CHAPTER 4

THE RESEARCH PROCESS -

THEORETICAL FRAMEWORK &
HYPOTHESIS DEVELOPMENT

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 THEORETICAL FRAMEWORK
• A theoretical framework represents your
beliefs on how certain phenomena (or
variables or concepts) are related to each
other (a model) and an explanation on why
you believe that these variables are associated
to each other (a theory).

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 THEORETICAL FRAMEWORK
• Basic steps:
– Identify and label the variables correctly
– State the relationships among the
variables: formulate hypotheses
– Explain how or why you expect these
relationships

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 VARIABLE
• Any concept or construct that varies or
changes in value

• Main types of variables:

– Dependent variable
– Independent variable
– Moderating variable
– Mediating variable

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 (IN)DEPENDENT VARIABLES

• Dependent variable (DV)

– Is of primary interest to the researcher. The goal of
the research project is to understand, predict or
explain the variability of this variable.

• Independent variable (IV)

– Influences the DV in either positive or negative
way. The variance in the DV is accounted for by
the IV.
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 EXAMPLE
Cross-cultural research indicates that managerial values
govern the power distance between superiors and
subordinates. Here, power distance is the subject of
interest and hence the dependent variables. Managerial
values that explain the variance in power distance
comprise the independent variable.

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 MODERATING VARIABLES
• One that has a strong contingent effect on the
independent variable dependent variable
relationship.
• The present modifies the original relationship
between the independent and the dependent
variables.

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 EXAMPLES
• It has been found that there is a relationship
between the availability of reference manuals that
the manufacturing employees have access to, and
the product rejects.
• When workers follow the procedures laid down in
the manual, they are able to manufacture products
that are flawless.
• Those who have interest and urge to refer to
manual will produce flawless product.

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 MODERATORS
 Moderating variable

Moderator is qualitative
(e.g., gender, race, class)
or quantitative (e.g., level
of reward) variable that
affects the direction
and/or strength of
relation between
independent and
dependent variable.

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 MEDIATING VARIABLE
 Intervening variables
 Surfaces between the time the independent
variables start operating to influence the
dependent variable and the time their impact
is felt on it.
 Help to model a process.
 Help to conceptualize and explain the
influence of the independent variable on the
dependent variables.

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 EXAMPLES
• Where workforce diversity (IV) influences the
organizational effectiveness (DV), the mediating
variable that surfaces as a function of the
diversity in the workforce is “creative synergy”.
• “Creative synergy” results from a multiethnic,
multiracial, and multinational workforce
interacting and bringing together their
multifaceted expertise in problem solving.

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Diagram of the relationship among the independent, mediating, moderating and
dependent variables.
Time: t1 t2 t3
CREATIVE
ORGANIZATIONAL
WORKFORCE SYNERGY
EFFECTIVENESS
DIVERSITY (Mediating (DV)
(IV) Variables)

MANAGERIAL
EXPERTISE
(Moderating
Variable)

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 HYPOTHESIS
 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
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 EXERCISE
Give the hypotheses for the following framework:

Customer
Service quality
switching

Switching cost

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 EXERCISE
Give the hypotheses for the following framework:

Customer satisfaction Customer

Service quality
switching

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 ARGUMENTATION
• The expected relationships / hypotheses are
an integration of:
– Exploratory research
– Common sense and logical reasoning

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