Chapter 1

Introduction to
Business Research
References:
Business Research Methods (William G. Zikmund)
Research Methods For Business (Uma Sekaran)
Internet

Resource Person: Furqan-ul-haq Siddiqui

 Aim of the Course

This course is aimed at helping students to

understand importance of Business Research
and the ways in which systematic research can
be conducted to describe, explain and predict
phenomena of interest pertaining to various
aspects of business.

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How do managers make Decision

Experience based decisions

Sixth sense and decision making
Luck and accurate decision
Research based decision

?
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 Research
Its series of steps designed & followed with the
goals of finding answers to the issues of
concerns.

First thing is to identify the problem then we

have to move towards the process.

The entire process by which we attempt

to solve the problem is called
RESEARCH. 4
 WHAT IS RESEARCH

Research is an organized, systematic, data-based,

critical, scientific inquiry or investigation into a
specific problem, undertaken with the objective of
finding answers or solutions to it.

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 Business Research
Business research is defined as the systematic and
objective process of generating information for aid in
making business decisions.

Business research is conducted to resolve problematic

issues in the area of finance, management, and
marketing.

Research provides needed information that guides

managers to make informed decision

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 Why is it important for managers to know
about research?
Diagnosis and assessment
Solve problems
Decision making tool
Competition
Risk
Investment
Hire and monitor researchers and consultants
more effectively
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 Business Research
Research information is neither intuitive
nor haphazardly gathered.
Literally, research (re-search) -search
again
Business research must be objective
Detached and impersonal rather than
biased
It facilitates the managerial decision
process for all aspects of a business.
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When Should Business Research be Undertaken?

Is sufficient time
available?

Yes

Is information
inadequate? NO Do not
undertake Business Research
Yes

High importance
of decision?

Yes

Research benefits
greater than costs? Undertake Business Research

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 SCIENTIFIC RESEARCH

Scientific Research focuses on solving problems and

pursues a step-by-step logical, organized and rigorous
method to identify the problems, gather data, analyze
them and draw valid conclusions. Scientific research is
not based on hunches, experience and intuition.
It is more objective than subjective

Science is a way to produce knowledge, involving

systematized observation and experiment having
universally accepted findings in similar environments
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 Hall Marks of Scientific Research
Purposiveness Each of these
Rigor characteristics can be
explained in the context of
Testability following example.
Objectivity A researcher is
investigating about how
Replicability
employees commitment to
Gerenalizability the organization can be
increased
Precision and
Confidence
Parsimony
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 Purposiveness
Research must have some definite
purpose, aim or/and benefit
Focus be increase in commitment of
employees
Increased commitment results less
turnover, less absenteeism, increased
performance
Benefit to the organization
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 Rigor
Good theoretical base & sound
methodological design would add rigor to
a purposive study.
Rigor means carefulness & thorough
Rigorous research involves a good
theoretical detailed base & and a carefully
thought out methodology.
Lets manager draws conclusions on the
bases on just by taking sample of 10
employees out of 200 13
 Testability
Hypothesis must be testable by applying
certain statistical tests to data collected.
Several other tests be involved like Chi square
test, T-tests etc.
Hypothesis must be logical
Eg. The researcher may hypothesize that
those employees who perceive greater
opportunities of promotion in organization are
highly committed. This hypothesis can be
tested after data collection.
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 Replicability
The results are repeated & replicated in
similar circumstances
Our hypothesis should not be supported by
chance
The more replicable the hypothesis results
are the more authentic the results are.
Lets our research proves that greater opportunities
of promotion in organization leads to employee
commitment, if similar finding are drawn from other
organizations in similar circumstances then our
research will be more valid.
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 Precision & Confidence
Precision refers to the closeness of findings
to the reality based on a sample
Precision reflects the degree of accuracy or
exactitude of the result on the basis of
sample. E.g. Confidence interval in stats
Confidence refers to the probability that our
estimates are correct. E.g. confidence level.

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 Objectivity
Conclusions must be based on the facts of
findings
Derived from actual data
Not on our own subjective or emotional values
The more objective the interpretation of data
the more scientific the research becomes.
Lets research proves that promotion chances has no
relation with organizational commitment even then if
researcher emphasis on it then research would not be
valid.
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 Generalizability
Scope of applicability
The wider the applicability more
effective and useful the research is
Not many researches are generalizable
Lets promotion chances are proven to
be true in a verity of organizations then
research may be called more
generalizable
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 Parsimony
Simplicity in explaining the phenomena or
problem
Avoid complex research models
Parsimony be achieved with good
understanding of the problem
Simplicity is always preferred to complex
research frameworks that unmanageable
number of factors.

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 Obstacles to Conduct Scientific
Research in the Management &
Behavioral Area
Problems in the measurement and collection of
data in the subjective areas like feelings,
emotions, attitudes, and perceptions.
Difficulties in obtaining a representative sample.
Its always not possible to conduct result that is
100% scientific
The more hallmarks achieved by research, the
more it will be accurate
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 Types of Research
Applied Research

When research is done with the intention of

applying the results of findings to solve the
specific problem currently being experienced
by organization.
It is conducted when a decision must be made
about a specific real-life problem
Solution of current problem oriented

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 Applied Research Examples
UoB conducts research on Should faculty be
promoted on the bases of seniority or on
merit/educational base in UoB?
Should ufone introduce a new post pay package?
A product is not selling in the market ,to check the
reasons & rectifying them.
SBP conduction research on how to control inflation
in country
OPEC conducting research on how to control the
prices of petrol around the glob. 22
Fundamental/Pure/ Basic Research

Not solution Oriented

Expends a body of knowledge.
It does not directly involve the solution to a
particular pragmatic problem.
Just to consider how different problems that
occur in organizational setup can be solved.
Knowledge gained by the findings of basic
research can be used by others.
Verify the acceptability of a given theory
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 Basic Research Example
Is executive success correlated with high need
for achievement?
Are members of highly cohesive work groups
more satisfied than members of less cohesive
work groups?
Do consumers experience cognitive
dissonance in low-involvement situations?
Causes of Inflation in Pakistan

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 Difference Between Applied &
Fundamental Research

Applied Research is aimed at solving current

problem.
Fundamental Research has more general
objective of generating knowledge &
understanding of organizational problems.

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