Theoretical Framework
9 TH A N D 1 0 TH
Learning Outcomes
 Students should be able to develop theoretical
framework in business research
Outlines
 Formulating theoretical framework in business
research
 The connectedness between conceptual foundation
with theoretical framework
The Need for Theoretical Framework
 The theoretical framework is the foundation on
which the entire project is based
 A conceptual model of how one theorizes or makes
logical sense of the relationships among the several
factors that have been identified as important to the
problem
 From the theoretical framework, then, testable
hypotheses can be developed to examine whether the
theory formulated is valid or not
 The hypothesized relationships can thereafter be
tested through appropriate statistical analyses
 The relationship between the literature survey and
the theoretical framework is that the literature
survey provides a solid foundation for developing
theoretical frameworks
 The theoretical framework elaborates the
relationships among the variables, explains the
theory underlying these theories, and describes the
nature and direction of the relationship
The Components of the Theoretical Framework
 The variables should be clearly identified and
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labeled in the discussion
The discussion should state how two or more
variables are related to one another
If the nature and direction of the relationships can be
theorized based of the findings of previous research, then
there should be indication in the discussions as to
whether the relationships would be positive or
negative
Clear explanation of why these relationships exist
A schematic diagram of theoretical framework which
shows the relationship
Illustration…… DELTA AIRLINES
 With airline deregulation, there were price wars among
the various airlines that cut costs in different ways.
According to reports, Delta Airlines faced changes of airsafety-violations when there were several near collisions
in midair, and one accident that resulted in 137 deaths in
1987. four important factor seem to have influenced
these are poor communication among the cockpit crew,
minimal training given to the cockpit crew, and
management philosophy that encouraged a decentralized
structure. It would be nice to know if these factors did
indeed contribute to the safety violations, and if so, to
what extent
 Based on case, it can be seen that the dependent
variable is safety violation, in which the variance is
attempted to be explained by the four independent
variables of :
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Communication among crew members
Communication between ground control and the cockpit crew
Training received by the cockpit crew
Decentralization
 It was indicated that the lower the training level of the
cockpit crew, the greater chances of air-safety-violations
(negative relationships between the two variables):
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As the training lowered, the hazard is increased, conversely….
The higher the training, the less likely the air-safety-violations.
 There is also negative relationship between
decentralization and communication among cockpit
members:
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The more the decentralization, the less the communication,
conversely….
 Also negative relationship between decentralization and
coordination:
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The more the decentralization, the less the coordination,
conversely…
Schematic diagram for the theoretical framework
 These relationship can be expected to exist for….
 Lower levels of communication among cockpit crew would fail
to alert the pilot to the impending hazards
 Poor coordination between ground control and cockpit crew
would be detrimental because such coordination is the very
essence of safety
 Encouragement of decentralization would only reinforce
poorer communication and coordination effort
 Inadequate training of cockpit crew would fail to build survival
skills
 However, it would be interesting if we can interject
intervening variable in the model. Let’s say that lack
of adequate training makes the pilots nervous
and diffident, and this in turn explains why they are
not able to confidently handle situations in midair
when many aircraft share the skies.
 Nervousness and diffidence are a function of lack of
training, and help to explain why inadequate training
would result in air-safety hazard.
 This can be depicted in schematic diagram
below…………..
Schematic diagram for the theoretical framework
including the intervening variable
 The model may also be changed by using (poor)
training as a moderating variable. It is theorizing
that poor communication, poor coordination and
decentralization are likely to result in air-safetyviolations only in such cases where the pilot in charge has
had inadequate training.
 In other words, those who have had adequate training in
handling hazardous situations through simulated
training sessions, and so forth, would not be
handicapped by poor communication and coordination,
and in cases where the aircraft is operated by welltrained pilots, poor communication and coordination will
not result in hazards to safety.
 This can be pictured in schematic diagram below…………..
Schematic diagram for the theoretical framework
including a moderating variable
Define the problem and develop the theoretical
framework for the following situation
 A family counselor, engaged in counseling married couples
who are both professionals, is caught in a dilemma. He
realizes that the focus of the counseling sessions should be
on both family satisfaction and job satisfaction; however,
he is not sure how they can be integrated in the dualcareer family. Husbands, who are the traditional
breadwinners, seem to derive more job satisfaction as they
get more involved in their jobs and also spend more
discretionary time on job-related activities. This, however,
does not seem to be true in the case of the wives, who
perform the dual role of career person and homemaker.
However, both husbands and wives seem to enjoy high
levels of family satisfaction when they spend more time
together at home and help each other in planning familyoriented activities.