CHAPTER 1

INTRODUCTION TO
BUSINESS
RESEARCH
Research Methodology:
Tools, Methods and Techniques
 Learning
Learning Objectives
Objectives
Upon
Uponcompletion
completionof
ofthis
thischapter,
chapter,you
youshould
shouldbe
beable
ableto:
to:
 Describe
Describewhat
whatresearch
researchisisand
andhow
howititisisdefined
defined
 Distinguish
Distinguish between
between applied
applied and
and basic
basic research,
research, giving
giving examples,
examples, and
and
discuss
discusswhy
whythey
theywould
wouldfall
fallinto
intoone
oneor
orthe
theother
otherof
ofthe
thetwo
twocategories
categories
 Explain
Explainwhy
whymanagers
managersshould
shouldknow
knowabout
aboutresearch
research
 Identify
Identifythe
thedistinction
distinctionbetween
betweengood
goodresearch
researchand
andresearch
researchthat
thatfalls
fallsshort
short
of
ofprofessional
professionalquality
quality
 Identify
Identifythe
theways
waystotogenerate
generateresearch
researchideas
ideas

Research Methodology: Tools, Methods and Techniques 2

Table of Content
1.1 WHAT IS RESEARCH
1.2 BUSINESS RESEARCH
1.3 WHY CONDUCT RESEARCH
1.4 TYPES OF BUSINESS RESEARCH
1.5 QUANTITATIVE AND QUALITATIVE RESEARCH
1.6 SCIENTIFIC RESEARCH
1.7 ADVANTAGE OF SCIENTIFIC APPROACH
1.8 CHARACTERISTICS OF A GOOD RESEARCH
1.9 THE MANAGER-RESEARCHER RELATIONSHIP
1.10 MANAGERIAL VALUE OF BUSINESS RESEARCH
1.11 INTERNAL AND EXTERNAL CONSULTANT/RESEARCHER
112 WHEN IS BUSINESS RESEARCH NEEDED
1.13 20 WAYS OF GENERATING RESEARCH IDEAS FROM PREVIOUS RESEARCH
1.14 DEVELOPMENT OF THEORIES
Research Methodology: Tools, Methods and Techniques 3
 CHAPTER 1

1.1 WHAT IS RESEARCH

Research Methodology: Tools, Methods and Techniques 4

 Research is an objective and systematic
scientific inquiry or investigation into a
specific problem that needs a solution.
 Research is also a structured inquiry that
utilizes acceptable scientific methodology to
solve problems and creates new knowledge
that is generally applicable.

Research Methodology: Tools, Methods and Techniques 5

 CHAPTER 1

1.2 BUSINESS RESEARCH

Research Methodology: Tools, Methods and Techniques 6

 Business Research means “…the systematic
and objective process of gathering, recording,
and analysing data for aid in making business
decision”, or “...a systematic inquiry that
provides information to guide business
decisions”.
Example

Hilton Hotel would like to conduct a survey on measuring their service quality level. The
findings from this survey could help Hilton to further improve their customer service.

Research Methodology: Tools, Methods and Techniques 7

 CHAPTER 1

1.3 WHY CONDUCT RESEARCH

Research Methodology: Tools, Methods and Techniques 8

 To seek the truth
 To discover new knowledge
 To describe, explain and predict
 To provide solution to a problem
 To help in decision making

Research Methodology: Tools, Methods and Techniques 9

 CHAPTER 1

1.4 TYPES OF BUSINESS RESEARCH

Research Methodology: Tools, Methods and Techniques 10

1.4.1 Basic (pure) Research
 Research that is intended to expand the
boundaries of knowledge itself; conducted to
verify the acceptability of a given theory.
Example 1

You might be interested to know whether personal characteristics influence people’s

career choices.

Example 2

A university lecturer may be interested in investigating the factors that contribute to

students’ achievement motivation as a matter of mere academic interest.
Research Methodology: Tools, Methods and Techniques 11
1.4.2 Applied Research
 Research undertaken to answer a question
about a specific problem or to make decisions
about a particular course of action or policy
decision.
Example

A company enjoys RM500 million in sales and a 15 percent gross profit margin (before
taxes). Cost of materials is 60 percent of income from sales. The materials manager
believes that RM20 million can be saved through improved purchasing policies. A
research will be conducted in order to develop a new improved purchasing policy.

Research Methodology: Tools, Methods and Techniques 12

 Difference between Basic Research and Applied Research

  Criteria Basic Research Applied Research

To provide basic theoretical To provide practical application of the

1 Contribution
knowledge. result.

The selection of problem is within The selection of problem is within the

2 Problem area
the researchers’ prerogative. demand of the employers.

The quality of research is based The quality of research is based on the

3 Quality on the absolute norms of ability to address the problem with
scientific rigor. applicable solution.

The objectives are to improve or to solve

The objectives are to deliver
4 Purpose current issues or problem in and
information and knowledge.
organization or country.

Research Methodology: Tools, Methods and Techniques 13

 CHAPTER 1

1.5 QUANTITATIVE AND

QUALITATIVE RESEARCH

Research Methodology: Tools, Methods and Techniques 14

1.5.1 Quantitative Research
 It is a positivist form of enquiry that is
concerned with the search for facts using
objective measurement and statistical
analysis of numeric data to understand and
explain phenomena, and to guide practice and
policy.

Research Methodology: Tools, Methods and Techniques 15

1.5.2 Qualitative Research
 It is a research that is concerned with the
production of meaning. Instead of relying
solely on hard fact and figures, reliability
tests, and selective sampling of setting and
people, qualitative research take into account
what quantitative research neglects: subjective
points of view or the “inner life”; intended and
unintended consequences; idiosyncrasies;
and the like.
Research Methodology: Tools, Methods and Techniques 16
 Differences between Quantitative Research and Qualitative Research

  Quantitative Qualitative

To study relationship, cause and

Purpose To understand social phenomenon
effect

Design Developed prior to study Evolves during study

Approach Deductive; tests theory Inductive; generates theory

Tools Uses standardized instruments Uses face-to-face interaction

Sample Uses large samples Uses small samples

Narrative description and

Analysis Statistical analysis of numeric data
interpretation

Source: Ary, Jacobs & Razavieh, 2002. Introduction to Research in Education. 6 th ed. Belmont CA: Wadsworth
Research Methodology: Tools, Methods and Techniques 17
 CHAPTER 1

1.6 SCIENTIFIC RESEARCH

Research Methodology: Tools, Methods and Techniques 18

 Purposive
 Rigor
 Testability
 Replicable
 Precision and Confidence
 Objectivity
 Generalization
 Parsimony
Research Methodology: Tools, Methods and Techniques 19
 CHAPTER 1

1.7 ADVANTAGE OF SCIENTIFIC

APPROACH

Research Methodology: Tools, Methods and Techniques 20

1.7.1 The Traditional Model of Science
 Theory
 Operationalisation
 Observation

Research Methodology: Tools, Methods and Techniques 21

1.7.2 Deductive and Inductive Models
The inductive model
 Moves from the particular to the general, form a set of specific
observations to the discovery of a pattern representing some
degree of order. This is a model in which general principles are
developed from specific observations.

The deductive model

 Moves from the general to the specific, from a pattern that
might be logically or theoretically expected to observations
that test whether the expected pattern actually occurs. This is
a model in which specific expectations of hypotheses are
developed on the basis of general principles.
Research Methodology: Tools, Methods and Techniques 22
Relationship between the Inductive and Deductive Models

INDUCTION
Hypotheses Observation

Empirical
Theories
Generalisation
DEDUCTION

Research Methodology: Tools, Methods and Techniques 23

 CHAPTER 1

1.8 CHARACTERISTICS OF A GOOD

RESEARCH

Research Methodology: Tools, Methods and Techniques 24

1.8.1 Purpose Clearly Defined
 The research problem, research question and
research objective should be clearly stated
without any ambiguity.
 A researcher has to draw a clear
understanding between symptom of the
organization’s problem, the manager’s
perception of the problem and the research
problem.
Research Methodology: Tools, Methods and Techniques 25
1.8.2 Research Process Detailed
 Research process and procedures used
should be described in sufficient detail to
permit another researcher to repeat the
research. The researcher should provide a
complete proposal.

Research Methodology: Tools, Methods and Techniques 26

1.8.3 Well Planned Research
 The procedural research design should be
carefully planned to yield results that are as
objective as possible.
 The researcher should be knowledgeable in
research methodology which includes aspects
such as sampling procedures, data collection,
measurement of variables or instrumentation
and analysis of data.
Research Methodology: Tools, Methods and Techniques 27
1.8.4 Limitation of Research
 The researcher should report, all limitations of
research in terms of research design
procedures and estimate their effect on the
findings and conclusions.
 A competent researcher should be sensitive to
the effects of imperfect design, and his or her
experience in analysing the data should
provide a basis for estimating their influence.
Research Methodology: Tools, Methods and Techniques 28
1.8.5 Ethical Issues
 Ethical issues in research reflect the researcher’s
ability to be very transparent on the limitation of
the researcher and the accuracy in data handling.
 There should be no manipulation of data in order
to reflect desired findings. Furthermore, greater
confidence in the research is warranted if the
researcher is experienced, has a good reputation
in research, and is a person of integrity.

Research Methodology: Tools, Methods and Techniques 29

 CHAPTER 1

1.9 THE MANAGER-RESEARCHER

RELATIONSHIP

Research Methodology: Tools, Methods and Techniques 30

 Managers gather information
 Manager-researcher contribution to research
 Manager-researcher conflicts
 Decision-driven research

Research Methodology: Tools, Methods and Techniques 31

 CHAPTER 1

1.10 MANAGERIAL VALUE OF

BUSINESS RESEARCH

Research Methodology: Tools, Methods and Techniques 32

 Identifying problems and opportunities
 Diagnosis and assessment
 Selecting and implementing a course of
action
 Evaluating the course of action

Research Methodology: Tools, Methods and Techniques 33

 CHAPTER 1

1.11 INTERNAL AND EXTERNAL

CONSULTANT/RESEARCHER

Research Methodology: Tools, Methods and Techniques 34

 Advantages and Disadvantages of Internal and External Researcher
  Internal Researcher
 Researcher requires less time to have better
understanding on the background and nature of business
of the organization.
Advantages  Researchers will be available for implementing their
recommendations after their findings are accepted.
 Internal research team might cost less than an external
team.
 Research can be bias in their findings due to the fact they
are also an employee of the organization of study.
 Researchers might not be an expert in that particular area
Disadvantages
of study.
 There may be a conflict of interest in deriving to a
conclusive finding and recommendation.
Research Methodology: Tools, Methods and Techniques
External Researcher
 Researchers are free from any
form of biasness.
 Organization will have larger pool
of experience researcher from
external sources.
 External researchers are costlier
compared to internal researchers.
 More time is required by them to
understand the nature of the
problem and organization as well.
35
 CHAPTER 1

1.12 WHEN IS BUSINESS RESEARCH

NEEDED

Research Methodology: Tools, Methods and Techniques 36

 A manager faced with two or more possible
courses of action has to deal with the initial
decision of whether or not research should be
conducted.
1. Time Constraint
2. Availability of Data
3. Nature of the Decision
4. Benefit versus Costs
Research Methodology: Tools, Methods and Techniques 37
 CHAPTER 1

1.13 20 WAYS OF GENERATING

RESEARCH IDEAS FROM
PREVIOUS RESEARCH

Research Methodology: Tools, Methods and Techniques 38

1. Repeat studies/replication.
2. Repeat the study with a different
group of participants or under
different settings.
3. Look for factors that were not
controlled.
4. Use more realistic amounts of the
treatment factor.
5. Use more realistic stimulus materials.
6. Bridge fields and try to find a
practical implication of the research.
7. Look for patterns in conflicting
studies.
8. Look at long-term effects.
9. Repeat the study using a different
measure of the same construct.
Research Methodology: Tools, Methods and Techniques
10. Take advantage of "component"
11. Do a study suggest by the journal article's
author(s).
12. Look for situational factors that may
moderate the effect.
13. Reduce the effects of expectancies.
14. Uncover the functional relationship.
15. See if another factor would have the same
effect.
16. Look at the studies from a different level of
analysis.
17. Look for a factor's immediate relationship to
other variables.
18. Look for "down the road" effects.
19. Repeat the study with a more sensitive way
of detecting the effect.
20. Take advantage of measures of entirely new
concepts.
39
 CHAPTER 1

1.14 DEVELOPMENT OF THEORIES

Research Methodology: Tools, Methods and Techniques 40

 Theory may enter into a research study in the
following ways:
1. Suggesting into a problem for study.
2. Giving a hypothesis to be tested.
3. Providing a conceptual model for delimiting the scope of
the study.
4. Helping in the selection of variables or identification of
classes of data to be collected.
5. Making research findings intelligible.
Research Methodology: Tools, Methods and Techniques 41