Post on 06-Sep-2019
Introduction to Business Research
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Course syllabus
Research process
Definition of Business Research
• Business research: an organized and systematic inquiry or investigation into a specific problem, undertaken with the purpose of finding answers or solutions to it.
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Business Research
• Research information is neither intuitive nor haphazardly gathered.
• Literally, research (re-search) -“search again”
• Business research must be objective
• Detached and impersonal rather than biased
• It facilitates the managerial decision process for all aspects of a business.
Basic Research
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a pragmatic problem.
Basic Research Example
• Is executive success correlated with high need for achievement?
• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?
• Do consumers experience cognitive dissonance in low-involvement situations?
Applied Research Examples
• Should McDonalds add Italian pasta dinners to its menu?
• Business research told McDonald’s it should not?
• Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would sell well at a retail price of $44
Applied versus Basic Research
• Basic research: generates a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved.
• Applied research: solves a current problem faced by the manager in the work setting, demanding a timely solution.
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Examples Applied Research
• Apple’s iPod fueled the company’s success in recent years,helping to increase sales from $5 billion in 2001 to $32 billionin the fiscal year 2008. Growth for the music player averagedmore than 200% in 2006 and 2007, before falling to 6% in 2008.Some analysts believe that the number of iPods sold will drop12% in 2009. “The reality is there’s a limited group of peoplewho want an iPod or any other portable media player,” oneanalyst says. “So the question becomes, what will Apple doabout it?”
• The existing machinery in the production department has hadso many breakdowns that production has suffered. Machineryhas to be replaced. Because of heavy investment costs, acareful recommendation as to whether it is more beneficial tobuy the equipment or to lease it is needed.
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
More Examples of Research Areas in Business
• Absenteeism
• Communication
• Motivation
• Consumer decision making
• Customer satisfaction
• Budget allocations
• Accounting procedures
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Why managers should know about research
• Being knowledgeable about research and research methods helps professional managers to:
• Identify and effectively solve minor problems in the work setting.
• Know how to discriminate good from bad research.
• Appreciate the multiple influences and effects of factors impinging on a situation.
• Take calculated risks in decision making.
• Prevent possible vested interests from exercising their influence in a situation.
• Relate to hired researchers and consultants more effectively.
• Combine experience with scientific knowledge while making decisions.
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
The Manager–Researcher Relationship
• Each should know his/her role
• Trust levels
• Value system
• Acceptance of findings and implementation
• Issues of inside versus outside researchers/consultants
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Internal Researchers
• Advantages:• Better acceptance from staff• Knowledge about organization• Would be an integral part of implementation and
evaluation of the research recommendations.
• Disadvantages• Less fresh ideas• Power politics could prevail• Possibly not valued as “expert” by staff
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
External Researchers
• Advantages• Divergent and convergent thinking• Experience from several situations in different
organizations• Better technical training, usually
• Disadvantages• Takes time to know and understand the
organization• Rapport and cooperation from staff not easy• Not available for evaluation and implementation• Costs
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Hallmarks of scientific research:
• Hallmarks or main distinguishing characteristics of scientific research:
• Purposiveness • Rigor • Testability • Replicability • Precision and Confidence • Objectivity • Generalizability • Parsimony
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Hypothetico-Deductive Research
• The Seven-Step Process in the Hypothetico-Deductive Method
• Identify a broad problem area• Define the problem statement • Develop hypotheses• Determine measures • Data collection • Data analysis • Interpretation of data
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Deduction and Induction
• Deductive reasoning: application of a general theory to a specific case.
• Hypothesis testing
• Inductive reasoning: a process where we observe specific phenomena and on this basis arrive at general conclusions.
• Counting white swans
• Both inductive and deductive processes are often used in research.
© 2012 John Wiley & Sons Ltd. www.wiley.com/college/sekaran
Scientific Method
• The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.
The Decision-making Process Associated with the Development and Implementation of a Strategy
• Identifying problems and opportunities
• Diagnosis and assessment
• Selecting and implementing a course of action
• Evaluating the course of action
Evaluation Research
• Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.
Performance-monitoring Research
• Research that regularly provides feedback for evaluation and control
• Indicates things are or are not going as planned
• Research may be required to explain why something “went wrong”
Total Quality Management (TQM)
• A business philosophy that embodies the belief that the
management process must focus on integrating customer-driven
quality throughout the organization.
TQM
• Stresses continuous improvement of product quality and service.
• Managers improve durability and enhance features as the product ages.
• Managers strive to improve delivery and other services to keep their companies competitive
Determining When to Conduct Business Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Conducting
Business
Research
Do Not Conduct Business Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits
vs. Costs
Yes YesYesYes
No No No No
Determining When to Conduct Business Research
Value versus Costs
• Potential Value of a Business Research Effort Should Exceed Its Estimated Costs
Value
•Decreased certainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
Costs
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
Value Should Exceed Estimated Costs
Major Topics for Research in Business
• General Business Conditions and Corporate Research
• Financial and Accounting Research
• Management and Organizational Behavior Research
• Sales and Marketing Research
• Information Systems Research
• Corporate Responsibility Research
Cross-functional Teams
• Cross-functional teams are composed of individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.
Business Research in the 21st Century
• Increased globalization
• Growth of the Internet and other information technologies
Global Research
• Business Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more that 67% international business
Global Business Research
• General information about country - economic conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions - demand estimation
The Internet Is Transforming Society
• Time is collapsing.
• Distance is no longer an obstacle.
• Crossing oceans is only a mouse click away.
• People are connected 24 hours a day, seven days a week.
• "Instantaneous" has a new meaning.