Research Methods

Session 5 – Research Framework:

Theoretical and Conceptual Frameworks

Lecturers: Prof. Richard Boateng & Dr. Joshua Ofori-Amanfo, UGBS

Contact Information: [email protected]/[email protected]
 Session Overview
• To explain the role of theories in the
research process

• To introduce students to different research

theories and conceptual models relevant for
business and social science research

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 2
 Session Outline
The key topics to be covered in the session are as follows:
1. Defining Research Framework
2. Types of Research Frameworks
3. Building Blocks of a Theory
4. Examples of Theories
5. Level of Theory

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 3
 Reading List
Chapter Five

Boateng, R. (2020)
Research Made Easy
https://amzn.to/39gMMXh

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Slide 4

 Topic One

DEFINING RESEARCH FRAMEWORK

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 5
 Research Framework
• Presents the way of studying variables/concepts
concerning a phenomenon in order to
find/investigate the solution for the research
problem
• It outlines the relationships between the
variables/concepts in manner which explains or
predicts a social phenomenon within a specific
research problem
Zikmund W G. (2003) Business Research Methods, 7th edition, Thomson/South-Western.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 6
 Research FRAMEWORK
• It is called a research
framework because it
FRAMES the Research
• Outlines relationships = how
concepts or variables relate
to explain or predict a
particular social phenomena

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 7
 Structure of Long Essay
• Abstract Research Framework
• Chapt. 1 – Introduction – Forms part of the
literature review
• Chapt. 2 – Literature Review – An outcome of the
• Chapt. 3 – Context of the Study literature review which
• Chapt. 4 – Research Methodology provides direction for data
collection and analysis
• Chapt. 5 – Results and Discussion
• Chapt. 6 – Conclusion

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 8
 Structure of Thesis
• Abstract
• Chapt. 1 – Introduction
• Chapt. 2 – Literature Review
• Chapt. 3 – Theoretical Foundations and Research Framework
• Chapt. 4 - Research Methodology Research Framework
– Forms part of the
• Chapt. 5 – Context of the Study & Case Study literature review
• Chapt. 6 – Results/Analysis – An outcome of the
literature review which
• Chapt. 7 – Discussion provides direction for
data collection and
• Chapt. 6 – Conclusion analysis
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 9
 Example: Mobiles and Micro-trading
What is the impact of mobiles on micro-
trading activities of market traders?
1. How do market traders use mobiles?
2. What benefits do market traders obtain from
mobiles?
3. What is the impact of benefits of using
mobiles in micro-trading activities of market
traders?
Source: Boateng (2011)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 10
 Research Framework (Conceptual)

Source: Boateng (2011)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 11
 Topic Two

TYPES OF RESEARCH FRAMEWORKS

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 12
 Research Framework – exists in a form… of

Research Framework

Theory
Conceptual Framework
Developed from a review of
literature

Adapted or Modified Conceptual Framework

Theory Modified or adapted theory

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 13
 Theory
• “A coherent set of general propositions used as
principles of explanation, understanding and/or
prediction of the apparent relationships of
certain observed phenomena”.

• Has been empirically tested & verified

• can be shown as schematic diagram or
mathematical equation
Zikmund W G. (2003) Business Research Methods, 7th edition, Thomson/South-Western.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 14
 Research Framework (theoretical)
Theory of Planned
H1 Behaviour
(Azjen, 1985)

H2 H5

H3
H4

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 15
 Theory as a mathematical equation

the Theory of Reasoned Action can be expressed as the following

equation:
• where:
• BI = behavioral intention
• AB = one's attitude toward performing the behavior
• W = empirically derived weights
• SN = one's subjective norm related to performing the behavior

Hale, J.L.; Householder, B.J. & Greene, K.L. (2003). The theory of reasoned action. In J.P. Dillard & M. Pfau (Eds.), The persuasion handbook:
Developments in theory and practice (pp. 259–286). Thousand Oaks, CA: Sage.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 16
 Research Framework – exists in a form… of
• Theory
– Theoretical framework
• Hypotheses
• Mathematical model

• Conceptual
– Factor/Concept based-model (no specific theory)
• Literature review
• Hypotheses (may propose) or mathematical model
– Factor/Concept based-model (revised a theory to test)
• Modified from a theory or a number of theories
• Hypotheses (may propose) or mathematical model

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 17
 Factor-based model (Conceptual – literature review)

Low wages
Political Instability
H1
H4 Factors which
contribute or cause
Lack of start-up Unemployment
H2 (Literature Review)
capital Unemployment

H3
High Interest Rates

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 18
 Research Framework (conceptual)
Knowledge Trust or Conceptual Framework on
about the Perceived
Mall Student’s Visit to the Mall
Value
H1
(Modified from Theory of Planned
H6 Behaviour)

Peer H2 H5
Influence
H4
H3

Income
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 19
 Conceptual Framework
• Are analytical schemes
• Simplify reality to make it easier to discuss, analyze
or research
• Simplify reality by selecting certain
phenomena/variables and suggesting certain
relationships between them;
Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For
Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 20
 Conceptual Framework: CAUSE AND EFFECT

• Cause and effect conceptual frameworks identify the

various factors which affect a phenomena
• They are often the basis of hypothesis type of
research. The arrows are converted into series of
hypothesis

Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For

Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 21
 Factor-based model (Conceptual – literature review)

Low wages
Political Instability
H1
H4 Factors which
contribute or cause
Lack of start-up Unemployment
H2 (Literature Review)
capital Unemployment

H3
High Interest Rates

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 22
 Conceptual Framework: Stages in a process

• Process-based conceptual frameworks show how

concepts are related in process which has
stages/phases and lead to an outcome
• The sequence can be linear or cyclical process

Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For

Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 23
 Research Framework (Conceptual – no theory)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 24
 Research Framework (Conceptual – no theory)

Source: Boateng (2011)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 25
 Conceptual Framework: Hierarchical relationships

• Hierarchy-based conceptual frameworks show how

concepts are related in higher or lower positions on a
scale.
• The higher concept or factor has to be at the apex
and lower at the base of the hierarchy

Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For

Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 26
 Maslow
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 27
 Conceptual Framework: Maps and Coordinates

• Map-based conceptual frameworks show how

concepts are related through vertical and horizontal
scales of a map. Most common are two scale maps.
• In a two-by-two matrix, or table each scale or axis is
divided into two.

Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For

Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 28
 Conceptual Framework: Maps and Coordinates

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 29
 Conceptual Framework: Gap Analysis
• Gap-based conceptual frameworks use concepts to
expose gaps in the phenomena which need to be
addressed
• Gaps may show a discrepancy or failure in the
phenomena.

Fisher, C. (2010) Researching and Writing a Dissertation, An Essential Guide For

Business Students, Pearson Education Limited, Essex.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 30
 For Example: SERVQUAL
• SERVQUAL is a multi-item scale developed to assess customer perceptions of service quality
(Parasuraman et. al., 1988).
• The scale decomposes the notion of service quality into five constructs as follows:
– Tangibles - physical facilities, equipment, staff appearance, etc.
– Reliability - ability to perform service dependably and accurately
– Responsiveness - willingness to help and respond to customer need
– Assurance - ability of staff to inspire confidence and trust
– Empathy - the extent to which caring individualized service is given

SERVQUAL represents service quality as the discrepancy between a customer's expectations for a service offering and the
customer's perceptions of the service received, requiring respondents to answer questions about both their expectations and
their perceptions (Parasuraman et. al., 1988).
Parasuraman,A., Berry,Leonard L. and Zeithaml,V.A., (1988) “SERVQUAL: A Multiple-Item Scale For Measuring Consumer Perceptions of Service Quality”, Journal of Retailing, 64, 1, 12-40.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 31
 Topic Three

BUILDING BLOCKS OF A THEORY

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 32
 Defining Theory
• A theory is an organised, coherent, and systematic articulation
of a set of issues that are communicated as a meaningful
whole.

• Theories provide complex and comprehensive conceptual

understandings of things that cannot be pinned down: how
societies work, how organizations operate, why people
interact in certain ways.
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 33
 Use of Theories
• used to help design a research question,
• guide the selection of relevant data,
• interpret the data, and
• propose explanations of causes or influences.

Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 34
 Building Blocks of A Theory
• Constructs are abstract concepts specified at a high level of abstraction that are
chosen specifically to explain the phenomenon of interest.
• Propositions are associations postulated between constructs based on
deductive logic. The empirical formulation of propositions, stated as
relationships between variables, is called hypotheses.
• Logic acts like a “glue” that connects the theoretical constructs and provides
meaning and relevance to the relationships between these constructs.
• All theories are constrained by Assumptions about values, time, and space, and
boundary conditions that govern where the theory can be applied and where it
cannot be applied.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 35
 How are theories generated?
• Approach 1 - build theories inductively based on observed
patterns of events or behaviors. Such approach is often THEORY
called “grounded theory building”, because the theory is
grounded in empirical observations.

• Approach 2 - Use a bottom-up conceptual analysis of

different sets of predictors potentially relevant to the target
phenomenon using a predefined framework. This is also an
inductive approach that may be based on empirical DATA
observations and/or prior knowledge (Literature Review),
and relies heavily on the inductive abilities of the researcher.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 36
 How are theories generated?
• Approach 1 - build theories inductively based on observed THEORY
patterns of events or behaviors. Such approach is often
called “grounded theory building”, because the theory is
grounded in empirical observations.

• Approach 2 - Use a bottom-up conceptual analysis of DATA

different sets of predictors potentially relevant to the target
phenomenon using a predefined framework. This is also an
inductive approach that may be based on empirical
observations and/or prior knowledge (Literature Review),
and relies heavily on the inductive abilities of the researcher. Predefined Framework
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 37
 How are theories generated?
• Approach 3 - extend or modify existing theories to explain a
new context, such as by extending theories of individual
learning to explain organizational learning. This deductive Issue A
approach is an efficient way of building new theories by
building on existing ones.

• Approach 4 - apply existing theories in entirely new contexts

by drawing upon the structural similarities between the two
contexts. This approach relies on reasoning by analogy, and Issue B
is probably the most creative way of theorizing using a
deductive approach.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 38
 How are theories generated?
• Approach 3 - extend or modify existing theories to explain a
new context, such as by extending theories of individual
Issue A in Context D
learning to explain organizational learning. This deductive
approach is an efficient way of building new theories by
building on existing ones.

• Approach 4 - apply existing theories in entirely new contexts

by drawing upon the structural similarities between the two Issue A in Context E
contexts. This approach relies on reasoning by analogy, and
is probably the most creative way of theorizing using a Context D = Context E
deductive approach.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 39
 How are theories generated?

Technology
Acceptance Model
(Davis, 1989)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 40
 How are theories generated?

Conceptual model for m-

commerce adoption and
usage by traders
(Boateng et al., 2013)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 41
 Attributes of a Good Theory
• Logical consistency: Are the theoretical constructs,
propositions, boundary conditions, and assumptions logically
consistent with each other? If some of these “building blocks”
of a theory are inconsistent with each other (e.g., a theory L
assumes rationality, but some constructs represent non-
rational concepts), then the theory is a poor theory. B
Area
• Explanatory power: How much does a given theory explain (or
predict) reality? Good theories obviously explain the target
phenomenon better than rival theories.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 42
 Logical Consistency and Explanatory Power

Lack of start-up
Political Instability capital
H1
H3 Factors which
contribute or cause
Unemployment
H2 (Literature Review)
High Interest Rates Unemployment

Political ?? Political
??
Stability Stability
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 43
 Logical Consistency and Explanatory Power

Political
?? ?? Unemployment
Stability

Factors which
contribute or cause
Unemployment
(Literature Review)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 44
 Attributes of a Good Theory
• Falsifiability: Falsifiability ensures that the theory is potentially
disprovable, if empirical data does not match with theoretical
propositions, which allows for their empirical testing by researchers.
In other words, theories cannot be theories unless they can be L
empirically testable.

• Parsimony: Parsimony examines how much of a phenomenon is

B
explained with how few variables. Simplest theory - one that uses Area
the smallest number of variables or makes the fewest assumptions)
is the best. Parsimonious theories have higher degrees of freedom,
which allow them to be more easily generalized to other contexts,
settings, and populations.
Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 45
 Time Value of Theories
• Theories have been developed and modified over
several hundred years and have dialectically
informed each other’s changes over time. L
– Delone and Mclean IS Success Model (1992)
– Updated Delone and Mclean IS Success Model (2003) B
– TAM / TAM2 /TAM 3 / TAM 4 Area
– Theory of Planned Behavior (TPB) and Decomposed TPB

Bhattacherjee, Anol (2012) Social Science Research: Principles, Methods, And Practices, Global Text Project
Reeves et al (2008) BMJ 2008;337:a949 doi:10.1136/bmj.a949

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 46
 Progress through Technology Acceptance Theories
• Theory of Reasoned Action (TRA)
• 1975 TRA was developed by Martin Fishbein and Icek Ajzen

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 47
 Progress through Technology Acceptance Theories
• Theory of Planned Behaviour (TPB) Icek Ajzen (1985)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 48
 Progress through Technology Acceptance Theories
• Decomposed Theory
of Planned Behaviour
(DTPB)
• Taylor and Todd (1995)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 49
 Progress through Technology Acceptance Theories
• Decomposed Theory of
Planned Behaviour
(DTPB)
• Taylor and Todd (1995)

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 50
 Progress through Technology Acceptance Theories
• Recent use of the Theory
of Planned Behaviour to
understand Brand Love

Brand love is perceived as one of the main objectives

in brand management. Nevertheless, research into
the factors influencing brand
love are scarce. This paper aims to apply the theory
of planned behaviour to the context of brand love
and investigate the influence of several factors on
brand love, including attitude towards loving a
brand, subjective norm and perceived control
factors, namely, the propensity to
anthropomorphise and the affordability of the Hegner, S., Fenko, A. and Teravest, A. (2017), "Using the theory of planned
behaviour to understand brand love", Journal of Product & Brand Management,
brand. Further, the influence of brand love on brand
Vol. 26 No. 1, pp. 26-41. https://doi.org/10.1108/JPBM-06-2016-1215
forgiveness is proven.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 51
 Progress through Technology Acceptance Theories

Unified theory of
acceptance and use of
technology

(Venkatesh, Morris, Davis et al.,

2003)

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D.

(2003). User acceptance of information technology: Toward
a unified view. MIS Quarterly, 27(3), 425-478.
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 52
 Topic Four

EXAMPLES OF THEORIES

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 53
 Where can we find theories
• Literature
• Database of Theories
– www.tinyurl.com/businesstheory
– www.tinyurl.com/financetheories

• Ask Academic supervisors/lecturers

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 54
 Theories in Economics & Finance
www.tinyurl.com/financetheories
Popular: Arbitrage Pricing Theory, Rational Choice Theory, Prospect Theory, Cumulative
Prospect Theory, Monte Carlo Option Model, Binomial Options Pricing Model, Gordon
Model, International Fisher Effect, Black Model, and Legal Origins Theory. The Arbitrage
Pricing Theory, for example, addresses the general theory of asset pricing.

The Arbitrage Pricing Theory states that the return that is expected from a financial
asset can be presented as a linear function of various theoretical market indices and
macro-economic factors. Here it is assumed that the factors considered are sensitive to
changes, and that is represented by a factor-specific beta coefficient.

Modern Portfolio Theory (MPT) proposes how rational investors should use
diversification in order to optimize their portfolios. It also discusses how a risky asset
should be priced. http://en.wikipedia.org/wiki/Category:Finance_theories
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 55
 Theories in Economics & Finance
Schools of Thought Economic Cycles
• Classical • Keynesian (normative) Growth
• Neoclassical growth
• Marxism • Monetarism
• New growth theory
• Keynesian (positive) • The Phillips curve • Creative destruction
• Neoclassical synthesis • Permanent income hypothesis • Human capital
• Austrian School • Rational expectations • The rule of law
• Time consistency • Limits to growth
Economic Systems • Financial accelerator
• Free market capitalism • Financial instability hypothesis
• Market socialism • Lender of last resort
• Central planning
• Mercantilism
• Shock therapy
• Washington consensus www.tinyurl.com/financetheories

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 56
 Theories in Economics & Finance
Global Trade Markets
• Comparative advantage • The invisible hand
• Heckscher-Ohlin trade model • Marginalism
• New trade theory • The tragedy of the commons
• Optimal currency area • Property rights
• The impossible trinity • Polluter pays principle
• Purchasing power parity • Adverse selection
• Moral hazard
• Efficient market hypothesis
Choice
• Rational choice • Rent seeking
• Game theory Tax & Spend Policies
• Public choice • Tax incidence
• Expected utility theory • Excess burden
• Prospect theory • Supply-side
economics
www.tinyurl.com/financetheories • Crowding out

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 57
 Theories in Accounting theory
• New approaches to accounting theory include:
– the events approach
– the behavioural approach
– the human information processing approach
– the predictive approach
– the positive approach
• Each of these approaches has generated new methodologies
and interest, and has employed unique ways of looking at
accounting problems

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 58
 Theories in Accounting theory
Financial Statements Reporting
• In the value approach:
– the income statement is perceived as an indicator of the financial
performance of the firm for a given period
– the statement of cash flows is perceived as an expression of the changes in
cash
• In the events approach:
– the income statement is perceived as a direct communication of the
operating events that occur during a given period
– the statement of cash flows is better perceived as an expression of financial
and investment events
– in other words, an event’s relevance rather than its output on cash flow
determines the reporting of an event in the statement of cash flow
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 59
 Theories in Accounting theory
The normative events theory of accounting

• The normative events theory of accounting has been tentatively

summarised as follows:
– ‘In order for interested persons … to better forecast the future
of social organizations, … the most relevant attributes … of the
crucial events … which affect the organization are aggregated
… for periodic publication free of inferential bias’
• The objective of the normative events theory of accounting is to
maximise the forecasting accuracy of accounting reports by
focusing on the most relevant attributes of events crucial to the
users

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 60
 Theories in Marketing
Hierarchy-Of-Effects Theory :
A series of steps a consumer goes through
in which they receive and use information
in order to reach a decision about which
actions to take, for example, whether or not
to purchase a product.

A hierarchical representation of how

advertising influences a consumer's
decision to purchase or not purchase a
product or service over time.

Read more: http://www.investopedia.com/terms/h/hierarchy-of-effectstheory.asp#ixzz26gBdREsi

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 61
 For Example: SERVQUAL
• SERVQUAL is a multi-item scale developed to assess customer perceptions of service quality
(Parasuraman et. al., 1988).
• The scale decomposes the notion of service quality into five constructs as follows:
– Tangibles - physical facilities, equipment, staff appearance, etc.
– Reliability - ability to perform service dependably and accurately
– Responsiveness - willingness to help and respond to customer need
– Assurance - ability of staff to inspire confidence and trust
– Empathy - the extent to which caring individualized service is given

SERVQUAL represents service quality as the discrepancy between a customer's expectations for a service offering and the
customer's perceptions of the service received, requiring respondents to answer questions about both their expectations and
their perceptions (Parasuraman et. al., 1988).
Parasuraman,A., Berry,Leonard L. and Zeithaml,V.A., (1988) “SERVQUAL: A Multiple-Item Scale For Measuring Consumer Perceptions of Service Quality”, Journal of Retailing, 64, 1, 12-40.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 62
 Theories in Marketing (strategy)
• The structure-conduct-performance model attempts to explain "why some industries, on
average, are more profitable than others."
• The efficiency perspective provides insights into "why some firms in an industry are more
profitable than others."
• Porter Models provide insights into "how the structural characteristics of an industry and
the competitive strategy pursued by a business jointly determine the performance of a
business.”
• The resource-based view of the firm attempts to explain superior firm/business
performance in terms of firm-specific skills and resources that are rare, valuable, non-
imitable, and characterized by absence of equivalent substitutes.
• Institutional theory suggests that the actions of firms and the outcomes of these actions
are influenced by the knowledge systems, beliefs, and rules that characterize the context
of the organization.

Varadarajan, Rajan P. and Satish Jayachandran. (1999) “Marketing strategy: An assessment of the state of the field and outlook”,
Academy of Marketing Science, (Spring), 120-143

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 63
 Theories in Marketing
• Game Theory
• Game theory is a mathematical concept that analyzes how strategic interactions between individuals,
or agents, produce outcomes based on the agents' choices. The agents may be assumed to have
conflicting priorities.
• Collective Intelligence
• The theory of collective intelligence holds that groups are smarter and more productive than the sum
of their parts.
• Generational Theory
• Generational marketing theory holds that consumers born of the same generation -- defined as a 20-
year period -- have common attitudes and behaviors because of shared experiences that influenced
their childhoods and shaped their views of the world.
• Pew Internet reported in a 2010 study that millennials, who are 18 to 33 years old, are most likely to access the Internet wirelessly. Generation X,
on the other hand, who are ages 34 to 45, are more active than millennials in such activities as researching financial information.

Uhlig, D.K. (n.d) Theories of Digital Marketing, Demand Media Retrieved on July 22, 2012 from
http://smallbusiness.chron.com/theories-digital-marketing-36397.html
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 64
 Theories in Marketing
• There are more marketing theories which are applicable to
the specific area of study
– Consumer behavior
– Relationship marketing
– Corporate social responsibility
– Service marketing
– Entrepreneurship

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 65
 Theories in Management (motivation)
Taylor
• Frederick Winslow Taylor (1856 – 1917) put forward the idea that workers are
motivated mainly by pay. His Theory of Scientific Management argued the following:
– Workers do not naturally enjoy work and so need close supervision and control
– Therefore managers should break down production into a series of small tasks
– Workers should then be given appropriate training and tools so they can work as
efficiently as possible on one set task.
– Workers are then paid according to the number of items they produce in a set
period of time- piece-rate pay.
– As a result workers are encouraged to work hard and maximise their productivity .

http://tutor2u.net/business/gcse/people_motivation_theories.htm

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 66
 Theories in Management (motivation)
Herzberg
• Frederick Herzberg (1923-) had close links with Maslow and believed in a two-factor
theory of motivation. He argued that there were certain factors that a business could
introduce that would directly motivate employees to work harder (Motivators).
However there were also factors that would de-motivate an employee if not present
but would not in themselves actually motivate employees to work harder
(Hygienefactors)
• Motivators are more concerned with the actual job itself. For instance how interesting the work is
and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene
factors are factors which ‘surround the job’ rather than the job itself. For example a worker will
only turn up to work if a business has provided a reasonable level of pay and safe working
conditions but these factors will not make him work harder at his job once he is there.

http://tutor2u.net/business/gcse/people_motivation_theories.htm

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 67
 Theories in Management (motivation)
• Herzberg
• Herzberg believed that businesses should motivate employees by
adopting a democratic approach to management and by improving the
nature and content of the actual job through certain methods. Some of
the methods managers could use to achieve this are:

• Job enlargement, Job enrichment and Empowerment

http://tutor2u.net/business/gcse/people_motivation_theories.htm

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 68
 Theories in Management (motivation)
Maslow
• Abraham Maslow (1908 – 1970) along with Frederick Herzberg (1923-) introduced the Neo-
Human Relations School in the 1950’s, which focused on the psychological needs of
employees. Maslow put forward a theory that there are five levels of human needs which
employees need to have fulfilled at work.
• A business should therefore offer different incentives to workers in order to help them fulfill
each need in turn and progress up the hierarchy. Managers should also recognise that
workers are not all motivated in the same way and do not all move up the hierarchy at the
same pace. They may therefore have to offer a slightly different set of incentives from
worker to worker.

http://tutor2u.net/business/gcse/people_motivation_theories.htm

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 69
 Maslow
Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 70
 Theories in Public Administration
• New Public Administration
• New public management (NPM) denotes broadly
the government policies, since the 1980s, that aimed to
modernise and render more effective the public sector.
• The basic hypothesis holds that market oriented
management of the public sector will lead to greater
cost-efficiency for governments, without having negative
side-effects on other objectives and considerations.

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 71
 Characteristics of NPM

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 72
 Theories in Information Systems and Management

• http://istheory.byu.edu/
• IS theories originate from social science and other disciplines
• It draws on diversity of perspectives to create models and
frameworks
– Technology Acceptance Model
– Diffusion of Innovation
– Theory of Planned Behaviour
– Transaction Cost Theory
– Resource-based Theory

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 73
 Topic Five

LEVEL OF THEORY

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 74
 Level of Theory
• Micro-level Theory
– Not abstract
– Deals with Small slices of time, space, or numbers of people
– “Physician attire affects doctor-patient interaction”
• Meso-level Theory
– Works at the meso-level
– Theories of organizations, social movements and communities
– Resource-Based Theory of the Firm
• Macro-Level Theory
– Macro-level explain larger aggregates such as social institutions and cultural
societies, whole societies…
– Modernization theory

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 75
 References
1. Boateng, R. (2020). Research Made Easy - Second Edition. Seattle, USA: Kindle Independent
Publishing (an Amazon Company). ISBN-13: 979-8611307182: Available on Amazon:
https://amzn.to/39gMMXh
2. Photo Illustrations from Getty Images – www.gettyimages.com and www.cartoonstock.com
3. 2012 InfosmART by Learning Resources, Glasgow School of Art

Prof. Richard Boateng & Dr J. Ofori-Amanfo, UGBS Sep 16, 2025 Slide 76