HOPE ENTERPRISE UNIVERSITY COLLEGE

COURSE TITLE: BUSINESS RESEARCH METHODS

(COURSE CODE: MGMT 332, Semester: II)
Target Group: 3rd Year Management students

BY
Hailegiorgis Biramo,Ph.D.
 CHAPTER ONE:
OVER VIEW OF BUSINESS RESEARCH
 Objectives
 To Acquaint students with:

 Concepts of research
Objectives of research
Motivation in research
Reasons to conduct research
Research Methods and methodology
Uniqueness of Business research
 Objectives continued,…
Deductive and inductive reasoning
Qualities of good research
Types of research
Modes of knowledge
Research messy and human element
Related literature review
Ethics in research
Quality of good researcher
 Methodology
Lecturing (power point slides)

 Discussions

 Group and individual assignment

and
presentation
Assessment/Evaluation schemes
S. No. Type Weight Coverage Schedule/ Time

1 Test 1 10% Chapter 1 and 2 6weeks after

Rules :
 Attendance - all class days
 No Side talk
 Control your mobile phones
 Participate
 Punctuate
 Respect
 1.1 Definitions of Research
 The word research is composed of two syllabuses,
re and search. The dictionary defines the former as
a prefix meaning again, anew or over again and the
latter as a verb meaning to examine closely and
carefully, to test and try or to probe.
• Research is a structured inquiry that utilizes
acceptable scientific methodology to solve
problems and creates new knowledge that is
generally applicable.
• research is a process for collecting, analyzing and
interpreting information to answer questions.
Research is:
• A systematic investigation to find answers to a
problem.
 Research is a systematic, controlled empirical and
critical investigation of propositions about the
presumed relationships about various phenomena.
 Research is a scientific and systematic search for
pertinent information and knowledge on a specific
topic.
 Research is a movement from the unknown to the
known
1.2. OBJECTIVES OF
RESEARCH
1. To gain familiarity with a phenomenon (exploratory or
formulative research studies);

2. To portray accurately the characteristics of a particular

individual, situation or a group (descriptive research studies);

3. To determine the frequency with which something occurs

(diagnostic research studies);

4. To test a hypothesis of a causal relationship between variables

(hypothesis-testing research studies).
 1.3. MOTIVATION IN
RESEARCH
What makes people to undertake research?

1. Desire to get a research degree along with its consequential

benefits;

2. Desire to face the challenge in solving the unsolved problems,

3. Desire to get intellectual joy of doing some creative work;

4. Desire to serve the society;

5. Desire to get respectability.

 1.4.Reasons to Conduct research

• Students need to know research methods for

two basic reasons;
–To write an assignment of appropriate
standard- academic role/ methodology
oriented/
–To carryout research to answer vital
questions for the business you are in-
management role / finding oriented/
 1.5. Research methods vs
Research methodology
Research methods refer to all those
methods/techniques that are used for conduction of
research
-research methods can be put into the following three
groups:
1. Methods which are concerned with the collection of
data.;
2. Statistical techniques which are used for establishing
relationships between the data
3. Methods which are used to evaluate the
accuracy of the results obtained.
 Conti…
Research methodology
• Research methodology is a way to systematically
solve the research problem.
• A science of studying how research is done
scientifically.
• The strategy one chooses to answer research questions
• It is the various steps that are generally adopted by a
researcher in studying his research problem
 Research method is a part of Research
methodology
1.6. What might be special about
business research?
• Business research is not a single pure academic
discipline like chemistry.(multi disciplinary)
• This is evident from the fact that the term business is
an umbrella for many different things and involves
a number of different academic disciplines such as:
• Mathematics
• Psychology
• Economics
• Politics
• History
 Conti…
• Business Researches are conducted at
different levels
– Prediction
As in the case of regression analysis and trend
analysis
– Fact finding
what happened? (study on frequency and
characteristics)
- Relation/Correlation studies
Impact analysis, correlation, Role analysis
1.7. What kind of bus. problems need a research study?

• Business is defined as an organization or enterprising entity engaged in

commercial, industrial, or professional activities. Businesses can be for-
profit entities or non-profit organizations. Business types range from
limited liability companies to sole proprietorships, corporations, and
partnerships.

• Business research involve both Theoretical or concept and purely

practical questions
• For example(practical)
– How does the product range compare in terms of contribution to
profit?
– Which method of training has produced more output- coaching or a
group training course?
• Example (theoretical)
– What are the most effective ways of introducing a new employee to
 1.7 continued,…
• When choosing an area of research we start either deductive or
inductive.
• From broad area of management like
• Marketing management
• Operations management
• Financial management
• Human resources management
OR
• From a very practical questions such as
» How does the product range compare in terms of contribution
to profit?

 Inductive reasoning involves starting from specific premises

and forming a general conclusion, while deductive reasoning
involves using general premises to form a specific conclusion.
 1.8. Qualities of Good
Research
1.Purpose Clearly Defined: The purpose of the research- the problem
involved or the decision to be made – should be clearly defined and sharply
delineated in terms as unambiguous as possible.

2. Research Process Detailed: The research procedures used should be

described in sufficient detail to permit another researcher to repeat the
research.
3. Research Design Thoroughly Planned: The procedural design of the
research should be carefully planned to yield results that are as objective as
possible.
 Qualities of Good Research continued,…

4. High Ethical Standards Applied: Researchers often work

independently and have significant latitude in designed and
executing research projects.
5.Limitations Frankly Revealed: The researcher should
report, with complete frankness, flaws in procedural design
and estimate their effect on the findings.
6. Adequate Analysis for Decision Maker’s Needs: Analysis
of the data should be sufficiently adequate to reveal its
significance and the methods of analysis used should be
appropriate.
Qualities of Good Research continued,…

7. Findings Presented Unambiguously: Presentation of data should be

comprehensive, easily understood by the decision maker, and organized
so that the decision maker can readily locate critical findings.
8. Conclusions Justified: Conclusions should be confined to those
justified by the data of the research and limited to those for which the
data provide an adequate basis.
9. Researcher’s Experience Reflected: Greater confidence in
the research is warranted if the researcher is experienced, has a
good reputation in research, and is a person of integrity
 1.9 types of research
1. Basic Research
 It is also known as pure or fundamental research.
 This research is mainly conducted to increase knowledge base.
It is driven purely by interest and a desire to expand our
knowledge.
 This type of research tends not to be directly applicable to the
real world in a direct way, but enhances our understanding of the
world around us.
 Pure research can be exploratory, descriptive or explanatory.
 Basic research generates new ideas, principles and theories indifferent fields.
Types of research continued,
…
 Basic research concentrates on fundamental principles and testing

theories. It is sometimes implicitly said that basic research doesn’t

have practical applications. For example, someone conducting basic

research on cheating behavior may design a study examining whether

students from illiterate families cheat more often than students from

literate families.
 Notice that the research is not done to reduce cheating or help

people who cheat or any other “applied” aspect, but to increase the
Types of research continued,…

2. Applied Research

 Applied research is mainly related with solving practical problems rather than
focusing on knowledge expansion.
 It is mainly used to find solutions to problems which occur on a daily basis
and develop new innovative technologies.
 The main aim of applied research is to provide better technologies for
humans to enhance their standard of living.
 Example: Investigating which treatment approach is the most effective for
treating cancer patients whereas researching which strategies work best to
motivate workers.
Types of research continued,…

3. Quantitative Research
 Quantitative research is generally related with the positivist
concept.
 It usually involves collecting and converting data into numerical
form so that statistical calculations can be made and conclusions
drawn.
 Objectivity is very vital in quantitative research.
 Types of research continued,
…
4. Qualitative Research
 Qualitative research is the approach usually related with the
social constructivist concept which emphasizes the socially
constructed nature of reality.

 It is about recording, analyzing and attempting to reveal the in

debt meaning and significance of human behavior and
experience, including conflicting beliefs, behaviors and
emotions.
Types of research continued,…
 The qualitative method tries to answer why and how of decision-
making rather than what and when.
 The approach to data collection and analysis is logical but allows for
greater flexibility than in quantitative research.
 Data is collected in textual form on the basis of observation and
communication with the participants, e.g. through participant
observation, in-depth interviews and focus groups.
 It is not converted into numerical form and is not statistically analyzed.
 Types of research continued,…
5. Descriptive Research
 Descriptive research is used to describe characteristics of an observable fact
being studied.
 Descriptive studies are structured in such a way that it cannot be changed
frequently, so it can be said that they are rigid in nature.
 They cannot identify cause and effect relationship between variables.
 Descriptive research answers questions such as who, when, where, what and how.
 This type of research describes what exists and may help to reveal new facts
and meaning.
 The purpose of descriptive research is to observe, describe and document.
 Types of research continued,…

6. Exploratory Research
 Exploratory research is carried out for a problem that has not been
clearly defined.
 The main aim of this research is to gather initial information
which helps to define problems and recommend hypothesis.
 Exploratory research helps to settle on the best research design,
data collection method and selection of subjects.
 Types of research continued,
…
 Exploratory research often relies on secondary research such as
reviewing available literature, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors,
and more formal approaches through in- depth interviews, focus groups,
projective methods, case studies or pilot studies.
 Exploratory research can mainly be conducted when researchers lack
clear idea of the problem.
 The results of exploratory research are not generally useful for decision-
making, but they can provide major insight into a given situation.
Types of research continued,…

7. Historical Research
 It is defined as the type of research that examines past events or
combinations of events to arrive at an account of what has happened
in the past.
 Historical research is carried out to discover the unknown; answer
questions, recognize the relationship that the past has to the present;
record and assess activities of individuals, agencies, or institutions;
and assist in understanding the culture in which we live.
Types of research continued,…
 Historical research can exhibit patterns that occurred in the past
and over time which can facilitate us to see where we came from
and what kinds of solutions we have used in the past.
 We usually will notice that what we do today is expressly rooted
in the past. Historical research involves the process of collecting
and reading the research material collected, and writing the
document from the data collected.
 Types of research continued,…

8. Experimental Research
 It is commonly used in sciences such as sociology and
psychology, physics, chemistry, biology, medicine, etc.
 It is a collection of research designs which use manipulation and
controlled testing to understand fundamental processes.
 Usually, one or more variables are manipulated to establish their
effect on a dependent variable.
Types of research continued,…
 Experimental Research is mainly used when: there is time
priority in a causal relationship (cause precedes effect) or there
is uniformity in a causal relationship (a cause will always lead
to the same effect) or the magnitude of the correlation is great.
 Experimental research is important to society as it helps us to
improve our daily lives.
 1.10. Modes of
knowledge
• Gibson et al (1994) provided two modes of knowledge
that is created through business research;
– “Mode 1 knowledge” is a knowledge created by an
academics for an academic purpose to further and add to
what is known- it has to do with basic research e.g. the
concept of economies of scale
– “Mode 2 knowledge” is practical applied knowledge and
comes from collaborating with practitioners or policy
makers
– “Mode 3 knowledge” as suggested by Huff & Huff (2001) is
a knowledge that is neither produced specifically for
academic purpose nor for direct application to practical
need but for understanding the bigger picture in relation to
society’s survival and the common good
 1.11. Issue we need to understand in
research method
• Research is messy activity
• Regarding the logical progression in research
• Formulating the research topic & critically reviewing
relevant literature (when should they be done)

• The researcher affects the result of research

• Basically research has to be objective but there is a need
to recognize the fact that there is always human element
in research so long as we are not conducting the research
using machines
1.12. How does literature relate to research?

• Any research study, inductive or deductive

undertaken for academic purpose always require a
review of relevant literature
• The review must be critical and related, but not just
a description of what others said
• Anyone can ask a few people to fill in a
questionnaire, but not everyone can make sense of
the answers!
 What kind of literature should we search for?
• Primary literature sources
• Are least accessible, Company literature, Unpublished research,
Private correspondence, Conference proceedings
• Secondary literature sources
• Are much more easily accessible
• Include published books and articles in journals, news media,
published business, government and international body
publications
• For academic research peer-reviewed journals are considered
more reliable sources of literature as the materials are
monitored by experts in the field
• Tertiary literature sources
• Gateways to secondary sources
• They include encyclopedias, dictionaries, citations, indexes,
catalogues and web based portals, journal’s contents, data bases
 Conti…

Basically , literatures can be:

A), Theories, concepts, principles
B), Empirical findings
 12. ETHICS IN BUSINESS RESEARCH

Ethics are norms or standards of behavior that guide

moral choices about our behavior and our relationships
with others.
The goal of ethics in research is to ensure that no one is
harmed or suffers adverse consequences from research
activities.
 However, unethical activities are pervasive and include
violating nondisclosure agreements, breaking participant
confidentiality, misrepresenting results, deceiving people,
using invoicing irregularities, avoiding legal liability, and
more.
 1.13. QUALITIES OF A GOOD RESEARCHER

 Curiosity: Good researchers are naturally curious.

 Critical Thinking: Good researchers are able to think
critically about information.
 Persistence: Research can be challenging and sometimes
frustrating.
 Attention to Detail: Good researchers pay attention to
detail.
 Summary of the chapter
(1)What is research?
Working in a scientific way to search for truth of any problem
(2) Inductive Reasoning
A reasoning where we start with certain particular statements
and conclude with a universal statement.
(3) Deductive Reasoning
A reasoning where we start with certain general statements
and conclude with a particular statement.
Summary of the chapter continued,….
What's the difference between inductive and deductive reasoning?
Inductive reasoning is a bottom-up approach, while deductive
reasoning is top-down. Inductive reasoning takes you from the
specific to the general, while in deductive reasoning, you make
inferences by going from general premises to specific conclusions.
A deductive argument progresses from the general to the specific.
Here's a religious example:
Premise: All Jewish men are circumcised;
Conclusion: Therefore, David is a Jewish man; David is circumcised.
Summary of the chapter continued,….
The inductive argument basically reverses this, arguing from the
specific to the general
The following example illustrates how an inductive argument uses
specific facts to make a broader conclusion:
Premise: All the tigers I saw on my safari trip to South Africa were
orange.
Conclusion: Therefore, all tigers are orange.
 Summary of the chapter continued,….
4. The essential qualities of a researcher are
 Spirit of free enquiry
 Reliance on observation and evidence and
 Systematization or theorizing of knowledge
5. The purpose of a literature review is to:
 Use the literature to identify present knowledge and what is
unknown
 Assist in defining the problem and operational definition and
Identify strengths and weaknesses of previous studies
 Summary of the chapter continued,….
6. Why do you need to review the existing literature?
• To find out what is already known about your area of interest
7.. Business research
It is the application of the scientific method to the study of business problems
 Main points reflected in the chapter

1.Research
2. Business research

3. Research Methods Vs. Methodology

4. Difference between deductive and inductive reasoning

5. Qualities of good research

6. Related literature review

7. Quality of good researcher

Any Questions?