Business Research Methods

08/01/2024
L1: INTRODUCTION TO RESEARCH
PROF. NEIL CHAVAN
Agenda:

 Understanding Business Research

 Application of Theory in Business Research
 Research Areas in Business
 Types of Business Research
 What is good business research?
 Hypothetico-deductive method
 Challenges in Business Research
 Group Project Guidelines
 Understanding Business Research

Systematic effort to investigate and solve specific business problems

Steps: Identify problems, gather information, analyze data, develop solutions.

Purpose: Provide necessary information for informed decision-making
Data Types: Quantitative (numbers) or qualitative (textual) data from primary or secondary sources.

Benefits of Research
 Empowers professionals in various roles (treasurer, controller, manager, etc.).
 Enhances ability to discriminate between good and bad studies, proposals, and research
agencies.
 Application of Theory in Business Research

 Theory is an idea, concept, model, or

framework which explains a
phenomenon with broad applicability
across settings

 Using existing frameworks vs

developing new theories

 Example: Expectancy theory predicts

behavior based on expected
outcomes, generating testable
predictions.
Business Research Areas

Economics Information System

Operations & Decision

HRM/ OB
Sciences

Marketing Public System

Finance & Accounting Strategy

 Types of Research

Applied Research: Basic Research/ Fundamental or Pure Research:

 Solve immediate problems faced in  Generate knowledge about how
an organization organizational problems can be solved and
contribute to existing knowledge
 Immediate and practical solutions
 Building knowledge and providing insights not
 Example: Investigating reasons for previously known
poor product sales to take
corrective action.  Example: Causes and consequences of global
warming
 What is a good research?

1. Purposiveness: 3. Testability:
 Research has a clear aim or purpose,  Hypotheses must be tentative yet testable
addressing a specific organizational issue. statements.
 Example: Investigating how to increase  Scientific hypotheses are subject to empirical
employee commitment testing using statistical methods.

2. Rigor: 4. Precision and Confidence:

 Requires a strong theoretical foundation and a  Precision reflects the closeness of findings to
sound methodological design for careful and reality based on the sample.
exact research.
 Confidence level indicates the probability that
 Rigorous research minimizes bias, collects findings are correct.
appropriate information, and facilitates
accurate data analysis.
 What is a good research?

5. Replicability: 7. Generalizability:
 Findings should be replicable in other studies with  Refers to the applicability of research findings
similar methods and circumstances. across different organizational settings.
 Detailed study descriptions enable replication,  Greater generalizability enhances the usefulness
adding credibility to results. and value of research.

6. Objectivity: 8. Parsimony:
 Conclusions should be based on factual findings  Simplicity in explaining phenomena and
derived from actual data. generating solutions is preferred.
 Avoid subjective or emotional biases in  A meaningful and parsimonious model is more
interpretation. valuable than a complex one.
 Objectivity ensures conclusions align with data-  Economy in research models achieved through a
based evidence. clear understanding of the problem and its
influencing factors.
 Hypothetico-deductive method

Systematic approach to problem-solving in scientific research

1. Identify a Broad 2. Define the Problem 3. Develop Hypotheses:

Problem Area: Statement: •Examine variables related to
•Recognition of issues like sales •Develop a specific problem the problem.
decline, production statement by gathering initial •Theorize associations among
interruptions, or disengaged information. variables and generate
employees. •Preliminary research includes hypotheses.
•These problems trigger the literature review and •Hypotheses must be both
need for systematic discussions to refine the focus. testable and falsifiable.
investigation.
 Hypothetico-Deductive Method Steps (Contd.)

4. Determine 5. Data 6. Data Analysis: 7. Interpretation

Measures: Collection: •Statistically analyze of Data:
•Operationalize •Gather data for the collected data •Evaluate results and
variables to establish each variable in the to test hypotheses. interpret their
how they will be hypothesis. meaning.
measured. •Decide whether
•Essential for testing hypotheses are
hypotheses through supported or not.
data collection. •Even unsupported
hypotheses provide
valuable insights for
refining theories.
 Example: Decline in Sales

1. Identify a Broad 2. Define the Problem 3. Develop Hypotheses: 4. Determine Measures:

Problem Area: Statement: • The decline in sales may be • Sales revenue, average
• Business observes a • There is a need to identify due to high delivery time or delivery time, market share,
significant decrease in sales the factors contributing to better product from customer rating on products
figures over a specific this decline in Sales competition
period

5. Data Collection: 6. Data Analysis: 7. Interpretation of Data:

• Gathering sales data, • Examine correlations • Interpret the results to draw
conducting customer between different variables, conclusions regarding the
surveys, analyzing market identify patterns, and assess factors influencing the
trends, and assessing the impact of potential decline in sales. Determine
competitor strategies factors on sales which hypotheses are
performance. supported by the data and
which are not.
 Challenges in Business Research

1. Inherent Difficulty achieving 100% scientific precision due to subjective nature of feelings, emotions, attitudes, and
Challenges in perceptions.
Management and Challenges in measuring abstract and subjective constructs in management and behavioral studies.
Behavioral Research:
2. Data Collection Difficulties in obtaining error-free data, especially in areas involving subjective experiences.
Challenges:
Issues in ensuring comparability, consistency, and wide generalizability of findings.

3. Sample Challenges in obtaining a representative sample, impacting the extent of generalizability.

Representation
Challenges:

4. Research Design Emphasis on ensuring purposiveness, rigor, and maximum testability despite inherent challenges
Considerations:
Group Project Report & Presentation (10 marks):

Choose any topic of your choice in Finance, Supply Chain/ Operations, HR or Marketing.
 Research Title
 Abstract
 Literature Review
 Hypothesis
 Research Methodology
 Results
 Conclusion
 Future Research
 References