CONCEPT OR CONSTRUCT

A concept or construct
• is a generalized idea about a class of objects, attributes, occurrences, or processes
that has been given a name. Concepts are the building blocks of theory.
Ladder of abstraction
• Concepts express in words various events or objects. Concepts, however, may
vary in degree of abstraction.
• For example, the concept of an asset is an abstract term that may, in the concrete
world of reality, refer to a wide variety of things, including a specific punch press
machine in a production shop.
• This indicates that it is possible to discuss concepts at various levels of
abstraction.
• Moving up the ladder of abstraction, the basic concept becomes more general,
wider in scope, and less amenable
to measurement.
 ABSTRACT LEVEL VS EMPIRICAL
LEVEL
• The basic or scientific business researcher operates at two levels:
• On the abstract level of concepts (and propositions) and on the
empirical level of variables (and hypotheses).
• Abstract level is the level of knowledge expressing a concept that
exists only as an idea or a quality apart from an object.
• Empirical level is the level of knowledge that is verifiable by
experience or observation.
 EXAMPLE-1

• We commonly use the term job performance,

but this is an abstract term that can mean
different things to different people or in
different situations.
• To move to the empirical level, we must more
clearly define this construct and identify
actual measures that we can assess and
measure to represent job performance as
shown in figure.
 EXAMPLE-2
• If an organizational researcher says “Older workers prefer different
rewards than younger workers,” two concepts—age of worker and
reward preference—are the subjects of this abstract statement. If the
researcher wishes to test this relationship;
• John, age 19, Chuck, age 45, and Mary, age 62—along with other
workers—may be questioned about their preferences for salary,
retirement plans, intrinsic job satisfaction, and so forth.
• Recording their ages and assessing their reward preferences are
activities that occur at the empirical level.
 ….
Note:
• In the end, researchers are concerned with the observable world, or what we
shall loosely term reality.
• Theorists translate their conceptualization of reality into abstract ideas. Thus,
theory deals with abstraction. Things are not the essence of theory; ideas are.
• Concepts in isolation are not theories. To construct a theory we must explain
how concepts relate to other concepts.
 RESEARCH PROPOSITIONS AND
HYPOTHESES
• Concepts are the basic units of theory development. However, theories require an
understanding of the relationship among concepts. Thus, the relationship between
concepts is called proposition.
• A proposition explains the logical linkage among certain concepts by asserting a
universal connection between concepts.
• For example, we might propose that treating our employees better will make them
more loyal employees. This is certainly a logical link between managerial actions
and employee reactions, but is quite general and not really testable in its current
form.
 CONT…
In simplest form, a hypothesis is a guess.
A sales manager may hypothesize that the salespeople
who are highest in product knowledge will be the
most productive.
A Hypothesis is a proposition that is empirically
testable.
In other words, when one states a hypothesis, it
should be written in a manner that can be supported or
shown to be wrong through an empirical test.
AFFECTIVE EVENT THEORY
 CONT…
• Variables
• Anything that may assume different numerical values; the
empirical assessment of a concept
• Operationalizing
• The process of identifying the actual measurement scales to
assess the variables of interest.
 WHERE DO THEORIES COME
FROM?
You may be wondering “Where do theories come from?”
• At the abstract, conceptual level, a theory may be developed with
deductive reasoning by going from a general statement to a specific
assertion.
• In deductive reasoning we start with a general theory and then apply
this theory to a specific case.
• Hypothesis testing or explanatory research is deductive in nature, here
we test if a general theory is capable of explaining a particular problem.
 CONT…
• At the empirical level, a theory may be developed with
inductive reasoning.
• Inductive reasoning is the logical process of establishing a
general proposition based on observation of particular facts.
OR
• It is a process where we observe specific phenomena and, on
this basis, arrive at general conclusion.
 CONT…
• For example, the observation of first, second, third white swan may lead to
the proposition that all swans are white.
• In this example, the repeated observation of a white swan has led to the
conclusion that all swans are white (which we generalized).
• According to Karl Popper it is not possible to prove a hypothesis by means of
induction.
• Because 3, 10, 100 or even 1000 white swans does not justify the conclusion
that all swans are white because there is always chance that the next swan,
we will observe will be black. Instead, Popper proposed that (proper)
science is accomplished by deduction.
 VARIABLES
A variable is anything that can take varying values. The value can be differ at various
time for the same object or person, or at the same time for different objects. For
example; production units, absenteeism, and motivation.
• production units: one worker in the manufacturing department may produce one
widget (mechanical device) per minute, a second might produce 2 the third produce
3.
• Absenteeism: today three members in the sales department may be absent, tomorrow
six members may not show up for work…..
• Motivation: the level of motivation to learn in the class or in a work team might take
on varying values ranging from very low to very high…. Is a variable.
 TYPES OF VARIABLES
• Four main types of variables are discussed by Sekaran:
• The Dependent variable (DV) also known as criterion variable
• The independent variable (IV) also known as predictor variable
• The moderating variable
• The mediating variable
• Dependent variable:
• The DV is the primary variable of interest to the researcher or it is the main variable which lends
itself for investigation as a viable factor. Through the analysis of DV (findings what variables
influences it), it is possible to find answers or solution to the problem.
• E.g., An applied researcher wants to increase the performance of bank employees in a
particular branch. What is DV in this case?
• A marketing manager believes that limiting the availability of a product increase product
desirability?
 CONT…
Independent variable:
• It is generally conjecture that an independent variable is one that influences the DV in either
a positive or negative way.
EXAMPLE
 MODERATING VARIABLE
• The moderating variable is the one that has a strong contingent effect on the
independent and dependent relationship. That is, the presence of third variable
(moderating) modifies the original relationship between IV and DV.
• For example: a prevalent theory is that the diversity of the workforce
contributes more to organizational effectiveness because each group brings its
own special expertise and skills to the workplace, this synergy can be
exploited, however, only if manager know how to harness the special talents
of the diverse work group. Meaning that organizational effectiveness is
contingent on workforce diversity together with mangers skills.
EXAMPLE ON MODERATING
EXAMPLE ON MODERATING
 DIFFERENT BETWEEN IV AND
MODERATOR
At times, confusion is likely to arise as to when a variable is to be treated as an
independent variable and when it becomes a moderating variable. For instance,
there may be two situations as follows:
1. A research study indicates that the better the quality of the training programs in
an organization and the greater the growth needs of the employees (i.e., where
the need to develop and grow on the job is strong), the greater is their
willingness to learn new ways of doing things.
2.
Another research study indicates that the willingness of the employees to
learn new ways of doing things is not influenced by the quality of the training
programs offered by the organizations to all people without any distinction.
Only those with high growth needs seem
 MEDIATING VARIABLE
• A mediator variable is the variable that causes mediation in the
dependent and the independent variables. In other words, it explains the
relationship between the dependent variable and the
independent variable.
• For example:
• Workforce diversity influences organizational effectiveness the
mediating variable is “creative synergy”. This creative synergy results
from a multiethnic, multiracial, workforce interacting and bringing
together their multifaceted expertise in the problem solving.
EXAMPLE
MODERATED MEDIATION
 DIFFERENCE BETWEEN
VARIABLES
• The independent variable helps to explain the variance in the
dependent variable;
• The mediating variable surfaces at time t2 as a function of the
independent variable, which also helps us to conceptualize the
relationship between the independent and dependent variables.
• The moderating variable has a contingent effect on the
relationship between two variables.