●CHAPTER

The Research Process

Theoretical framework and
hypothesis development

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 Chapter Objectives

●The need for theoretical framework

●Components of theoretical framework

●Variables and its types

●Identify and label variables associated with any given situation.

●Defining hypothesis
●Null and alternative hypothesis

●Managerial implications
The Steps for Research process –Step 4-
5

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 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 on why you believe

that these variables are associated to each
other (a theory).
 Theoretical Framework

A framework is a model of how one

theorizes or makes logical sense of the
relationships among several factors that
have been identified as important to the
problem. (Sekaran, 2001)
Components of Theoretical Framework

●Identify and label the variables correctly.

●State the relationships among the
variables: known as formulate hypotheses.
●Explain how or why you expect these
relationships.
So, Theoretical Framework is ?
■A mechanism that helps to clarify a big idea.
■A means through which you can explore the
multiple dimensions of a big idea.
■An instrument for judgment.
■A filter through which you can consider various
ideas in order to further clarify a position.
So, Theoretical Framework is?

■A guides to your research, determining what

things you will measure, and what statistical
relationships you will look for.
■A simply the structure of the idea or concept
and how it is put together.
■An essay that interrelate the theories involved
in the question.
 Theoretical Framework

■So it is the foundation to proceed with the research, and

involve nothing more than identifying the network of
relationship among the variables. So it is vital to
understand, what a variable mean and what are its
different types.
 Variables
“Any concept or construct that
varies or changes in value is called variable.”

Cases are objects whose behavior or characteristics we study.

Usually, the cases are persons, but they can also be groups,
departments, organizations, Job satisfaction, etc.

Variables are characteristics of cases. Qualities of the cases

that we measure or record. For example, if the case is a person, the
variables could be sex, age, height, weight, feeling, ability (Physical/
Intellectual), etc.
Variables Cases
Types of Variables

1.Dependent variable (DV)

2.Independent variable (IV)

3.Moderating variable

4.Mediating variable (or intervening)

 Types of Variables
●1-Dependent variable (DV) (Criterion Variable)
●DV is a primary interest to the researcher. The goal of the research
project is to understand, predict or explain the variability of this variable.
●What is been observed.
●What is been measured.

●2-Independent variable (IV) (Or Predictor)

●Something that is changed by the scientist/researcher is called IV.
●Influences that DV have, either positive/negative way, on a variable is IV.
●What is tested.
●What is manipulated.
 Examples for Dependent Variables
●Example 1:
●An applied researcher wants to increase the performance of organizational
members
●in particular bank.
●Answer:
●The dependent variable is organizational performance because it is the
primary
●variable of interest to the applied researcher. Independent variables could be
Wages,
●bonuses, Organizational culture, etc
●Example 2: A marketing manager wonders why the recent advertisement
strategy does not work. What would be the dependent variable here?
●Answer:
●The dependent variable is advertisement strategy because the marketing
manager is interested in knowing why the recent strategy does not work. And IV
could be advertising channel, distributer, market segment, etc.
●Example 3:
●Research studies indicate that successful new product development has an
influence on the stock market price of the company. That is, the more successful the
new product turns out to be, the higher will be the stock market price of the firm.
●Answer:
●Dependent Variable is the stock market price.
●And new product success is independent variable.
●Exercise: If in above example if New product
●success is dependent variable (DV) then what
● could be Independent variables (IVs)?
 Types of Variables
3-Moderating Variable (Through Example)
It has been found that there is a relationship between the availability of
Reference Manuals that manufacturing employees have access to, and
the Product rejects. That is, when workers follow the procedures laid
down in the manual, they are able to manufacture products that are
flawless. So,
Dependent Variable: Number of Rejects/faulty products.
Independent Variable: Availability of Reference Manuals.
●Moderating Variable (Example Continued)
●Although this relationship is true in general for all workers, but it is not
true for workers who are not using the manual every time they need it.
●Thus, the interest and inclination of the workers is a Moderating
Variable.

●Definition:
●So, moderator is qualitative (e.g., gender, race, class) or quantitative
(e.g.,
●level of reward) variable that affects the direction and/or strength of
●relation between independent and dependent variable.
●Moderating Variable- (Example-2)

●A prevalent theory is that the diversity of the workforce

(according to different ethnic origins, races, and nationalities)
contributes more to organizational effectiveness because each
group brings it own special expertise and skills to the workplace.
This synergy can be exploited, however, only if managers know
how to harness the special talents of the diverse work group;
otherwise, they will remain untapped.
 Types of Variables
●4-Intervening Variable

●Is one that surfaces between the time the

independent variables start operating to influence
the dependent variable and the time their impact is
felt on it.

●Follow the Last Example:

●A prevalent theory is that the diversity of the workforce (according to
different ethnic origins, races, and nationalities) contributes more to
organizational effectiveness because each group brings it own special
expertise and skills to the workplace. This synergy can be exploited,
however, only if managers know how to harness the special talents of the
diverse work group; otherwise, they will remain untapped.

●The dependent variable: The organizational

 The Intervening Variable

●This creative synergy results from the "diverse" workforce interacting and
bringing together their expertise in problem solving.
●Note that creative synergy, the intervening variable, surfaces at time t2,
as a function of workforce diversity, which was in place at time t1, to bring
about organizational effectiveness in time t3. The dynamics of these
relationships are illustrated in Figures 6 and 7.
 Types of Variables
●Assignment: (Hand written/Due in next class)

●Try to explain the following examples

●Suppose a patient is feeling some normal headache. She/he

is looking to get rid off it. Explain DV, IVs first.

●Suppose a patient is feeling some serious problem in

stomach. She/he is looking to get rid off it. Explain DV, IVs
first. Then Moderating and intervening variable with your
own explanation.
 The Relationship Between the
Literature Survey and the Theoretical Framework

■The literature survey provides a solid foundation for

developing the theoretical framework.
■The literature survey identifies the variables that might be
important, as determined by previous research findings.
■The theoretical framework elaborates the relationships among
the variables, explains the theory underlying these relations, and
describes the nature and direction of the relationships.
■The theoretical framework provides the logical base for
developing testable hypotheses.
Example:
DEFINE THE PROBLEM AND DEVELOP THE THEORETICAL FRAMEWORK.

The probability of cancer victims successfully

recovering under treatment was studied by a
medical researcher in a hospital. She found three
variables to be important for recovery:

1.Early and correct diagnosis by the doctor.

2.The nurse’s careful follow-up of the doctor’s instructions.
3.Peace and quit in the vicinity.
 Example (Cont…)
In a quiet atmosphere, the patient rested well and recovered sooner.
Patients who were admitted in advanced stages of cancer did not
respond to treatment even though the doctor’s diagnosis was
performed immediately on arrival, the nurses did their best, and there
was plenty of peace and quit in the area.

●Thus, Stage of cancer is a moderating variable.

●Also, we could use the patient rest as an intervening
variable.
Hypothesi
s
Definition of Hypotheses:

A logical relationship between two or more

variables (DV & IV)
expressed in the form of a testable statement.

(e.g.) Women are more motivated than men.

Good hypothesis:
●Must be adequate (sufficient/satisfactory) for its purpose
●Must be testable
●Must be better than its rivals

Can be:
●Directional
Directional and No-directional Hypotheses

DIRECTIONAL HYPOTHESES:

The direction of the relationship between the

variables (positive/negative) is indicated.

Example:

●The greater the stress experienced in the job, the lower

the job satisfaction of employees.

● Women are more motivated than men.

Directional and Nondirectional
Hypotheses

NONDIRECTIONAL HYPOTHESES:

…are those which shows no indication of the

direction of the relationships between variables.

Example:

●There is a relationship between age and Job

satisfaction.

●There is a differences between the work ethic values of

American and Arabian employees.

 Null and Alternate Hypotheses
Null Hypotheses:
…is a proposition that states a definitive, exact relationship between
two variables.

●In general, the null statement is expressed as no (significant) difference

between two groups.
H0: µM = µw

●It can also be stated as the population correlation between two variables
is equal to zero (or some definite number).

H0: µM - µw = 0

Where H0 represents the null hypotheses,

µM is the mean motivational level of the men,
µw is the mean motivational level of women.
 Null and Alternate Hypotheses
●Alternate Hypotheses
●…is a statement expressing a relationship between two variables or indicating
differences between groups.

●(e.g.) Women are more motivated than men.

●The alternate hypotheses for the above example is

● HA : µM < µw
●If we reverse the above statement like
●Men are more motivated than women.
● HA : µM > µw
● Where HA represents the alternate hypotheses.
 Examples for the Non directional relationship

●There is a difference between the work ethic of American and Arabian

employees.

●The null hypotheses would be:

● Ho: µAM = µAR
● Or
● Ho: µAM - µAR = 0
● Where,
●µAM is the mean work ethic value of Americans
●µAR is the mean work ethic value of Arabs.

●The alternate hypotheses for the above example would statistically be

set as:

● HA: µAM ≠ µAR

 Managerial Implications

At this junction, we have understood the

1.Broad problem area

2.Preliminary data gathering

3.Theoretical framework based on literature review

4.Hypotheses formulation for testing on the bases of experience and intuition.

Also understanding of variables and its types help the mangers/researcher to

associate the

link of problem and there reasons (Why & How).