The Theoretical Framework &

Hypothesis Development

Research Methods BBA 4

Instructor: Ayesha Jamal
 Topics to be discussed
• The need for a theoretical framework

• Variables

• Theoretical framework

• Hypothesis Development
 Learning Objective
• Discuss the need for a theoretical framework in deductive research.

• Describe four main types of variables and identify and label variables
associated with any given situation.

• Develop a theoretical framework that includes all the relevant

components.

• Develop a set of hypotheses to be tested.

• Demonstrate awareness of the role of the manager in the development of

a theoretical framework.
 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 of why
you believe that these variables are associated
with each other (a theory).
 Theoretical Framework
• Defining Theoretical Framework

– It is a conceptual model of how one theorizes or

makes logical sense of the relationships among
the several factors that have been identified as
important to the problem
– It discusses the interrelationships among the
variables that are considered to be integral to the
dynamics of the situation being investigated
 Process of building a theoretical
framework
The process of building a theoretical framework
includes:
• Introducing definitions of the concepts or variables in
your model.
• Developing a conceptual model that provides a
descriptive representation of your theory.
• Coming up with a theory that provides an
explanation for relationships between the variables
in your model.
 Example

Recognition Bonus

Employee
Motivation

Overtime
 Variables
• Since theoretical framework is none other
than identifying the network of relationships
among the variables, understanding what a
variable means is critically important:
– A variable is anything that can take on differing or
varying values.
– The values can differ at various times for the same
variable, or at the same time for different
variables.
 Variables
• The four main types of variables are:
– The dependent variable (criterion variable)
– The independent variable (predictor variable)
– The moderating variable
– The intervening variable
• Variables can be discrete (eg. Male / Female)
or continuous (eg. The age of an individual)
 Variables
• Dependent Variable:
– The dependent variable is the variable of primary
interest to the researcher.
– The researcher’s goal is to understand and
describe the dependent variable , or to explain its
variability, or predict it.
Examples of dependent Variable

Debt to
Sales
equity Employee
Absenteeism
Employee Technology
turnover Acceptance

Organisati
Brand Customer
onal
Loyalty Loyalty
Loyalty
:Independent Variable Variables
It is the one that influences the dependent variable in either a positive or a negative
.way

.The variance in the dependent variable is accounted for by the independent variable –

The independent and the dependent variable should covary: in other words, a •
change in the dependent variable should be associated with a change in the
.independent variable

The independent variable (the presumed causal factor) should precede the .1
dependent variable. In other words, there must be a time sequence in which the
.two occur: the cause must occur before the effect

No other factor should be a possible cause of the change in the dependent .2

.variable. Hence, the researcher should control for the effects of other variables

A logical explanation (a theory) is needed and it must explain why the .3

.independent variable affects the dependent variable
Example
 Variables
• Moderating Variable:
– The moderating variable is one that has a strong
contingent effect on the independent variable-
dependent variable relationship.
 Variables
• Mediating /Intervening Variable:
– An intervening variable is one that surfaces
between the time the independent variable starts
operating to influence the dependent variable and
the time their impact is felt on it.
 Example

Workforce Creative Organizational

diversity synergy effectiveness
 Mediating Vs Moderating
– A research study indicates that the better the quality of the training
programs in an organization and the greater the growth needs of the
employees (i.e., where the need to develop and grow on the job is
strong), the greater is their willingness to learn new ways of doing
things.

– Another research study indicates that the willingness of the

employees to learn new ways of doing things is not influenced by the
quality of the training programs offered by the organizations to all
people without any distinction. Only those with high growth needs
seem to have the yearning to learn to do new things through
specialized training.

•  
Example
 Theoretical Framework
• Theoretical framework is a logically
developed, described, and elaborated
network of associations among the variables
deemed relevant to the problem and
identified earlier
• The relationship between the literature survey
and the theoretical framework is that the
former provides a solid foundation for
developing the latter
Components of Theoretical Framework
• The variables considered relevant to the study should be
clearly identified and labeled.
• The discussions should state how two or more variables are
related to one another.
• If the nature and direction of the relationships can be
theorized on the basis of previous research, then there should
be an indication in the discussions as to whether the
relationships would be positive or negative
• There should be a clear explanation of why we would expect
these relationships to exist
• A diagram of the theoretical framework should be given so
that the reader can easily comprehend the theorized
relationships
 Hypotheses Development
• Defining a Hypothesis:
– A hypothesis can be defined as a logically
conjectured relationship between two or more
variables expressed in the form of a testable
statement
• IF-THEN Statements:
– To examine whether or not the conjectured
relationships exist, the hypotheses can be set
either as propositions or in the form of If-Then
statements
 Hypotheses Development
• If, stating the relationship between two variables,
terms such as positive, negative, more than, less
than, and the like are used, then these hypotheses
are directional because the direction of the
relationship between the variables is being indicated
• On the other hand, non-directional hypotheses are
those that do postulate a relationship, but offer no
indication of the direction of these relationships
Examples
 Null and Alternate Hypotheses
• The null hypothesis is a proposition that states
a definitive, exact relationship between two
variables
• In general, the null statement is expressed as
no (significant) relationship between two
variables or no (significant) difference
between two groups
• The null hypothesis is formulated so that it can
be tested for possible rejection
 Null and Alternate Hypotheses
• The alternate hypothesis is a statement
expressing a relationship between two
variables or indicating difference between
groups
• If we reject the null hypothesis, then all
permissible alternative hypotheses relating to
the particular relationship tested could be
supported
 Null and Alternate Hypotheses
• Summarizing the steps in hypothesis testing:
– State the null and alternate hypotheses
– Choose the appropriate statistical test depending on data
collection
– Determine the level of significance desired
– See if the output results from computer analysis indicate
that the significance level is met
– When the resultant value is larger than the critical value,
the null hypothesis is rejected, and the alternate accepted.
If the calculated value is less, then the null hypothesis is
accepted and the alternate rejected