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College notes Business Research
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Lesson 1Research Approach. Inductive and Deductive. Two research approaches:
Deductive approach
is concerned with developing a hypothesis (or hypotheses) based on existing theory, and
then designing a research strategy to test the hypothesis.
(Wilson, 2013: 13)
In this type of research, theory, and hypotheses built on it, come first and influence the rest
of the research process – this type of research is often associated with the quantitative type
of research’.
A deductive approach ‘begins with and applies a well-known theory’. For example, if your
research project was focused on cross-cultural management and based on a deductive
approach, then you may decide to apply Geert Hofstede’s cultural theory. In other words,
you are applying theory rather than attempting to generate new theory through an inductive
approach.
Deductive approach, examples:
1. Mintzberg’s model,
2. Geert Hofstede
3. Problem background:
Since the start of the lockdown the majority of classes at Fontys IB has been offered
online.
Some teachers are worried that online teaching has a negative impact on the transfer
of knowledge and leads to poorer study results.
Some previous studies show that offline teaching leads to better study results than
online teaching.
Does this theory also hold at Fontys IB?
Inductive approach
‘a theory-building process starting with observations of specific instances and seeking to
establish generalization about the phenomenon under investigation.’
(Hyde, 2000: 83)
In other words, if you decide to follow an inductive approach to your study, you will be
seeking to make observations about your research, and then perhaps contribute to a new
theory.
An inductive approach would collect data and develop theory as a result of your own data
analysis. This type of research is often associated with the qualitative type of research.
Inductive approach example:
Human behavior in lockdown
,One of the main distinguishing features between business research in an academic setting
and ‘real life’ is theory. Quite simply, your own research project requires theoretical content.
However, an important question you will need to answer quire early on is: ‘How will theory
feature in my study?’ this brings us to the important distinction between ‘induction’ and
‘deduction’.
Inductive approach = observations/findings > theory as an outcome
Deductive approach = theoretical application > observations/findings
Differences Deductive and Inductive Approach
Deduction emphasizes Induction emphasizes
Scientific principles Gaining an understanding of the meanings
human attach to events
Moving from theory to data A close understanding of the research
context
The need to explain causal relationships The collection of qualitative data
between variables
The collection of quantitative data A more flexible structure to permit changes
of research emphasis as the research
progresses
The application of controls to ensure A realization that the research is part of the
validity of data research process
The operationalization of concepts to Less concern with the need to generalize
ensure clarity of definition
A highly structured approach
Research independence of what is being
researched
The necessity to select samples of sufficient
size in order to generalize conclusions
Table 1.3 Major differences between deductive and inductive approaches to research
(Wilson, 2013)
Table 1.3 dichotomizes deductive and inductive in order to show you the distinction
between the two approaches. This distinction is somewhat ambiguous (dubbelzinnig).
For example, an inductive approach could also involve the collection of quantitative data.
Similarly, a deductive approach may involve the collection of qualitative data, e.g., through
interviews.
, Research Strategy. Qualitative and Quantitative. Two research strategies:
The word ‘qualitative’ implies an emphasis on the qualities of entities and on processes and
meanings that are not experimentally examined or measured (if measured at all) in terms of
quantity, amount, intensity or frequency. Qualitative researchers stress the socially
nonstructured nature of reality, the intimate relationship between the research and what is
studied, and the situational constraints that shape inquiry.
Such researchers emphasize the value-laden nature of inquiry. They seek answers to
questions that stress how social experience is created and given meaning. In contrast,
quantitative studies emphasize the measurement and analysis of causal relationships
between variables, not processes. Proponents of such studies claim that their work is
undertaken from within a value-free framework.
In short, the main difference is that quantitative is usually associated with numerical
analysis, while qualitative is not.
A number of other key differences also exist.
For example, a quantitative strategy is viewed as objective and involves data collection
methods such as questionnaires. Yet a qualitative approach is viewed as subjective and
involves data collection such as interviews.
Quantitative research
A quantitative approach to research might draw a large and representative sample from the
population of interest, measure the behavior and characteristics of that sample, and attempt
to construct generalizations regarding the population as a whole.
Unlike qualitative research, quantitative research is often associated with a deductive
approach. In other words, theory is applied from the outset. Analysis is usually statistical and
involves analyzing the results following theoretical application. Rather than generating a
theoretical framework as a possible outcome, you would apply an existing theory that would
help interpret your findings. Furthermore, because you have probably applied a theory that
has been used by several previous researches, interestingly your results can often be
compared with current studies. Using the joint venture example again, let us assume that
now that you have analyzed the relationship between cultural values and joint venture
performance, you are keen to know how many years managers intend remaining in a joint
venture. The nature of this question is objective and will generate numeric or quantitative
data.
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