Applied Research

Methods
Dr. Sahar Awan

SESSION 4: THEORETICAL FRAMEWORK & HYPOTHESIS

DEVELOPMENT
Theoretical Framework
• Beliefs on how certain phenomena (or variables or concepts) are
related to each other (model)

• Explanation of why you believe these variables are associated to

each other (theory)
Variables
Types of variables
• Dependent variable
• Independent variable
• Moderating variable
• Mediating variable
Examples (DV & IV)
A marketing manager believes that limiting the availability of a product
increases product desirability.

Research studies indicate that successful new product development has an

influence on the stock market price of the company.

Cross‐cultural research indicates that managerial values govern the power

distance between superiors and subordinates.
Examples (DV & IV)
An investor believes that more information increases the accuracy of his
forecasts.

It has been found that there is a relationship between the availability of

reference manuals that manufacturing employees have access to and the
product rejects.
Hypothesis development
• Formats
• If … then

• Directional & non-directional

• Relationship between variables
• Group comparison
Class exercise
A store manager observes that the morale of employees in
her supermarket is low. She thinks that if their working
conditions are improved, pay scales raised, and the vacation
benefits made more attractive, the morale will be boosted.
She doubts, however, if an increase in pay scales would raise
the morale of all employees. Her conjecture is that those
who have supplemental incomes will just not be “turned
on” by higher pay, and only those without side incomes will
be happy with increased pay, with a resultant boost in
morale.
 Class exercise
Concerned about her current customer base, manager Andersen started to
think of factors that might affect the attractiveness of an auditing firm. Of
course, the service quality provided and the fees charged by the auditor seem
two important factors. Next, she decides that the reputation of the auditing
firm also needs to be included in the framework as an independent variable. As
illustrated by the dramatic effects of recent auditing scandals, reputation seems
especially important for large auditors (i.e., auditing firms that are large in size).
Finally, manager Andersen also thinks that the proximity of the auditing firm to
the customer is another variable to be included as an independent variable.
Proximity very likely affects the possibility for the client to personally meet with
the auditors on a regular basis and she knows from her own contact with
customers that they perceive personal interactions as quite important.
Null and Alternative Hypothesis
• Hypothesis ---- falsifiable
• Example
• Men are paid more than women
• Null: ?
• Alternative: ?