Chapter 3

Introduction to Research
The Research Process - The Broad Problem Area and
Defining the Problem Statement

Business Research Methods |

 CHAPTER OUTLINE:
1. Broad problem area
2. Preliminary information gathering
3. Literature review
4. The purpose of a critical literature review
5. How to approach the literature review
6. Data sources
7. Searching for literature
8. Evaluating the literature
9. Documenting the literature review
10.Defining the problem statement
11.The research proposal
12.What makes a good problem statement?
13.Managerial implications
14.Ethical issues in the preliminary stages of investigation

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 The Broad Problem Area
• A “problem” does not necessarily mean that something is seriously wrong with a
current situation that needs to be rectified immediately.

• A problem could also indicate an interest in an issue where finding the right answers
might help to improve an existing situation.

• Thus, it is fruitful to define a problem as any situation where a gap exists between
the actual and the desired ideal states.

• Symptoms of problems are not defined as the real problem.

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What Can Be a Problem Area

Existing issues an
Areas a person wants to
organisation needs to
improve
address

Theoretical or
conceptual issues that Research questions a
need more study to basic researcher wants
understand certain to answer empirically
phenomena, or

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 The Broad Problem Area
• Examples of broad problem areas that a manager could
observe at the workplace:
– Training programs are not as effective as anticipated.
– The sales volume of a product is not picking up.
– Minority group members are not advancing in their careers.
– The newly installed information system is not being used by the
managers for whom it was primarily designed.
– The introduction of flexible work hours has created more problems
than it has solved in many companies.

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Identifying a Broad Problem Area

Recognition of Desire to
existing improve the
problems status quo

Planning for
the future
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 Preliminary Information Gathering

• Early stage of soliciting information regarding the problem of interest to

enable a researcher to gain a wider understanding and perspective of
the problem.
• Addresses the basic question of whether the problem is worth
investigating and exactly how the problem is to be framed and clearly
described.
• To narrow the broad problem area and to define a specific problem
statement.
• Nature of information to be gathered:
A. Background information of the organization
B. Prevailing knowledge on the topic - LR

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 (A) Background information of the organization
• Information gathered on relevant contextual factors will be useful in arriving at a precise
problem formulation

• Can be done by:

– talking knowledgeably with managers and other employees in the company and
raising the appropriate issues related to the problem.
– Unstructured interview – talking informally to several people in the work setting or to
clients, or to other relevant sources, thereby gathering information about what is
happening and why. Additional insights of possible factors that could be operating in
the particular situation.

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 Contextual factors
• The origin and history of the company – when it came into being, business it is in,
rate of growth, ownership and control, and so on.
• Size in terms of employees, assets, or both.
• Charter – purpose and ideology.
• Location – regional, national, or other.
• Resources – human and others.
• Interdependent relationships with other institutions and the external environment.
• Financial position during the previous five to ten years, and relevant financial data.
• Information on structural factors (for instance, roles and positions in the
organization and number of employees at each job level, communication channels,
control systems, workflow systems).
• Information on the management philosophy.

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 (B) Review of the Literature
• A literature review is “the selection of available documents (both published and
unpublished) on the topic, which contain information, ideas, data and evidence
written from a particular standpoint to fulfil certain aims or express certain views on
the nature of the topic and how it is to be investigated, and the effective evaluation
of these documents in relation to the research being proposed” (Hart, 1998, p. 13).

• Helps the researcher to:

– Structure research on work already done
– Develop problem statement with precision and clarity

• Is beneficial in both basic and applied research projects

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 Functions Literature Review
• Research builds on existing knowledge
• One does “reinvent the wheel”
• Look at a problem from a specific angle
• Find out what variables are important to consider
• Introduce relevant terminology/provide definitions
• Provide arguments for the relationships variables
• Testability and replicability are enhanced.
• Research findings are related to findings of others.

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 Data sources
• Textbooks
• Academic and professional journals
• Theses
• Conference proceedings
• Unpublished manuscripts
• Reports of government departments and corporations
• Newspapers
• The Internet

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 Searching for literature
• Most libraries have the following electronic resources at their disposal:
– Electronic journals
– Full-text databases
– Bibliographic databases
– Abstract databases

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 Evaluating the literature
• Titles
• Abstract
• Table of contents/first chapter book
• Number of citations

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 Documenting the Literature Review
• Literature review introduces
– Subject study
– Highlights the problem
– Summarizes work done so far

• Citation
– APA 6th Edition http://web.calstatela.edu/library/guides/3apa.pdf

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 Defining the Problem
• Defining the problem statement to narrow down the broad problem so
that it is well-defined, focused and specific. A good literature review
will lead to a good problem statement.
– It creates a sense of ownership for the researcher;
– Focuses the researcher on an accepted problem; and
– Describes the symptoms in measurable terms.
• Determining the research direction; the solution to a problem depends
very much on how the problem is being viewed and framed.
• When a problem has been successfully identified, a researcher must
ensure that the problem is defined and stated specifically enough that
he/she can write about it.

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 Problem Statement
• A succinct statement of the question or issue that is to be investigated with the goal of
finding an answer or solution.

• Unambiguous, specific, and focused, and that the problem is addressed from a specific
academic perspective.

• Three Elements:
1. The problem itself should be clearly stated with sufficient contextual detail to justify
its importance.
2. The method of solving the problem, often stated as a claim or a working thesis.
3. The purpose, statement of objective and scope of the document the researcher is
preparing.

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 A good problem statement
• A good problem statement includes both a statement of the research objective(s)
and the research question(s).

– Research objective (RO):

• why of the research
• to solve a specific problem in a work setting;
• to change something.

– Research questions (RQ):

• what of the research (what do you want to learn?)
• Translates problem into a specific need for information
• Are related to the objective
• If objective is unclear we will not be able to formulate RQ
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 Guidelines in Creating a Good Problem Statement
• Relevant - relevant to both managerial and academic perspectives.
– From a managerial perspective, research is relevant if it relates to (1) a problem that currently exists in an organizational
setting or (2) an area that a manager believes needs to be improved in the organization.
– From an academic perspective, research is relevant if: (1) nothing is known about a topic, (2) much is known about the
topic, but the knowledge is scattered and not integrated, (3) much research on the topic is available, but the results are
(partly) contradictory, or (4) established relationships do not hold in certain situations. If you base your research report on
the “nothing is known” argument, you will have to prove that your claim is right.

• Feasible - feasible in terms of the capability of the researcher to complete it given

the restrictions that the researcher may have.

• Interesting - must be an interesting one to him/her to keep the motivation level high
in ensuring completion of the task at hand.

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Identifying the Research Objectives and Questions

Research Aim

Research Questions

Research Objectives

Research Scope
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Guidelines for Creating a Good Problem Statement
• Research Aim - the single, indispensable outcome of the research that directly
addresses the needs of the research problem.

• Research Questions – using appropriate literature to understand important gaps in

the research aim; questions that are unanswered in existing literature.

• Research Objectives - important issues to be addressed and feasible in terms of the

capability of the researcher in completing it given the restrictions.

• Research Scope - outlines the context, population and time boundaries for which
the research is to be conducted; defined properly so as to protect against being
overly ambitious in the research and running into problems later.

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 Managerial implications
• Managers sometimes look at the symptoms in problematic situations and treat them as if they are
the real problems, getting frustrated when their remedies do not work. Understanding the
antecedents–problem–consequences sequence and gathering the relevant information to get a real
grasp of the problem go a long way towards pinpointing it.

• Managers’ inputs help researchers to define the broad problem area and confirm their own theories
about the situational factors impacting the central problem. Managers who realize that correct
problem definition is critical to ultimate problem solution do not begrudge the time spent in working
closely with researchers, particularly at this stage.

• A well-developed research proposal allows managers to judge the relevance of the proposed study.
However, to make sure that the objectives of the study are actually being achieved, managers must
stay involved throughout the entire research process. Information exchange between the manager
and the researcher during all the important stages of the research process will definitely enhance the
managerial relevance and the quality of the research effort.

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Business Research Methods | 22
 Implications
• Sets out the blueprint for the direction of the research.
• A good problem will have a good aim and a good aim will lead to
good research questions and research objectives.
• Helps build a solid theoretical framework which will in turn help set
testable hypotheses.
• Determines the type of data and its formats needed to answer each
research question.
• Better clarity, control and implementation of data collection for the
data analysis.
• Right Data Analysis – answers the research questions properly.

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 The research proposal
• The research proposal drawn up by the investigator is the result of a planned,
organized, and careful effort.
• It contains:
1. Working title 6. The research design offering details on:
2. Background of the study o Type of study
3. The problem statement o Data collection methods
o The purpose of the study o The sampling design
o Research questions o Data analysis
4. The scope of the study 7. Time frame of the study
5. The relevance of the study 8. Budget
9. Selected bibliography

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 Ethical issues in the preliminary stages of
investigation
• The researcher needs to assess his or her research capabilities; if the researcher does not
have the skills or resources to carry out the project, he or she should decline the project.

• It is also necessary to assure that the responses will be kept confidential by the
interviewer/s and that individual responses will not be divulged to anyone in the
organization.

• Employees should not be forced to participate in the study. When employees are willing to
participate in the study, they have the right to be protected from physical or psychological
harm.

• They also have a right to privacy and confidentiality. Attempts to obtain information
through deceptive means should be avoided at all costs.

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Business Research Methods | 25
 Exercises
• Based on the given scenarios: (a) identify the broad problem
area, (b) define the problem, and (c) develop research
objective(s) and research question(s).

• Scenario 1: While Chrysler's minivans, pickups, and sports

utilities take a big share of the truck market, its cars trail
behind those of GM, Ford, Honda, and Toyota. Quality
problems include, among other things, water leaks and
defective parts.

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Business Research Methods | 26
 Exercises
• Scenario 2: Companies benefit through employee loyalty. Crude downsizing in
organizations during the recession crushed the loyalty of millions. The economic
benefits of loyalty embrace lower recruitment and training costs, higher productivity of
workers, customer satisfaction, and boost the morale of fresh recruits. In order that
these benefits may not be lost, some companies, while downsizing, try various
gimmicks. Flex leave, for instance, is one. This helps employees receive 20% of their
salary, plus employer-provided benefits while they take a 6-12 month sabbatical, with a
call option on their services. Others try alternatives like more communication, hand
holding, and the like.

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Business Research Methods | 27
 Exercises
• Scenario 3: The GAAP (Generally Accepted Accounting Principles) do an unacceptable
job of accounting for the principal activities of the Information Age companies. Today,
investors are in the dark because the accounting is irrelevant. The basic purpose of
accounting is to provide useful information to help investors make rational investment,
credit, and similar decisions, but today's most important assets and activities -
intellectual capital and knowledge work - are totally ignored. Professor Robert A. Howell
wants to reform the accounting system with the goal of making clear the measurement
of how companies produce cash and create value.

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Business Research Methods | 28
CLO1: State in written and orally the process involved in conducting a basic research in business context
CLO2: Explain various concepts, issues, types of research, methods, and approaches available for
conducting a basic research in business context.
CLO4: Develop in group the stages in conducting research including problem definition, literature review,
research framework, research design, instrument development, data analysis and findings, conclusion
and suggestions, and references using correct APA format.

CHAPTER LEARNING OUTCOMES:

1) Identify problem areas that are likely to be studied in organizations.

2) Discuss how problem areas can be identified in work settings.
3) State research problems clearly and precisely.
4) Explain how primary and secondary data help the researcher to develop a problem statement.
5) Develop relevant and comprehensive bibliographies for any organizational research topic.
6) Write a literature review on any given topic, documenting the references in the prescribed manner.
7) Develop a research proposal.
8) Apply all you have learned to a group project that might be assigned.

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Business Research Methods |