Business Research

Methods
 Research

Research simply means Search for Knowledge.

It is a systematic or scientific investigation
a. To search for solutions to the existing and future problems
b. To establish relationship , if any among variables and
c. To find something new to increase our knowledge
Searching for solutions to the problem

A medical scientist researching to invent or discover a medicine to cure cancer

Problem : Cancer
Solution : New medicine
A financial analyst searching for a simple way of calculating IT
Problem : Complex way of calculating IT
Solution : A Simple procedure of calculating IT
 Objectives / Purpose of Research

 To gain familiarity with a phenomenon (buying behavior of rural population in

respect of latest electronic gadgets)
 To analyze the characteristics of an individual, group or situation (understanding
the leadership skills of a successful business magnet , the phenomenal expansion
of a new company or the reasons for delinquency in low income groups)
 To determine the frequency of occurrence of certain phenomenon (fatal accidents
in highways and railway crossings and alcoholism's or absenteeism among
workers)
 To test a casual relationship between variables (different age groups and their visit
to beauty parlors or excess pocket money and student’s absenteeism )
 To develop new techniques , concept or theories (new advertisement through
animation or promotional campaigns involving physically challenged persons)
 To find solutions to problems (this could be the ultimate objective)
 Motives for Research
 To derive satisfaction out of solving an unsolved problem
 To gain intellectual joy in creative work
 To serve various sections of the society
 To satisfy the needs of an organization or authority
 To get a research degree
 Characteristics of a good research /
researcher
1. Rational. There is no place for rule of thumb or superstitious belief in research. There should be
always a cause-effect relationship. The question of obtaining objects from thin air does not arise in
a rational research. Dalton's time-tested theory 'matter can neither be created nor destroyed and can
only be transferred from one from to another should be the underlying factor in rational research
2. Systematic. There is order or methodology or logical sequence in conducting research. Here. the
means are as important as the ends. Haphazard way of conducting a study is anathema to good
research.
3. Scientific: There must be empirical evidence. That is, all results and inferences must be supported
by data. All observations, attitude, opinions etc., must be quantified for valid analysis and
interpretation. For a good research data base is indispensable.
4. Objective: Judgements i.e.. inferences must be made based on facts only without any personal
prejudice or favor or external influence. A spade is always called a spade in objective research.
 Universal: The results must be amenable for generalization and applicable for universal
adaptation.
 Value Adding. A research should enrich the existing knowledge. Additional data obtained must be
valuable. Treading on beaten track is not a good research.
 Verifiable: Similar to universality, a good research must be amenable for verification. It should
yield the same type of results under similar conditions. There could be exceptions as in the case of
behavioral science.
 Honest: Honest is the back bone of research. The researcher must be honest and scrupulous in
collection of data, analysis, interpretation and reporting of the results or inference. It is interesting
to note that the term RESEARCH itself carries the quality of the good research. Further, the
popular term "MOVIE" supplements "RESEARCH" in describing an ideal research.
Planning, conducting and reporting good
research
Good research involves generating dependable data through professional and scientific process to be used in
reliable decision making
1. Defining Purpose: The purpose of good research should be clearly defined in unambiguous terms. The
problem involved, decision to be made, scope of the investigations and its limitations and all the terms used
are to be explained explicitly.
2. Detailing the Research Process: The research process must be described with all details such as the
participants, sampling method used, procedure for data collection, statistical methods used for analysis, etc.
Sources of data are also revealed (except where secrecy is to be maintained for certain obvious reasons). In
short, the process must be transparent to gain confidence.
3. Planning: A good planning is necessary to realize the purpose or objectives of the research. Planning includes
selection of source of data, thorough review of literature, avoiding personal bias, etc.
4. Revealing Limitations: The limitations of the study such as flaws in the procedural design. difficulties in
collecting data, non-availability of appropriate statistical tool, inadequacy in generalization, etc., must be
frankly revealed
5. Analysing Data: Analysis of data must be extensive enough to reveal its significance. That is, it
should provide certain insights. Prior to analysis the data are checked for reliability and validity. The
data are presented logically for meaningful interpretation. In the statistical analysis of the data
probability of error is estimated using the criteria of statistical significance.
6. Presenting with Clarity: The language of presentation must be clear, precise and assertive reflecting
the confidence and integrity of the researcher. Generalization beyond the statistical findings or
evidence, exaggerations, unnecessary verbiage, etc., must be avoided. Presentation of data must be
comprehensive, adequately and critically interpreted, easily understandable and properly organized to
locate critical findings.
7. Justifying Conclusions: Conclusions must be drawn based on the data collected and
analysed.Researchers' personal experiences and their interpretations in related areas should not
influence the conclusions. Further, applying the conclusions from a study of inadequate sample to the
universe must be avoided. A good research should always specify the conditions under which the
conclusions seem to be valid.
8. Application of Ethical Standards: Care is taken to see that the participants or respondents are not
subjected to physical or psychological harm and exploitation. There should not be invasion of privacy
and loss of dignity.
 Why to study research in business

 Explosive growth and influence of the internet

 Stakeholder’s demand
 Competitions
 Government interventions
 Technology
 Shift of economic activity
 Analytical talent
 Higher power computer
 New research perspective
 Need for business research

 Time constraints
 Availability of data
 Nature of decisions
 Benefit v/s cost
 Scope of business research

 Marketing : demand forecasting, consumer buying behavior , measuring

effectiveness of advertisement , media selection , test marketing, product
positioning, new product potential
 Production : what to produce , how much to produce , when to produce for
whom to produce , how to improve quality control or reduce inventory cost
 Materials : where to buy , how much to buy, when to buy and what price to
buy
 Finance : how to manage the working capital , how to juggle the debt-equity
ratio or how to improve the accounting procedure.
 HRD : man power planning , incentive schemes , employment
trend , turnover, performance appraisal etc..
 Government : budget , planning , resource optimization
 Limitations of scientific research in
business
 Uncertainty
 Unexplained principles
 Difficulties in replication
 Complex human behavior
 Controlling in scientific method
 Bias in observation or interpretation
 Difficulties in measurement
 Lack of actionable results
 Inadequacy
 Manager’s apathy
 Research Method v/s Research
Methodology
Research methods are the techniques the researcher employs in conducting research.
Techniques to collect data , statistical tools to analyze the data and the procedure used
to evaluate and compare the results are known as research methods.

Research methodology is the way in which a research problem is systematically

solved employing the relevant research methods.
Types of research

1. Exploratory v/s formal research

The objective is just to have a superficial idea of the problem without
going deep in to the subject. No attempt is made to solve the problem.
This research helps in formulating a hypothesis . Scientist visiting
Antarctica or the moon to collect data is an exploratory research
Formal research is a full fledged serious research with substantial
structure of well defined parameters. This involves testing of
hypothesis to find a solution or describe a situation. Generally a formal
research is preceded by an exploratory research.
2. Descriptive v/s analytical research

The purpose of descriptive research is to describe the existing or past

state of affairs. The main characteristics of this research is that the
researcher just describes what has happened or what is happening.

Analytical research also called diagnostic research or casual

explanatory study , analytical research tries to find why a particular
phenomenon has occurred or it is occurring presently.
3. Experimental v/s Ex post facto research

In an experiment , the researcher attempts to control and or manipulate

the variables in the study. Experiments are appropriate to discover
whether certain variables to produce effects in other variables.

Ex post facto research reports what has happened or what is happening

and the researcher has no control over the variables to manipulate
them. The term ex post facto is generally used in social studies.
4. Quantitative v/s qualitative research

In quantitative research , the observations are quantified and the results

are expressed in terms of different units.

As the name suggests , qualitative research is concerned with the

quality of phenomena which are not easily measured in quantitative
terms. It is mostly used in behavioral science to understand why people
behave differently. Studies on motivation , stress , perception , values ,
emotional intelligence etc. are qualitative in nature.
5. Conceptual v/s empirical research

It is a qualitative research related to some abstract ideas defying clear

explanations. Mostly followed by philosophers and thinkers , it is
concerned with developing new concepts or ideas or reinterpreting the
existing ones.

Empirical research is data based quantitative research amenable for

verification. All scientific experiments are empirical in nature.
6. Longitudinal v/s cross sectional research

It is based on time dimension . While longitudinal research is extended

over a period of time.
Cross sectional research is a one time research confirmed to a single
period of time. Results in cross sectional research are obtained within a
short period while longitudinal research takes a longer period to yield
any result.
7. Field v/s lab or simulation or historical
research
Field research : it involves conducting research in actual situations by collecting data
through observation , questionnaire , interview etc.. From the real population
Lab or simulation research : small group studies based on random behavior , role
plays and role analyses come under laboratory research. In simulation research ,
computers are extensively used to simulate (duplicate) the real situations. Crisis
management in war fields or plane crashes is researched employing simulation
research
Historical research : it is confined to analysis and interpretation of historical records
or documents. Secondary data (the data collected and compiled by other persons) are
the base for historical research. It is known as archival research.
8. Conclusion oriented v/s decision
oriented research
In this type of research , the researcher is free to choose a problem and design the
research as he/she wishes according to the objectives or situation. Here , the
researcher is the sole authority and is independent in formulating the research. An
independent social worker investigating the aftermath of tsunami in the coastal
villages with his/her own funds or efforts is a conclusion oriented research. The
researcher is not under any obligations to any authority.

Decision oriented research is a type of research , the researcher conducts a research

as per the requirements or direction of a decision maker or authority. The topic and to
some extent , the research design are decided in advance by the authority. Here the
researcher’s freedom is restricted in choosing the topic, geographical areas, sample
size etc..
9. Applied v/s fundamental research

Applied Research: It aims at finding a solution to the current or long-pending problem.

Seeking a solution is the essence of applied research. Finding an easy cure for diabetes,
formulating an effective drug to combat AIDS or cancer, developing a rice variety
requiring less water. devising an advertisement capable of immediate attraction or
retaining attention for longer period, inventing an incentive plan to motivate the
employees, etc., are applied research. In applied research, the knowledge obtained in
fundamental research is applied to seek a solution to the problem under investigation
.Fundamental Research: Termed as basic or pure research, fundamental research is
concernedwith throwing light on the basic aspects, theory or the intricacies of a
phenomenon. Generally it does not seek solution to any problem. It is mostly related to
gathering of knowledge for the sake of knowledge. Studies on natural phenomenon
(thunder, lightening, cell division or atomic structure), pure mathematics or human
behaviour with respect to age, gender, cic, are fundamental in nature.
10. Action research
Action research is designed to address complex and practical problems about which little is
known. It helps managers gain insights to make decisions in specific situations. In action
research
 the situation (scenario) is studied
 corrective action is determined, planned and executed
 the results of the action are observed and recorded
 the action is evaluated as effective or not
The process is repeated till a desired result is obtained. In conducting this type of research much
is learned in the process. In action research, effects of applied solutions are investigated and the
theories, if developed, are validated through practical application.
Example: A departmental store which received no customer complaints since its inception saw a
customer complaining about malfunctioning of a washing machine purchased from the store. If
no general rules are available to deal with customer complaints, the manager may ignore the
problem, get the malfunctioning machine repaired or replace the machine with a new one.
11. Case study research

The objective of case study is to obtain multiple perspectives of a specific

organization, person, situation, event or process at a point of time or over a period of
time through interviews, observations and already recorded information.
12. PAPA model research

Some authors (Guthrie, 2010), have put the entire range of research into four groups in
the PAPA Model of research viz., Pure, Applied, Policy and Action research.
Pure Research: It is concerned solely with scientific outcomes of interests to scientists.
Applied Research: It is concerned with topics that have potential for practical
application.
Policy Research: It is based on practical issues of interest to those who make decisions
about them. Research (mostly by government authorities ) is often entrusted to
consultants who are given the terms of reference. Usually this type of work is time bound
and requires research teams with special skills and considerable experience
Action Research: It is concerned with working on particular activities to make direct
improvements.
Business problem formulation and
definition
The word problem originated from the Greek word
'Proballein' meaning 'anything thrown forward', a question
proposed for solution or a matter stated for examination.
Problem is also defined as a perceived difference between
what a situation is and what it should be.
A research problem, in general, refers to some difficulty
experienced by a researcher in the context of either a theory
or practical situation which requires a solution
A problem usually exist under the
following conditions
 There must be an organization , a group of people or an individual experiencing
some difficulties due to one reason or other
 There must be some objectives , personal or organizational to be attained. If one
does not desire anything there cannot be any problem
 There must be at least two ways to attaining the objective, if there is only one way
there is no confusion and hence no problem
 There must be some dilemma or confusion in selecting the best alternative to
achieve objectives
 There must be an environment which influence either the researcher or his/her ways
 There must be some outcomes (results or findings)which may have positive or
negative values
 Problem identification and selection
1. Sources for identification of problems
(a) Professional literature: Whether it is for the professional or the student-researcher, literature
is an important source to identify a problem. Books, periodicals, research reports,
dissertations, project reports, yearbooks or even weeklies and dailies will give directions or
clues to choose a problem. A shrewd reader will pick up threads from the conclusions of
others for further research. Many seasoned researchers deliberately include topics for future
research. Review of literature is an eye-opener for further research
(b) Professional experience (self and others):Apart from the problems encountered in one's own
area of research, experience gained in participating in conferences, seminars and workshops could
be a good source of identifying problems. Open discussion with colleagues and professionals in
related fields may help in coming across new or novel ideas. Sharing of research reports may also
lead to identification of unexplored areas of research.
(c) Discussion with experts: In the case of student-researcher, self-reliance to identify
a problem of importance or relevance may not yield much, except in cases where the
student had some prior experience or possesses an instinct for research. In many
cases, professors with adequate theoretical knowledge in management sciences and
the experienced professional managers in various industries will be dependable
sources. The guidance of the knowledgeable professors or the experienced
professional managers will go a long way right from defining the problem, through
research process, to the final conclusion.
(d) Inferences from theories and laws: In certain cases, a deep probe into the
established theories or laws may lead to new frontiers of knowledge.
(e) General Sources: Other sources could be intellectual puzzles, social problems,
counter intuition defiant empirical cases, new methods, new social and technical
developments, social trends and sponsors.
2. Justification for selecting a problem
a) researcher’s suitability (internal criteria)
b) General rule (external criteria)
 3. Criteria for selecting a problem
 The problem must be related to a profession (in the case of mba student it must be related to a specific
area of management function).
 The solution to be obtained should bring in some improvement in the existing status or at least some
additional information which are new and useful.
 It must be feasible to find a solution to the problem before the time schedule. That is, the problem
identified is amenable for a research process which could be completed in a definite time frame.
 It must suit the aptitude, attitude, interest, confidence and competency of the researcher. It must be
practical. To find the influence of black money on Indian economy may be an interesting and useful
research problem but estimating the amount of black money in circulation will be a herculean task
and not practical.
 The problem must possess creativity, novelty, originality and utility value.
 The research problem must be specific.
 The problem must be meaningful and realistic and there should not be any hunches or ambiguities.
 Controversial subjects should not be attempted by an average researcher or student-researcher.
 4. Defining the problem
A proper defining of the research problem enables the researcher to be on the right
track. An ill-defined problem is likely to create confusion in finding a definite
solution. Defining the problem involves the task of laying down boundaries within
which the researcher should analyze the problem with pre-determined objectives.
Conditions to be satisfied to define a problem are:
The need to solve a problem must be felt by the researcher or the sponsor.
The problem should have specific and achievable objectives.
The defining of problem must help formulation of the hypotheses.
 5. Statement of the problem
Keeping in view some practical concerns and researcher's interest, the problem is
stated in a broad general way initially. With the help of a pilot study or experts'
guidance, the problem gets focused. But it is the responsibility of the researcher to
narrow it down and phrase it in operational terms, taking into consideration the
possibility of a workable solution.
Problem delimitation: As a part of statement of problem, delimitation is the process
of 'fencing' or creating 'boundaries' around a research problem. Whatever may be the
problem the scope of the study must be limited to the availability of time.
 STEPS IN DEFINING A PROBLEM
Defining a research problem or research question involves several interrelated steps
 Ascertaining the decision maker's objectives in decision-oriented research or the researcher's own
objectives in conclusion-oriented research.
 Understanding the background of the problem: To understand the problem, a situation analysis is
necessary. It is a preliminary investigation or informed gathering of background information to
familiarize researchers with the decision area.
 Isolating and identifying the problem: As anticipating all the dimensions of a problem is impossible,
the researcher tries to isolate and understand the most likely causes
 Determining the unit of analysis: The researcher must specify whether the level of investigation will
focus on collection of data about the entire organization, department, work groups, individuals or
objects.
 Determining the relevant variables: The researcher should carefully identify all the relevant
variables that must be studied.
 Stating the research problems (questions and objectives): Finally the researcher's efforts end in
stating the research questions and research objectives.
Research objectives

Research objective is the purpose of the research expressed in

measurable terms. It is the essence of the business problem.
Research objectives are derived from the research questions and/or
hypothesis. In addition to stating the reasons for initiating the
research project, the objectives help to ensure that the project will
be manageable in size. That is, objectives help in fixing the
boundaries of research. In some cases, the business problem and
research objectives are the same. Objectives must help people to
initiate specific actions. The number of research objectives must be
few to ensure that each will be dealt with in detail. While research
problem is the basis for research objectives, research objectives are
the basis for research design.Research objective must be SMART ie,
they must be:SpecificMeasurableAchievableRealistic andem
tinTimely
TYPES OF RESEARCH QUESTION
(PROBLEM)
Some authors attempt to classify the research questions into different categories.
 Management questions: It is the restatement of a manager's dilemma(s) in question form in the
areas of sales, profits, employee turnover output, quality (defects), delivery, customer
satisfaction, brand image, etc.
 Research questions: These are the questions that focus the researcher's attentions. It is the
hypothesis that best states the objective of the research.
 Investigative questions: These are the questions to be answered by the researcher, which, in turn,
answer the research question. The answers help managers arrive at a decision to solve their
dilemma.
 Measurement questions: These are the questions put to the participants (respondents) in the
research or specifically observed in the study
Broad and specific research questions

You guys can do it