Chapter 4 Developing Theoretical Framework

Business Research Methods All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2012 4– 1

PART 2
CHAPTER 4
Developing Theoretical
Framework
and Setting the Objectives

LEARNING OUTCOMES
After studying this chapter, you should be able to:

 Comprehend the need for a framework in the research
process
 Understand what the terms variables and constructs
mean and differentiate the different types of variables
 Describe the theory and theoretical framework and how
these two terms relate to each other
 Describe the concept and conceptual framework and
how these two terms relate to each other

LEARNING OUTCOMES (cont.)
 Know how to develop a theoretical framework

 Understand the importance and types of research
objectives and research questions
 Comprehend what is a hypothesis and how to
develop them

4.1 The Need for a Framework
 A research framework is the researcher’s

perspective on how the interrelated concepts and
variables in a study fit together.

4.2 Variables
 Variables are characteristics or attributes of

cases whose behaviour or characteristics we
study
 Variables could occur in any form
 Variables can take on differing or varying values
 Variables are things that we measure, control or
manipulate in an investigation

4.2.1 Types of Variables
 Dependent Variable (DV) =criterion, exogenous,

outcome
 Independent Variable (IV) =predictor,
endogenous, explanatory
 Intervening (IIV)
 Moderating (MV)

Dependent Variable (DV)
 A variable which can be predicted and

explained. Variation in the dependent variable is
what a researcher tries to explain.

Independent Variable (IV)
 The variable that is predicted to be associated

with or explains the variation in the dependent
variable.

The relationship between the
independent and dependent
variables

Moderating Variable (MV)
 A moderating variable (MV) or moderator is a

qualitative (e.g. sex, race, class) or quantitative
(e.g. level of reward) variable that affects the
direction and/or strength of the relation between
an independent variable and a dependent
variable.

Moderating Variable (MV)
(cont.)

Intervening Variable (IIV)
Those factors that theoretically affect the observed

phenomenon but cannot be seen, measured or
manipulated; its effect must be inferred from the
effects of the independent and moderator variables
on the observed phenomenon (Tuckman, 1972).

Intervening Variable (IIV)
(cont.)
 Presence of this variable strengthens the link

between the independent and dependent variables.
 It surfaces between the time the independent
variable operates to influence the dependent
variable and their impact on the dependent
variable.

The relationship between all of the
mentioned variables can be illustrated
diagrammatically as follows.

4.2.2 What is a Construct?
 A construct is an attribute or characteristic

expressed in an abstract, general way.
Construct Brand equity
Variable Brand awareness

4.3 Theory and Theoretical
Framework
4.3.1 Theory
 Functions as explanations, descriptions or
predictions about phenomenon particular to a
conceptual model
 acts as a bridge between or amongst variables
4.3.2 Theoretical Framework

 Is a collection of interrelated concepts that can
hold or support a theory of a research work and
guide a research.

4.4 Concepts and Conceptual
Framework
4.4.1 Concept
 An intangible image or symbolic representation
of an abstract idea.
4.4.2 Conceptual Framework:
 It is the operationalization of the theory showing
the relationships of the different constructs in a
research study.

A conceptual framework can be
formulated by these four steps:
1. Cite the conceptual framework or paradigm

2. Identify the variables
3. Point out the dependent and intervening
variables
4. Show the direction of the study

4.5 Developing the Theoretical
Framework
Theoretical framework is a logically developed,

described and elaborated network of associations
among the variables deemed relevant to the
problem

Features of theoretical framework
 Specify the theory used

 Identify, discuss and label the variables
 Discuss and explain directions of the
relationships
 Uses a schematic diagram to assist the
interpretation

A schematic diagram of a theoretical
framework: Modeling Satisfaction and
Behavioural Intention

4.6 Setting Research Objectives
Research Objective
 is a clear and concise statement of the purpose
and aim of the study which essentially
summarises what needs to be achieved by the
study
 provides an overview or the big picture of what
is intended to be achieved

4.6.1 Research Questions
 Derived from the problem statement

 Provide the very basic foundation of research
work
 Specifically states what a researcher will
attempt to answer

4.6.2 Developing Hypothesis
An educated guess or prediction of the relationship

between one or more factors (variables/constructs)
identified in the study in the manner that it can be
tested statistically.

Hypothesis Construction
 If-then statements or proposition

– Example: If employees are more healthy, then
they will take sick leaves less frequently.
 Directional hypotheses
– Example: The higher the motivation towards
work, the greater is the job performance.

(cont.)
 Non-directional hypotheses
– Example: There is a difference between the work
ethic values of American and Asian employees.
 Null and alternate hypotheses
– Example: The null statement is expressed as no
(significant) relationship between two variables or
no (significant) difference between two groups.

(cont.)
 Alternate hypotheses.
– Example: There is a difference in the mean
satisfaction level between men and women
(μM ≠μW).
Where,
– μM is the mean satisfaction level of men
– μW is the mean satisfaction level of women

With reference to the theoretical framework
as previously shown, these are the
hypotheses for the study, which are stated in
the directional hypothesis format.
 H1: The higher the restaurant service/product
dimension (service quality, product quality and
atmospherics quality), the higher the satisfaction
level.
 H2: The higher the marketing dimension (brand
image and customer relationship management), the
higher the satisfaction level.
 H3: The higher the restaurant service/product
dimension (service quality, product quality and
atmospherics quality), the higher the revisit intention.
With reference to the theoretical framework
as previously shown, these are the
hypotheses for the study, which are stated in
the directional hypothesis format.
 H4: The higher the restaurant marketing dimensions

(brand image and customer relationship
management), the higher the revisit intention.
 H5: The higher the satisfaction level, the higher the
revisit intention.
 H6: The higher the satisfaction level, the stronger
the intention to recommend to others.
 H7: The higher the revisit intentions, the stronger
the intention to recommend to others.


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Business Research Methods All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2012 4– 1

Business Research Methods All Rights Reserved

After studying this chapter, you should be able to:

Business Research Methods All Rights Reserved

 Know how to develop a theoretical framework

Business Research Methods All Rights Reserved

 A research framework is the researcher’s

Business Research Methods All Rights Reserved

 Variables are characteristics or attributes of

Business Research Methods All Rights Reserved

 Dependent Variable (DV) =criterion, exogenous,

Business Research Methods All Rights Reserved

 A variable which can be predicted and

Business Research Methods All Rights Reserved

 The variable that is predicted to be associated

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

 A moderating variable (MV) or moderator is a

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

Those factors that theoretically affect the observed

Business Research Methods All Rights Reserved

 Presence of this variable strengthens the link

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

 A construct is an attribute or characteristic

Construct Brand equity

Variable Brand awareness

Business Research Methods All Rights Reserved

4.3.2 Theoretical Framework

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

1. Cite the conceptual framework or paradigm

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Theoretical framework is a logically developed,

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 Specify the theory used

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

 Derived from the problem statement

Business Research Methods All Rights Reserved

An educated guess or prediction of the relationship

Business Research Methods All Rights Reserved

 If-then statements or proposition

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

Business Research Methods All Rights Reserved

 H4: The higher the restaurant marketing dimensions

Business Research Methods All Rights Reserved

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