Business Research Summary
What is Business Research?
A series of well-thought out activities and carefully executed data analyses that help a
manager to avoid, solve, or minimize a problem.
▪ You need to be certain you can pinpoint what the problem is, otherwise you
can’t find the solution
▪ You need to know how to work with data, how to solve it…
▪ And you need to help someone
Why should future managers (you!) know about business research?
Managerial Decisions are based on:
• The results of “good” research tend to be more effective
• Hunches, intuition, and past experiences are more likely to be wrong
Illustration 1: Coke
Diet coke was targeted for woman only with no sugar, but they ended up making another
coke, but this one for men only. It was a huge complain, but it failed, as they didn’t have
the correct insights.
Intuition without research leads to losses!! Afterwards, Coke launched a new product
after talking to customers and making research etc., and they launched coke zero, with no
sugar, targeted for everyone.
Intuition does not work. But how about experience? That must surely work … or not?
Illustration 2: The wet mop flop
→ the product didn’t sell in this huge Italian market. Nobody wanted it. They thought it
would sell as so many people cleaned 21 hours a week, however, the Italians wanted a
good quality mop, not just a quick use wet mop. They want everything super clean.
Experience without research leads to losses!!
,Why should future managers (you!) know about business research Continued?
To be able to perform business research
• E.g. undertake research yourselves to solve the smaller problems you encounter
To be able to steer business research
• E.g. interact effectively with researchers / research agencies
To be able to evaluate business research
• To discriminate between good and bad research proposals of researchers /
research agencies
• To discriminate between good and bad published research studies
Myths about business research
The “managers are from Mars, researchers are from Venus” myth
• Myth: There is no need to study business research for a future manager.
• Reality: Managers with knowledge about research have an advantage over those
without
The “most research is not read” myth
• Myth: Business research ends up in the bottom drawer.
• Reality: For knowledgeable manager, research need not be intimidating.
The “big bucks” myth
• Myth: Business research is only for the wealthiest organizations.
• Reality: Business research is very diverse – it can be cheap, it can be expensive.
The “big decision” myth
• Myth: Business research is only useful when you have a major decision to make.
• Reality: For small decisions, the best managers carry out their own research.
The “universal truth” myth
• Myth: There is just one best way of researching a business problem.
• Reality: There is no such thing as an absolute truth in business. *
,6 Hallmarks of “Good” (business) Research
• Purposiveness → Knowing “the why” of your research. Research should have a
purpose. For example: “traffic to our website is low, employees are dissatisfied”.
• Rigor → Be very thorough in all of your steps. Your activities need to be well
thought out. Make it all complete!
o Ensuring a sound theoretical base → check your sample/size etc.
o Ensuring a sound methodological design → do you have unbiased
questions? Are you doing the right sample?
• Objectivity → Drawing conclusions based on facts (rather than on subjective
ideas). You need to be objective. You need to make sure the data speaks for itself,
and that you don’t color it.
• Parsimony → “Keep it easy”. Make everything as simple as possible.
o Shaving away unnecessary details
o Explaining a lot with a little
• Replicability → Finding the same results if the research is repeated in similar
circumstances. Everyone should find the same result as you. Describe your study
design in detail! You have to write your research in a way so that everyone can
copy you. Write everything in so much detail, that everyone can replicate it.
• Generalizability → Whatever you find in your research, should be able to be used
on a broader scope as well. Being able to apply the research findings in a wide
variety of different settings
o Should hold for fundamental research
o … but much less so for applied research
Fundamental vs. Applied Research
Applied Research:
• To solve a current / specific problem faced by a manager (by an individual)
• Applies to a specific company
• Within firms or research agencies
Fundamental (or Basic or Pure) Research:
• To generate new knowledge about how problems that occur in several firms can
be solved (improve theories for an improved understanding)
• Applies to several organizational settings
• Mainly within universities and knowledge institutes
• Generalizability very important here!!
The Seven-Step Research Process
Deductive vs. Inductive Research
• Deductive Research → Start with theory, then find data (Testing theory)
(general knowledge used)
• Inductive Research → Start with data, and build a theory upon this data (Build a
theory) → we have no clue here in the beginning. Check 5 senses.
, Deductive or inductive reasoning?
If it rains, everything outside becomes wet. It rains. The car is outside. Conclusion: The
car will become wet
• Deductive
The first duck in the park is brown. The second duck in the park is brown. The third duck
in the park is brown. Conclusion: Every duck in the park is brown
• Inductive
Where is the Lion?
Deductive reasoning used (you use your knowledge to find out the solution)
The Seven-Step Deductive Research Process
Theory → Data
1. Define the business problem
2. Formulate the problem statement
3. Develop a theoretical framework
4. Choose a research design
5. Collect data
6. Analyze data
7. Write-up
Example: Deductive research process
