BUSINESS RESEARCH

METHODS
BY
Dr.Tnsue Gebrekidan(PHD)
E-mail: g.tnsue@yahoo.com
 Introduce yourself
2

Name
Educational background
Experience
3

GROUND RULES
 Your expectations
4

 What do you hope to achieve by taking

this course?
 Course Code: MBA 552/ACFN 513
 Credit Hours: 3 hrs
 Prerequisite: none
 Course Description:
5

This course is a combination of quantitative

techniques and business research. It develops
mathematical and statistical frameworks for dealing
with business administration. The course also deals
with solving business problems via research. The
Business research part focuses on the use of business
data, its operations and problems, to measure and
suggest solutions, through the application of
statistical and other tests.
 Course Objective:
6

The objective of this course is to equip students with

mathematical and statistical skills for solving
business problems and help them understand the
principles of scientific business research methods and
their application in real life business environment.
Moreover, students will be exposed how to develop
thesis proposal.
 Course Contents:
7

 Chapter1: Research Process

Meaning of Research
Objectives of Research
Motivation in Research
Types of Research
Research Approaches
Significance of Research
Research Methods versus Methodology
Research and Scientific Method
Research Process
Translating Business Problems to Research problems
Preparation of Research Proposal
 Cont…
8

Chapter 2: Hypothesis
2.1. What is a Hypothesis?
2.2. Basic Concepts Concerning Testing of Hypotheses
2.3. Procedure for Hypothesis Testing
2.4 Characteristics, Types and Sources of hypothesis
2.5. Tests of Hypotheses
2.6. Limitations of the Tests of Hypotheses
2.7. Hypothesis Testing for Differences between Means
2.8. Hypothesis Testing for Comparing Two Related Samples
2.9. Hypothesis Testing of Proportions
2.10. Hypothesis Testing for Difference between Proportions
2.11. Testing the Equality of Variances of Two Normal Populations
2.12. Hypothesis Testing of Correlation Coefficients
2.13. Testing Hypothesis by applying Z, T. and X 2 tests, standard errors of estimate
2.14. Bavarians Analysis including testing the significance of differences
 Cont…
9

Chapter 3- Research Design (planning of research

project)
3.1. Meaning of Research Design
3.2. Important Concepts Concerning Research Design
3.3. Features of Research Design
3.4. Forms of Research Design
3.4.1. Research Design for Non-experimental Research
3.4.2. Research Design for Experimental Research
3.4.3. Case study design
 Cont…
10

 Chapter 4: Sources and Methods of Data Collection

 4.1. Methods of Data Collection
 4.2. Collection of Primary Data
 4.3. Observation Method
 4.4. Interview Method
 4.5. Collection of Data through Questionnaires
 4.6. Collection of Data through Schedules
 4.7. Difference between Questionnaires and Schedules
 4.8. Measurement and scaling concepts
 4.9. Attitude Measurement
 4.10. Sampling Techniques; procedure, design and determination of
sample size including central limit theorem and confidence limits
 Cont…
11

 Chapter 5: Analyses and Interpretation of Data and

Reporting
 5.1. Processing Operations
 5.2. Some Problems in Processing
 5.3. Elements/Types of Analysis
 5.4. Statistics in Research
 5.5. Editing coding and Precautions while interpreting results
 5.6. Basic Data Analysis: Descriptive statistics
 5.7. Essentials of a good research report
 5.8. Scientific Paper writing
 Cont…
12

 Chapter 6: Quantitative Techniques:

an Overview
Probability Distribution
Expected Returns
Measures of Dispersion and Tendency
Normal and Lognormal Distributions
Descriptive and Multivariate statistics
Matrices
 Cont…
13

 Chapter 7: Time series analysis and Panel Data Analysis

Asset Prices and Random Walks
Smoothing, Trends and Seasonality
Regression estimation and Model Diagnosis
Panel Data Analysis
Modeling
Fixed and Random Effects and Model Diagnosis
Analysis of Variance and Covariance
Analysis of Variance (ANOVA)
What is ANOVA?
The Basic Principle of ANOVA
ANOVA Technique, Two-way ANOVA and ANOVA in Latin-Square Design
Analysis of Co-variance (ANOCOVA)
Chi-square as a Test for Comparing Variance, Chi-square as a Non-parametric Test
Multivariate Analysis Techniques, Growth of Multivariate Techniques
Characteristics and Applications and Classification of Multivariate Techniques
 Teaching/learning methods
14

 Article review
 Lecture
 Group discussion
 Seminar review
 Debates and Discussions
 Proposal presentations
 Assessment
15

 Developing proposal 30%

 Article review (individual) 20%
 Final examination 50%
 Reading Materials
1. Creswell, J. W. (2009). Quantitative, Qualitative and
Mixed Method Research Design. Thousand Oaks, CA: Sage.
2. William G.Zikmund; “Business Research Methods”,
Dryden Press, New York, 1994
16

 Please excuse me if you have heard this African proverb too

many times before, but I felt it was particularly appropriate
given the importance of this address. It goes something like
this.....

 "Every morning in Africa, a gazelle wakes up. It knows it

must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up. It knows it must outrun the
slowest gazelle or it will starve to death. It does not matter
whether you are a lion or a gazelle. When the sun comes up,
you better start running.... and fast!!".
17
18
 Chapter1: Research Process
19

 Research is……
Knowledge acquisition gained
through reasoning
through intuition
but most importantly through the use of
appropriate methods
20

 Science is an enterprise dedicated to "finding out" no matter what you

want to find out.
 There are likely many ways of finding out.
 Suppose, for example, that you want to find out whether Abay
automobile is a good car for you. You could buy one and find out that
way. You could talk to Abay automobile owners, or talk to people who
considered buying one but didn't buy any. You could read newspapers or
consumer magazines evaluating Abay automobile.
 The same situation occurs in scientific inquiry. That is, scientific inquiry
comes down into making observations and interpreting what you have
observed. Before you can observe and analyze, however, you need a
plan. You need to determine what you are going to observe and analyze,
why and how.
21

 Research in common parlance refers to a search for

knowledge.
 One can also define research as a scientific and systematic
search for pertinent information on a specific topic.
 In fact, research is an art of scientific investigation.
 Dictionary: “a careful investigation or inquiry specially
through search for new facts in any branch of knowledge.”
 Redman and Mory: a “systematized effort to gain new
knowledge.”
 Some people consider research as a movement, a movement
from the known to the unknown.
 Scientific research is a systematic attempt
to obtain answers to meaningful questions
about phenomena;
 Scientific research follows a set of
protocols and established structures.
23

 Objectives of Research:
i. To gain familiarity with a phenomenon or achieve new
insights into it
ii. To portray/describe the characteristics of a particular
individual, situation or group
iii. To determine the frequency with which something occurs
or with which it is associated with something else
iv. To test a hypothesis of a causal relationship between
variables
v. To predict the future effects of a phenomenon or action
 Significance/importance of research
24

• It adds to our knowledge. It produces knowledge

which could be used for the solution of problems as
well as for the generation of universal theories,
principles and laws. It addresses gaps in knowledge,
expands or replicate knowledge or adds voices of
individuals to knowledge.
• It helps improve practice. It has the significance of
solving various operational and planning problems;
provides the needed information that guides the
planners to make informed decisions to successfully deal
with the problem, etc.
 Significance (continued...)
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 It helps inform policy debates. It

provides the basis for government and economic
policies
 Research allows people to weigh different
perspectives on issues.
 Research enables people to make informed
decisions regarding policy . E.g. Encouraging
saving interest rate policy
 Motivation of doing research
26

What makes people to undertake research? This is a

question of fundamental importance. The possible motives for
doing research may be either one or more of the following:
1. Desire to get a research degree along with its consequential
benefits;
2. Desire to face the challenge in solving the unsolved
problems, i.e., concern over practical problems initiates
research;
3. Desire to get intellectual joy of doing some creative work;
4. Desire to be of service to society;
5. Desire to get respectability.
 TYPES OF RESEARCH
27

Generally, research can be classified on the basis

of the following traits: Outcome of the research,
time it takes, purpose, required data, setting, and
required logical approach.
1. On the basis of the outcomes of research
Whether the research tries to solve a particular
problem or makes a general contribution to the
knowledge, research can be classified as fundamental
or applied.
 Types of research (continued...)
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A. Fundamental research (academic)

Fundamental research also known as pure research or
basic research is concerned with the development of
theoretical frame for a particular phenomenon for which
so far no generalized principles are available.
It aims at solving puzzling problems or questions of a
theoretical nature that have little direct impact on
activities, performance or policy decisions. This type of
research is aimed at generalizations and formulation of a
theory and directed towards finding information that has a
broad base of applications.
 Types of research (continued...)
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Basic research advances fundamental knowledge about

the human world.
It focuses on refuting or supporting theories that
explain how this world operates, what makes things
happen, and why social relations are operating a certain
way .
It is the source of most new scientific ideas and
ways of thinking about the world.
It can be exploratory, descriptive, or explanatory;
however, explanatory research is the most common.
 Types of research (continued...)
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B. Applied research
It aims at finding solutions for the problems that
demand immediate solution or permanent answers.
The most important aim of applied research is to
find out a solution for some pressing practical
problems or guiding a specific decision.
In all private/public sector organizations, the
managers are often demanded to find solutions to
various problems so as to make appropriate decisions.
 Types of research (continued...)
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Applied researchers try to solve specific policy

problems or help practitioners accomplish tasks.
Theory is less central to them than seeking a
solution on a specific problem for a limited
setting.
Applied research is frequently a descriptive
research, and its main strength is its immediate
practical use. It is conducted when decision
must be made about a specific real-life problem.
 Types of research (continued...)
32

The procedures and techniques utilized by basic

and applied researchers do not differ substantially.
Both employ the scientific method to answer the
questions at hand.
Whilst the scientific community is the primary
consumer of basic research, the consumers of
applied research findings are practitioners (such as
teachers, counselors, and caseworkers,) or
decision makers (such as managers, committees,
and officials).
 Types of research (continued...)
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Types of Applied Research: Practitioners use several types of

applied research. Some of the major ones are:
1. Action research:
o It is a research that treats knowledge as a form of power
and abolishes the line between research and social action.
o It assumes that knowledge develops from experience,
particularly the experience of social-political action.
o They also assume that ordinary people can become aware
of conditions and learn to take actions that can bring
about improvement.
Types of action research designs

Action Research

Practical Participatory

•Studying local practices •Studying social issues

Involving individual or team- that constrain individual lives
based inquiry •Emphasizing equal
•Focusing on teacher development and collaboration
student learning •Focusing on “life-enhancing
•Implementing a plan of action changes”
•Leading to the teacher-as-researcher •Resulting in the emancipated
researcher
 Types of research (continued...)
35

2. Impact Assessment Research

Its purpose is to estimate the likely consequences
of a planned change.
Such an assessment is used for planning and
making choices among alternative policies
 to make an impact assessment of Ethiopian Renaissance
Dam on the environment;
 to determine changes in city plan of Addis Ababa as a
result of the major new highways and railways built.
 Types of research (continued...)
36

3. Evaluation Research (formative or summative)

o It is the process of establishing value
judgment based on evidence about the
achievement of the goals of a program.
o Evaluation research measures the effectiveness
of a program, policy, or way of doing
something. “Did the program work?” “Did it
achieve its objectives?”
 Types of research (continued...)
37

On the basis of purpose

On the basis of the underlying reason for which it is
conducted, research can be exploratory, descriptive,
explanatory/analytical or predictive.
A. Exploratory research/preliminary research
It is conducted with a view to clarify and define the
existence and nature of a problem. It could be single time
exercise or series of studies carried out by the researcher
to understand the depth and width of the problem. It
provides the basic information relating to the subject matter
of the study .
 Types of research (continued...)
38

Exploratory studies are meant to provide quantitative or

qualitative or combined scenarios. In these studies, three inter-
related activities such as
a. Diagnosing a situation
b. Scanning the alternatives and
c. Discovering new ideas exist.
It focuses on the development of hypotheses rather than
their testing. Exploratory research has the goal of
formulating problems more precisely, clarifying concepts,
gathering explanations, gaining insight, eliminating
impractical ideas, and forming hypotheses.
 Types of research (continued...)
39
 Types of research (continued...)
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 Types of research (continued...)
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 Types of research (continued...)
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 Types of research (continued...)
43
 Types of research (continued...)
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D. Predictive research
o It goes explaining why and how things happened.
o It has its roots in the ability to “Predict” what might happen.
These analytics are about understanding the future
o It predicts (forecast) the possibility /probability of happening in
similar situation in the future.
o It provides companies with actionable insights based on data,
and provides estimates about the likelihood of a future outcome.
Since, there is no statistical algorithm which can “predict” the
future with 100% certainty, it is just based on probabilities.
 Types of research (continued...)
45

On the basis of data of research (research approach)

On the basis of data used in the research process:
A. Quantitative research
It aims at measurement of a phenomenon. It is based on the
measurement of quantity/amount. It could take the form of
non-experimental (mere descriptive), experimental, Quasi-
experimental/inferential, and simulation.
B. Qualitative research
It aims at finding out how people feel or what they think
about a particular subject or institution. E.g. Attitude of
students towards the services of Admas University
 QuaN
Qua Ntitative
titativevs. QuaLLitative
vs.Qua itative
46

Quantitative Qualitative
 Types of research (continued...)
47

C. Mixed research
 It involves both aspects of quantitative and
qualitative researches, which are mixed out
of the need for triangulation, corroboration, or
expansion of the range of inquiry (depth and
breadth).
 This method requires the adoption of a clear
mixed method strategy
 Types of research (continued...)
48

4. On the basis of the setting

On the basis of the setting/environment it can be classified as:
A. Field research:
It is carried out in the field, which is common in social
science, agricultural science, history and archeology .
B. Laboratory research:
It is carried out in the laboratory, which is commonly
experimental in nature. In this case, one or more variables
are manipulated under conditions, which permit the collection
of data, which show the effects. Experiments are artificial in
the sense that the situations are created for testing purposes.
 Types of research (continued...)
49

C. Simulation research
 Such researches use models that are meant to
represent the real world, which is common in
physical science, economics and mathematics.
 An artificial environment is constructed to see
the dynamic behavior of a system or its sub-
systems. Computable General Equilibrium Model
is a specific example of simulation models
applicable to economics.
 Types of research (continued...)
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 Types of research (continued...)
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 Types of research (continued...)
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 Types of research (continued...)
53

6. On the basis of logic

On this basis of the logical approach it follows, research can
take two forms: inductive or deductive.
A. Inductive
It relies on the empirical verification of a general conclusion
derivable from a finite number of observations. If an event
repeats itself enough times, then it can be concluded that the
event will continue to occur, ceteris paribus. It operates from
the specific to the general. Observation reveals patterns or
trends in a specific variable of interest and these are then used to
formulate a general theory of the nature and behavior.
 Types of research (continued...)
54
 The Deductive
Approach:
THEORY Works from more general
to the more specific
HYPOTHESI Sometimes informally
called a “top-down”
S
approach
OBSERVATIO Conclusion follows
logically from premises
N
(available facts)
CONFIRMATI
Waterfall ON
 THEORY
The Inductive
TENTATIVEHYPOT
Approach:
HESIS
•Works from more
specific to the more
OBSERVATIO
general/broader
generalizations and N
theories
•Sometimes informallyCONFIRMATI
Hill Climbing
called a “bottom-up” ON
approach
•Involves a degree
of uncertainty
 Research Approaches
57

On the basis of a given research paradigm and

assumptions, a researcher may choose either
of the following research approaches:
Quantitative, qualitative, and mixed approaches.
To choose one approach over another, three
considerations play into this decision: the
research problem, the personal experiences of
the researcher, and the audience(s) for whom
the report will be written.
 Research Approaches…
58

Quantitative Research
It usually involves collecting and converting data
into numerical form so that statistical calculations
can be made and conclusions are drawn.
Researchers will have some hypotheses that they
want to address which include predictions about
possible relationships between the things they want
to investigate (variables).
 Research Approaches…Quantitative Research
59
 Research Approaches…Quantitative Research
60

The ability of researchers to make valid causal inferences is

determined by the type of research designs they use. E.g.
Correlational research does not permit researchers to make
causal inferences regarding the relationship between the
two things that are correlated. By contrast, a randomized
controlled study, permits researchers to make valid cause-
and-effect inferences. There are three prerequisites for
drawing an inference of causality between two events.
 Research Approaches…Quantitative Research
61

o First, there must be a relationship (i.e., a correlation) between

the two events. In other words, the events must co-vary .
o Second, one event (the cause) must precede the other event
(the effect)--a time-order relationship .
o Third, alternative explanations for the observed relationship
must be ruled out. Stated another way, a causal explanation
between two events can be accepted only when other possible
causes of the observed relationship have been ruled out.
 Research Approaches…Quantitative Research
62

Objectivity is very important in quantitative research.

Consequently, researchers take great care to avoid their own
presence, behavior or attitude affecting the results. They
also critically examine their methods and conclusions for
any possible bias (tend to ensure that they are really
measuring what they claim to be measuring). External factors
must also be controlled for . Some possible contributing
factors cannot always be ruled out but should be
acknowledged by the researchers.
 Research Approaches…
63

 Qualitative Research:
• Applied to quality or kind to describe the underlying motives of
human behaviour.
• Concerned with subjective assessment of attitudes, opinions and
behaviour.
• Involves the researcher’s insights and impressions (judgements)
• Result is either in non-quantitative form or in forms that are not
subjected to rigorous quantitative analysis.
 Research Approaches…Qualitative Research
64

 The approach to data collection and analysis is methodical

but allows for greater flexibility than in quantitative
research. Data is collected in textual form on the basis of
observation and interaction with the participants.
 The researchers may interview or observe a set number of
people. In other cases, the process of data collection &
analysis may continue until the researchers find that no new
issues are emerging.
 Research Approaches…Qualitative Research
65

The design of qualitative research may take the following forms:

Narratives -exploring individual stories to describe the lives of
people;
Phenomenology -exploring individual experiences to describe the
essence of phenomenon;
Grounded theory -exploring common experience of individuals to
develop a theory/model;
Ethnography -exploring the shared culture of a group of people and
Case studies -exploring a system of individual to describe a case.
 Research Approaches…Mixed methods
66

A mixed methods approach is one in which the researcher

tends to base knowledge claims on pragmatic grounds (e.g.,
consequence-oriented, problem-centered, and pluralistic).
It employs strategies of inquiry that involve collecting data
either simultaneously or sequentially to best understand
research problems.
It is a research design with philosophical assumptions (goes
with pragmatism) as well as methods of inquiry .
 Research Approaches…Mixed methods
67

This approaches has the advantage of enabling triangulation, which

involves the following four possibilities:
1. The use of a variety of data sources (data triangulation).
2. The use of several different researchers (investigation
triangulation).
3. The use of multiple perspectives to interpret the results (theory
triangulation).
4. The use of multiple methods to study a research problem
(methodological triangulation).
 Research Approaches…Mixed methods
68

There are four major decisions that go into selecting a mixed

methods strategy of inquiry:
o What is the implementation sequence (sequential or
concurrent) of the data collection in the proposed study?
o What priority (equal or differentiated) will be given to the
quantitative and qualitative data collection and analysis?
o At what stage in the research process they shall be integrated
(analysis or interpretation)?
o Will an overall theoretical perspective (optional or mandatory?)
 Research and Scientific method
69

 Research methodology and technique are mostly different

from one science to another or can be different from
research to research.
 The philosophy common to all research methodology and
technique is called Scientific methods.
The Scientific Method

Direct
Direct observation
observation

Clearly
Clearly defined
defined variables
variables

Clearly
Clearly defined
defined methods
methods

Empirically
Empirically testable
testable

Elimination
Elimination of
of alternatives
alternatives

Statistical
Statistical justification
justification

Self-correcting
Self-correcting process
process