Research Mehods MBA
Research proposal
Research Proposal
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Title
Acknowledgement
Table of contents
Introduction (background)
Statement of the problem
Research Questions and Objectives
Hypotheses
Theoretical Framework (literature Review)
Empirical Framework
Results and analysis
Conclusion and Policy Implications
References
Appendices
Title
Title
Acknowledgment
Acknowledgment
Table of Contents
Table of Contents
Introduction/Overview/Background
• Introduction/Overview/Background (example)
• The literature on the behavior and determinants of private
investment in developed countries is extensive. For developing
countries, however, more efforts need to be made in order to identify
variables that affect private investment behavior and those that
shape the response of private investors to changes in government
policy.
• Moreover, because government policies in developing countries are
distortive, more works are needed in order to model and quantify
private investment behavior in these countries. In this respect, the
standard neoclassical investment models need to be either modified
or replaced by alternative ones.
Statement of the problem
 Statement of the research problem is the core of research.
 A research problem is something that is disturbing you.
 It is the gap between expectation (what is expected) and reality (e.g. the
real situation of an economy or an organization).
 Expectation might be:
- an expectation of a theory
- an expectation of literature
- an expectation of the mission of an organization
- an expectation of a plan or an objective
 Reality must be based on indicators from your case study (e.g. a country
or an organization). Indicators must be derived from actual data and
information that give an indication.
Statement of the problem
Statement of the problem
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Shows that something is disturbing
Based on a solid background
States expectations (e.g. theory)
Provides indicators (the extent to which realities differ
from expectations)
Raises questions (research questions)
Statement of the problem
Example 1
Traditional investment models (theories) state that the rate of interest
and level of economic activities (i.e. income) are the two major
determinants of private investment (this is the expectation).
However, data and available indicators (provide the evidence) show
that traditional investment theories cannot be used to explain private
investment in developing country like Egypt where government policies
are distorted.
Therefore, it is necessary to specify and estimate an alternative private
investment model and apply it for a particular developing economy
(Egypt). The proposed model is meant to integrate policy variables into
the traditional neoclassical accelerator model.
Statement of the problem
Example 2
Production theory predicts that across firms/plants output (Q)
varies due to the variation in the inputs of labor L and capital K.
The theory also indicates that the relationship between Q and
both L and K is not uniform (the response of Q to the variation in
L and K is not uniform across firms/plants).
Statement of the problem
Example 2
Previous empirical works have also indicated that the both labor
and capital has a positive impact on output.
This is the expectation of the literature (from theory and previous empirical works.
The literature states that:
 Output or production depends on the inputs of labor and capital
 Output of different firms responds differently to the variation in labor and capital
 Both labor and capital have positive impact on output
What is written in this box is a clarification, it is not a part of the statement of the problem
Statement of the problem
Example 2
However,
Actual data shows that output of firms/plants in the Dairy
Products industry in Egypt varies due to factors other than the
inputs of labor and capital (EVIDENCE).
This would require different specification of the relationship
between output and both labor and capital inputs. This different
specification must not be exactly the same as the ones in the
literature. The new specification should be able to handle
variables other that labor and capital that explain output in the
Dairy Product Industry in Egypt
Statement of the problem
Example 3
The Literature on leadership indicates that
performance is strongly related to the style of
leadership where transformational leaders move
business organizations from failure to success.
However, indicators show that this is not the case of
company Z, where there is no clear evidence that
change leadership has had any significant impact on
the overall performance of the company.
Research Questions and Objectives
For Example 1
1.
Do traditional investment models explain private investment
in both developed and developing countries?
2. If the answer is no, does government policy in developing
countries call for alternative investment models?
3. What is the impact of government policy (government
expenditure in particular) on private investment?
4. Is there is a crowding-out effect? If yes, by how much?
The research objective is to answer the above questions and
develop an alternative investment model
Research Questions and Objectives
For Example 2
1. Is it true that variation in output across firms/plants in the
Dairy Product industry in Egypt is explained by other
variables, other than the inputs of labor and capital?
2. If the answer is “yes”, what are these other variables?
3. Does variation in output across firms/plants in the Dairy
Product industry in Egypt reflect variation in managerial
efficiency across firm?
4. Why the managerial efficiency level varies across
firms/plants?
The research objective is to answer the above questions and
develop an alternative investment model
Research Questions and Objectives
Objectives:
1. To develop a production model that incorporates basic
determinants of output (i.e. Labor and Capital) as well
as other variables (other than labor and capital) that
reflect variation in efficiency across firms.
2. To identify the sources of technical efficiency and
develop an empirical technique to measure it.
3. To develop an operational framework that helps
manager identify different sources of output efficiency
Hypotheses
A hypothesis is:
A proposition that there is a certain relationship that can be tested between
two of more measurable variables
A hypothesis must:
1. Be written in the present tense (why?)
2. Include a relationship between measured variables
3. Provide an Expectation
4. Amenable for testing
5. Be based on a priori information (logical)
Hypotheses
For example 1
Hypothesis 1
Policy variables (of which government expenditure is the most important)
have strong impact on private investment, much stronger than the effects of
variables suggested by conventional models
Hypothesis 2
The magnitude (size) of the crowding-out effect of different types
government expenditure is not the same (i.e. infrastructural and noninfrastructural public expenditure ).
Hypotheses
For example 2
Hypothesis 1
Output varies across firms/plants in the Dairy Product industry in Egypt due
to not only the inputs of labor and capital, but more importantly due to the
variation in technical (managerial) efficiency
Hypothesis 2
The distribution of technical efficiency across firms/plants is universally not
following NORMAL distribution
Relationship – hypothesis - theory
A relationship:
1. What are the variables?:
2. Which is the dependent?:
3. Positive or negative?:
Profit 𝒚 𝑎𝑛𝑑 𝒂𝒅𝒗𝒆𝒓𝒕𝒊𝒔𝒊𝒏𝒈 𝒙
𝒚
𝒚=
𝒙
Positive
𝒚= + 𝒙
How to read a relationship?
- There is a positive relationship between 𝒚 𝒂𝒏𝒅 𝒙
- the relationship between 𝒚 𝒂𝒏𝒅 𝒙
- 𝒚 𝒂𝒏𝒅 𝒙 are positively related
Relationship – hypothesis - theory
A hypothesis:
1. What are the variables?:
Profit as percentage of toal sales 𝒚 𝑎𝑛𝑑 𝒂𝒅𝒗𝒆𝒓𝒕𝒊𝒔𝒊𝒏𝒈 𝒑𝒆𝒓 𝒖𝒏𝒊𝒕 𝒙
2. Which is the dependent?: 𝒚
𝒚=
𝒙
3. Positive or negative?:
Positive
𝒚= + 𝒙
When tested:
4. How much will be the value of 𝒚 if 𝒙 = 𝟎? 𝒂 𝒚 = 𝒂 + 𝒙
5. By how much 𝒚 responds to changes in 𝒙? 𝒃 𝒚 = 𝒂 + 𝒃 𝒙
A hypothesis is a relationship that can be tested
A theory is a relationship that has been tested and proved to be generally true
Methodology
Theoretical Framework (Literature Review)
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Establishing major relationships of the research
Identifying variables (what is explained by what?)
How the impact is transmitted from explanatory
(independent) variables to the dependent variable?
Is impact (effect) direct or indirect?
How much and by how much?
What is the empirical evidence from previous studies
shows?
ALL OF THESE MUST BE BASED ON THE LITERATURE
Methodology
How to Write a Literature Review?: an example
(research title: the impact of the price elasticity of demand on pricing policies)
The Importance of Pricing
• Andreas Hinterhuber (2005) finds that on average, a five percent
increase in price leads to a 22 percent improvement profits.
According to the basic economic laws of supply and demand, an
increased price can decrease demand. However, depending on
the elasticity of demand, this can in turn increase or decrease
revenues. Marn and Rosiello (1992) assured the importance of
pricing by concluding that holding other variables constant, 1%
increase in price leads to 11.1% increase in profit, while 1%
increase in the quantity sold will only raise profits by3.3%.
Methodology
It
follows
that poor pricing leads to
performance, while proper pricing increases profit.
poor
financial
Based on the above conclusions, it is really not clear (strange) (not
understood) that pricing is one of the least considered and researched
aspects of marketing (Hoffman et al, 2002).
Nagle and Holden (2002, p.21) define pricing strategy as “coordination
of interrelated marketing, competitive, and financial decisions to
maximize the ability to set prices profitably”. They also go as far as saying
that few professional managers consider pricing in a strategic sense.
Methodology
While research in the area of pricing has picked up
since the early 1990’s, much of the research has
focused on pricing methods more relevant to
products or goods than services. (Avlonitis and Indounas,
2007; Bonnemeier, Buriane and Reichwald, 2010; Demirkan, Kauffman,
Vayghan, Fill, Karagiannis and Maglio, 2008; Hulton, VistrAm, and Mejtoft,
2009).
(THIS IS NOT A COMPLETE THEORETICAL FRAMEWORK
(LITERATURE REVIEW), IT IS JUST A SAMPLE OF HOW TO WRITE
A LITERATURE REVIEW)
Methodology
Empirical framework
 Empirical framework is simply how hypotheses are tested?
 You must:
1. Convert theoretical relationships identified in the theoretical framework (literature
review) into relationships that can be estimated
2. Decide the quantitative and/or qualitative techniques required
3. Identify and collect relevant data and information
4. Variables must be measured correctly
(take care of your variables)
5. Sampling must be relevant
(or error will be huge)
6. Model must be correctly specified
(linear, non-linear …… )
Methodology
7. Relevant method of estimation must be employed (e.g. statistical methods)
8. Estimation is a human behavior
(can one controls?)
9. Error of estimation CAN NOT be avoided
(minimize error)
10. Estimated values of parameters and coefficients represent averages
(how?)
11. True values of parameters and coefficients are unknown
(in Social Sciences)
12. Estimated values of parameters and coefficients are nothing but an
approximation of their unknown true values
(be realistic and practical)
Topics
1. The impact of leadership on organizational performance
2. The relationship between style of leadership and organizational culture
3. The Relationship between Customer Satisfaction and Consumer Loyalty in the
banking industry
4. Service quality and customer satisfaction
5. The determinants of managerial (technical) efficiency of production
6. The relationship between HRM functions and innovation
7. The relationship between pricing policies and organizational profit
8. Cost leadership and differentiation strategies: a comparative analysis
9. Technical progress and economic growth
10. The impact of government policy on private investment