1. Business Research Methods
Cooper & Schindler
Chapter 2

2. How do we know something?
Where does the knowledge originate
as we go about our daily life?

3. Methods of Knowing Method of tenacity Method of authority
Method of intuition
Method of science
Kerlinger, 1986

4. Styles of Thinking Empiricism Rationalism
Denote observations and propositions based on sense experience and /or derived from such experience by means of inductive logic including mathematics and statistics
Attempt to describe, explain, and make predictions through observation
Rationalism
All knowledge can be deduced from known laws or basic truth of nature

5. Style of Thinking Rationalism (formal structural proofs)
Postulational3
Self-evident truth3
Method of authority 3
Scientific method3
Idealism
(highly
interpretative
ideas)
Empiricism
(observable,
concrete data)
Literary3
3Untested opinion
Existentialism
(informal process)

6. Sources of Knowledge Postulation Self-evident truth
Studies in operations research, management science, mathematical modeling, and simulation
Self-evident truth
People would die no matter what precautions were taken
Method of authority
We rely on person’s authority to improve our confidence
Literary
Case studies have played a prominent role in the development of business knowledge
Untested opinion
That’s the way we’ve always done it here

7. Essential Tenets of Science
Direct observation of phenomena
Clearly defined variables, methods, and procedures
Empirically testable hypotheses
The ability to rule out rival hypotheses
The statistical rather than linguistic justification of conclusions
The self-correcting process

8. Deduction A form of inference that purports to be conclusive
The conclusion must necessarily follow from the
reasons given
These reasons are said to imply the conclusion
and to represent a proof
Conclusions are not logically justified if
One or more premises are untrue
The argument form is invalid
(Premise 1) --- All regular employees can be trusted not to steal
(Premise 2) --- John is a regular employee
(Conclusion) --- John can be trusted not to steal

9. Induction To induce is to draw a conclusion from one or
more particular facts or pieces of evidence
The conclusion explains the facts, and the facts
support the conclusion
Why doesn’t the light go on? Because the light bulb has burned out
- The conclusion is an induction because we know from
experience that (1) the light should go on when you push the
switch and (2) if the bulb is burned out, the light will not function
Why is Tracy Nelson doing so badly? Because she make too few
sales calls per day to build a good sales record.
- Tracy’s territory does not have the market potential of others
- Tracy’s sales-making skills are so poorly
- Tracy’s territory has been the scene of intense price cutting by
local manufacturers, and this has caused her to lose many sales

10. ? The induction and deduction processes are used
in research reasoning in a sequential manner.
--By John Dewey(Double Movement of Reflective thought)
(Induction)
Fact1 ?
(Deduction)
Hypothesis
Fact2
(Deduction)
Fact1 = Pushing the light switch results in no light
Fact2 = Inserting a new bulb brings light when switch is pushed

11. 1. You push the light switch and find no light
2. You ask the question, “Why no light?”
3. You infer a conclusion (hypothesis) to answer
the question and explain the fact that the bulb
is burned out
4. You use this hypothesis to conclude (deduce) that
the light will not go on when we push the switch.
We know from experience that a burn-out bulb
will not light.
5. A new bulb put in the lamp will result in light
when the switch is push
6. We put in the new bulb and push the switch.
The light goes on

12. ? Fact1 (Induction) Fact2 Hypothesis Fact3 (Deduction)
Fact1 = Poor performance record
Fact2 = Late to work regularly
Fact3 = Fewer calls per day than average performance

13. Scientific Research Process
Encounters a curiosity, doubt, barrier, suspicion, or obstacle
Struggles to state the problem: asks questions, contemplates existing knowledge, gathers facts, and moves from an emotional to an intellectual confrontation with the problem
Propose hypotheses to explain the facts that are believe to be logically related to the problem
Deduces outcomes or consequences of the hypotheses: attempts to discover what happens if the results are in the opposite direction of that predicted or if the results support the expectations

14. Scientific Research Process
Formulates several rival hypotheses
Devises and conducts a crucial empirical test with various possible outcomes, each of which selectively excludes one or more hypotheses
Draws a conclusion, an inductive inference, based on acceptance or rejection of the hypotheses
Feeds information back into the original problem, modifying it according to the strength of the evidence

15. Sources of Concepts
Concepts have been developed over time through shared usage
Different society may use many of the same concepts
Some concepts are unique to a particular culture
Concepts can be borrowing from other fields
Strategic weapon, gravitation, distance, threshold, velocity
Borrowing is not always practical, so we need to
Adopt new meanings for words
Develop new label for concepts

16. Constructs Composed of Concepts in a Job Redesign Example Most
abstract
“ Job Interest Construct ”
(Components unknown by analyst)
“ Language Skill Construct ”
Vocabulary
Level of abstraction
Syntax
Spelling
“ Presentation Quality
Construct ”
Manuscript
errors
Constructs
Composed of
Concepts in a Job
Redesign Example
Format
Accuracy
Typing
speed
Most
concrete

17. Independent Variable Dependent Variable
Defining Independent and Dependent Variables
Independent
Variable
Dependent
Variable
Presumed cause
Stimulus
Predicted from...
Antecedent
Manipulated
Presumed effect
Response
Predicted to...
Consequence
Measured outcome

18. Moderating Variables Moderating variables Example
a second independent variable that is included because it is believed to have a significant contributory or contingent effect on the original state IV-DV relationship
Example
The introduction of the four-day workweek (IV) will lead to higher productivity (DV), especially among younger workers (MV)

19. Extraneous Variables
An almost infinite number of extraneous variables exists that might conceivably affect a given relationship
Example
In routine office work (control), the introduction of the four-day workweek (IV) will lead to higher productivity (DV), especially among younger workers (MV)

20. Intervening Variables
That factors which theoretically affects the observed phenomenon but cannot be seen, measured, or manipulated; its effect must be inferred from the effects of the independent and moderator variables on the observed phenomenon
Examples
The introduction of a four-day workweek will lead to higher productivity by increasing job satisfaction (IVV)
A promotion campaign (IV) will increase saving activity (DV), especially when free prizes are offered (MV), but chiefly among smaller savers (control). The results come from enhancing the motivation to save(IVV)

21. Descriptive Hypotheses
These are propositions that typically state the existence, size, form, or distribution of some variable
Example
The current unemployment rate in Detroit exceeds 6 percent of the labor force
Researchers will often use a research question rather than a descriptive hypothesis
What is the unemployment rate in Detroit?

22. Relational Hypotheses
These are statements that describe a relationship between two variables with respect to some case
Example
Foreign cars are perceived by American consumers to be of better quality than domestic cars
Correctional relationships
Young machinists are less productive than those who are 35 years or older
Explanatory, or causal relationships
An increase in family income leads to an increase in the percentage of income saved