Business Research

Methodology

St. Mary’s University

MBA Program
Tesfaye T. (PhD)
Email: tesfayetilahun873@gmail.com
Mobile: +251913714697

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 Chapter One
Introduction to Business
Research Methods

2
1.1
Introduction
• Human beingsfor longhave know
tried to their
environment and understand the
nature of the phenomena using:
• experience,
• reasoning and
• research

(Cohen and Manion, 1994)

3
1.Experience (subsume a number of
sources of information):
• Personal experience. i.e., body of
knowledge and skills derived from
encounters and acquaintance with facts
and events in the environment.
• Experience of others in the
immediate circle.
• Sources beyond immediate
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2.
Reasoning
•Deductive (Aristotle)-from theory to
observation.
•Inductive (Francis Bacon) – from
number of observations to theory.
•Combined --- theory to observation
to theory
Inductive Reasoning Deductive Reasoning
(Qualitative (Quantitative
Approach) Approach)

Waterfall

Hill Climbing

(Bryman,2006,p
11) 5
 TH EOR
Existing theory identified
Y (deductive process
New theory developed
(inductive process begins)
ends)

Hypothesis created
(if/then predictions to test theory)
Patterns observed;
empirical generalizations EMPIRICAL
/tentative hypotheses OBSERVATIONS
created
Hypothesis tested with specific
empirical observations; theory
either supported or not supported
(deductive process ends)
Or
Inductive process begins;
broader empirical observation
(Source:Walter Wallace,The Logic of Science in Sociology,
1971) 6
3.
Research
• Research is a combination of both

experience and reasoning and must

be regarded as the most successful
approach to the discovery of truth.

But what is
research? 7
1.2 Research and research
philosophies
1.2.1 W hat is research?
• Research is an ORGANIZED and SYSTEMATIC
way of FINDING ANSWERS to
QUESTIONS.

•Research is a search for knowledge through

objective and systematic methods of finding
solution to a problem or the systematic
approach concerning generalization and the
formulation of a theory. 8
 SYSTEMATIC
• Because there is a definite set of
procedures and steps which you will follow
in order to get the most accurate results.
 These steps consists of:
- defining the problem,
- formulating a research
objective/ question/ hypothesis
- designing methods
- collecting the facts or data,
- analyzing the facts and
- reaching certain conclusions.
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 ORGANIZED

• In that there is a structure or

method in going about doing
research.
• It is a planned procedure, not a
spontaneous one.
It is focused and limited to a specific
scope.
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 FINDING ANSW ERS

• is the end of all research. Whether it is the

answer to a hypothesis or even a simple
question, research is successful when we
find answers.
• Sometimes the answer is no, but it is still
an answer.

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 QUESTIONS

• Are central to research. If there is no

question, then the answer is of no use.
• Research is focused on relevant,
useful, and important questions/
research problem.
• Without a question, research has no focus,
drive, or purpose.
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Structure of
Research
The "hourglass" notion of
research

begin with broad questions

narrow down, focus in
operationalize
OBSERVE
analyze data
reach
conclusions
generalize back to
questions 13
Objectives of
research
(Kothari 2004)
• To gain familiarity with a phenomenon or to
achieve new insights into it =
exploratory research studies.

•To portray accurately the

characteristics of a particular
individual, situation or a group
= descriptive research studies.

•To test a hypothesis of a causal relationship

between variables = hypothesis- testing
research studies.
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Types of research
 DESCRIPTIVE  ANALYTICAL
• Descriptive research • In the analytical
consists of surveys research, the
and fact-finding researcher has to
enquiries of use the already
different types.The available facts or
main objective of information, and
descriptive research analyse them to
is describing the make a critical
state of affairs as it evaluation of the
prevails at the time subject.
of study.
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 APPLIED  FUNDAMENTAL
• An attempt to find a • Fundamental
solution to an research mainly
immediate problem concerns
encountered by a generalizations and
firm, an industry, a formulation of a
business theory.
organisation, or the
• Knowledge for
society
• The objective of knowledge‘s sake
( i.e.,
applied research is to ‗pure‟ or „basic‘
find a solution to research)
some pressing
practical problem.
12 April Kassa T. (PhD, Associate 16
2021 Professor)
 QUANTITATIVE  QUALITATIVE
• Quantitative research • Qualitative research
relates to aspects is concerned with
that can be qualitative
quantified or can be phenomena, or
expressed in terms more specifically,
of quantity. the aspects related
• It involves the to or involving
measurement of quality or kind.
quantity or
amount.
• Various available
statistical and
econometric
methods are
adopted for analysis 17
 CONCEPTUAL •EMPIRICAL
• Related to some •Relies on
abstract idea or experience or
theory (for
observation alone,
philosophers and
thinkers) i.e., Data-based
• Generally, research
philosophers and •Capable of being
thinkers use it for verified by
developing new observation or
concepts or for experiment.
reinterpreting the •Experimenter has
existing ones.
control over
• Relies on literature
variables under
study
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 Why people do
•research?
Desire to get a research degree
along with its consequential benefits;
• Desire to face the challenge in solving the
unsolved problems, i.e., concern over
practical/ theoretical problems initiates
research;
• Desire to get intellectual joy of doing some
creative work;
• Desire to get respectability; and
• Desire to serve the society:
by increasing standard of living in
case of Science& Technology, and
by showing right path to society
in case of social and behavioral
sciences. 19
1.2.2 Research
philosophy
•Ontology and epistemology together
form research philosophies and have
fundamental methodological
implications (Isaeva et al., 2015).
•When choosing research methodologies,
we draw upon different ontological and
epistemological assumptions.These
assumptions thus underpin our choice of
methods.
•However, in management studies,
there is no conclusive agreement on
the best philosophy.
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What is Research
Philosophy?
• ‗Research philosophy is an over-arching term
relating to the theory of knowledge
(epistemology) and the theory of reality
(ontology) that determines the theory of
inquiry (methodology)‘ (Saunders et.al., 2009)
• Research philosophies: the systematic
examination of basic concepts such us truth,
existence, reality, causality and freedom
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What do you see in this
picture?

22
Reality can be so complex that equally valid
observations from differing perspective can
2
 Ontology :The study of reality
(What the world is / the nature of
reality)

Epistemology: The study of knowledge

(How we can know about it/what constitutes
acceptable knowledge)

Methodology:The study of inquiry

(The ways we go about knowing it)

Methods
(How is research constructed and 24
(Source: Easterby-Smith, et
al 2015) 25
 Research
•Philosophies:
Positivism - A single truth exists that can be
explained by law-like causal generalization.
Knowledge is objective and is based on observable
and measurable facts and relationships. It can
predict behaviour.
• Constructivism - Context is important and
knowledge is thus subjective. Concepts and
theories cannot provide richness and are too
simplistic. A variety of explanations and
interpretations are encouraged where meanings
are more important. It provides context-specific
and in-depth understanding.
• Pragmatism - Knowledge should be relevant and
useful to practice. Research should provide
solutions to practical problems. It encourages a 26
 Research
Ontology + Epistemology
= Philosophy

Believes that Measured Positivism

there is only + using reliable
=
one reality tools and
designs
Believes that Knowledge
there are + need to be
= Constructivism

multiple realities interpreted

or explained
Believe that
reality can be +
Can be = Pragmatism
one and measured and
many interpreted
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 Research
philosophies
Positivis Pragmatism Constructivism
m
Reality is out Reality is what
Ontolog there/Realism/ Bot people
y (Objectively measured) h perceive/Relativism/
(Socially
Epistemolo Pragmatic, constructed)
Subjective,
Objective,, value free, subjectiv
gy Deductive Emic
Inter-
reasoning e Inductive
objectivi reasoning
Methodolo Quantitati ty Mixed Qualitati
gy ve ve
Survey and Ethnography/ case
Method Survey/ ethnography, study,
s experiment etc. phenomenology
Tools/ Questionnai Questionnaire Interview,
Instrume and FGD, obs.
re
??? interview,/FGD,
nts
Critic ??? etc.
???
?
What is a
Theory?
• Theory is an inter-related set of constructs
formed in to propositions or hypotheses that
specify the relationship among variables to
explain and predict phenomena.

• A theory might appear in a research study

as an argument, discussion, or a rationale,
and it helps to explain (or predict),
understand or interpret phenomena that
occur in the world.
• For example, if you hypothesize that
‗democracy‘ (X) leads to ‗economic growth‘
(Y), you need a theory (say, political
economy) to explain the relationship between
X and Y.
• Why would an independent variable ―X‖
influence or affect a dependent variable
―Y‖?
• The theory would provide the
explanation for this expectation or
prediction.

•Any example from you?

The Research
Process
•Formulating the research problem;
• Extensive literature survey;
• Developing the hypothesis;
• Preparing the research design (including
sample design);
• Collecting the data, execution ;
• Analysis of data (hypothesis testing if
any);
• Interpret and report the results.
Kothari 2004 , p 11
Thank
You!!