MBB3724 Business Research Methods - ahmadbo.com fileBusiness Research •Research information is neither intuitive nor haphazardly gathered. •Literally, research (re-search) -“search

MBB3724Business Research Methods

Introduction to Business Research

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Course syllabus

Research process

../../SYLLABUS_TEACHING & LESSON PLANS/MBB3724 Research Method Lesson Plan.pdf

../../MODULOE RESEARCH PROPOSAL COURSE/01_Main menu_research.ppt

Definition of Business Research

• Business research: an organized and systematic inquiry or investigation into a specific problem, undertaken with the purpose of finding answers or solutions to it.


Business Research

• Research information is neither intuitive nor haphazardly gathered.

• Literally, research (re-search) -“search again”

• Business research must be objective

• Detached and impersonal rather than biased

• It facilitates the managerial decision process for all aspects of a business.

"The secret of success is to know something nobody else knows. "

Aristotle Onassis

Information

Reduces

Uncertainty

I don’t know

if we

should

offer on-site

child care?

Basic research

Applied research

Business Research Types

Basic Research

• Attempts to expand the limits of knowledge.

• Not directly involved in the solution to a pragmatic problem.

Basic Research Example

• Is executive success correlated with high need for achievement?

• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?

• Do consumers experience cognitive dissonance in low-involvement situations?

Applied Research

• Conducted when a decision must be made about a specific real-life problem

Applied Research Examples

• Should McDonalds add Italian pasta dinners to its menu?

• Business research told McDonald’s it should not?

• Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?

• Research showed Crest Whitestrips would sell well at a retail price of $44

Applied versus Basic Research

• Basic research: generates a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved.

• Applied research: solves a current problem faced by the manager in the work setting, demanding a timely solution.


Examples Applied Research

• Apple’s iPod fueled the company’s success in recent years,helping to increase sales from $5 billion in 2001 to $32 billionin the fiscal year 2008. Growth for the music player averagedmore than 200% in 2006 and 2007, before falling to 6% in 2008.Some analysts believe that the number of iPods sold will drop12% in 2009. “The reality is there’s a limited group of peoplewho want an iPod or any other portable media player,” oneanalyst says. “So the question becomes, what will Apple doabout it?”

• The existing machinery in the production department has hadso many breakdowns that production has suffered. Machineryhas to be replaced. Because of heavy investment costs, acareful recommendation as to whether it is more beneficial tobuy the equipment or to lease it is needed.


More Examples of Research Areas in Business

• Absenteeism

• Communication

• Motivation

• Consumer decision making

• Customer satisfaction

• Budget allocations

• Accounting procedures


Why managers should know about research

• Being knowledgeable about research and research methods helps professional managers to:

• Identify and effectively solve minor problems in the work setting.

• Know how to discriminate good from bad research.

• Appreciate the multiple influences and effects of factors impinging on a situation.

• Take calculated risks in decision making.

• Prevent possible vested interests from exercising their influence in a situation.

• Relate to hired researchers and consultants more effectively.

• Combine experience with scientific knowledge while making decisions.


The Manager–Researcher Relationship

• Each should know his/her role

• Trust levels

• Value system

• Acceptance of findings and implementation

• Issues of inside versus outside researchers/consultants


Internal Researchers

• Advantages:• Better acceptance from staff• Knowledge about organization• Would be an integral part of implementation and

evaluation of the research recommendations.

• Disadvantages• Less fresh ideas• Power politics could prevail• Possibly not valued as “expert” by staff


External Researchers

• Advantages• Divergent and convergent thinking• Experience from several situations in different

organizations• Better technical training, usually

• Disadvantages• Takes time to know and understand the

organization• Rapport and cooperation from staff not easy• Not available for evaluation and implementation• Costs


Hallmarks of scientific research:

• Hallmarks or main distinguishing characteristics of scientific research:

• Purposiveness • Rigor • Testability • Replicability • Precision and Confidence • Objectivity • Generalizability • Parsimony


Hypothetico-Deductive Research

• The Seven-Step Process in the Hypothetico-Deductive Method

• Identify a broad problem area• Define the problem statement • Develop hypotheses• Determine measures • Data collection • Data analysis • Interpretation of data


Deduction and Induction

• Deductive reasoning: application of a general theory to a specific case.

• Hypothesis testing

• Inductive reasoning: a process where we observe specific phenomena and on this basis arrive at general conclusions.

• Counting white swans

• Both inductive and deductive processes are often used in research.


Scientific Method

• The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.

The Decision-making Process Associated with the Development and Implementation of a Strategy

• Identifying problems and opportunities

• Diagnosis and assessment

• Selecting and implementing a course of action

• Evaluating the course of action

Evaluation Research

• Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.

Performance-monitoring Research

• Research that regularly provides feedback for evaluation and control

• Indicates things are or are not going as planned

• Research may be required to explain why something “went wrong”

Total Quality Management (TQM)

• A business philosophy that embodies the belief that the

management process must focus on integrating customer-driven

quality throughout the organization.

TQM

• Stresses continuous improvement of product quality and service.

• Managers improve durability and enhance features as the product ages.

• Managers strive to improve delivery and other services to keep their companies competitive

Determining When to Conduct Business Research

• Time constraints

• Availability of data

• Nature of the decision

• Benefits versus costs

Is sufficient time

available before

a managerial

decision

must be made?

Is the infor-

mation already

on hand

inadequate

for making

the decision?

Is the decision

of considerable

strategic

or tactical

importance?

Does the value

of the research

information

exceed the cost

of conducting

research?

Conducting

Business

Research

Do Not Conduct Business Research

Time Constraints

Availability of Data

Nature of the Decision

Benefits

vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Business Research

Value versus Costs

• Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

Value

•Decreased certainty

•Increased likelihood

of a correct decision

•Improved business

performance and

resulting higher

profits

Costs

•Research

expenditures

•Delay of business

decision and

possible disclosure

of information to

rivals

•Possible erroneous

research results

Value Should Exceed Estimated Costs

Major Topics for Research in Business

• General Business Conditions and Corporate Research

• Financial and Accounting Research

• Management and Organizational Behavior Research

• Sales and Marketing Research

• Information Systems Research

• Corporate Responsibility Research

Cross-functional Teams

• Cross-functional teams are composed of individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.

Business Research in the 21st Century

• Increased globalization

• Growth of the Internet and other information technologies

Global Research

• Business Research is increasingly global

• Market knowledge is essential

• A.C. Nielsen - more that 67% international business

Global Business Research

• General information about country - economic conditions and political climate

• Cultural and consumer factors

• Market and competitive conditions - demand estimation

The Internet Is Transforming Society

• Time is collapsing.

• Distance is no longer an obstacle.

• Crossing oceans is only a mouse click away.

• People are connected 24 hours a day, seven days a week.

• "Instantaneous" has a new meaning.

Internet Research

• Seeking facts and figures about an issue

• Surveys on Web sites

Documents

MBB3724 Business Research Methods - ahmadbo.com fileBusiness Research •Research information is neither intuitive nor haphazardly gathered. •Literally, research (re-search) -“search