Business Research

Methodologies

Chapter One & Two

Uma Sekaran 7th.ed., 2020 -2021
By Dr. Mohammad Al-masarweh
Second Semester 2020-2021
 Chapter 1
Introduction To Research
? What Is Research *
. Business Research *
. Types of Business Research : Applied and Basic *
. Managers and Research *
. The Manager and the Consultant- Researcher *
. Internal versus External Consultants/ Researcher *
. Knowledge About Research and Managerial Effectiveness*
. Ethics and Business Research *
. Summary *
Chapter Learning Objectives:
After completing Chapter 1 you should be able to :

1. Describe what research is and how it is defined .

2. Distinguish between applied and basic research, giving examples, and
discussing why they would fall into one or the other of the two categories .
3. Explain why managers should know about research .
4. Discuss what managers should and should not do in order to interact most
effectively with researchers .
5. Identify and fully discuss specific situations in which a manager would be
better off using an internal research team, and when an external research
team would be more advisable, giving reasons for the decisions.
6. discuss what research means to you and describe how you, as manager,
might apply the knowledge gained about research.
.7. Be aware of the role of ethics in business research
? What is the problem of Mr. Orlando’s company
-------------------
. Market stock price decline of about 72% -1
Quarterly loss of $206 M a total of 8 Billion on -2
sales
. Fauilor of the advertising agency-3
. Law suit of discrimination-4
-------------------
. Down turn of industry trend-1
. Economy recession-2
. Idle capacity-3
: He suggested some questions and ideas
? How can efficiency and productivity increased-1
How can he allocate more capital by take stock of-2
? intangible asset
Assessing whether the current car models appeal-3
? sufficiently to the new rich
? Should he cut the advertising budget-4
? How can he increase gas mileage-5
? How can he improve marketing-6
?Is it suitable for him to take salary raise-7
This manager feels that many important decision should
be taken and executed but only after a thorough
. investigation and applying a scientific research
? What is Research
Simply : is the process of finding solution to a problem after
. a thorough study and analysis of the situational factors
. A good research should help you make a good decision

? What does a good decision need

. To identify the problem accurately-1
Recongnize the relevant factors that compose the problem-2
. To gather the right type of information-3
. To draw appropriate conclusions-4
To know how to implement the result and solve the-5
. problem
: Research Definition
An organized , systematic , data-based , critical
objective , scientific inquiry into a specific problem
undertaken with the purpose of finding answers or
. solution to it

: Business Research Described

A systemic and organized effort to investigate a
specific problem encountered in the work setting ,
that needs a solution .( See page 6 for some
.commonly researched areas in business)
Inquiry Investigation Examination Experimentation
: Types of Business Research
? Which comes first the basic research or applied research
: Applied Research
When the purpose is to solve a current problem faced by the manager
in the work setting , demanding a timely solution . This research
. called Applied Research
: Basic-Fundamental-Pure Research
When the purpose is to generate a body of knowledge by trying to
comprehend how certain problem that occur in organizations can be
. solved , and to build theories based on the research results
]Sandra case p.9[
Do the different types of research follow the same steps of systematic
?inquiry to arrive at solution to problem
Yes , but applied research could have a shorter time frame than some
. basic research
T.F. The knowledge generated from basic research is often applied
. later for solving organization problems
: Managers and Research
Any manager have to understand , predict and control events that are dysfunctional to
. the org
T.F. As a manager you will probably be bringing in researchers to solve problems
instead of doing the research yourself , so there is no need to bother to study about
. research

. Why professional managers need to know about research methods

Knowledge of research and problem-solving processes helps managers to identify -1
. problem situations before they get out of control
. They can interact effectively with outside researchers-2
Knowledge about research helps managers to become discriminating of research -3
. findings
It helps managers to determine whether or not the recommended solutions are -4
. appropriate for implementation
. They will be more discriminating while shifting through business journal-5
Managers can handle their own problems at a considerable cost saving by studying -6
.the results of good published research
Take calculated risk in decision making knowing full well probabilities associated -7
.with the different possible outcomes
.Prevent possible vested interests from exercising their influence -8
 Manager-Consultant Relationship
)outside consultant , students , professors(
When the manager is knowledgeable about research, then the
inter action with the researcher become more meaning full
. ,purposeful and beneficial

: When hiring an outside researcher , the manager should

. Interact effectively with research team-1
Delinate the roles for researchers and the management-2
. and constrains
Informe the researchers what type of information could be-3
. provided or not for them
. Make sure there is a congruence in the value system-4
 Internal Consultant
It is a department serves as the internal consultant to other
units in the Org. (P.15)

: Advantages
. Readly accepted by the employees-1
. Less time to understand the internal environment of the Org-2
The team will be available for implementing their-3
. recommendation
. Less cost compared with external-4
 Disadvantages
.Inhibit any fresh ideas to solve problems -1
.Certain vested interests could dominate -2
Recommendations may not get the consideration -3
and attention they deserve, they perceived by “not
.”expert
.Findings maybe bised by the team -4
 External Consultant
Advantages (P. 13)
Own a wealth of experience from having worked with -1
.different types of orgs
They have more knowledge of current sophisticated -2
problem-solving models through their periodic training
.programs
:Disadvantages
.The cost of hiring an external research team is high -1
The external team need considerable time to understand -2
.the organization to be researched
They charge additional fees for their assistance in the -3
.implementation and evaluation phases
If the problem is complex or if there are likely to be
. vested interest, it will be advisable to use (Fill in the space………)

Ethics and Business Research

Refers to a code of conduct, or expected societal norms of
.behavior while conducting research

)Answer some end of chapter questions(

 Chapter 2
Scientific Investigation
. The Hallmarks of Scientific Research *
Some Obstacles to Conducting Scientific *
. Research in the Management Area
. The Building Blocks of Science in Research *
. The Hypothetico-Deductive Method *
. Other Types of Research *
. Summary *
 Chapter 2
Scientific Investigation
Scientific Research focuses on avoiding; minimizing and
solving problems and pursues a step-by-step logical,
organized methods to identify the problems, gather data,
.analyze them and draw valid conclusions
T.F. Scientific investigation and managerial decision
.making are integral part of effective problem solving
Does the scientific research apply to: basic or applied
? research
T.F. Applied research may or may not be generalizable to
.other orgs
 The Hallmarks of scientific research. (Employee commitment example)
:Purposiveness -1
Every scientific research should have a definite aim or
purpose. Why? Because the results and conclusions will
help in problem solving.
Rigor -2
Connotes carefulness, and the degree of exactitude, it
involves a good theoretical base and a carefully though-out
methodology. You can’t ask 10-12 employees to indicate
.what would increase their level of commitment
Testability ( of what?)-3
To see whether or not the data support the educated
.hypotheses or not by using many statistical tests
 Replicability -4
The results after testing the hypothesis should be supported
again and again when the same type of research is repeated
.in other similar circumstances , or orgs
Precision and Confidence -5
:Precision
Refers to the closeness of the findings to the reality based
. on a sample
:Confidence
Refers to the probability that the estimations are correct. In
.business 95% probability is fine
T.F. The narrower the limits within which we can estimate
the range of our predictions the more precise our findings.
.( 30-40) is better than ( 20-50) estimations
 Objectivity -6
The Conclusions should be drawn through the
interpretation of the results and further, it should be
based on the facts of the findings derived from
.actual data
Generalizability -7
Refers to scope of applicability of the research
findings in one organizational setting to other
.settings
For wider generalizability, the research sampling
design has to be logically developed, but with extra
.costs
.The generalizability of applied research is restricted
Parsimony-8
Simplicity in explaining the phenomena that occur,
.and in generating solution for the problem
Economy in research models is achieved when
lesser number of variables are included foe cost
.wise and effort

Some obstacles in conducting scientific research in

the management area is quantifying human behavior
.or gathering data from a representative sample
 The Hypothetico – Deductive method
Identify a broad problem area -1
The researcher (manager) senses or observe some changes or new
.behavior, attitudes, or feelings in the work place
Define the problem statement -2
A problem statement that states the general variables and objectives
of the research should be developed. By seeking of information in
depth of what is observed. By unstructured interviews or reading
some reports or by doing library research to make sure of the problem
.and associated factors
Developing Hypotheses ( Educated conjecture) Hypothesizing -3
A network of association identifies among the variables or factors is
then theoretically woven. With a justification as why the researcher
expects such an influence on the problem. This stage integrates all the
information in a logical manner, so that factors responsible for the
problem can be conceptualized and tested later, and to discover their
.contribution or influence on problem occurrence
.Hypotheses should be testable and falsifiable too
Determine Measures -4
The problem variables should be measured in some way to
test the hypotheses, in other words, variables should be
operationalized, especially for the intangible variables,
.such as commitment; attitudes; loyalty; morale…etc
Data collection -5
Data with respect to each variable in the hypothesis need to
be obtained through interview or questionnaire or
.observation, or from annual reports etc
Data analysis-6
By statistically analyzing the data collected in the
previous stage to see if the generated hypotheses
have been substantiated(supported; proved).
Statistical tests may include: SLR; MLR; T-tests; F-
tests; Chi-square….etc.
7- Interpretation of data
Decisions should be taken scientifically whether the Null or the
alternate hypotheses were supported, and what should that mean, in
other words, what we should deduce from the results, and based on
that we are able to make recommendations.

We shall read an example of the application of the hypothetico-

deductive method on page 24.

What is the difference between Deductive and Indective

reasoning?

:Deduction
Arriving at reasoned conclusion by logical generalization of a known
.fact
Example: we know that all high performer are proficient in their
jobs. If John is a high performer, we conclude that he is highly
.proficient in his job

:Induction
.Observe certain phenomena and on this basis arrive at conclusions
Example: We see that the production processes are the prime
features of factories, we conclude that factories exist for production
purposes.

Note please that when we talk about deduction we say hypotheses

testing , but when we talk about induction we say generating
hypotheses.

Lets read the example on page 29, then try at home to

answer some of end of chapter questions.
Have a good night