Business Research 1 - Theory
Chapter 2 – The scientific approach and alternative
approaches to investigation
Learning objectives
After completing Chapter 2 you should be able to:
1. Explain what is meant by scientific investigation, giving examples of both scientific
and non-scientific investigations.
2. Discuss the seven steps of the hypothetico-deductive method, using an example of
your own.
3. Discuss alternative perspectives on what makes good research.
Introduction
Scientific investigation: A step-by-step, logical, organized, and rigorous effort to solve
problems.
Scientific investigation tends to be more objective than subjective, and helps managers to
highlight the most critical factors at the workplace that need specific attention so as to
avoid, minimize, or solve problems.
The hallmarks of scientific research
The hallmarks or main distinguishing characteristics of scientific research may be listed as
follows:
1. Purposiveness
2. Rigor
3. Testability
4. Replicability
5. Precision and confidence
6. Objectivity
7. Generalizability
8. Parsimony
Purposiveness
Purposiveness in research: The situation in which research is focused on solving a well-
identified and defined problem, rather than aimlessly looking for answers to vague
questions.
Rigor
Rigor: The theoretical and methodological precision adhered to in conducting research.
Rigor connotes carefulness, scrupulousness, and the degree of exactitude in research
investigations.
,Testability
Testability: The ability to subject the data collected to appropriate statistical tests, in order
to substantiate or reject the hypotheses developed for the research study.
Hypothesis: A tentative, yet testable, statement that predicts what you expect to find in your
empirical data.
A scientific hypothesis must be testable.
Non-testable hypotheses are often vague statements, or they put forward something that
cannot be tested experimentally. A famous example of a hypothesis that is not testable is
the hypothesis that God created the earth.
Replicability
Replicability: The extent to which a re-study is made possible by the provision of the design
details of the study in the research report.
Precision and confidence
Precision: The degree of closeness of the estimated sample characteristics to the populations
parameters, determined by the extent of the variability of the sampling distribution of the
sample mean.
Confidence: The probability estimate of how much reliance can be placed on the findings;
the usual accepted level of confidence in social science research is 95%.
Objectivity
Objectivity: Interpretation of the results on the basis of the results of data analysis, as
opposed to subjective or emotional interpretations.
Generalizability
Generalizability: The applicability of research findings in one setting to others.
Parsimony
Parsimony: Efficient explanation of the variance in the dependent variable of interest
through the use of a smaller, rather than a larger number of independent variables.
,The hypothetico-deductive method
The hypothetico-deductive method is the predominant approach for generating knowledge
in natural, social, and business sciences.
The seven-step process in the hypothetico-deductive method
Hypothetico-deductive method: A seven-step research process of identifying a broad
problem area, defining the problem statement, developing hypotheses, determining
measures, data collection, data analysis, and the interpretation of data.
The hypothetico-deductive method involves the seven steps listed and discussed next.
1. Identify a broad problem area.
2. Define the problem statement.
3. Develop hypotheses.
4. Determine measures.
5. Data collection.
6. Data analysis.
7. Interpretation of data.
Identify a broad problem area
Examples of a broad problem area are:
A drop in sales;
Frequent production interruptions;
Incorrect accounting results.
Define the problem statement
Scientific research starts with a definite aim or purpose. To find solutions for identified
problems, a problem statement that includes the general objective and research questions
of the research should be developed.
Develop hypothesis
In this step, variables are examined to ascertain their contribution or influence in explaining
why the problem occurs and how it can be solved.
A scientific hypothesis must meet two requirements:
1. Testable
2. Falsifiable, it must be possible to disprove the hypothesis.
Determine measures
Unless the variables in the theoretical framework are measured in some way, we will not be
able to test our hypothesis.
, Data collection
After we have determined how to measure our variables, data with respect to each variable
in the hypothesis need to be obtained.
Data analysis
In the data analysis step, the data gathered are statistically analyzed to see if the hypotheses
that were gathered have been supported.
Interpretation of data
Now we must decide whether our hypotheses are supported or not by interpreting the
meaning of the results of the data analysis.
Review of the hypothetico-deductive method
Deductive reasoning: The application of a general theory to a specific case.
Inductive reasoning: A process where we observe specific phenomena and on this basis
arrive at general conclusions.
Karl Popper prosed that (proper) science is accomplished by deduction. However, both
inductive and deductive processes are often used in both fundamental and applied research.
Deductive processes are most often used in causal and quantitative studies.
Inductive research processes are regularly used in exploratory and qualitative studies.
Some obstacles to conducting scientific research in the management area
In the management and behavioral areas, it is not always possible to conduct investigations
that are 100% scientific, in the sense that, unlike in physical sciences, the results obtained
will not be exact and error-free. This is primarily because of difficulties likely to be
encountered in the measurement and collection of data in the subjective areas of feelings,
emotions, attitudes, and perceptions.
