Business Research Method book 1-
14+18
Chapter 1. The nature of business and management
research
Empirical = based on or verifiable by observation or experience rather than theory or pure logic.
1.1 Why study research?
Research methods provide you with ideas, instruments and models that demonstrate how to conduct
sound research. Studying research methods help you gain knowledge and skills to solve problems and
meet challenges of a fast-paced decision making environment. Business research is the systematic inquiry
(ask for information) in which the goal is to provide information that allow for managerial problems to be
solved. To solve a research or management dilemma it is important for students to learn a disciplined
process to help them investigate. Three factors have stimulated this scientific approach:
1. Need for more thorough information as decisions become more complex;
2. Availability of better techniques and tools to meet this need;
3. The danger of having information overload if discipline is not used during the research.
Knowledge demands have come to light from problems with mergers, trade policies, protected markets,
technology transfers and macroeconomic savings-investment issues. The business environment has also
changed because of social and political mandates (orders) of national public policy, technology growth and
innovation in communications. This results in more complex and thus risky business decisions. Factors that
characterize the complex business decision-making environment are:
More variables to take into account in every decision;
More knowledge existing in every field of management;
A stronger global and domestic competition;
Explaining tactical and strategic results is easier with better qualities of theories and models;
Government is increasingly aggressive in protecting various publics, showing more concern;
The explosive growth of e-commerce with new ways of information;
Workers, shareholders, customers etc. are better informed and more sensitive to their own
interests than ever before. They demand to be included in company decision making.
However, business research tools have also become more sophisticated. The following factors show how
developments have affected business research processes:
Organizations are increasingly practising data-mining – extracting meaningful knowledge from
large internal databases
Technology helped businesses to create data warehousing – electronic storehouses with large
maps of collected date, ready for the data-mining;
Communication and measurements techniques used in research have improved;
Quantitative analysis techniques being made easier with technology capabilities;
The user-friendliness of today’s computers means data may easily be analysed to help with
complex managerial problems.
1.2 What is research?
1
,When looking at a case, keep two questions in mind. ‘What is the decision-making dilemma facing the
researcher/manager?’ and ‘What must the researcher accomplish?’
There are four types of studies that define a different aim the researcher must accomplish.
Reporting studies provide an account or summation of some data, or generate some statistics. It calls for
knowledge and skill in using information sources and dealing with their gatekeepers. An expert that can
help finding other sources is considered a gatekeeper. Some say reporting studies is not research.
However a research design does not have to be complex for a project to be labelled research. Carefully
gathered data can be of great value.
Descriptive studies try to get answers to the questions who, what, when, where and sometimes, how. The
researcher attempts to describe/define a subject. This is often done by creating a profile of a group of
problems, people or events. A research variable is the number of times the researcher observed a single
event/characteristic. The researcher can also assess the interaction of 2+ variables. A major deficiency of
descriptive studies based on existing data is that they cannot explain why an event has occurred or why
variable interact the way they do. It is popular in business research because of its versatility (ability to
adapt) across disciplines.
Explanatory research goes beyond looking for reasons a phenomenon occurs. A correlational study
researches the relationship between 2+ variables. The explanatory study uses theories (or at least
hypotheses) to explain the forces that caused a certain phenomenon. The researcher tests his hypothesis
by modelling the last year of a business using the relationship between processes and results.
If you can find a plausible explanation for an event AFTER it has occurred, it is desirable to also be able to
predict when and in what situations such an event might reoccur. Scenario models and expert surveys are
ways to do this. Expert surveys are mostly based on qualititaive interviews with experts on a given issue.
Scenario models are scenarios based on different assumptions on the course of key factors. Finally, once
we can explain and predict a phenomenon, we would like to be able to control it. Control is being able to
replicate a scenario and dictate a particular outcome. The adequacy of the prediction theory is responsible
for success in a control study. The researcher needs to be able to account for and control all other
variables influencing the applications. It is thus quite complex.
1.3 Is research always problem-solving based?
Applied research has a practical problem-solving emphasis, although it is not always generated by a
negative circumstance. The nature is that it is conducted in order to reveal answers to specific questions
related to action, performance or policy needs. Pure, or basic, research is also problem-solved based, but
in different sense. It has to do with solving difficult questions of a theoretical nature that have little direct
impact on action, performance or policy decisions. It is fundamental research that does not necessarily
solve a problem but gives general information.
Scientific research – ‘A systematic, controlled, empirical, and critical investigation of natural phenomena
guided by theory and hypotheses about the presumed relations among such phenomena’. Systematic and
controlled in the sense of how much observations were controlled and whether alternative explanations
were ruled out. Empirical and critical refer to testing subjective beliefs against objective reality and to
leaving findings open. So yes, research is always problem-solving based. Basic or applied, all research
should provide an answer to a question.
1.4 What makes good research?
Good research generates dependable data. Poor research is carelessly planned and conducted and thus
something you cannot trust. Follow the structure of the scientific method to carefully define a research.
2
, 1. Purpose clearly defined – Applied research - Researcher distinguishes between the defined
symptom of organization’s problem, the manager’s perception of the problem and the research
problem. In pure research it is also wise to clearly separate the research dilemma addressed and
the research problem actually investigated. The scope, limitations and precise meanings of all
words and terms significant to research are clearly defined.
2. Research process detailed – Researcher provides complete research proposal. This makes the
research replicable. Omission (leaving out) significant procedural details makes it difficult to
estimate the validity and reliability of the data.
3. Research design thoroughly planned – Exploratory procedures are outlined with constructs
defined. Sample unit is clearly described, with evidence of representativeness along with sampling
methodology. Data collection procedures are selected and designed. Efforts should be made to
minimize the influence of personal bias in selecting and recording data.
4. High ethical standards applied – Safeguards are set to protect study participants, organizations,
clients and researchers. Recommendations do not exceed scope of the study. Study’s
methodology and limitations sections reflect researcher restraint and concern for accuracy.
5. Limitations frankly revealed – Desired procedure is compared with actual procedure in report.
Desired sample is compared with actual sample in report. Impact on findings and conclusions is
detailed. Researcher should by frankly honest about flaws in procedural design.
6. Adequate analysis for decision-makers´ needs – sufficiently detailed findings are tied to collection
instruments. When this is done with statistical methods, the probability of error should be
estimated and the criteria of statistical significance should be applied.
7. Findings presented unambiguously – Findings are clearly presented in words, tables and graphs.
Findings are logically organized to facilitate reaching a decision about the manager’s problems.
Executive summary of conclusions is outlined. Detailed table of contents is tied to the conclusions
and findings presentation. It is easy for the reader to locate critical findings.
8. Conclusions justified – decision-based conclusions are matched with detailed findings. Avoid
drawing conclusions from a limited population and applying them universally. Some researchers
are tempted to include personal experience/interpretations or overly use data collected in prior
study. Good researchers specify the conditions under which their conclusions are valid.
9. Researcher’s experience reflected – Experience/credentials of researcher are provided with report.
It helps with confidence in the research if the researcher is experienced, has a good reputation in
the field and is a person of integrity.
not necessarily need to know for test. You do need to understand why these criteria are
criteria for good research
1.5 Research philosophies
Research is based on reasoning (theory) and observations (data/information). How they are related to
each other is an old and still ongoing philosophical debate. It is good to have knowledge of philosophies to
clarify the research design and facilitate the choice of an appropriate one. The two most distinguished
research philosophies are positivism and interpretivism.
Positivism
Positivism is a research philosophy adopted from the natural sciences. Knowledge developed by
investigating the social reality through observing objective facts. Theory is being developed by making
hypotheses of fundamental laws and from that find observations that support or reject the theoretical
predictions of the hypotheses. Three basic principles are:
1. Social world exists externally and is viewed objectively;
2. Research is value-free;
3
, 3. Researcher is independent, taking the role of an objective analyst.
It implies the following assumptions. The social world is observed by collecting objective facts & the social
world consists of simple elements to which it can be reduced. The researcher believes/assumes the
observable facts are objective because they are external. They often single out one explanation in order to
understand a phenomenon and deliberately neglect other aspects.
Interpretivism
Interpretivists believe the social world cannot be understood by applying research adopted from the
natural sciences and propose social sciences require a different research philosophy. Simple fundamental
laws are not enough to understand the whole complexity of social phenomena. An objective observation
of the social world is impossible, since humans attach different meaning to the social world. Research is
also not value free – Researchers offer an interpretation of how people interpret the world. The
researchers’ interpretation is also socially constructed, reflecting their motives and beliefs. Someone’s
interests will influence how we investigate the world and how we construct our knowledge (how we
formulate the answers found). 3 basic principles are:
1. The social world is constructed and people give meaning subjectively;
2. Research is driven by interests;
3. Researcher is part of what is observed.
It implies the following assumptions. The social world is observed by seeing what meanings people give to
it and interpreting these meanings from their viewpoint. Social phenomena can only be understood by
looking at the totality. It wants a true understanding of what is happening.
Interpretivists research social phenomena by making sense of how people interpret the social world. This
means it is important to acknowledge the specific motivations and interests of participants. It makes it
very complex and often results are unique, as they result from multiple circumstances formed by many
individuals. Interpretivism thus does not like to generalize findings.
Realism
Realism is a philosophy sharing principles of positivism and interpretivism. There are social processes and
forces beyond the control of humans, which affect our beliefs and behaviours (macro level, positivism). At
the level of individual human beings, subjective individual interpretations of reality are important to
understand fully what is happening (micro level, interpretivism). However, these subjective
interpretations are not unique – people share similar interpretations, because the external forces of the
macro level influence everyone.
Critical realism, a branch of realism, recognizes a gap between the researcher’s concept of reality and the
‘true’ but unknown reality. Research is thus not value-free, and is conducted within a broader framework
based on our current knowledge and concept of reality.
Research implications of positivism and interpretivism.
Positivism Interpretivism
Basic principles
View of the world The world is external and objective The world is socially constructed and subjective
Involvement of Researcher is independent Researcher is part of what is observed and
researcher sometimes even actively collaborates
Researcher’s influence Research is value-free Research is driven by human interest.
Assumptions
What is observed? Objective, often quantitative, facts Subjective interpretations of meanings,
4
