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Sekaran Ch 2-3 - Summary Research Methods for Business
Metodologi Penelitian (Universitas Airlangga)
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Research Methodology Summary
Research Methods of Business : A Skill Building Approach
Uma Sekaran and Roger Bougie (2009)
Chapter 2 : Scientific Investigation
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The hallmarks of science:
1. Purposiveness:
The reasearch must has purposive focus and beneficial for the organization.
2. Rigor:
Rigor connotes carefulness, scrupulousness, and the degree of exactitude in research
investigations.
3. Testability:
Testability refers that hypotheses must be testable. Hypotheses are tentative yet testable
statements. They are derived from theory or theory based. It must be able to testify by
applying certain statistical test experimentally.
4. Replicability
Results should be supported again and again when the same type of research is repeated
in other similar circumstances.
5. Precision and confidence
Precision refers to closeness of the findings to reality. Precision reflects the degree of
accuracy of the result.
6. Objectivity
The conclusion drawn from information should be objective. The findings should be
based on the facts.
7. Generalizability
Generalizability refers to the scope of applicability of the research findings in one
organizational settings to other settings. The wider the range of applicability of the
solutions generated by the research, the more useful the research is to users.
8. Parsimony
Parsimony refers to the simplicity in explaining the phenomena or problems that occur.
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Some obstacles to conducting scientific research in the management area:
- It is not always possible to conduct investigations that are 100% scientific, in the sense
that, unlike in the physical sciences, the results obtained will not be exact and error-free.
This is primarily because of difficulties likely to be encountered in the measurement and
collection of data in the subjective areas of feelings, emotions, attitudes, and perceptions.
These problems occur whenever we attempt to quantify human behavior.
- Difficulties might also be encountered in obtaining a representative sample, restricting the
generalizability of the findings. Thus, it is not always possible to meet all the hallmarks of
science in full.
The hypothetico-deductive method:
- Popularized by Karl Popper
- The hypotheticodeductive method provides a useful, systematic approach to solving basic
and managerial problems
- The steps:
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Identify a
broad problem
area
Define the
problem
statement
Develop
Hypotheses
Determine
measures
Interpretation
of data
Data analysis
Data collection
-
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Deductive reasoning is a key element in the hypotheticodeductive method. In deductive
reasoning, we start with a general theory and then apply this theory to a specific case.
- Inductive reasoning works in the opposite direction: it is a process where we observe
specific phenomena and on this basis arrive at general conclusions.
- In sum, theories based on deduction and induction help us to understand, explain, and/or
predict business phenomena.
Case studies:
- Case studies involve in-depth, contextual analyses of similar situations in other
organizations, where the nature and definition of the problem happen to be the same as
experienced in the current situation.
- It is not often undertaken in organizations because such studies dealing with problems
similar to the one experienced by a particular organization of a particular size and in a
particular type of setting are difficult to come by. Moreover, authentic case studies are
difficult to find because many companies prefer to guard them as proprietary data.
Action research:
- Action research is sometimes undertaken by consultants who want to initiate change
processes in organizations. In other words, action research methodology is most
appropriate while effecting planned changes.
- Here, the researcher begins with a problem that is already identified, and gathers relevant
data to provide a tentative problem solution. This solution is then implemented, with the
knowledge that there may be unintended consequences following such implementation.
The effects are then evaluated, defined, and diagnosed, and the research continues on an
ongoing basis until the problem is fully resolved.
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Chapter 3
The Research Process: The Broad Problem Area and Defining the Problem Statement

Broad Problem Area:
A “problem” does not necessarily mean that something is seriously wrong with a current
situation that needs to be rectified immediately. A problem could also indicate an interest in
an issue where finding the right answers might help to improve an existing situation. Thus, it
is fruitful to define a problem as any situation where a gap exists between the actual and the
desired ideal states.

Preliminary Information Gathering:
- Information can be classified under two headings:
a. Background information on the organization – that is, the contextual factors.
Such background information might include, among other things, the contextual
factors listed below, which may be obtained from various published sources.
1. The origin and history of the company – when it came into being, business it
is in, rate of growth, ownership and control, and so on.
2. Size in terms of employees, assets, or both.
3. Charter – purpose and ideology.
4. Location – regional, national, or other.
5. Resources – human and others.
6. Interdependent relationships with other institutions and the external
environment.
7. Financial position during the previous five to ten years, and relevant
financial data.
8. Information on structural factors (for instance roles and positions in the
organization and number of employees at each job level, communication
channels, control systems, workflow systems).
9. Information on the management philosophy.
b. Prevailing knowledge on the topic – that is, relevant findings from previous
research.
Literature Review
A literature review is a step-by-step process that involves the identification of
published and unpublished work from secondary data sources on the topic of
interest, the evaluation of this work in relation to the problem, and the
documentation of this work. a good literature review ensures that:
1. Important variables that are likely to influence the problem situation are
not left out of the study.
2. A clearer idea emerges as to what variables will be most important to
consider (parsimony), why they are considered important, and how they
should be investigated to solve the problem. Thus, the literature survey helps
the development of the theoretical framework and hypotheses for testing.
3. The problem statement can be made with precision and clarity.
4. Testability and replicability of the findings of the current research are
enhanced.
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
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5. One does not run the risk of “reinventing the wheel”; that is, wasting effort
on trying to rediscover something that is already known.
6. The problem investigated is perceived by the scientific community as
relevant and significant.
Conducting Literature Review:
The quality of the research can be seen from the data sorce collected. We can
collect data from the following:
o Textbooks
o Journals
o Theses
o Conference Proceedings
o Unpublished manuscripts
o Reports
o Newspaper
o The internet : online journals, etc
Evaluating Literature
To assess the quality of recent research (indeed, in this case you cannot use
the number of citations as an indicator of the quality of an article) you could
ask the following questions:
 Is the main research question or problem statement presented in a
clear and analytical way?
 Is the relevance of the research question made transparent?
 Does this study build directly upon previous research?
 Will the study make a contribution to the field?
 Is there a theory that guides the research?
 Is the theory described relevant and is it explained in an
understandable, structured, and convincing manner?
 Are the methods used in the study explained in a clear manner
(description of methods)?
 Is the choice of certain methods motivated in a convincing way
(justification of methods)?
 Is the sample appropriate?
 Are the research design and/or the questionnaire appropriate for this
study?
 Are the measures of the variables valid and reliable?
 Has the author used the appropriate quantitative and/or qualitative
techniques?
 Do the conclusions result from the findings of the study?
 Do the conclusions give a clear answer to the main research
question?
 Has the author considered the limitations of the study?
 Has the author presented the limitations in the article?
Documenting literature review
Documenting the literature review is important to convince the reader that
(1) the researcher is knowledgeable about the problem area and has done the
preliminary homework that is necessary to conduct the research,
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(2) the theoretical framework will be structured on work already done and
will add to the solid foundation of existing knowledge.
*A point to note is that the literature survey should bring together all relevant
information in a cogent and logical manner instead of presenting all the
studies in chronological order with bits and pieces of uncoordinated
information. A good literature review also leads one logically to a good
problem statement.
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Secondary data: data that already exist and do not have to be collected by the researcher.
Primary data: data gathered for research from the actual site of occurrence of events.
Defining Problem Statement:
- The problem statement introduces the key problem that is addressed in the research
project. A problem statement is a clear, precise, and succinct statement of the specific
issue that a researcher wishes to investigate. There are three key criteria to assess the
quality of the problem statement: it should be relevant, feasible, and interesting.
- From a managerial perspective, research is relevant if it relates to (1) a problem that
currently exists in an organizational setting or (2) an area that a manager believes needs
to be improved in the organization.
- From an academic perspective, research is relevant if: (1) nothing is known about a topic,
(2) much is known about the topic, but the knowledge is scattered and not integrated, (3)
much research on the topic is available, but the results are (partly) contradictory, or (4)
established relationships do not hold in certain situations.
The Research Proposal:
- Before any research study is undertaken, there should be an agreement between the
person who authorizes the study and the researcher as to the problem to be investigated,
the methodology to be used, the duration of the study, and its cost. This ensures that there
are no misunderstandings or frustrations later for either party.
- The research proposal drawn up by the investigator is the result of a planned, organized,
and careful effort, and basically contains the following:
1. The purpose of the study.
2. The specific problem to be investigated.
3. The scope of the study.
4. The relevance of the study.
5. The research design offering details on:
a. The sampling design.
b. Data collection methods.
c. Data analysis.
6. Time frame of the study, including information on when the written report will be
handed over to the sponsors.
7. The budget, detailing the costs with reference to specific items of expenditure.
8. Selected bibliography.
Managers Implication:
- To make sure that the objectives of the study are actually being achieved, managers must
stay involved throughout the entire research process. Information exchange between the
manager and the researcher during all the important stages of the research process will
definitely enhance the managerial relevance and the quality of the research effort.
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
Ethical issues in the preliminary stages of investigation:
- If the researcher decides to carry out the project, it is necessary to inform all the
employees – particularly those who will be interviewed for preliminary data gathering
through structured and unstructured interviews – of the proposed study (though it is not
necessary to acquaint them with the actual reasons for the study, because this might bias
responses). The element of unpleasant surprise will thus be eliminated for the employees.
- It is also necessary to assure employees that their responses will be kept confidential by
the interviewer/s and that individual responses will not be divulged to anyone in the
organization.
- Employees should not be forced to participate in the study. When employees are willing
to participate in the study, they have the right to be protected from physical or
psychological harm. They also have a right to privacy and confidentiality. Attempts to
obtain information through deceptive means should be avoided at all costs.
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