The Role of Business
Research
Theory Building
The scope of business
research
What is “business”
anyway???
Is research applicable to all
business units/functions?
Business research defined
the systematic and objective
process of gathering, recording,
and analyzing data for aid in
making business decisions
Types of research
PURE
expand the limits of
knowledge
not aimed at solving a
specific pragmatic
problem
theory development
APPLIED
aimed at solving a
specific pragmatic
problem
“action research” is
one type
Applications
identifying problems or opportunities
diagnosis and assessment
selecting and implementing a course of
action
evaluating a course of action
– Evaluation
Performance monitoring
Research isn’t always the answer!
Before doing research consider the
following:
– time constraints
– availability of data
– nature of the decision
– has the decision already been made?
– does the cost outweigh the benefit?
Nature of truth
knowledge is socially constructed
Sources of Knowledge
Experience
– but may not be systematic
– may not be universal
Authority
– custom
– tradition
– but how does authority
know?
Francis Bacon
In the year of our Lord, 1432, there arose a grievous quarrel among the brethren over the
number of teeth in the mouth of a horse. For thirteen days the disputation raged without ceasing.
All the ancient books and chronicles were fetched out, and wonderful and ponderous erudition
was made manifest. At the beginning of the fourteenth day a youthful friar of goodly bearing
asked his learned superiors for permission to add a word, and straightway, to the wonder of the
disputants, whose deep wisdom he sorely vexed, he beseeched them in a manner coarse and
unheard of, to look in the mouth of a horse and find answers to their questionnings. At this, their
dignity being grievously hurt, they waxed exceedingly wroth; and joining in a mighty uproar
they flew upon him and smote him hip and thigh and cast him out forthwith. For, said they,
"Surely Satan hath tempted this bold neophyte to declare unholy and unheard-of-ways of finding
truth, contrary to all the teachings of the fathers." After many days of grievous strife the dove of
peace sat on the assembly, and they, as one man, declaring the problem to be an everlasting
mystery because of the dearth of historical and theological evidence thereof, so ordered the same
writ down.
—Attributed to Bacon, cited in Best and Kahn, Research in Education, 8th edition, pp.4-5.
SOURCES OF KNOWLEDGE
Experience
Authority
Deductive Reasoning
Inductive Reasoning
SOURCES OF KNOWLEDGE
Experience
Authority
Deductive Reasoning
Inductive Reasoning
Scientific Method
– inductive - deductive
Theory Formulation
Deductive Reasoning
The logical process of deriving a conclusion from a known premise
or something known to be true.
We know that all managers are human beings.
If we also know that John Smith is a manager,
then we can deduce that John Smith is a human being.
Subject to error!
Inductive Reasoning
The logical process of establishing a general proposition on
the basis of observation of particular facts.
All managers that have ever been seen are human beings;
therefore all managers are human beings.
Subject to error too!
THE SCIENTIFIC APPROACH
OBSERVATIONS
Inductively
If compatible with the
organized body of accepted
knowledge, these
hypotheses will be tested
by the gathering of empirical data
HYPOTHESES
Deductively
LOGICAL IMPLICATIONS
OF THE
HYPOTHESES
THEORY
is a system for explaining a set of
phenomena by specifying constructs and
the laws that relate these constructs to
each other.
Purpose of Theories
to summarize and organize existing
knowledge
to explain observed events and
relationships
to predict the occurrence of unobserved
events and relationships
to stimulate further inquiry
– identifying areas
– providing leads
What makes a good theory?
Validity
– It fits the facts
Generalization
– Makes predictions about future or other
events
Replication
– It can be repeated with similar findings
Constructs
In management we often use concepts or
constructs as variables
examples:
–
–
–
–
–
–
leadership
social responsibility
GNP
agency
honesty
efficiency
Abstraction
Concepts abstract reality
– Are expressed in words that refer to various
events or objects
– Vary in degree of abstraction
– Research operates at abstract and empirical
level linking concepts together as we begin
the journey to construct theory.
Propositions
Concepts are the basic building blocks
Propositions propose the linkages
between these concepts
theory
propositions
concepts
From proposition to hypothesis
Proposition
Concept A:
Concept B:
Punishment
Attendance
Hypothesis Yelling at
students
Increases
attendance by
50%
Abstract
Level
Emperical
Level
A hypothesis is a proposition that is empirically
testable. It is an empirical statement concerned
with the relationship among variables.
•A variable is anything that… varies!
•Make sure that you define, or operationalize all
your variables… an operational definition
•Null hypothesis
What makes a good
hypothesis?
precise
specifies variables to measure
specifies relationships between variables
A poor hypothesis
Students spend too much money on fast
food.
A better hypothesis
Students with incomes of less than 10,000
per year spend a higher proportion of their
income in fast food restaurants than the
established mean for the general
population.
Maslow’s Hierachy of Needs
Physiological – hunger, thirst, shelter, sex, and
other bodily needs.
Safety – security and protection from physical
and emotional harm.
Social – affection, belongingness, acceptance,
and friendship
Esteem – internal: self-respect, autonomy, and
achievement; external: status, recognition, and
attention
Self-Actualization – growth, achieving one’s
potential, self-fulfillment.
Motivation Theory
Theory X – The assumption that
employees dislike work, dislike
responsibility, and must be coerced to
perform.
Theory Y – The assumption that
employees like work, are creative, seek
responsibility, and can exercise self
direction
Douglas McGregor, In Robbins, S. & Langton, N. (2003). Organizational
Behaviour. New Jersey, USA: Prentice Hall Inc.
Hypothesis
Can you create a hypothesis to test these
theories among University students?