Mgt 540
Research Methods
Research
Framework
1
The Basic Research Process
2
Conceptual / Theoretical framework
3
Theoretical Framework

5 Basic Features
1. Identifying and labeling variables
correctly
2. Stating the relationships among the
variables of interest
3. Theorizing the nature and direction
of these relationships
4. Explaining how or why we expect the
relationships to exist
5. Offering a schematic diagram of the
model
4
Common flaws


Including elements that are not
part of the theoretical framework
Including moderating variable in
the hypothesis

Treating moderating variable as
an independent variable
5
Dependent / Independent
Variables Fig. 5.1 and 5.2
6
Moderating Variables
p. 91
7
Moderating Variable
p. 92
Building models with increasing complexity
8
Intervening variable
p. 95
9
Independent Variable effect
Exercise 5.5 and 5.6, pg. 93 / 94
10
Effects of Moderating Variable
p. 94
11
Delta Airlines
Example 5.13, p. 99
12
Delta Airlines
Adding intervening variable
Intervening Variable – Strong
theoretical model with face validity
13
Delta Airlines
With moderating variable (weak)
14
Exxon Mobil is a well-oiled machine that is pumping profits. How
does it do it? By using technology to evaluate potential deposits. It
displays a 3-D computer image, IMAX style, on a 32 -foot wrap around
screen. It then drills underwater. Once oil is found, Exxon Mobil (EM)
pumps the oil without any significant lapse of time.
Its investment in R&D is over $ 600 million per year, and it
employs 15OO Ph.Ds. Unlike companies that finance both applied and
basic research, EM demands work that produces a measurable impact
and competitive advantage. Dissemination of findings among scientists
is thus high.
EM is also getting payoffs from older technologies, like
increasing the recovery rate from existing deposits. For example, the so
called reservoir analysis has enabled EM to boost reserves and improve
recovery from fields.
The merger of the two companies, Exxon and Mobil was
remarkable, given their two divergent philosophies and cultures. Exxon
had top efficiency born out of command and control, while Mobil was
loose and informal; but the elaborate restructuring worked out well.
The return on capital deployed was 21% in the year 2000, more
than double the level of the past two years and the best among big oil
15
companies.
Exxon-Mobile

What accounts for ExxonMobil’s success? (dependant variable)

Three (independent) variables
Use of old and new technologies
 Investment in R&D (expecting
results)
 Blending of two different cultures


Dissemination of information


Intervening variable
Diagram the theoretical
framework
16
Exxon - Mobil
Use of New & Old
Technology
Investment in R&D with
Expectation of Results
Dissemination
of Information
Success of
EM ($$$)
Blending two different
cultures
Independent
Variables
Intervening
Variable
Dependant
Variable
17
Once given, perks are extraordinarily hard to
take away without seriously decreasing
employee morale. The adverse effects of these
cuts far outweigh the anticipated savings in
dollars. Research has shown that when the
reason behind the cuts is explained to
employees, morale does not drop.
Withholding
Perks
Employee
Morale
Independent
Variables
Dependant
Variable
Explanation of
cuts
Moderating
Variable
18
Hypotheses (p. 105-107)

Statement of a relationship
between two or more variables.
“null” hypotheses is phrased to
equal “0” (no relationship)
 “alternative” hypotheses is
phrased to show some definitive
relationship (difference)

19
Haines Company (Ex 5.9)
Working Conditions
Vacation Benefits
Morale
Pay
Happiness
Side Income
20
Haines Company (Ex 5.12)
Ho: There is no relationship between working
conditions and the morale of employees.
1.
1.
HA: If working conditions are improved, then the
morale of the employees will also improve.
HO: There is no relationship between vacation
benefits and employees' morale.
2.
1.
HA: Better vacation benefits will improve
employees' morale.
HO: There is no difference in the relationship
between pay and happiness among those who
have side incomes and those who do not.
3.
1.
HA: Only those who do not have side incomes Mil
become happier if their pay is increased.
HO: There is no relationship between happiness
and morale.
4.
1.
HA.- Happiness and morale are positively correlated.
HO: Working conditions, vacation benefits, and pay
have no influence on the morale of employees.
5.
1.
HA: Working conditions, vacation benefits, and pay all
have a positive influence on morale.
21
Modeling from qualitative theory
Example 5.21, p. 109 and (fig. 5.11, p. 111)
22
Text Exercise models ex. 5.11
23
Text Exercise models ex. 5.13
24
Factors Influencing Profitability
25
Factors Affecting Stock Values
26