations that had been occurred in the past time, facts are determined to draw
conclusions regarding past events or forecasting is done about upcoming outcomes (Wacker, 1998). The aim of this technique is to illuminate
the related theories, and analyses. So the facts can be assembled from papers, observations, records, books, opinion and statistics to reach at a
decision on the bases of the results calculated from analysis (Fetterman, 2009).
b) Experimental Design: The researcher needs to manage and handle the independent variables, opinion and the observation of results on the
base of the dependent variable. This category of research trusts on the causes and the effects technique to come up with the proposed
accepting to change the solid point and significances of the variables (Al Sakka, 2014).

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c) Non-Experimental Design: This design is also show the relationship and correlation between the variables but it is a descriptive plan of
study, and in this style, the independent variable cannot be controlled (Breaugh, 2008).
d) Basic & Applied Approach: We adopted basic research approach to increase our knowledge and information; it is totally theoretical and
helps to expand the knowledge and experience. A systematic instigation is done to attain the understanding about the happening or
phenomena (Johannesson & Perjons, 2014). While the applied research seeking the specific problems and provide the innovative solution of
that problem which is mostly applied applications of in scientific systems (Collis & Hussey, 2013).
e) Deductive & Inductive: We used inductive research line to perform the qualitative research. We use it when we don’t have any new idea
about our results than we develop new hypotheses. To generate a new theory, we analyses the previous hypothecs first and this research
approach help us to give accurate reasons for a particular situation through the case of real life. Mostly the inductive approach is applied
where we find lake of literature on specific topic of filed ( Jebb et al., 2017). Whereas the deductive approach is supported by the basic idea
about a particular situations. This is belonging to the positivism paradigm mostly used in scientific study and application (McPherson, 2001).
f) Sampling: Shenk and Westerhaus, (1991) have defined the population is a as the set of individuals or element of interest in research plan.
Sampling is the subset of population or element. In other words the sampling is portion from the whole population selected in any study or
investigation (Shenk & Westerhaus, 1991). A researcher obtain sample from whole population because working on the whole is not possible
for him due to restriction time, cost, manpower and measurement & process analyses of large data. It is necessary for a researcher that he,
should adopt an appropriate method or techniques to obtain sample and apply the result of these on the whole population(Pandey &
Pandey,(2015).Normally two types of difficulties are associated to detect a sampling errors or mistake that a researcher could make during
sampling process or in using the sample size. So researcher should be careful during the study on whole population and before completing
the data collection (Shenk & Westerhaus, 1991). Same as the Islam, (2018) has supported the Central Limit Theorem (CLT) is a principle
through which level of error and its effect could be decrees by increasing the size a sample which has been taken from the large population.
CLT theorem has the important role to understand the concepts statistical representation, size of sample and errors in sampling process
(Anderson, 2010). Probability Sampling: Probability sampling design is selected by chance or in other words every element has the equal
chance of probably to be selected from the population. It further divided into five types of techniques (Igwenagu, 2016). Four types of
methods are used in probability sampling systems. There are the simple sampling, the systematic sampling, the stratified and the clustering
methods are used in the scientific study (Etikan & Bala, K. 2017) while the Non-probability sampling is picked on the personal decision of
the researcher because the result of this study do not involve the large population and results from this study are only applicable on specific
sample (Vehovar & Steinmetz, 2016). Convince Sampling is based on the obtainability and the easiness of the access of data represent
restrained audience (Farrokhi & Mahmoudi, 2012). On the other hand the judgmental sampling is based on the judgment of the researcher
while Quota Sampling is similar to the stratifies sampling (Awang, 2012).

Step 3: Make a Conceptual Framework:

Theoretical Framework is often developed by the scholar or researcher to represent methodical diagram which indicates that how he/she develop
theory about the existence of relationship among these variable in study. Researchers want to determine whether the relationship among the
variables is significant or not constructed on base of collected data (Forza, 2002).

Conceptual Framework

Increase in Export
No. of Investors
in EPZs Mediating Variable
(Moderator)
W

Increase in GDP
EPZs (Dependent
variable)
(Independent
Increase
variable) Y

Source: Authors’ own computation

Independent variables tell us the reasons and causes of any outcome .how something occurs due to another things or phenomena. These
variables are also called controlled variables. While Dependent Variables are got effected from independent variables. The size or nature of
these variables is changed due to the changes in independent variables (Allison, 1990).Mediating variable facilitates the effect from the
independent variables on dependent variables. If the direct effect could not be find among two variables X to Y or direct relation do not exist
between X and Y but relation exist indirectly through a third variables M, we will say that the M is a mediating variables (Awang, 2012).On the
other hand the Moderating variables moderate the strength of causal effect between the independent X1 and dependent variables Y. supposing
that a variable W is the moderating variable in X1 and Y relationship.it could change the strength between the two variables (independent X1 and
dependent variables Y) (Pelham, 1993).

Step 4: Plan for Exploration of Data

Diefenbach (2009) has stated that the Gathering of data is very important to represent the proper knowledge. Mainly the two types of data
sources are discussed in all studies before to provide comprehensive understanding about the qualitative and quantitative research. Primary
Data Sources: are also called first-hand data sources because it is collected about a current problem.it come from the original documents &
records and personal experience & interviews. Example of activities of primary data is laboratory experiments, recording of observation and
conducting survey and structures questioner. While the Secondary Data Sources: are obtained through historical information like annual report
of a company, financial report of a company and economic survey or statistics etc. (Pandey & Pandey, 2015).The Awang (2012) has defined that
we use or get Qualitative Data as, when we do not want or need a numeric data, for example a government authority wants to know the
opinion of the public regarding their policy or a private organization want to know the reason of decreasing the sale so both types of
researches will called the qualitative research and information which we have obtained is called non numeric information. Whereas the
Quantitative Data is required to conduct a study is called Quantitative Research. Such types of data is collected on demand for example export

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Journal of Xidian University https://doi.org/10.37896/jxu16.3/001 ISSN No:1001-2400

of the year, import figure and daily sale report as is between Rs. 30-20 billion above 600 Kg and below the 900 grams etc., The quantitative data
could be discrete or continuous. Personal and telephonic interview, structured Questioner and direct observation are the best techniques to obtain
quantitative data (Connolly, 2007).

Step 5: Undertake the Reviewing of Literature

Literature survey is a comprehensive review of the published and unpublished work from previous researchers in the areas related to the problem
at hand. Literature search will help the researcher to focus on the research problem based on certain aspects found to be important in the
published studies. For example, the literatures would reveal the main variables involved in the problem, their measurement, the validity, and
reliability. Using these instruments, the researcher could customize them in order to suit the current setting. The literature is used deductively as
a framework for advancing research questions and their corresponding hypotheses. The review of literature is placed at the beginning of the
study to introduce the problem, the related variables, and to provide meaningful direction for the research questions and their corresponding
hypotheses (Onwuegbuzie et al., 2012). Similarly the Keele (2007) has stated that the findings from the literature in similar studies should be
included in the report for the researcher to compare his findings with the findings of previous researchers. As previously stated, the literature
review is important for the researcher to identify the variables involved, the measurements applied, the methodology used, and the expected
findings. Furthermore, the findings from literature survey provide a solid foundation of the existing knowledge in the research area. This
foundation could be compared with the findings of the present research (Awang, 2012).

Step 6: Plan for Analysis of the Data:

The analysis is a process of checking, examining, renovating, modernizing and displaying the data with the aim of exploring useful and valuable
information to make a decision regarding any problem. It has done by the different methods with different names in all domains of research.
Data analysis is widely used in business, social and scientific to make decision professionally (Erickson, 2006). The researcher should get
descriptive information to understand the all types of analysis listed below:

Descriptive Analysis: What is happening? (Schlegel & Parascando, 2020)

Diagnostic Analysis: Why did it happen? (Edquist, 2011).
Predictive Analysis: What likely to be happen in future? (Zetino et al., 2019))
Prescriptive analytics: What is best decision should we will take? (Zetino et al., 2019))

Structural Equation Modeling (SEM) starts with theory, which is observed by the researcher to test the relationships between the variables in
the study. This theoretical relationship is shown in a frame work in the shape of diagram. This schematic diagram displays us the hypotheses of
the study. Variables are measured by using a set of objects present in a questioner. The measurement of these items should be in the form ratio or
interval (Hoyle, 2012) and researcher must be note that he/she must take at least four items for each construct. SEM is an efficient way to
analyze the correlational and causal connection among unobserved variables (Pearl, 2012). It is also used to estimate the variance, to test
hypotheses and to run the CFA (Byrne, 1994). Regression analysis tells us about the links among the independent and predictor variables,
without the regression analysis it is impossible to produce the accurate and useful forecasting (Lehmann et al., 2002). Awang (2012) has detailed
the example of liner regression equation as.
y  
i 1 xi1
 
2 xi 2
 ...............
pxip
 i

 ij
th th
Where is the i observation on the j independent variable, and where the first independent variable takes the
value 1 for all i (so  1 is the x  ( y,  0 ,  ) regression intercept) we want to know the single effect of independent X1 on dependent variables
1

Y, we judge the output or results of equation.

If the B1 Beta Coefficient is 0.361.Then we will consider that X1 independent variables has significant impact on Ydependent variables, .Where P-value < 0.001.
This is the direct effect of X1 on Y. (Frost, 2019).

Analysis of mediating and moderating variable:

First we measure the direct effect of the independent X1 and dependent variables Y and then we test the hypothesis conserving with these
variables. In this case we measure the direct effect of X1independent variable and Y dependent variables through beta coefficient. We add another variable
which is called mediating variables X2 in our model ad run the equation in a statistical tool, we found that the value of our beta coefficient for
X1independent variable is decreased .So we assume that the direct effect for X1 on Y is reduced.
Variable/construct X2 is now mediating the relationship among variables/ constructs X1 and Y in our study. Since the direct effect is still exist
among X1 and Y variables and not ended just beta coefficient is reduced from 0.087 to 0.068. So we call it “partial mediation”
While Moderation variable is indicate the weakening of a causal effect, but it could reverse or increase that specific effect also. In statistical
science, the impact of X is stated to the normal effect of independent variables X on the dependent variables Y. We assumed that there is liner
relationship is present among the variables X and Y and our model is additive. Then we will shape the multiple regression questions as to show
the moderation impact.

Y   0  1X   2 M  3XM  
where
3 is measuring the int eraction effect among X indepndent var iable and M mod erating var iable
1X is measure the simple effect of X indepndent var iable when M  0

So we can say that the assessment/test of moderations is processed or calculated by taking the product term of X*M. and the researcher always
test the hypotheses where the coefficient B3 is other than Z (Hayes, A. F. (2012).

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Journal of Xidian University https://doi.org/10.37896/jxu16.3/001 ISSN No:1001-2400

Step 7: Assess the fitness of your Model and Interpretation of Variables.

Linear regression is very important and useful systems to access the liner association among the two numerical variables or to forecast the
relations. we assume that the link between the X Independent variable on Y dependent variable can be showed through straight line as y = a+ β·x. (Zou, et
al.,2003). On the other hand the Meites and Kateman (1984) have stated that the this is not possible to obtain the exact relation between the two
variables but you can find very reliable value of Y dependent variable through the value of X Independent variable .This the coefficients/ numbers of α and β
are recognized as the coefficient of your regression line and said to the slop & intercept. The α is a point on which the regression line cutting
the y on axis, while the β can be defined as the any change in the mean of Y due to the change in value or direction. We use these parameters to
examine the simple data set (Zou et al., 2003)).
Example: (Anther’s own computation)
Let suppose we have the fallowing data set about the GDP, FDI and Export of Pakistan. We want to know the relationship of these variables by
using the least squares methods. Our research hypotheses were as,
1. Ho: Export don’t cause to increase yearly growth rate of GDP
H1: Export cause to increase yearly growth rate of GDP
2. Ho: FDI don’t cause to increase yearly growth rate of GDP
H1: FDI cause to increase yearly growth rate of GDP
Dependent Variable: GDP
Method: Least Squares
Sample (adjusted): 1984-2013
Included observations: 30 after adjustments

Variable Coefficient Std. Error t-Statistic Prob.

C -4.64E+09 3.44E+09 -1.346956 0.1892

EXPORT 7.115325 0.264516 26.89937 0.0000
FDI 1.184022 1.592045 0.743711 0.4635

R-squared 0.975924 Mean dependent var 9.13E+10

Adjusted R-squared 0.974141 S.D. dependent var 6.23E+10
S.E. of regression 1.00E+10 Akaike info criterion 48.98738
Sum squared resid 2.71E+21 Schwarz criterion 49.12750
Log likelihood -731.8107 Hannan-Quinn criter. 49.03221
F-statistic 547.2358 Durbin-Watson stat 1.048553
Prob(F-statistic) 0.000000

The output of the equation model shows that the confidence interval of export is smaller; the smaller interval is considered better in testing
hypotheses. The P-value of export coefficient is 0.0000,which is smaller than 0.01, it mean that coefficient is significant at 1% level meaning
that the estimated coefficient is very strongly signifying. The coefficient of export is 7.115325, which is our independent variable. The
estimated value o7.115325 tells us that, if export increased by one unit the GDP increase by 7.115325 units and if our export decreased through
1 unit the GDP decrease by 7.115325 units. Because of the coefficient of export is positive in our model, it mean that there is a positive link or
relation between the GDP and export in Pakistan. By one percent increase in export, the country could get rise its GDP by 7 percent. On the
other hand The P-value of FDI is 0.4635, which is greater than 0.10, it mean that coefficient (1.184022) of FDI is not significant meaning that
the estimated coefficient is not signifying. The coefficient of FDI is 1.184022, so this estimated value of 1.184022 tells us that if FDI increased
by one unit the GDP increase by 1.184022 units and if FDI decreased through 1 unit the GDP would also decrease by 1.184022 units. Although
the coefficient of FDI is positive in our model, it means that there is a positive link or relation between the FDI and GDP in Pakistan. If Pakistan
get rise 1% in FDI than The GDP of Pakistan would increase by 1%.

The R-square is found to be 0.975924 in our model; it means that 97 % of changes in GDP have been explained by the changes in our
independent variable export. Our R-square is very high; it shows us the correctness of our model. Our adjusted R-squared is equal to our R-
squared in our model meaning that the predicting of model is good and reliable. The value of adjusted R-square is 0.97414, which is close to
one, it indicated that the model is better predicting. If we add the any new variables in our model the value of R-squared will be changed but the
value of adjusted R-square would not be change.it remain 0.97, so it predicting more smartly than R-square. In our model the prob (F-Statistic)
is 0.000000, it mean that our all (fdi & expert) independent variables are significant. They jointly in our model significantly affect the GDP at
1% significance level. The Durbin-Watson statistic in this model is 1.048553, which not near to zero, it mean that there is no serial correlation
problem in the model.

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Journal of Xidian University https://doi.org/10.37896/jxu16.3/001 ISSN No:1001-2400

 Regression Line in the scatterplot 2.8E+11

This graph represents the relationship between the independent variable
2.4E+11
export and dependent variable GDP. It can be observed that the straight
line is going through the data cloud, it didn’t left out smaller of points 2.0E+11

away, so it does mean that or obvious that, there is a linear link between 1.6E+11

GDP
the two variables. We can reject the null hypotheses in light of this graph. 1.2E+11

This this graph shows the link between the export and GDP of Pakistan. 8.0E+10

4.0E+10

0.0E+00
0E+00 1E+10 2E+10 3E+10 4E+10

FEXPORT
2.8E+11
While this graph about FDI is shows that the relationship between the
dependent variable GDP and independent variables FDI and export, It can 2.4E+11

be observed that there is smaller linear link between the variables because 2.0E+11

the straight line cannot going through the data cloud, it has left out smaller 1.6E+11

GDP
number of points, with a minor error, there are only some dots or points 1.2E+11

which are going through the straight line. 8.0E+10

. 4.0E+10

0.0E+00
-6,000,000,000 -4,000,000,000 -2,000,000,000 0

FDI

 Graphical Analysis
 The Graphical Analysis permits us to learn the nature of a process, gives us clear picture and keep us focus on more analysis. This is
very important instrument to understand the foundations or causes of variation in our data set and help us to make better understanding of
the procedure and the direction of root causes (Wild & Pfannkuch, 1999).

Year % change of export and GDP Year % change of export and GDP
30
160

20 120

80
10

40
0
0

-10
-40

-20 -80
84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

Year % Change FEXPORT Year % Change FDI

Year % Change GDP Year % Change GDP

The above figure is showing movement of the growth rate of GDP is export, it clear here that the two variables are moving in the same
directions. The change rate between the two variables is very same both variables are moving upward, it mean that relationship between the
growth rate of GDP and export is exist in Pakistan. While the GDP is not moving with the same rate of fdi, which must be proposed that FDI is
not the main determinant of GDP in Pakistan. If we see the figure carefully, we can notice that GDP growth rate is not so stable and not moving
with same direction with the FDI.

Step 8: Make the Statement of Finding of Your Research

Rearch finding is a logical story about our research results findings, in which we highlights our analysis and sum-ups important information for
our readers. So write your research fining openly, clearly, correctly, truthfully and precisely with objective manners, it must be based on the
facts. Readers want to know and understand about what you are saying so review or looking back objectives and background of your study as
well as argument and conclusion part precisely. The structure of the finding should be determine through the question & hypotheses of research
and must be match with the preparation of your methods section. The most important thing is to be remembers is that the goal of your research;
always keep it in your mind during the writing process.

Step 9: Give Some Suggestion to Solve the Problem For To Make Decision
Recommendation should be real and specific and connected with our conclusion.so that the solutions could be achieve easily.
1. The developing nations should encourage the research or & D centers associate with all the government organizations. Learning and
thinking practices through these centers, would increase the awareness not only about the social & economic needs of the societies but
provide the better solutions of solve the problems faced them today.
2. All developing Nations need to establish a common research center of emerging economies. People have interest in research, students
and scholars should be trained from local level to national level. These centers should be established in all cites and then provisional &
federal research centers regarding theirs National objectives and then link with common research center of developing Nations. So that
the educational & financial resources present in these countries could be identify for and exchange among the developing nations. These
centers help to bring the scholars of emerging economies very close to produce a useful knowledge to make policies and solve the
problems to gathers.
3. To make mature economies the emerging nations need to make known the economic realities and set a sufficient budget to create
research work centers or research institute. It has been observed that the wealth and knowledge have very close and positive link each

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Journal of Xidian University https://doi.org/10.37896/jxu16.3/001 ISSN No:1001-2400

other. Both are found mostly at the same regions and moving side by side direction. If the emerging economies ignore the new
opportunities of knowledge they could not make progress in business and technology and have to face disturbing atmosphere in the
global village.

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