Theoretical Framework & Hypothesis Development 1 © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Theoretical framework Deductive research: moving from the general (a theory) to the specific (observations). © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Theoretical framework A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) are related to each other (a model) and an explanation on why you believe that these variables are associated to each other (a theory). Integrating your logical beliefs with published research, taking into consideration the boundaries and constraints governing the situation, is pivotal in developing a scientific basis for investigating the research problem. A good theoretical base thus adds rigor to a purposive study. Rigor connotes carefulness, scrupulousness, and the degree of Precision in research investigations. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Theoretical framework Literature survey is an important. Even an in-depth interview may not surface some important factors that may be relevant for finding answers to the problems. In other words, certain critical factors may be overlooked both by the interviewee and the researcher, in which case no solution to the problem will emerge even after the research findings are implemented. A literature review will sensitize and make the researcher aware of all the important factors that have been found to be related to the problem in past studies. It will also help the researcher eliminate trivial factors or variables from the investigation, thus ensuring parsimony and increasing effectiveness. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Theoretical framework Secondly, a good documentation of the previous work done in the area not only lends credibility to the results found, but also adds to the scientific quality of the research by increasing reliability, generalizability. Finally, a good literature survey, and a theoretical framework formulated on the basis of past studies contribute to the growth of scientific knowledge, rather than research becoming a futile exercise in reinventing the wheel. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Model There is no relationship between the quality of a model and the complexity of a model. Recall that parsimony is one of the hallmarks of scientific research: Simplicity in explaining the phenomena or problems that occur, and in generating solutions for the problems, is always preferred to complex research frameworks that consider an unmanageable number of factors. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Model A good theoretical framework identifies and defines the important variables in the situation that are relevant to the problem. Moderating and mediating variables may or may not be important to the problem. A good model does not necessary include moderating and mediating variables. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Theoretical framework Basic steps: Identify and label the variables correctly State the relationships among the variables: formulate hypotheses Explain how or why you expect these relationships © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Variable Any concept or construct that varies or changes in value Main types of variables: Dependent variable Independent variable Moderating variable Mediating variable © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

(In)dependent variables Dependent variable (DV) Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable. Independent variable (IV) Influences the DV in either positive or negative way. The variance in the DV is accounted for by the IV. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Example © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Moderators Moderating variable Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable.

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Mediating variable Mediating variable surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it. © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Hypothesis A proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. Good hypothesis: Must be adequate for its purpose Must be testable Must be better than its rivals Can be: Directional Non-directional © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran Exercise Give the hypotheses for the following framework: Service quality Customer switching Switching cost © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran

Exercise Give the hypotheses for the following framework: Service quality Customer satisfaction Customer switching © 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran