BusinessResearch Methods

The Role of Business Research

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Module-1ContentsConcept of research and its application in various functions of Management. Pure and Applied research, Quantitative and Qualitative approach,Scientific Method in research. Problems encountered by researcher & Precautions for the researcher.

Research is one of the ways to find answers to questions. Literally, it is re-search. re means again, anew and search means to examine closely and carefully, to test and try or to probe. Together they mean a careful, systematic, patient study and investigation in some field of knowledge, undertaken to establish facts or principles.

Research study implies that the process:Is being undertaken within a framework of set philosophies and academic discipline.Uses procedures, methods and techniques that have been tested for their validity and reliability.Is designed to be unbiased and objective.

Research Defined

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Business ResearchBusiness research is defined as the systematic and objective process of generating information for aid in making business decisions. The definition suggest that:Research information is neither intuitive nor haphazardly gathered. Business research must be objective Detached and impersonal rather than biasedIt facilitates the managerial decision process for all aspects of a business.

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Business research- DefinitionA process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance.

Information Reduces Uncertainty

It aint the things we dont know that gets us in trouble. Its the things we know that aint so.Artemus Ward

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1-*Characteristics of Good Research

*Exhibit presents the characteristics of good business research and also explains what managers should look for in research done by others.

You might wish to discuss the concepts here, before you discuss who actually conducts researchor you might want to discuss who conducts research first, followed by this slide to summarize.

Application of Research in BusinessGeneral Business Conditions and Corporate ResearchFinancial and Accounting ResearchManagement and Organizational Behavior ResearchSales and Marketing ResearchInformation Systems ResearchCorporate Responsibility Research

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

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Pure/ Basic vs. Applied Quantitative vs. QualitativeDescriptive vs. AnalyticalConceptual vs. Empirical

Business Research Types

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Pure ResearchAttempts to expand the limits of knowledge or to verify the acceptability of a given theory.Not directly involved in the solution to a immediate or pragmatic problem.ExamplesIs 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?

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Applied ResearchResearch undertaken to answer questions about specific problems or to make decisions about a particular course of action or policy decision.Examples:Should McDonalds add Italian pasta dinners to its menu?Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?

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Qualitative vs. QuantitativeQuantitative research includes designs, techniques and measures that produce discrete numerical or quantifiable data. Data analysis is mainly statistical (deductive process). It is characterized by: causal-comparative, correlational, experimental and descriptive research.

Qualitative research deals with designs techniques and measure that do not produce discrete numerical data. It involves extensive narrative data in order to gain insights into phenomena. Data analysis includes the coding of the data and production of verbal synthesis (inductive process). Examples include historical research, ethnographic research, participant observational research and the case study.

Scientific MethodThe scientific method is the result of recognizing that personal and cultural beliefs influence our perceptions and interpretations of natural phenomena. Through the use of standard procedures and criteria, it is possible to minimize those influences when developing a theory. The term scientific method denotes the principles that guide scientific research and experimentation, and the philosophical bases of those principles. Scientific methods involve techniques and procedures used to analyze empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.Both pure and applied research employ scientific method to answer questions. Use of SM in applied research assures objectivity in research.The difference in techniques of basic and applied research is largely a matter of degree rather than substance.

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Scientific MethodThe scientific method of inquiry is characterized by the following convictions: that the process must be logical and objective to reduce bias in methods and interpretation of results.that the process should be systematic in that it ought to involve certain standard procedures.enquiry should be conducted through a process of systematic observation that can be verified by experience (empiricism).There should be careful recording, documenting, archival and sharing of all data and methodology (full disclosure) to make it available for scrutiny by other researchers, thereby allowing them to verify results by attempting to reproduce them. It aims at generalizing findings to larger groups by discovering general principles that will be helpful in predicting future occurrences. This calls for careful sampling procedures to ensure that the sample is representative of the larger group. Parsimony: Extreme care in use of resources and efforts.

Assessrelevant existingknowledge

Formulateconcepts &Propositions

Statementof Hypotheses

Design research

Acquire empiricaldata

Analyze &evaluate data

Provide explanation-state newproblemThe Scientific Method: An Overview

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Deductive ReasoningThe logical process of deriving a conclusion from a known premise or something known to be true. We know that all managers are human beings. If we also know that John Smith is a manager, then we can deduce that John Smith is a human being.

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Inductive ReasoningThe logical process of establishing a general proposition on the basis of observation of particular facts. All managers that have ever been seen are human beings; therefore all managers are human beings.

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Managerial value of ResearchThe prime managerial value of business research is that it reduces uncertainty by providing information that improves the decision making process.Decision making process involves following interrelated stages.Identifying problems and opportunitiesDiagnosis and assessmentSelecting and implementing a course of actionEvaluating the course of action: includes Evaluation research and Performance monitoring research

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Managerial value of ResearchEvaluation 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

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When to Conduct Business ResearchA manager faced with two or more possible courses of action faces the initial decision of whether or not to conduct research. The determination of need for research centers on:Time constraintsAvailability of dataNature of the decisionBenefits versus costs

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Is sufficient time available before a managerial decision must be made?Is the infor-mation already on handinadequate for makingthe decision?Is the decision of considerable strategicor tactical importance?Does the value of the research informationexceed the cost of conducting research?ConductingBusinessResearchDo Not Conduct Business ResearchTime ConstraintsAvailability of DataNature of the DecisionBenefits vs. CostsYesYesYesYesNoNoNoNoDetermining When to Conduct Business Research

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Value versus CostsPotential Value of a Business Research Effort Should Exceed Its Estimated Costs

ValueDecreased certaintyIncreased likelihood of a correct decisionImproved business performance and resulting higher profits

CostsResearch expendituresDelay of business decision and possible disclosure of information to rivalsPossible erroneous research results

Value Should Exceed Estimated Costs

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Problems encountered by researchers in IndiaLack of a scientific training (expertise) in research methodology Insufficient interaction between the researchers/ research institutions like university research departments on one side and the users like business establishments, government departments on the other side. Lack of trust between research agencies and users.Lack of coordination and sharing of research between different agencies. There does not exist a code of conduct for researchers Difficulty of adequate and timely secretarial assistance.Unsatisfactory Library management, functioning and inadequate / un-timely availability of published resources.

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*Exhibit presents the characteristics of good business research and also explains what managers should look for in research done by others.

You might wish to discuss the concepts here, before you discuss who actually conducts researchor you might want to discuss who conducts research first, followed by this slide to summarize.*

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