Nature & Scope of Business Research
Nature & Scope of Business Research
PARUL GUPTA
UNIT I
BUSINESS RESEARCH DEFINITION, NATUREAND SCOPE
Research: A careful investigation or inquiry specially through search for new facts in any
branch of knowledge.
What is Research?
The task of research is to generate accurate information for use in decision making. The emphasis of research is
on shifting decision makers from intuitive information gathering to systematic and objective investigation.
Research is defined as the systematic and objective process of gathering, recording and analyzing data for aid in
making decisions.
Characteristics of Research
1. Research begins with a problem in the form of a question in the mind of the researcher.
5. Research seeks direction through appropriate hypotheses and is based upon obvious assumptions.
7. Research is circular.
A manager faced with two or more possible courses of action faces the initial decision of whether or not
research should be conducted. The determination of the need for research centers on –
Time constraints- Conducting research systematically takes time. In many instances management concludes
that, because a decision must be made immediately, there will be no time for Research.
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BUSINESS RESEARCH MBA – SEM II Prof. PARUL GUPTA
Availability of data - Often managers already possess enough information to make sound decisions with
business research. When they lack adequate information, however, research must be considered. Managers must
ask themselves if the research will provide the information needed to answer the basic questions about a
decision. Furthermore, if a potential source of data exists, managers will want to know how much it will cost to
obtain the data.
Types of Business Research: The two main types are Basic and Applied research.
Applied research - Applied research on the other hand is designed to solve practical problems, rather than
to gain knowledge. Applied research sets out to prove a specific hypothesis of value to the clients paying
for the research. For example, a cigarette company might commission research that attempts to show that
cigarettes are good for one's health. Many researchers have ethical misgivings about doing applied research.
1. Descriptive Vs Analytical
2. Applied (Basic) Vs Fundamental (Applied)
3. Quantitative Vs Qualitative
4. Conceptual Vs Empirical
5. Special types of research
Other Types of Research - Based on the purposes for which the researches are conducted, they may be divided
into following categories:
1. Baseline/Bench-mark survey/Research.
2. Evaluation Research:
a) Formative Evaluation (Mid-term)
b) Terminal Evaluation.
3. Impact assessment/research
4. Feasibility studies.
Baseline Survey- A baseline survey is a research in which data on pre-project socio-economic and business
aspects are generated in order to facilitate the assessment of future impact of project intervention. A baseline
survey is conducted in the absence of available published data on various socio-economic and business aspects.
Evaluation Research –
a. Formative or mid term evaluation is done to assess whether the project is in the right track. It is usually
done to identify the strengths, weaknesses, opportunities and threats. On the basis of the findings of the
formative evaluation research corrective measures are taken to attain the goals of the project.
b. Terminal Evaluation research is conducted to assess the efficiency and effectiveness of the
project/intervention.
o Efficiency:
- Attaining maximum output with minimum input.
Impact Assessment- The research, which is undertaken to measure the quantitative benefits derived out of
project intervention and qualitative changes that occurred due to project intervention, is known as an impact
assessment research. This type of research also provides information for identifying the negative impact of the
project.
Feasibility Studies - This type of research is undertaken prior to starting of any business enterprise or any
business related project. This type of research is done to assess the technical, economic, market and financial
viability of the project. The issue whether the project is socially desirable and environmentally acceptable is
also taken into consideration
Objectives
1. To gain familiarity with a phenomenon or to explore new ideas
2. To portray accurately the characteristics of a particular individual, situation or a group
3. To determine the frequency with which something occurs or with which it is associated
4. To establish a cause and effect relationship and test the relationship between two variables
Nature of Research
a. BR- As an economic resource
b. BR- As a system of authority
c. BR- as an activity of business management
d. BR- As a Team effort
e. BR- AS an art or science
f. BR- As a profession
g. BR- as an interdisciplinary system
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THE RESEARCH PROCESS
Approach
1. Discussion with colleagues and experts
2. Examination of data and records
3. Review of the same
4. Exploratory personal investigation which involves original field interviews
[I]
Define Research
Problem &
Research Objective
[II] [II]
Review concepts Review previous
and theories research finding
[III]
Formulate
Hypothesis
[IV]
Design research
(Including Sample
design) F
FF
[V]
Collect data
FF (Execution)
F
[VI]
Analyze Data [IX]Report
(Test Hypotehses) preperation
F
[VII]Interpretation [VIII]Actionable
and Implications Proposition
Where,
F = Feed back ( Helps in controlling the sub-system to which it is transmitted )
FF = Feed forward ( Serves the vital function of providing criterion for evaluation )
(IV) Determining Research designs (including sample design)
Research Design is the basic framework which provides guidelines for the rest of the research
work. It is a map or a blueprint according to which the research is to be conducted
Following points must be considered while selecting any of the research designs available
1. The means of obtaining the information
2. The availability and skills of the researcher and his staff
3. Time available
4. Cost factor
5. sampling plan
Sample design: A sample design is a definite plan determined before any data is actually
collected for obtaining a sample from a given population. It provides answer to the following
four questions;
1. What sampling unit should be studied ?
2. What should be the sample size?
3. What sample procedure should be used?
4. What contact method should be used?
Selecting a problem
Following points to be avoided while selecting a problem,
1. Overdone Subject
2, Controversial subject
3. Too narrow and too vague problem
4. Unfeasible subject
5. Uneconomical and time consuming problem
Research question
• Questions in the mind of researcher
• All are able to achieve research objective/ to solve research problem if put together
1 *
2 *
3 *
4 *
5 *
6 *
7 *
Possible Answers
1. Swimming
2. Carom
3. Jogging
HYPOTHESIS FORMULATION
Hypothesis: A tentative explanation for an observation, phenomenon, or scientific problem that can be
tested by further investigation. A hypothesis describes in concrete terms, in the form of a statement, what you
expect will happen in your study.
• Hypotheses can only be formulated after the researcher has gained enough knowledge regarding the
nature, extent and intensity of the problem.
• Hypotheses should figure throughout the research process in order to give structure to the research.
• Hypotheses are tentative statements/solutions or explanations of the formulated problem. Care should be
taken not to over-simplify and generalize the formulation of hypotheses.
• The research problem does not have to consist of one hypothesis only. The type of problem area
investigated, the extent which encircles the research field are the determining factors on how many
hypotheses will be included in the research proposal.
Criteria for the formulation of a hypothesis: Following criteria are of importance in formulating hypotheses.
A hypothesis should:
1. stand a test;
2. be expressed in clear language;
3. be in accordance with the general theme of other hypotheses statements in the same field of study, and
should be regarded as valid;
4. be. coordinated with the theory of science;
5. be a tentative answer to the formulated problem;
6. be logical and simplistic;
7. consider available research techniques (to be able to analyze and interpret the results);
8. be specific; and
9. Be relevant to the collection of empirical phenomenon and not merely conclude value judgments
10. In case of exploratory research generally there exist no hypothesis
Steps in Formulating a Hypothesis
1.Decide what you want to explain: choose a dependent variable
2. Choose independent variables that also show variation
3. Think of multiple causes of the dependent variable
TYPES of VARIABLES
1. Independent Variable
2. Dependent Variable
Example
Research question – “How could extended use of the Internet negatively affect college students’ academic
performance?”
Extended use of the Internet negatively affects most college students’ academic performance
Independent variable - Internet use
Attributes- high, moderate, low, none
Variable Traits
A. Exhaustive
B. Mutually exclusive
TYPES OF HYPOTHESIS
• The prediction is that variables A and B are related.
• The only other possible outcome is that variables A and B are not related
A.NULL HYPOTHESIS
B. ALTERNATIVE HYPOTHESIS
H1: μ1 = μ2
EXAMPLE
You are investigating the effects of a new employee training program and that you believe one of the outcomes
will be that there will be less employee absenteeism. Your two hypotheses might be stated something like this:
• Having decided on the research topic and defined a clear research question or set of questions, together
with appropriate methods of seeking answers, you now need to convey your plan of research clearly in
a research proposal.
• Regardless of your research area and the methodology you choose, all research proposals must address
the following questions:
• What you plan to accomplish,
• Why you want to do it and
• How you are going to do it.
1. Title
• It should be concise and descriptive
• Often titles are stated in terms of a functional relationship, because such titles clearly indicate the
independent and dependent variables.
• However, if possible, think of an informative but catchy title. An effective title not only pricks the
reader's interest, but also predisposes him/her favorably towards the proposal.
2. Abstract
It is a brief summary of approximately 300 words. It should include the research question, the rationale for
the study, the hypothesis (if any), the method and the main findings.
3. Introduction
• The main purpose of the introduction is to provide the necessary background or context for your
research problem
• Try to place your research question in the context of either a current "hot" area, or an older area that
remains viable.
• Secondly, you need to provide a brief but appropriate historical backdrop.
• Thirdly, provide the contemporary context in which your proposed research question occupies the
central stage.
• Finally, identify "key players" and refer to the most relevant and representative publications.
• State the research problem, which is often referred to as the purpose of the study.
• Provide the context and set the stage for your research question in such a way as to show its necessity
and importance.
• Present the rationale of your proposed study and clearly indicate why it is worth doing.
• Briefly describe the major issues and sub-problems to be addressed by your research.
• Identify the key independent and dependent variables of your experiment. Alternatively, specify the
phenomenon you want to study.
• State your hypothesis or theory, if any. For exploratory or phenomenological research, you may not
have any hypotheses. (Please do not confuse the hypothesis with the statistical null hypothesis.)
• Set the delimitation or boundaries of your proposed research in order to provide a clear focus.
• Provide definitions of key concepts. (This is optional.)
4. Literature Review
5. Methods (Methodology)
• The Method section is very important because it tells your Research Committee how you plan to
tackle your research problem
• In short, what actions are you going to take in order to answer the question? When will you
know whether the hypothesis has been proven wrong, or has survived enough tests to be
considered, for now, valid? Those tests and the way you are supposed to handle them to give
rigor to your research is what is understood under methods.
• Methods divide in qualitative (interviews, questionnaires) and quantitative (statistics, stuff that
deals intensively with numbers)
For quantitative studies, the method section typically consists of the following sections:
• Design -Is it a questionnaire study or a laboratory experiment? What kind of design do you
choose?
• Subjects or participants - Who will take part in your study? What kind of sampling procedure
do you use?
• Instruments - What kind of measuring instruments or questionnaires do you use? Why do you
choose them? Are they valid and reliable?
• Procedure - How do you plan to carry out your study? What activities are involved? How long
does it take?
1. Statement of Problem
A. Introduction to subject
B. Specific problem formulation
2. Objective of study
3. Scope of study
4. Research methodology
a. Hypothesis Formulation
C. Data collection
D. Analysis and presentation of data
E. Limitation of study
5. Presentation of Study
6. Bibliography