Chapter 1

Research in Business

McGraw-Hill/Irwin Business Research Methods, Copyright 2008 by 10e The McGraw-Hill Companies, Inc. All Rights Reserved.

Why Study Business Research?

Business research provides information to guide business decisions

What is business research?

Research provides the needed information that guides managers to make informed decisions to successfully deal with problems. The information provided could be the result of a careful analysis of data gathered firsthand or of data that are already available (in the company).

Why is it important for managers to know about research?

Solve problems Decision making tool Competition Risk Investment Hire researchers and consultants more effectively
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Research May Not Be Necessary

Can It Pass These Tests?
Can information be applied to a critical decision? Will the information improve managerial decision making? Are sufficient resources available?

The Business Research Process

Two Categories of Research

Applied

Basic (Pure)

Types of Business research.

1. Applied research Is to solve a current problem faced by the manager in the work setting, demanding a timely solution. 2. Basic research (fundamental, pure) Is to generate a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved. The findings of such research contribute to the building of knowledge in the various functional areas of business.
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Characteristics of Good Research

Clearly defined purpose
Detailed research process Thoroughly planned design High ethical standards

Limitations addressed
Adequate analysis Unambiguous presentation Conclusions justified Credentials
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What is not Research?

A political speech typically
More opinions than facts More statements than facts More subjective ideas than something you can verify More intentions than proofs Broader scope than a typical research scope Less self-critical

LRC Bui Tung, 2007

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What Research Is Not

Research isnt information gathering:
Gathering information from resources such books or magazines isnt research. No contribution to new knowledge.

Research isnt the transportation of facts:

Merely transporting facts from one resource to another doesnt constitute research. No contribution to new knowledge although this might make existing knowledge more accessible.

LRC Bui Tung, 2007

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And good research is difficult

Good research is very difficult to do
Process tends to be flawed Outcome not always correct

Examples
Ask the wrong questions: Coca-colas fiasco Costly, large-scale empirical study yielded wrong marketing decision (changing Coke formula) Test the wrong population: Roosevelts election wrong prediction Use a wrong model: French economy economic model (De Gaulle administration) Good results for wrong reason: NYU NYSE forecasting models
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Formulate Research Questions

Problem Formulation
"Well begun is half done" -- Aristotle, quoting an old proverb Where do research topics come from?
one of the most common sources of research ideas is the experience of practical problems in the field?

The Literature Review

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Sources of Research Projects

(Garbage Can Model of Research)
Theory Previous Research

Personal Experience

Resources ($, facilities, staff) Methods Data (secondary and primary)

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Management-Research Question Hierarchy

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Formulating the Research Question

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Types of Management Questions

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The Research Question

Examine variables Fine-Tuning Break questions down

Determine necessary evidence

Set scope of study

Evaluate hypotheses
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Useful theories
Economic theories
optimization under scared resources

Management science
operations research organizational behavior

Applied psychology Information science

computer science management information systems

And many others BUT YOU NEED THEORIES!

LRC Bui Tung, 2007 20

Current hot research topics

Sustainability Economic growth and pollution control Fiscal policies for market driven-economy Effectiveness of E-commerce Measuring the value of a firm Agents theory Data mining International business etc.
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What make a good research question?

Simple: you cannot explain everything at the same time Specific Need: to whom the research findings are necessary, and to what extent? Testable and feasible (e.g. sneezing when somebody is calling your name Scientific merit Applicable Ethical
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DISCUSSION
- Can you think of a research question?

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Questions
ty le nghi viec

1.If you want to understand why the turnover rate in your company increase this year, what is your research topic? 2.Identify the problem statement. 3.Identify the objectives 4.The theory support for your study and hypotheses 5. The research methodology. 6. The examples of interview protocol/ the 24 questionnaires
How serious is Why turnover rate increase How to solve the problem

Thinking Like a Researcher

The Scientific Method

Direct observation Clearly defined variables Clearly defined methods Empirically testable Elimination of alternatives Statistical justification Self-correcting process
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The Role of Reasoning

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Sound Reasoning
Types of Discourse

Exposition

Argument

Deduction

Induction
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Deductive reasoning
Dien dich

Deductive reasoning, or deduction, starts with a general case and deduces specific instances. Deduction starts with an assumed hypothesis or theory. This assumption may be well-accepted Ex Gravity makes things fall. The apple that hit my head was due to gravity.

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Deductive Reasoning
Inner-city household interviewing is especially difficult and expensive
This survey involves substantial inner-city household interviewing The interviewing in this survey will be especially difficult and expensive
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2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inductive Reasoning
Inductive reasoning, or induction, is reasoning from a specific case or cases and deriving a general rule. It draws inferences from observations in order to make generalizations. Inference can be done in four stages:
Observation: collect facts, without bias. Analysis: classify the facts, identifying patterns of regularity. Inference: From the patterns, infer generalizations about the relations between the facts. Confirmation: Testing the inference through further observation.
Quy nap

Ex: All of your friends are good. You can be good, too. 31

Inductive Reasoning
Why didnt sales increase during our promotional event?
Regional retailers did not have sufficient stock to fill customer requests during the promotional period A strike by employees prevented stock from arriving in time for promotion to be effective A hurricane closed retail outlets in the region for 10 days during the promotion
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Combine Induction & Deduction: Why Didnt Sales Increase?

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 What is reasoning for your research?

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Language of Research

Success of Research

Clear conceptualization of concepts

Shared understanding of concepts

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Language of Research
Concepts Constructs Conceptual schemes Operational definitions

Models

Terms used in research

Theory Propositions/ Hypotheses

Variables

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Scientific Approach to Knowledge Discovery

FACTS CONCEPT (HYPOTHESES) PRINCIPLE THEORY LAW
FACT: an observation, idea or action that can be verified CONCEPT: rules that allows for categorization of events, ideas, people, etc. HYPOTHESIS: educated guess about relationship (principle) PRINCIPLE: relationship(s) between facts or concepts THEORY: set of facts, concepts, and principles that allow description and explanation LAW: firmly established, thoroughly tested principle of theory
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Job Redesign Constructs and Concepts

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Operational Definitions
How can we define the variable

class level of students?

< 30 credit hours 30-50 credit hours 60-89 credit hours > 90 credit hours

Freshman Sophomore Junior Senior

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A Variable Is the Property Being Studied

Variable = synonym for construct or the property being studied Event

Act

Variable
Characteristic Trait

Attribute
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Types of Variables
Nhi phan - Yes or No

Dichotomous

Male/Female Employed/ Unemployed

Roi rac

Discrete

Educational level Ethnic background Religious affiliation

Lien tuc

Continuous

Income Temperature Age

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Independent and Dependent Variable Synonyms

Independent Variable (IV) Predictor Presumed cause Stimulus Predicted from Antecedent Manipulated Dependent Variable (DV) Criterion Presumed effect Response Predicted to. Consequence Measured outcome

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Relationships Among Variable Types

Causes & effects

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Relationships Among Variable Types

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Relationships Among Variable Types

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Moderating Variables (MV)

The introduction of a four-day week (IV) will lead to higher productivity (DV), especially among younger workers (MV) The switch to commission from a salary compensation system (IV) will lead to increased sales (DV) per worker, especially more experienced workers (MV). The loss of mining jobs (IV) leads to acceptance of higher-risk behaviors to earn a familysupporting income (DV) particularly among those with a limited education (MV).
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Extraneous Variables (EV)

With new customers (EV-control), a switch to commission from a salary compensation system (IV) will lead to increased sales productivity (DV) per worker, especially among younger workers (MV). Among residents with less than a high school education (EV-control), the loss of jobs (IV) leads to high-risk behaviors (DV), especially due to the proximity of the firing range (MV).
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Bien giai thich

Intervening Variables (IVV)

The switch to a commission compensation system (IV) will lead to higher sales (DV) by increasing overall compensation (IVV).

A promotion campaign (IV) will increase savings activity (DV), especially when free prizes are offered (MV), but chiefly among smaller savers (EV-control). The results come from enhancing the motivation to save (IVV).
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Propositions and Hypotheses

Brand Manager Jones (case) has a higherthan-average achievement motivation (variable).
Generalization

Brand managers in Company Z (cases) have a higher-than-average achievement motivation (variable).

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Hypothesis Formats
Descriptive Hypothesis In Detroit, our potato chip market share stands at 13.7%. American cities are experiencing budget difficulties. Research Question What is the market share for our potato chips in Detroit? Are American cities experiencing budget difficulties?

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Relational Hypotheses
Correlational
Young women (under 35) purchase fewer units of our product than women who are older than 35. The number of suits sold varies directly with the level of the business cycle.

Causal
An increase in family income leads to an increase in the percentage of income saved. Loyalty to a grocery store increases the probability of purchasing that stores private brand products.

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The Role of Hypotheses

Guide the direction of the study

Identify relevant facts

Suggest most appropriate research design Provide framework for organizing resulting conclusions
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 Develop hypotheses for your research questions

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Questions
1.If you want to understand why the turnover rate in your company increase this year, what is your research topic? 2.Identify the problem statement. 3.Identify the objectives 4.The theory support for your study and hypotheses 5. The research methodology. 6. The examples of interview protocol/ the questionnaires
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