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Masters of Business Administration

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1 Masters of Business Administration
Research Methodology Theory Development By: Associate Professor Dr. GholamReza Zandi

2 What is Theory Theory must be able to Make predictions
Explain the relationship, - why such relationship holds and when this prediction holds. Make description – about the constructs, relationship and assumptions

3 What is Theory A framework of constructs (and their manifest indicators – variable/ operational definition), An interrelated relationship (how the construct causally related - between the constructs),

4 What is Theory What is the unit of analysis (e.g. agency theory – individual; resource based view and contingency theory etc– organizational), and Their boundaries (moderating conditions)

5 What are the contributions from a thesis?
Theoretical contributions Practical contributions Methodological contributions – statistics, method etc. Measurement model Conceptual model – acceptable conceptual framework

6 What is theoretical contributions
To what extend your study shows a progression in the theory that you have used? Or extending previous theoretical framework into an area where there is a gap, An area that is not well understood,

7 What is theoretical contributions
Where previous model have not predicted an outcome well, What is the additional explanation and moderating conditions of the theory ( or third variable that alter the relations of the theoretical framework)

8 What is theoretical contributions
Different level of conceptualization and implications Different measurement and methodology

9 Antonakis (2002) Making substantive contribution will mean extending previous theoretical work into an area where there is a gap What is gap? An area that is not well understood

10 Antonakis (2002) Where previous models have not predicted an outcome well Where concept of the variable has not been explore or use - conceptualisation. Additional explanatory (or possibly dependent variables) and moderating conditions of the theory

11 Whetten (1989) Viewpoints What are the building blocks of theory development? What is a legitimate value-added contribution to theory development?

12 What are the building blocks of theory development?
Four essential elements: What – which factor logically should be considered as part of the explanation of the social or individual phenomena of interest? – comprehensiveness & parsimony

13 What are the building blocks of theory development?
How – how are the related? – using “arrows” and “boxes” – introduced “causality” Why – what are the underlying psychological, economic, or social dynamics that justify the relationships?

14 What are the building blocks of theory development?
What and How – provide a framework for interpreting patterns, or discrepancies, in our empirical observations.

15 What is a legitimate value-added contribution to theory development?
Are we generating a new theory? What are you doing is to improve what already exists. The question is what constitutes enough for PhD or DBA thesis?

16 What is a legitimate value-added contribution to theory development?
Identify as many factors as possible and identify the strength of the relationships? But this is not a contribution…. Contributions – by having one variables that can alter the relationship or alter our understanding of the phenomena.

17 Theoretical Framework – Kren (2003)
Job-relevant information Propensity To create budget slack Segment slack (budget slack Created) Budget participation Control system monitoring Environmental uncertainty

18 Theoretical Framework – Alternatively
Job-relevant information Decentralisation Propensity To create budget slack Segment slack (budget slack Created) Budget participation Control system monitoring Environmental uncertainty

19 Alternatively: Theoretical framework
Environmental uncertainty Attitude towards Budget slack Job clarity Intention To create Budget slack Create budget slack Control effectiveness Belief about Budget slack Budget participation

20 Conceptualisation Use of different concepts
For example: organizational culture Katz and Kahn (1978) – roles, norms and values – not explicitly conceptualise as “culture” or “climate” Schein (1990) conceptualised it as a pattern of basic assumptions, invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and internal intergration…(p.111). Hofstede (1980) – the collective programming of the mind which distinguishes the members of one human group from another.

21 Measurement Based on conceptualisation: Borrow and adapt or adopt
Self-construct Rigorous testing – test-retest or split-half or multitrait-multimethod technique Factor analysis – exploratory or confirmatory – dimensions and items

22 Practical Contributions
How your study can helps targeted group of organisation or managers etc.? Holistic view of the framework – modified Inter relationship between variables “What” questions can be used for practical contributions – e.g. descriptive statistics and test of difference.

23 What is your research endeavour?
Have you solved the Problem and answer Your research questions? Research problem/ Focus of your study Literature review/ Observation/knowledge You are the expert. Your observation. Why this? How do you see this – Where is the knowledge reside? Your hypothesis. Based on what? What is your answer? Do you really an expert (scholar)? Which METHODOLOGY? True or Not true What are looking for? TRUTH?

24 Questions? Is there really an external world ‘out there’ from which we can obtain ‘true’ knowledge? • Categories and representations are socially and culturally constructed. Can we talk of a single true version of reality? Especially when exploring a social rather than physical reality. • The search for predictive rules deals with structure but denies agency. • All knowledge is spontaneous.

25 Epistemology Epistemology is the study of how to acquire knowledge by observing the world around you.

26 Epistemology What is true knowledge and what is false knowledge?
Two main epistemological positions dominated philosophy: empiricism, which sees knowledge as the product of sensory perception, and rationalism which sees it as the product of rational reflection.

27 Epistemology Assumptions deal with the basic of knowledge;
How it is possible to identify and communicate what we know? The truth.. The role of researcher is to explore, to explain and to predict the knowledge (about something – e.g. business strategy in that particular setting) Belief, trust, and commitment – where are these concepts resided – within or outside there

28 Epistemology The goal is to end up believing things that are true and not believing things that are false.

29 “Scientific method” is part (not all) of epistemology.

30 Epistemology How to form beliefs based on evidence: From Quantitative approach. (1) Propose a belief (a hypothesis). (It should be something that, if true, would be worth knowing, not a waste of mental effort.) (2) Try to confirm it. (3) Also try to disprove it.

31 Epistemology Stages: (1) Conjecture or guess
(2) Opinion; belief supported by evidence (3) Firm belief, thoroughly tested against evidence and still holding up This looks like science, but is actually applicable to thinking about almost anything.

32 Epistemology Really important point (from Sir Karl Popper):
A belief isn’t warranted unless you could have known if it’s not true. That is, there should be some way that you could tell if it were false.

33 Epistemology Popper’s principle implies:
(1) Your guesses and opinions have to be testable. They have to say what will not happen. Beware of vague predictions that are compatible with any outcome!

34 Epistemology Popper’s principle implies:
(2) It’s your job to test your opinions against evidence. You should always be looking for evidence that your current beliefs are not correct.

35 Epistemology Example: The earth is round.
But some people think it’s flat, and we should be able to explain why it looks flat. People are motivated when management rewards good behaviour. How we want to explain that people are not motivated.

36 How to develop our epistemology – “expertise”?
Experiencing – participation. Observation. Literature review.

37 How to develop our epistemology – “expertise”?
Via Sensory perception. Memory Reasons etc. To account ones about knowledge. To determine the limits of your knowledge. To articulate principles for justifying and improving belief.

38 Beliefs about knowledge.
Objective vs. subjective. Normative vs. descriptive.

39 Beliefs about knowledge
Objectivist – knowledge is someway independent of personal and social biases, political ideologies and moral beliefs. Non-objectivist (subjectivist) - knowledge is socially constructed and is an artifact of various social institutions, political and economic interests, and so forth.

40 Beliefs about knowledge
Normative - Epistemology is concerned with how we ought to form our beliefs, how we ought to gather evidence for beliefs, and so forth. Descriptive approach - epistemology describes and explains how human beings form beliefs about the world, and social epistemology describes and explains the social aspects of knowledge production.

41 Beliefs about knowledge
The descriptivist approach to social epistemology is an empirical investigation of the social structures of inquiring communities, as well as the economic, political, technological and cultural forces that influence knowledge production.

42 Assumptions in Social Science (Burrell & Morgan 1979)
Subjective Objective Ontology Nominalism Realism Anti - positivism Positivism Epistemology Human nature Determinism Voluntarism Ideographic Methodology Nomothetic

43 Which Methodology? Epistemological underpinnings to the use of different methods • Non-objectivist, normative, anti-realist, idealist, post-modern, social constructionist, interpretative orientations tend to employ qualitative methods. • Rationalist, positivist, empiricist, realist orientations (descriptive) tend to employ quantitative methods.

44 Quantitative vs. Qualitative Methods
Quantitative Methods • Uses numbers & stats. • Formalised methods. • Many observations. • Little information. • Makes inferences from specific to general. • Replicable analyses. • Seeks social ‘regularities’or ‘laws’. Qualitative Methods • Uses ‘text’. • Less formalised methods. • Few observations. • Much information. • Not so concerned with inference. • Not necessarily replicable. • Seeks ‘understanding’ &interpretation.

45 Quantitative vs. Qualitative Methods
Quantitative Methods • Censuses. • Surveys. • Official & administrative statistics. • Content analysis • Summarising and descriptive statistics. • Inferential statistics. Qualitative Methods • Unstructured/depth interviews. • Focus groups. • Participant observation. • Case studies. • Semiotics. • Discourse analysis.

46 Where are we heading? Opinion is divided over the scientific status of social science – how far it can and whether it should be modeled on the physical sciences; what that model actually is. • Differences of opinion concerning the existence of an external reality and our ability to know it through observation (ontology and epistemology). • Epistemological divides tend to translate into methodological ones although not inevitable.

47 Where are we heading? • In practice, research strategies often require both quantitative and qualitative methods. • Answer = qualitative research for the context of discovery (induction) and quantitative research for the context of justification (deduction)?

48 Research Methodology Quantitative – hypothetico-deductivism (deductivism) Qualitative – phenomenological (inductivism)



51 What is Theory? Quantitative Perspective
Kerlinger (1986, p.9) theory is “a set of interrelated constructs (concepts), definitions, and propositions that present a systematic view of phenomena by specifying relations among variables, with the purpose of explaining and predicting the phenomena” An explanation about the cause of a specific phenomenon by describing a relationship between variables or constructs.

52 What is Theory? Quantitative Perspective
Also known as “theoretical rationale” – why and how variables and relational statements are interrelated” (Creswell, 1994). How and why one would expect the independent variable to explain or predict the dependent variable.

53 What is Theory? Quantitative Perspective
Hypotheses provide information about the type of relationship (positive, negative, or unknown) and it magnitude (high, low). A theory also can be used to generate hypotheses that can be tested by research.

54 What is Theory? Quantitative Perspective
The results of such research may provide evidence that supports the theory, which, in turn strengthens the theory. On the other hand, research may produce results that causes the theory to be revised, or rejected.

55 What is Theory? Quantitative Perspective
Theories vary in term of their breath or scope. Merriam (1988) grouped: (a) grand theories – explain large categories of phenomena (e.g. Darwin theory, Newton theory (law));

56 What is Theory? Quantitative Perspective
(b) Middle-range theories – fall between hypotheses of everyday life (e.g. social bond theory, general system theory, cybernetic theory, Maslow theory); (c) substantive theories – restricted to specific setting, group , time or population (e.g. agency theory, contingency theory, resource-based view theory)

57 Placement of the Theory (Quantitative)
In the beginning of the plan for a study. To verify or test a theory – not develop it. To confirm or disconfirm by the results in the study. Underpinning the theoretical framework that helps to develop research questions and hypotheses and procedure in data collection.

58 Options for placing theory
In the introduction – in journal articles – will be familiar to readers. In literature review – inclusion and logical extension.

59 Options for placing theory
After hypotheses or research questions – explain why and how variables are related In a separate section – to let reader better understand and identify how theory explain or predict the relationship.

60 What is Theory (Qualitative)
Less clear Varies from one approach to another: Ethnographic studies – begin with a theory that informs their study shape initial research questions Phenomenology – no preconceived notions, expectations or framework guide research

61 Placement of theory or pattern
Does not begin with theory to test or verify. Emerge during data collection and analysis phase Used relatively late in research process – basis for comparison with other theories Possibly develop a theory or compare pattern with other theories.

62 Technology Acceptance Model
Main dependent construct(s)/factor(s) Behavioral Intention to Use, System Usage Main independent construct(s)/factor(s) Perceived Usefulness, Perceived Ease of Use

63 A g e n c y T h e o r y Alternate name(s) Principal-Agent Problem
Main dependent construct(s)/ factor(s) Efficiency, alignment of interests, risk sharing, successful contracting Main independent construct(s)/ factor(s) Information asymmetry, contract, moral hazard, trust

64 A g e n c y T h e o r y Information asymmetry risk sharing contract
moral hazard

65 Resource-based theory
Concise description of theory The resource-based view (RBV) argues that firms possess resources, a subset of which enable them to achieve competitive advantage, and a subset of those that lead to superior long-term performance. Resources that are valuable and rare can lead to the creation of competitive advantage. That advantage can be sustained over longer time periods to the extent that the firm is able to protect against resource imitation, transfer, or substitution. In general, empirical studies using the theory have strongly supported the resource-based view. Main dependent construct(s)/ factor(s) Sustainable competitive advantage Main independent construct(s)/ factor(s) Assets, capabilities, resources

66 Resource-based theory
capabilities knowledge Performance Information technology Customer relation

67 The Role of Model/Framework
The Role of Conceptual Models Sometimes, theories are used to generate conceptual models, which are often represented as graphical figures that display variables and their interrelationships. Conceptual models have many practical implications for practitioners. Among these are the following: Models can serve as the conceptual underpinning for a given set of activities.

68 The Role of Model/Framework
They provide a graphic representation of the variables associated with the topic of interest and their interrelationships. They facilitate communication among staff who use them and are helpful in communicating information about the topic of interest to others. They can be used to identify elements of an activity that require evaluation.

69 What is a conceptual framework?
There are many ways to explain a conceptual framework. It can be any or all of the following: A set of coherent ideas or concepts organized in a manner that makes them easy to communicate to others. An organized way of thinking about how and why a project takes place, and about how we understand its activities. The basis for thinking about what we do and about what it means, influenced by the ideas and research of others.

Helps to postulate and test certain relationship - to improve understanding of the dynamics of the situation testable hypotheses can be developed the basis of entire research rests we can identify the variables

A framework can help us decide and explain the route we are taking: why would we use certain methods and not others to get to a certain point.

People might have tried a similar path before and have had different experiences using one road versus another. Or, there may be paths that have never been explored. With a conceptual framework, we can explain why we would try this or that path, based on the experiences of others, and on what we ourselves would like to explore or discover.

73 How do we derive TF? From previous research in the problem area
Based on theories Integrating one’s logical beliefs with published research Establishing gaps – literature review

74 The Components of the TF
Identifies and labels the important variables in the situation that are relevant to the problem Shows the relationship of variables and elaborates

75 The Components of the TF
How and why moderating and intervening variables are treated Schematic diagram of he conceptual model help to visualise the theorised relationships

Independent variables Dependent variable Employees’ competencies Organizational effectiveness New Product Development success Strong Organizational culture

77 What is Hypothesis? A statement that shows a relationship between two or more variables in testable form.

78 The importance of hypotheses?
As the working instruments of theory – hypotheses can be deduced from theory or from other hypotheses Hypotheses can be tested – shown either true or false – only relations are tested It derives from theoretical framework – literature review

79 The importance of hypotheses?
The powerful tools for the advancement of knowledge – enable scientists to get outside themselves There are research problem behind the hypotheses

80 Logic of Hypothesis Testing
Two tailed test nondirectional test considers two possibilities One tailed test directional test places entire probability of an unlikely outcome to the tail specified by the alternative hypothesis

81 Types of Hypotheses Descriptive hypotheses – proposition that typically state the existence, size, form or distribution of some variable – researchers tend to use research questions for these hypotheses. Relational hypotheses – correlational (unspecified relationship), explanatory or causal (predictable relationship)

82 How do we derive hypotheses?
From own dreams? From own observations? From other research? From other hypothesis? From literature review? From theoretical framework?

83 How do we derive hypotheses?
If it is from own observation, supported by other research, supported by other hypothesis, supported by other literature review, and supported by YOUR OWN theoretical framework…. Therefore IDEALLY YOU SHOULD EXPECT THAT THE HYPOTHESES TO BE ACCEPTED NOT REJECTED… AREN’T YOU?

84 What is the problem? Average of 40%-50% hypotheses rejected – PhD and DBA Thesis What is the issue if the hypotheses are rejected?

85 Poor theoretical framework…… Or……
This is a symptom of.. Poor theoretical framework…… Or……

86 What is the problem? That is what the study shows…… why bother?
BUT - can you live with it? Have you take care of all the procedures and techniques == that cause ERROR

87 What is ERROR? Error is a deviation from the exact or expected outcomes, beliefs or facts…. Every statistic contains both a true score and an error score. A true score is the part of the statistic or number that truly represents what was being measured. An error score is that part of the statistic or number that represents something other than what is being measured.

88 Source of ERROR Theoretical framework – not exhaustively search – poor conceptualisation - superficial Researcher - interferences and carelessness or satisfying… Measurement – instrument to measure the variables

89 Theoretical Framework
What is theoretical framework? There are many ways to explain a conceptual framework. It can be any or all of the following: A set of coherent ideas or concepts organized in a manner that makes them easy to communicate to others.

90 What is a conceptual framework?
An organized way of thinking about how and why a project takes place, and about how we understand its activities. The basis for thinking about what we do and about what it means, influenced by the ideas and research of others. Helps to postulate and test certain relationship - to improve understanding of the dynamics of the situation

91 Have you take care of all these??
How do we derive TF? From previous research in the problem area Based on theories Integrating one’s logical beliefs with published research Establishing gaps – literature review Have you take care of all these??

92 Researchers Interference to the subjects –
Survey (leading questionnaire, guide or enumerators problems), choice of method (is this the best? What is the basis – philosophical reasoning?)

93 Researchers Experiment (during manipulation and overly coach, non-random problem) Satisfying – as long as I get the data…. Just fulfilling the procedure

94 Researchers Sampling – What exactly the population – target and access? what is the technique – is it properly executed? Criteria for selecting the sample, sample size and effect size, Respondents – who are the respondents? What is the criteria? How many from one organization? How valid? Period of responses – 2 weeks or 2 months or more?

95 Measurement Another source of error…
How do you “design” your instrument? How valid and reliable your instrument?

96 From a Concept to a Variable
Operationalisation- turn into a workable or measurable concept. Provide a specific observable characteristic (properties) you would like to measure – based on definition – operational definition

97 Measurement Poorly define and operationalise…. For example –
PERFORMANCE – in the question you have – 10 items (with different characteristics) Profitability items Customer satisfaction items Growth items Productivity items

98 Measurement Definition – which definition and which items you use?
Use of one definition – however items from various researchers – lack of stability, parsimony and validity

99 Measurement Reliability.. Good (normally)
Measurement must be valid and reliable.. Reliable does not mean valid….and vice versa….

Problem in questioning – leading questions, double barreled, relationship questions, value-laden questions No proper pilot study… What is pilot study? What is the purpose?

101 General Rule to Overcome This Problem
Research Design according to Kerlinger (1986) p.280) – two basic purposes: (1) to provide answers to research questions, and (2) to control variance

102 General Rule to Overcome This Problem
“Designs are carefully worked out to yield dependable and valid answers to the research questions epitomized (symbolise) by the hypotheses” (Kerlinger 1986)

103 General Rule to Overcome This Problem
Research Design as Variance Control Control the variance of extraneous or “unwanted” variables. – choose a homogeneous subjects for independent variables Maximise the variance of the variable – variability of independent variable Minimise the error of measurement – interview, pilot, stability and reliability

104 The End End of Chapter 1.

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