IBF 8711

Lesson 4 Research Process & Problem Definition

This lesson introduces the logical reasoning basis, research process and
problem statement definition. Scientific research process is attributed to
systematic and logical attributes to enable the research to be easily
understood, robust, coherent and parsimony. The logic of deductive and
inductive reasoning is introduces and the pertinent considerations to define
the research problem is discussed. At the end on this lesson student should
be able to grasp the research process, define problem statement and
formulate research objectives relating to their stage of research.

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 What is Scientific Investigation?
• Scientific research adopts a step by step logical, organized and rigorous method to
identify the problem, gather and analyze data and draw valid conclusions from them.
• It should be both purposive and rigorous.
• Though it involves ‘subjective preference’, scientific investigation requires ‘objective
method to analyze data and communicate findings and arrive at conclusion’
• ‘Subjective preference’ relate to choice of research design and the paradigm
subscribed. This is then represented by the qualitative and/or quantitative methods
employed.
• ‘Objective method(s)’ technically refer to the validity and reliability of the qualitative
or quantitative method in designing instrument to capture data, specify measures to
asses/evaluate data and process data to generate the information or statistic as well
as to verify (triangulate) or test data for significance.
• When reporting results as findings to derive theoretical and empirical conclusion(s),
the subscribed reality of the relevant paradigm is adopted to explain, predict or
interpret the findings as conclusion.

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 Is the research Scientific? Checklist…
Features Descriptors Example (s)
Purposive Define aim, goal with specified direction Gap spotting
Rigor Has good theoretical base and sound methodological design Theoretical constructs
Attributes: carefulness, scrupulousness and exactitude Due care and diligence
Non-representative sample/response; Framing bias; exclusion of Conceptual Framework
critical factors which disqualify the focus/scope of study
Testability Rely on observable, quantifiable (measurable/scalable) precise Significant testing
observations for defined period.
Replicable Consistent results support similar study methods employed in Robust parameters
different settings or to different samples/population
Precision and Degree of accuracy/exactitude for probable estimates at desired Error estimates
Confidence level of confidence
Objectivity Based on facts of findings derived from actual data not subjective Corresponding benchmark
preference/opinion (s)
Generalizable Can be applicable beyond a single setting Abstraction
Parsimony Simple yet meaningful is preferred over complex framework Reader friendly

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Deductive  Inductive Reasoning
General
DEDUCTIVE : Assumption/postulate Specific Conclusion
/ theory
Deductive reasoning, also deductive logic, is the process of reasoning from one or more statements
(premises) to reach a logically certain conclusion.
Deductive reasoning goes in the same direction as that of the conditionals, and links premises with
conclusions. If all premises are true, the terms are clear, and the rules of deductive logic are followed,
then the conclusion reached is necessarily true.
[Sternberg, R. J. (2009). Cognitive Psychology. Belmont, CA: Wadsworth. p. 578. ISBN 978-0-495-50629-4]

Specific Recurring
INDUCTIVE : Observations based General Conclusion
on ‘apriori’
experience

Inductive reasoning is a method of reasoning in which the premises are viewed as supplying some
evidence for the truth of the conclusion; this is in contrast to deductive reasoning. While the
conclusion of a deductive argument is certain, the truth of the conclusion of an inductive argument
may be probable, based upon the evidence given.
[Copi, I.M.; Cohen, C.; Flage, D.E. (2006). Essentials of Logic (Second ed.). Upper Saddle River, NJ:
Pearson Education. ISBN 978-0-13-238034-80

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 Scientific method:
Hypothetico-deductive Seven step method (Karl Popper)

Steps Descriptors
Identify a broad problem Focus on research issue/emerging problem
area
Define Problem Statement To be precise and rigorous
Develop hypothesis Testable (possible outcomes) & Falsifiable
Determine measures Operationalize variable as measurable/scalable
Data Collection Available or can be generated for observations
Data Analysis Descriptive/Relational analysis
Interpretation of Findings Interpretive (Contextual)/Inferential
(Generalized)

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 Research Process: Stages & Questions
Problem What is?
Definition
Problem
Definition
Theory Research For What Purpose?
Generation Objectives

Research
(Inductive) or Research What?
Purpose &
Hypothesis Questions Why?
Objectives
and When?
formulation Hypothesis? How?
Research
Questions &
(Deductive)
Hypothesis Research How?
Formulations Methods & Which?
Instruments?
Research
method & Data What?
Instruments collection Where?
and analysis When?
Descriptive & Who?
Interpretive and Data collection
& Analysis
Descriptive Findings and Signficant?
Conclusion Contextual?
Inferential Generalizable?
Findings &
(Inductive) Conclusions

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 Problem Definition: Essential Considerations
Variable Type
Unit of Codify or/&
Analysis measurable?

Emerging
Issue or Deductive or
Research Inductive?
gap?

Research
Symptom or Problem
Questions/
Actual? Definition
Hypothesis

1. Problem Formulation begins with an unresolved issue(s) with unknown or least understood
factors affecting the issue(s) identified from literature or (verbal/textual) reports.
2. Does (Do) the issue (s) lead to gap spotting (research gap)?
3. Is a theoretical or empirical construct specified to address the issue?
4. Can the issue be analysed in identifiable units (components) of analysis?
5. Are descriptive attributes of the variable identifiable or are exogenous (explanatory) factor
variables identifiable to explain the issue represented as endogenous (explained) variable?
6. Can the observations be coded to differentiate or scalable for significant measurement?
7. Would the constructs be deductive or/and inductive?
8. Can research questions enable findings and conclusion?
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 What is a problem statement?
• A problem statement is clear, precise and succinct statement of a specific
issue that a researcher intends to investigate.
– Statement is direct to the specified issue (s)
– Statement is precise in terms of matters relating to the issue
– Statement is succinct in terms of articulating the issue with a theoretical or empirical
construct(s).
• It should be relevant, feasible and interesting.
– Relevant in terms of content and context as well timely and significant to
contemporary situations or phenomenon
– Feasible in terms of viability, practicality and availability of data.
– Interesting as it is novel and appealing to the academic community
• Practical problem is relevant if identified to product, activity or organization
which invites solution to resolve or improve the problem.
• Example product defect, marketing failure or organizational re-positioning.

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 Academic Problem Statement
• Academic problem is identified if
– Relevant since:
• the issue is not known and to be discovered
• the issue could be known but yet to be integrated with relevant
theoretical assumptions or principles.
• Reported findings on the issue have been inconclusive or contradictory
• Established relationships were found but not robust
– Feasible if the research questions can be identified with an
answer or hypothesis is testable
– Interesting to engage in exploring a new field of study or
extension of existing field or aligning to a new direction in the
field of study

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 Research Purpose
• Research purpose connotes the direction of research which
will ultimately achieve research objectives.
• Its purpose is broad and relates to the context of the research
such as follows:
– In consulting research purpose is solutioning to a specific problem,
performance gap or situation and not replicable.
– In policy drafting or formulation, research purpose is to establish
the rationale, need, structure, process/mechanism, designated
persons/authority and effective implementation of the policy
– In thesis writing, research purpose is to identify literature gap(s)
relating to a phenomenon and developing a theoretical contribution
based on constructs, empirical or analytical methods and findings.

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Academic Research Pathways
(9) Sampling
(1) Identify (8) Research
and Data
Issue(s) Instruments
Integrity

(2) Spotting (7) Research (10) Data

Research Hypothesis coding/scaling
(Literature) gaps (Quantitative) and analysis

(3) Problem (6) Research (11) Analyse and

Statement Questions interpret result

(12) Articulate
(4) Research (5) Research findings as
Purpose Objectives theoretical
conclusion

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 Research Objectives
• Research objectives are determined with reference to research
purpose which is specified based on problem definition derived
from issues which established the research(literature) gap.
• Research objectives are specific and measurable that can result in
a quantitative significant finding.
• Research objectives are specific and codifiable that can result in a
qualitative insightful and meaningful finding within the context of
particular phenomenon or activity or experience.
• Research Objectives are also presented in the form of research
questions and/or hypothesis to guide the research to achieve the
research objectives. Hence research questions and hypothesis
should be consistent with research objectives

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 Types of Research Objectives and Questions

• Exploratory research is relevant when a particular phenomenon is

• Not known (but can be discovered)
• Indeterminate/inconclusive results
• Highly complex
• Lacking theory

Example of exploratory research:

Since the establishment of Islamic banking subsidiaries, Islamic banking community
portray higher stakeholder expectations on subsidiaries in terms of work ethic and
service quality is anticipated. However due to the similar continuous conventional
finance holding support of shared services to windows are extended to subsidiary,
an uncertainty arise whether the Islamic bank subsidiary mimic full fledged Islamic
banks.
Instruction: Attempt to formulate research objectives and research questions for
the above scenario
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 Types of Research Objectives and Questions

• Descriptive/Inferential research is relevant when a data is needed to describe to

understand the features or attributes of the phenomenon
– It could be quantitative or/and qualitative
– It can elicit the less apparent (latent)
– Describe associations as well as correlations of variables
– Comparative significant differences between samples
Example:
It was reported in a finance media that Islamic retail banking institutions
performance are significantly lower compared to conventional banking
institutions. As part of central bank supervision research team your are
commissioned to conduct research on attribution analysis of Islamic bank
customers based on their credit rating data and criteria as well as other bank
characteristics that correlate to the performance.

Instruction: Attempt to formulate research objectives and research questions for

the above scenario
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 Types of Research Objectives and Questions
• Causal research is relevant when the researcher is confounded with the need to delineate one or
more factors that are causing the problem (as defined in the problem statement). The causal
relationship is established based on the following conditions:
– Independent and dependent variable should covary
– Independent variable (causal factor) should precede the dependent variable
– No other factor should be possible cause of the change in the dependent variable
– Logical explanation (theory) needed to explain the independent affecting the dependent
variable.
• Due to time sequence or other controlling factor, experimental design or co-integration are used to
establish causal relationships.

Example:
In the Board of Directors Audit committee meeting, the chief internal auditor
(CIA) expressed concern on the weaknesses of the Internal control system
which resulted in bank failure to ensure Shariah compliant transactions. The
Chief Shari’ah Officer however attributed to lacking of qualified personnel in the
Islamic product development team currently supported by Shari’ah unit. This
phenomenon is apparent across several Islamic banking subsidiaries and you
are assigned to undertake a pilot research.

Instruction: Attempt to formulate research objectives and research questions for

the above scenario
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