International Business Research
Lecture 1
Business research is a series of well-thought out activities and carefully executed data analyses that
help a manager to avoid, solve, or minimize a problem.
- Why is business research relevant to (future) managers?
o Managerial decisions are based on the results of “good” research to be more effective.
o However, these are also based on hunches, intuition, and past experiences are more likely
to be wrong.
The death of Coke C2
- Diet Coke existed (no sugar, for female).
- C2 offered half of the sugar. However, intuition without research leads to losses, since Coke
needed to create Coke Zero (no sugar, for male).
The wet mop flop
- In the USA they cleaned 4 hours a week; in Italy they cleaned 21 hours per week.
- Swiffer worked out in the USA, but when introducing it in Italy it did not. So, experience without
research leads to losses.
IKEA goes USA
- The size of the products offered in Europe was not appropriate for what is desired in the USA.
- Again, experience without research leads to losses.
Why is business research relevant to (future) managers?
- To be able to perform business research.
o E.g. undertake research yourselves to solve the smaller problems you encounter.
- To be able to steer business.
o E.g. interact effectively with researchers/research agencies.
- To be able to evaluate business research.
o E.g. to discriminate between good and bad research proposals of researchers/research
agencies; to discriminate between good and bad published research studies.
“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.
“Most research is not read” myth:
- Myth: Business research ends up in the bottom drawer.
- Reality: For knowledgeable manager, research need not be intimidating.
“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.
“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.
“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.
The hallmarks of “good” (business) research:
1. Purposiveness: Knowing “the why” of your research.
, a. E.g. the stock market reaction to our sustainability investments is weak; employees
are dissatisfied; traffic to our website is low; the sales of new product are lagging.
2. Rigor: Ensuring a sound theoretical base and a sound methodological design.
a. E.g. a representative sample and unbiased questions.
3. Objectivity: Drawing conclusions based on facts (rather than subjective ideas).
4. Parsimony (= simplicity): Shaving away unnecessary details + explaining a lot with a little.
5. Replicability: Finding the same results if the research is repeated in similar circumstances.
a. Thus, describe your study design in detail.
6. Generalizability: Being able to apply the research findings in a wide variety of settings.
a. It should hold for fundamental research, but much less so for applied research.
Applied research:
- To solve a current problem faced by a manager
- Applies to a specific company
- Within firm or research agencies
Fundamental (or basic) research:
- To generate new knowledge about how problems that occur in several firms can be solved
- Applies to several organizational settings
- Mainly within universities and knowledge institutes
Fundamental research aims for it to be used by different organizations (applied research).
If it rains, everything outside becomes wet.
It rains and the car is outside.
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.
Every duck in the park is brown Inductive
When choosing whether a lion is behind one of two doors, based on hearing a grown from the left
door (deductive), this is called inductive reasoning.
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
,The seven-step inductive research process (Data -> Theory)
1. Define the business problem
2. Formulate the problem statement
3. Provide a conceptual background
4. Choose a research design
5. Collect data
6. Analyze data
7. Develop theory
Lecture 2
Looking at the seven-step deductive research process, the first step (Define the business problem)
occurs when there is a difference between the desired and actual situation in a firm.
- Deviation from the norm can be in such a way that it is not necessary to improve/solve the
situation, but can also be in the way that it needs to be solved because it is seriously wrong.
What makes a good business problem?
o Feasibility: Is it doable?
o Relevance: Is it worthwhile?
Feasibility:
- Is the problem demarcated (limited within certain boundaries)?
- Can the problem be expressed in variables?
- Are you able to gather the required data?
, o Existing data and/or new data
Relevance:
- Managerial relevance: Who benefits from having the problem
solved?
o Managers (brand managers, supply chain managers,
accountants, etc.)
Of one company, industry or of multiple industries.
o End users (consumers, investors, tax payers, etc.)
o Public policy makers (government, EU, etc.)
- Academic relevance: Has the problem not already been solved
in prior research?
o Completely new topic: No research available at all, although the topic is important.
o New context: Prior research is available but not in the same context.
o Integrate scattered research: E.g. different studies have focused on different IVs/
moderators, which leads to unclarity about their relative importance.
o Reconcile contradictory research: Solve the contradictions through introducing one or
more moderators.
When a company-problem occurs, the research company should first do preliminary research before
creating a problem statement (step 1 + 2).
What makes a good problem statement?
1. Formulated in terms of variables and relations
2. Open-ended questions
3. Stated clearly/unambiguously
4. (Is managerially and academically relevant)