Business Research Methods

1.0 Definition: The systematic and objective process of gathering,

recording and analyzing data for aid in making business
decisions.

2.0 Basic and Applied Research

2.1 Basic/pure research: attempts to expand the limits of knowledge.

Generally, pure research is supposed to expand scientific knowledge
about theories of general performance behavior. E.g., Identifying the
relationship between positive reinforcement and future performance.

2.2 Applied research: is conducted when a decision must be made

about specific real-life problem. Applied research encompasses those
studies undertaken to answer questions about specific problems or to
make decisions about a particular course of action or policy.
 Scientific method: Both research apply standard procedures and
techniques, which include systematic analysis and logical
interpretation of evidence (facts from observation and
experimentation).

3.0 Theory Building

 Concept: is a generalized idea about a class of objects, attributes,
occurrences, or processes that has been given a name. E.g.,
leadership, asset, inflation.
 Proposition: statements concerned with the relationships among
concepts. A proposition explains the logical linkage among certain
concepts by asserting a universal connection between concepts.
E.g., there exists a positive relationship between quality of
leadership and the financial success of a companies.
 A hypothesis is a proposition that is empirically tested. It is an empirical
statement concerned with the relationship among variables. Variables
are testable and thus (basically) assume different numeric values.
 Theory: Statement that defines the relationship between propositions

4.0 How are theories generated?

4.1 Deductive reasoning: Logical process of deriving a conclusion about

specific instance based on a known general premise or something
known to be true.
 Be careful not to make false deductive reasoning. For e.g.,
 Human beings lie.
 George is a human being.
 Therefore, George is a liar.
 Correct deductive reasoning would be;
 All managers are human beings.
 George is a manager.
 Therefore, George is a human being.
 The key to deductive reasoning is to establish whether what you set as
a general premise is really a GENERAL TRUTH.
4.2 Inductive reasoning: Logical process of establishing a general
proposition on the basis of observation of particular facts.

 For e.g., Hijacking and terrorist bombing generally result in

increased price of gold. Thus, it is possible to make the proposition
that the price of gold is determined by political stability.

5.0 Overview of the Scientific Method

 Assessment of relevant existing knowledge of a phenomenon

 Formulation of concepts and propositions
 Statement of hypothesis/questions
 Design of research to test the hypothesis
 Acquisition of meaningful empirical data
 Analysis and evaluation of data
 Proposal of an explanation of the phenomenon and statement of
new problems raised by the research.
 Assessment of relevant existing knowledge of a phenomenon
 Sharing information regarding results of other studies that are
closely related to the study being reported.
 Providing information regarding the larger, ongoing dialogue in
the literature about a topic.
 Establishes a framework for establishing the importance of the
study.
 Delineates the “jumping-off place” for your study. You establish
how your study will refine, revise, or extend what is now known.
 Formulation of concepts and propositions
 Establish a relationship between different variables you have
identified and think of a way of measuring them.
 Statement of Hypothesis/Questions
 Research question poses a relationship between two or more
variables but phrases the relationship as a question
 Hypothesis represents a declarative statement of the relations
between two or more variables and is generally TESTABLE.