Nature and Scope of Business Research

Objectives Understand what research is Have appreciable knowledge on the research process Know the various classifications of research Understand research paradigms Appreciate the features of a good research Appreciate how theories are broken down into concepts and variables.

What is Research? Research is an organized and systematic way of finding answers to questions (Boateng, 2014). Research is something that people undertake in order to find out things in a systematic way, thereby increasing their knowledge (Saunders, Lewis & Thornhill, 2007). Business and management research is undertaken in order to find out things about business and management.

Uniqueness of Business and Management Research According to Easterby-Smith et al. (2002) (as cited in Saunders, Lewis and Thornhill, 2007), business and management research is unique because of the following: (a) the way in which managers (and researchers) draw on knowledge developed by other disciplines; (b) the fact that managers tend to be powerful and busy people. Therefore, they are unlikely to allow research access unless they can see personal or commercial advantage; and (c) the requirement for the research to have some practical consequence.

Major Topics for Research in Business General Business Conditions Financial and Accounting Research Management and Organizational Behavior Research Sales and Marketing Research Information Systems Research Corporate Responsibility Research

Why do we do Research? We do research to: (a) Discover/Explore; (b) Understand (c) Describe; (d) Explain; and/or (e) Predict/create …social or scientific phenomena

Alternatives to Research Without research the common sources of perceptions, information and knowledge include the following: (a) Authority which is accepting something as true or as a fact because it comes from people of authority; (b) Tradition refers to accepting something as true or as a fact because it is based on the past – passed on from previous generation and become a norm; (c) Common sense refers to ordinary reasoning which may be built from a person’s experiences and sometimes tradition; Media myth refers to arriving at conclusions based on a reality created by the media (e) Personal experience refers to learning through our sensory impressions and knowledge – ‘seeing is believing’.

Who needs research? Research is needed by researchers, practitioners and policy makers. Stakeholders of research include organisations, communities, government and non-governmental institutions and society in general. Research has to fit into a body of knowledge or practice or policy.

The Research Process

More Detailed Research Process Selecting a research topic Determining the research problem Determining research gaps Determining research hypotheses Determining research objectives Determining research questions Detailed literature review Determining research framework Designing the research Collecting Data Analyzing and interpreting Data Informing others (research write up and publication)

Classifications of Research The various types of research are classified according to: (a) Application of the research or use of the research results (b) Purpose or objective of the research ( c) Inquiry procedure of the research including: - Paradigm or philosophies underpinning the research; - Approach of the research -Time dimensions of the research

Type of Research based on application

Type based on the Purpose or Objectives of the Research Exploratory Research Descriptive Research Explanatory or Causal Research

Inquiry Procedure of the research Research philosophies and paradigm: Approach of the Research: Time Dimension of the Research positivism, interpretivist, realism, relativism and critical realism. Quantitative (Structured) Research Qualitative (Unstructured) Research Cross-sectional study Longitudinal Study (Panel or Cohort studies) Time Series

Overview of Research Paradigms or Philosophies ONTOLOGY (What is the nature of reality?) Epistemology (What is the nature of knowledge generated?) Methodology (How is knowledge created?) POSITIVISM There is a single, objective and tangible reality Value-free. Knowledge generated is objective, free of time influences, and is context independent. Researchers formulate research questions and hypotheses and then test them empirically under carefully controlled circumstances. Deductive reasoning. INTERPRETIVISM Multiple realities exist, subject to human experiences and interpretation. Reality is socially constructed Value-Laden. Knowledge generated is subjective, time-bound and context dependent. Knowledge is created through researchers identifying the various interpretations and constructions of reality that exist and attempting to establish patterns. Inductive logic and emergent design

ONTOLOGY (What is the nature of reality?) Epistemology (What is the nature of knowledge generated?) Methodology (How is knowledge created?) REALISM Reality is ‘real’ but only imperfectly and probabilistically apprehensible, so triangulation from many sources is required to try to know it. Value-Cognizant/Value aware. Findings are probably true … researchers needs to triangulate any perceptions collected Social phenomenon is understood through hypotheses which are tested to establish patterns of associations and hence, the most possible explanation. Hypothetico-Deduction RELATIVISM Multiple realities exist. Reality as truth is not “absolute”, it is relative, it is dependent upon ‘something’ and it does exist. The interpretation of the world requires some form of human processing The construction of knowledge is influenced by worldview and research paradigm of a researcher. Researchers should focus more on creating and developing new ‘useful’ theories – useful solutions to specific problems. CRITICAL REALISM Two worlds – transitive and intransitive. Transitive is what we observe and learn with our mind – the perceptions of reality. Intransitive embodies the reality which is independent of what the mind thinks. Transitive world is value-laden and changing continually. Intransitive world has underlying structures and mechanisms that are ‘relatively enduring’ – that is what we want to study. Researchers seek to deconstruct and understand the structure and mechanisms underlying the subjective realities that exist. Triangulation from many sources is required to try to know it. Retroductive reasoning

Characteristics of a Good Research Aim Rigor Testability Replicability Precision and Confidence Objectivity Generalizability Parsimony

Theory A coherent set of general propositions used as principles of explanation of the apparent relationships of certain observed phenomena.

Two Purposes Of Theory Prediction Understanding

Concept (or Construct) A generalized idea about a class of objects, attributes, occurrences, or processes that has been given a name Building blocks that abstract reality “leadership,” “productivity,” and “morale” “gross national product,” “asset,” and “inflation”

A Ladder Of Abstraction For Concepts Vegetation Fruit Increasingly more abstract Banana Reality

Scientific Business Researchers Operate at Two Levels Abstract level concepts propositions Empirical level variables hypotheses

Definitions Abstract level -In theory development, the level of knowledge expressing a concept that exists only as an idea or a quality apart from an object. Empirical level -Level of knowledge reflecting that which is verifiable by experience or observation.

Theory Building A Process Of Increasing Abstraction Theories Propositions Increasingly more abstract Concepts Observation of objects and events (reality )

Concepts are Abstractions of Reality Level Empirical Level OBSERVATION OF OBJECTS AND EVENTS (REALITY)

Abstract Level Concepts abstract reality. Propositions are statements concerned with the relationships among concepts.

Proposition at Abstract Level Concept A (Reinforcement) Concept B (Habits) Hypothesis at Empirical Level Cedi bonus for sales volume over quota Always makes four sales calls a day

A hypothesis is a proposition that is empirically testable A hypothesis is a proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. A variable is anything that may assume different numerical values.

Deductive Reasoning The logical process of deriving a conclusion from a known premise or something known to be true. We know that all managers are human beings. If we also know that John Smith is a manager, then we can deduce that John Smith is a human being.

Inductive Reasoning The logical process of establishing a general proposition on the basis of observation of particular facts. All managers that have ever been seen are human beings; therefore all managers are human beings.

Scientific Method The use of a set of prescribed procedures for establishing and connecting theoretical statements about events and for predicting events yet unknown.

The Scientific Method: An Overview Assess relevant existing knowledge Formulate concepts & Propositions Statement of Hypotheses Design research Acquire empirical data Analyze & evaluate data Provide explanation- state new problem