Theoretical Framework

Theoretical Framework 1
 OBSERVATION

Broad area of research

interest identified

PROBLEM THEORETICAL GENERATION OF SCIENTIFIC

DEFINITION FRAMEWORK HYPOTHESIS RESEARCH DESIGN

Research problem
Variable clearly Important aspects for
delineated (research Testing the hypothesis
identified and labeled data gathering
questions)

PRELIMINARY DATA DEDUCTION

GATHERING DATA COLLECTION,
Hypothesis
substantiated? ANALYSIS, AND
Interviewing INTERPRETATION
Research question
Literature Study
answered?

Managerial Decision
Report Writing Report Presentation
Making

Research Process for Basic and Applied Research (Sekaran, 2010, p.68)
Theoretical Framework
 Framework
Research
Design

Problem
Research Question Objective

Theory, Concept,
Method, Model

Literature Review
Theoretical Framework 3
 DEFINITION

Concept :
- is the basic building blocks of scientific
investigation. They are creations of the
human mind that are used in the
classification and communication of the
essence of some set of observations.
Concept can be defined as abstract ideas
generalized from particular facts
 DEFINITION
Construct :
Is specific types of concepts that exist at
higher levels of abstraction and are invented
for some special theoretical purpose.
Generally, construct is not directly tied to
observation. Instead, they are inferred by
some indirect method, such as paper and
pencil questionnaires
 DEFINITION
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
 Theoretical Framework

• Foundation on Which the Entire Research Project

is Based

• Elaborates the Relationships among Other

Variables, Explains the Theory Underlying These
Relations, and Describe the Nature and Direction
of The Relationship

Theoretical Framework 7
 Theoretical Framework
• The process of building a theoretical frameworks
includes:
– Introducing definitions of the concepts or variables in your
model
– Developing a conceptual model that provides a descriptive
representation of your theory
– Coming up with a theory that provides an explanation for
relationship between variables in your model

Theoretical Framework 8
 Theoretical Framework
• Represent how certain phenomena or variables
are related to each other
• Testable hypotheses can be developed to examine
the validation of your theory.
• Since identifying the network of relationships
among the variables is involved in theoretical
network, it is important to understand what a
variable means and what the different types of
variables are.

Theoretical Framework 9
Interview Observation Literature Review

Theoritical framework:

- Identification of research variables

- Identification of links among the variables

Theoretical Framework 10
 Literature Review
The Documentation of a Comprehensive Review of the
Published and Unpublished Work From Secondary Sources
of Data In The Areas of Specific Interest to The Researcher

Objective
• Introduce The Subject Area of Research
• Identify Specific Research Question
• Examine State of The Art of The Research Area
• Basis to Get Theoretical Framework and Hypotheses
Development

Theoretical Framework 11
Conducting Literature Review
• Identifying The Relevant Source
– Bibliographic Database
– Abstract Database
– Full-text Database
• Extracting The Relevant Information
– Problems
– Theoretical Framework
– Variables
– Methodology
– Data Analysis
– Important Result
• Writing Up The Literature Review
Theoretical Framework 12
Criteria of Literature Review

Recency

Relevant

Theoretical Framework 13
 Example of Literature Review

Organizational theorists have defined organizational effectiveness (OE) in

various ways. OE has been described in terms of objectives (Georgopolous and
Tannenbaum, 1957), goals (Etzioni, 1960), efficiency (Katz and Kahn, 1966),
resources acquisition (Yuchtman and Seashore, 1967), employee satisfaction
(Cummings, 1977), interdependence (Pfeffer, 1977), and organizational vitality
(Colt, 1995). As Coulter (1996) remarked, there is little consensus on how to
conceptualize, measure, or explain OE. This should, however, not come to us as
a surprise since OE models are essentially value-based classification of the
construct (the values being those of the researchers) and the potential number
of models that can be generated by researchers is virtually limitless.
Researchers are now moving away from a single model and are taking
contingency approaches to conceptualizing OE (Cameron, 1996; Yetley, 1997;
Wernerfelt, 1998). However, they are still limiting themselves to examining the
impact of the dominant constituencies served, and the organization’s life cycle
on OE instead of taking a broader, more dynamic approach (Dahl, 1998, p. 25).

Theoretical Framework 14
 Example of Literature Review
Managers handle risks and face uncertainties in different ways. Some of these styles
are functional and others adversely impact on corporate performance. Living in times
of dramatic organizational changes (merger, for instance), and with the company
performance varying vastly in this turbulent environment, it is important to
investigate the relationship between risk-taking behaviors of managers and
organizational outcomes.
A vast body of knowledge exists regarding risk-taking behaviors in decision making.
Some studies have shown that the context which surrounds the decision maker exerts
as influence on the extent of risk the individual is prepared to take (Shapira, 1995;
Starbuck and Milken, 1988). Other studies, such as those done by Sankar (1997) and
Velcher (1998) indicate that the position of the risk taker, and whether the decision is
taken by an individual or is the result of group effort, account significantly for the
variance in risk taking behaviors, and ultimately, to the performance of the
organization. Schwarts (1994) has argued that the results of research done using
subjects to participate in activities in lab setting, show different results compared
with those found in research done in organizational settings. Additionally,
MacCrimmon and Wehrung (1984, 1986, 1990) suggest that the differences in the
measurement tools used in research studies accounted for the differences in the
findings of managerial risk attitudes.

Theoretical Framework 15
 Characteristics of Theoretical Framework

• Identify and define the important variables

that are relevant to the problem
• Explain the interconnections among variables
through a conceptual model
• There should be a clear explanation of why we
expect these relationships to exist

Theoretical Framework 16
 Conceptual Model

• Helps to structure of literature discussion

• Describes how the concepts in your model are
related to each other.
• A good model is based on a sound theory.
• A theory attempts to explain relationship
between the variables

Theoretical Framework 17
 Type of Variables
• Dependent Variable
• Independent Variable
• Moderating Variable
• Intervening Variable
 Dependent Variable
• Is the Variable of Primary interest to the
Researcher
• The Researcher’s goal is to understand and
describe the Dependent Variable, or to explain
its variability, or to predict it
 Independent Variable

• Is One that Influences the dependent

variable in either a positive or a
negative way
New Product Stock Market
Success Price

IV DV

Managerial
Power Distance
Values

IV DV

Number of Books Reading Abilities

IV DV
 Moderating Variable
• Is one that has a strong Contingent effect on
the Independent variable– dependent variable
relationship. That is , the presence of a third
variable ( the moderating variable) modifies
the original relationship between the
independent variable and the independent
variable.
Number of Books Reading Abilities

IV DV

Parents’
literacy

MV
 Organizational
Workforce diversity effectiveness

IV DV

Managerial
expertise

MV
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.5a
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.5b
 Intervening Variable

In one that surfaces between the time the

independent variables operate to
influence the dependent variable and
their impact on the dependent variable
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.6
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.7
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.8
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.9
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.10
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.11
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5D
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5E
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5F
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5H
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5J
Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL) 5K
 Communication among
cockpit members

Communication between
ground control and cockpit
members Air safety violations

Decentralization

Training of cockpit crews

Independent variables Dependent variable

Theoretical Framework 41
 FIVE BASIC FEATURES OF THEORITICAL
FRAMEWORK
1. The variables considered relevant to the study
should be clearly identified and labeled in the
discussion
2. The discussion should state how two or more
variables are related to one another. This should be
done for the important relationships that are
theorized to exist among the variables
 FIVE BASIC……….
3. If the nature and direction of the relationships can
be theorized on the basis of the findings from
previous research, then there should be an
indication in the discussions as to whether the
relationships would be positive or negative
4. There should be a clear explanation of why we
would expect these relationships to exist. The
arguments could be drawn from the previous
research finding
 FIVE BASIC……..
5. A schematic diagram of the theoretical
framework should be given so that the
reader can see and easily comprehend the
theorized relationships
 Hypothesis Development
Proposition :
• A statement about concepts that may be judged as true or false
if it refers to observable phenomena
• When proposition is formulated for empirical testing, we call it
a Hypothesis
• The objective is to test the relationships that have been
theorized and to formulate the testable statements.
• Hypothesis is a tentative, yet testable, statement, which
predicts what you expect to find in your empirical data.
• Hypotheses can be derived from the theory on which
conceptual model is based on.

Theoretical Framework 45
 Hypothesis Development
• If-then statement
 Employees who are more healthy will take sick leave less frequently
 If employees are more healthy, then they will take sick leave less
frequently

• Directional vs Nondirectional hypotheses

 The greater the stress experiences in the job, the lower the job
satisfaction of employees.
 Women are more motivated than men.
 There is a relationship between age and job satisfaction (non)
 There is a difference between the work ethic values of Asian and
American employees. (non)

Theoretical Framework 46
 Hypothesis Development
• A null hypothesis (H0) is a hypothesis set up to
be rejected in order to support an alternate
hypothesis

Theoretical Framework 47
 Null and Alternate Hypotheses
• For Group Differences :
Null Hypotheses : H0 : μM = μW
or H 0 : μM – μ W = 0

Alternate Hypotheses: HA : μM < μW

( Directional) or HA : μW > μM

Alternate Hypotheses: HA : μM ≠ μW
( Nondirectional)
• For the Relation Between Two Variables
Null Hypotheses: H0 : ρ = 0

Alternate Hypotheses: HA: ρ < 0 (Directional)

HA: ρ ≠ 0 (Nondirectional)