CHAPTER 1

INTRODUCTION TO
BUSINESS RESEARCH
Research Methodology:
Tools, Methods and Techniques

Sundram, V.P.K., Chandran, V.G.R., Atikah, S.B., Rohani, M., Nazura, M.S., Akmal, A.O., & Krishnasamy, T.
 Learning Objectives
Upon completion of this chapter, you should be able to:
 Describe what research is and how it is defined
 Distinguish between applied and basic research, giving examples, and
discuss why they would fall into one or the other of the two categories
 Explain why managers should know about research
 Identify the distinction between good research and research that falls short
of professional quality
 Identify the ways to generate research 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 WHEN IS BUSINESS RESEARCH NEEDED
1.10 20 WAYS OF GENERATING RESEARCH IDEAS FROM PREVIOUS RESEARCH
1.11 DEVELOPMENT OF THEORIES

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 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.

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 CHAPTER 1

1.2 BUSINESS RESEARCH

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 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.

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 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

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 CHAPTER 1

1.4 TYPES OF BUSINESS RESEARCH

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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

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 Purposive
 Rigor
 Testability
 Replicable
 Precision and Confidence
 Objectivity
 Generalization
 Parsimony
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 CHAPTER 1

1.7 ADVANTAGE OF SCIENTIFIC

APPROACH

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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.
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Relationship between the Inductive and Deductive Models

INDUCTION
Hypotheses Observation

Empirical
Theories
Generalisation
DEDUCTION

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 CHAPTER 1

1.8 CHARACTERISTICS OF A GOOD

RESEARCH

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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.

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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.

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 CHAPTER 1

1.9 WHEN IS BUSINESS RESEARCH

NEEDED

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 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 31
 CHAPTER 1

1.10 20 WAYS OF GENERATING

RESEARCH IDEAS FROM
PREVIOUS RESEARCH

Research Methodology: Tools, Methods and Techniques 32

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.
33
 CHAPTER 1

1.11 DEVELOPMENT OF THEORIES

Research Methodology: Tools, Methods and Techniques 34

 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 35