Summary Research Methods for Business and Economics: Business Economics Ba2
Lecture 1: Introduction
1. What is research?
The process of finding answers or solutions to a problem after study and analysis of a specific phenomenon.
Its carried out in a scientific way:
Organizes: You have a certain map, rules to follow.
Systematic: keeps following the same steps
Data-based: every research is data-based, can be qualitative or quantitative.
Critical: Always be critical, question your approach, the work in progress and the results. Let other people look at your work and see
their points of view -> accept criticism -> important to learn and improve.
Objective investigation: analyse and evaluate positions based on facts and evidence, do not use tools like your personnel opinion.
Research comes in many forms, it aims at building theory, testing a theory, describing a situation or phenomenon.
Theory: a set of ideas/principles that intends to explain a phenomenon, a causal relationship. There must be a general idea behind it, a theory
comes from practice.
A conceptual framework includes one or more formal theories (in part or whole) as well as other concepts and empirical findings from the
literature. It is used to show relationships among these ideas and how they relate to the research study.
Research is the result of analysis of:
Primary data = data gathered first-hand e.g. survey, collecting data, interviews
Secondary data = already available data at company, industry, country level e.g. taking information from online, other surveys
For some firms data is primary (the firm that gathers the data), but for other firms that data is secondary data (the firm that takes information
from others).
Data can be quantitative (numbers e.g. through surveys) or qualitative (words e.g. through interviews) research method
2. Applied and basic research
Applied research Basic research (or fundamental or pure)
Driven by practice Driven by curiosity
Creates practical solutions for specific problems, solution driven To expand, create new knowledge in a field of study, knowledge-specific
To improve understanding of specific business problems To build theories that may serve as a foundation of further studies
To apply the results of research by solving specific problems e.g. in an No commercial purpose, yet. Innovations or practical implications may
organization occur later.
Problems of generalizability (= a measure of how useful the results of a Problem of Applicability (= Applicability is defined as the extent to which
study are for a broader group of people or situations) the results observed in published studies are likely to reflect the expected
outcomes)
Set by Clients Self-initiated
Conducted by academics, practitioners, policy makers Mainly conducted by academics
Examples: “A study into the ways of improving job satisfaction at Uber” or Examples: “A critical analysis of word of mouth as a marketing strategy”
“Development of diversification strategies in the pharmaceutical industry or
in view of market expansion” “A study of factors impacting the platform economy”
3. Managers and research
Why managers need to know about research:
To understand empirical research in the business domain
To identify and solve problems
To get a feel for causal relationships
To make the right decisions, based on facts rather than vested interests
To help distinguish between good and bad studies
To interact effectively with researchers or consultants
To cope with increasing complexity and uncertainty
Example of study with relevance to managers: “The challenges of doing business in emerging markets”
4. The hallmarks of scientific research
Example: What explains employees’ commitment to an organization?
1) Purposiveness: Purpose with a specific focus/goal: in our example -> “increase commitment”
2) Rigor: You must have a good theoretical base and methodology => to increase and have a high degree of exactness. E.g. researcher asks 10-12
employees to indicate what would increase their level of commitment -> sample size is too small, its important if you want to come up with a
general conclusion.
3) Testability: Applies to the hypotheses of the study. A hypothesis is a testable statement derived from theory, which predicts what you expect to
find in empirical data, about “what will happen?” e.g. “Employees who actively participate in decision making will have a higher level of
commitment”
Proposition: a statement or assertion that expresses a judgement or opinion.
4) Replicability: Findings and conclusions should be replicable in other studies. Tests of hypotheses should be supported under similar conditions,
increasing validity of the study.
5) Precision and confidence: findings are based on a model, a sample, differing from population.
, Precision = about exactness, how correct we are = about closeness of findings to reality. Important to avoid that small errors from sample lead to
big errors on a larger scale.
Confidence = how certain we are that estimates hold true for the population, e.g. for 95% probability that findings are correct.
6) Objective: Conclusions drawn should be fact-based, derived from actual data, not subjective. If hypothesis not supported by results => conclusion
that higher participation would lead to higher commitment would not make sense.
7) Generalizability: Applicability of findings in various settings. The wider the applicability, the more useful and valuable the research -> Organization
+ manufacturing + services -> applying in the various departments until its in the whole organization
8) Parsimony: simplicity is preferred over complexity, don’t go beyond the necessity! -> Ockham’s razor: Erasing everything that you don’t need,
keep it simple, greatest possible empirical facts from smallest possible number of hypotheses e.g. “three factors increasing commitment by 50%”
more useful than “ten factors increasing commitment by 55%”
5. Research areas in business
Innovation = The action or process of innovating.
Sharing economy= Activity of acquiring, providing, or sharing access to goods and services that is often facilitated by a community-based online
platform.
Consumer behaviour = The analysis of how consumers make decisions about what to buy, when to buy it, and how to do so.
Human resource management = The practice of recruiting, hiring, deploying and managing an organization’s employees.
Entrepreneurship = The activity of setting up a business or businesses, taking on financial risks in the hope of profit.
Crowdfunding = Crowdfunding is a way of raising money to finance projects and businesses.
Corporate strategy = Establish the overall value of a business, set strategic goals and motivate employees to achieve them.
Stakeholder management = The process by which you organize, monitor and improve your relationships with your stakeholders.
Employee behaviour (performance, absenteeism,…) = An employee's reaction to a particular situation at workplace.
Leadership = Set of activities that managers carry out to influence others in achieving the long-term organizational goals.
6. The different steps of writing process
1) Choosing a topic and designing the project: Identifying a topic, Drafting research objectives,
Planning the research and the project.
2) Writing a critical literature review: Searching the literature, Summarising and precising the
literature, Evaluating key concepts and theories.
3) Concepts, conceptual frameworks and theories: Identifying key concepts, Drafting conceptual
frameworks, Theorising the material.
4) Collecting and analysing research material: Choosing and designing research methods,
Conducting the research, Analysing, sorting and classifying the material.
5) Interpreting the research material: Honesty of argument and language, Interpreting results/findings, Drawing conclusions.
6) Framing arguments and writing up the BA paper/MA thesis/PhD: Arguing the thesis and writing a paper/thesis/dissertation, Structuring the
paper/thesis/dissertation, Producing documents in accordance with the style guide.
7. Methods and methodology
Methods: Specific activity to generate data, more specific than methodology, much broader -> types: interviews, focus groups, case study, surveys,
experiments, observation, grounded theory, content analysis, mixed method
Methodology: Approach, strategy, techniques: to use the appropriate research method, to answer research questions. Acquiring knowledge of
methodology helps to avoid making errors.
,Lecture 2: Scientific approach and choosing a topic
1. The hypothetico-deductive approach: seven-step process
Method of science allows scientists to freely invent hypothetical theories to explain observed data, but requires that such hypotheses are
indirectly tested by their empirical consequences.
1) Identify a broad problem area in the organisation -> for example lack of innovation success -> problem translates into research from more
academic point of view.
2) Define the problem statement, incl. objective and research questions -> Gather information and generate ideas, from literature and experience
of other people, identify key concepts and variables related to the problem and to each other. Narrow down and develop a conceptual framework.
The problem statement can be the main factors explaining innervational success -> we translate broad problem area to a practical problem
statement (objective) -> turn it in to research questions “What are the main factors explaining innovation success” -> if you know these than you
also know the reasons for a lack of innovation success.
3) Develop testable hypotheses -> A hypothesis for each factor -> not too many, to avoid confusion and lack of focus + “Ockham’s razor” (= Erasing
everything that you don’t need, keep it simple, greatest possible empirical facts from smallest possible number of hypotheses).
Two requirements for a hypothesis to be scientific:
Testable: possible to test if hypothesis is true or false, possible to reproduce results
Falsifiable: proven that it is wrong though experimental observations (hypothesis only proved until disproved= undermined).
4) Choose measures for the variables in the hypotheses -> Very easy to measure. If you can’t measure it, it stays theoretical. Make sure it measures
the things you are interested in -> e.g. “students who attend class have higher grades than students who skip class” -> find measures for
“attending/skipping class” and “grades”
Sometimes it’s hard to find good measures of our variable so we use proxy measures = indirect measures or properties, in the absence of anything
better -> you measure something related to the element your interested in -> unemployment has a clear measure but CSR or lobbying activity
does not.
5) Collect data -> Obtain data with respect to each variable in the hypothesis, so the hypothesis can be tested. Data from: databases, fieldwork,
questionnaires, case studies, interviews (number of observations much be large enough, better to gather data from databases).
6) Analyse the data -> why? -> to see whether they support or refute the hypothesis, how? -> by statistical techniques (correlation analysis,
regression analysis).
7) Interpret the data -> interpret the meaning of the results of data analysis. If supported -> make recommendations e.g. towards theory, policy,
management. If refuted -> develop new hypothesis and test again (in future research). You have null hypothesis e.g. “Companies with more
creative employees are not more successful at innovation” and alternative hypothesis (=what we are trying to demonstrate, to explain something)
-> in papers they sometimes only mention the alternative hypothesis e.g. “Companies with more creative employees are more successful at
innovation”
2. Deductive and inductive approach
Deductive approach -> To test a theory, using the data you gathered. From general insights to
specific data. You start with the theory and then your findings -> hypothetico-deductive approach
Inductive approach -> To generate a theory, with the data you gathered. From specific data to general insights. You start with the data (your
findings) which has no theoretical background yet so with the data you gathered you build a new theory. E.g. a company learns that multichannel
product delivery increases customer satisfaction = multichannel delivery is part of something bigger, may add to the theory of customer
satisfaction.
Both approaches are essential parts of the scientific process, form part of reflective thought, can be used in a sequential way or back and forth =
best of both worlds in complex reality.
3. Ontology and epistemology
Ontology: study of the nature of reality, observing reality. It helps you look at objects, reality you are studying.
Objectivism: “There is an objective truth” -> all researchers understand reality in the same way e.g. colours, prices
Constructionism: “there is no objective reality. Knowledge Is mentally constructed” -> each researcher constructs a different perception
of reality (based on experience, moral point of view) e.g. stress, taste ≈ subjectivism.
Epistemology: study of the nature of knowledge, based on what we see in reality we gather knowledge. Influences the way you learn and develop
knowledge about that reality.
Positivism -> knowledge is based on observed facts, cause-and effect relationships (one or more things happen at the results of
something else), researcher is independent analyst -> hypothetico-deductive method.
Interpretivism (or phenomenology) -> knowledge is built through ideas and interpretation, particular situations, values, thinking process
and viewpoint of researcher also counts.
Critical realism -> combination of positivism and interpretivism -> objective knowledge exists but is also subject to interpretation, it is
impossible to fully reach it. Some phenomena cannot be measured directly (satisfaction, motivation). Distinguishes between what is real
and what is real and what is observable.
Both affect the research methodology, research method, data collection.
4. Ontology and epistemology: A tentative synthesis
Quantitative research Qualitative research
Features Numbers, closed-ended questions Words, open-ended questions, text
Role of theory in relation to research Deductive (testing of a theory) Inductive (generation of theory)
Epistemological position Positivism Interpretivism
Ontological position Objectivism Constructionism
Note on the synthesis -> Associations are not that sharp or clearcut, Tendencies, rather than connections. Its not that that if you do a qualitative
research that you can’t use a deductive approach.
Mixed method -> combination of both quantitative and qualitative research associated with critical realism.
, 5. Choosing a topic and designing your project: Criteria for choosing your topic
Interest and relevance -> Choose something interesting: to keep up motivation and commitment, to external audience.
Durability -> Ongoing relevance, not outdated
Breadth of research questions -> “Too broad” is more recurrent than “too narrow
Topic adequacy -> Check topic against assessment criteria
Access -> Check feasibility of interviews, contacts, mailing lists, access to time series, etc.
Micropolitics, risk and security -> Strike a balance. Example: a novel topic may be sensitive
Resources -> Sufficient literature, but not too much and Software
6. Choosing a topic and designing your project: A six-stage process for choosing your topic
1) Identify broad topic, problem area and academic disciplines
Define the Meaning of a “problem” -> NOT something that is wrong or should be immediately rectified -> HERE: any situation indicating a gap
between actual and desired state.
Translate broad problem are into a feasible research topic by making it more specific, setting clear boundaries.
Select a perspective (discipline)
Broad area Perspectives
Platform economies – the challenges Legal
Management
Economic
Flight delays Operations management
Human resource management
Leadership.
Define a good problem statement including: research objectives, research questions -> indicating why the study is being done, what the purpose
is. Follow an academic perspective.
From a managerial perspective research is relevant if it relates to: a problem that currently exist in an organizational setting or an area
that a manager believes needs to be improved In the organization.
From an academic perspective research is relevant if: Nothing is known about the topic, much is known about the topic but the
knowledge is scattered and not integrated, much research on the topic is available but the results are (partly) contradictory, established
relationships do not hold in certain situations.
A strategic question is not the same as a research question
Strategic question: cannot be directly answered by doing academic research: “how can our company improve sustainability?” = “what
should we do?” questions -> providing a solution for one company is too narrow in academic research.
Research question: can be answered through research, and can help the manager to make better judgements: “What do companies that
are sustainable do” -> academic viewpoint is key as the results enhance understanding of phenomenon in more general terms.
2) Determine the scope -> Be practical and pragmatic, check where you can get access. E.g. Organization, sector, industry,…
3) Brainstorm issues, puzzles and questions -> List many different issues Do not evaluate by immediately saying “no”. Ask research questions, i.e.
questions describing and explaining, NOT “what should be done?”
4) Map and structure the issues and questions -> Decide which issues you are going to research
5) Discuss with others like Tutors, promoters, classmates -> Do initial search of the literature to check previous work on the same issues.
6) Frame your research questions -> Keep it simple, use plain English. Make sure you know what you are talking about.
7. Writing the research proposal: The Watson Box
WHAT? WHY?
What puzzles and intrigues me? Why will this be of enough interest to research?
What do I want to know more about or better understand? Is it a guide to practitioners or policy makers?
What are my key research questions? Is it a contribution to knowledge?
HOW – conceptually? HOW – practically?
What models, concepts and theories can I draw upon? What research methods and techniques shall I use to apply my
How can I create a conceptual framework to guide my investigation?* conceptual framework, to gather and analyze evidence?
* Except for grounded theory approach How shall I gain and maintain access to information sources?
Lecture 3: literature review
1. Purpose of the literature review
First section of a paper is the introduction -> Where the research aim/question is indicated, answering the research gap. After that comes the
literature review -> hard to ride down, there is a lot of information, you have to go through all articles relevant to you domain and come up with a
synthesis.
1) To report on scientific literature that forms the base of your study
2) To structure existing studies
3) To formulate and position a problem by reference to previous work
4) To avoid reinventing the wheel (= rediscover something that is already known) -> If you haven’t gone through the literature, you don’t know what
has been done before. The purpose is not to do exactly the same but you can duplicate the research to see if it is still valid with new data.
5) To gather useful insights into research topic
6) To introduce relevant key terms, concepts, definitions, variables, and relations
