Research Methodology

29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1

RESEARCH METHODOLOGY

(Business Research Methods)

Week 1


Comprehensive introduction to Research Methodology (Business Research

Methods)

Knowledge acquisition and application of subject matter to real-life situations

Course literature (see the „must read“ section)

Use of multimedia visual aids (MS PowerPoint slides)

Reference to case studies when desirable

Encouragement of questions, comments and constructive criticism from course

participants

Analytical and critical thinking, inquisitiveness as well as common sense from

course participants also expected

How This Course Will Be Conducted


• listen attentively

• be considerate and amenable

• be inquisitive, analytical and critical in your approach to learning research methodology

• mention if you do not understand something and seek clarification

• read the prescribed course literature. It is the basic requirement for comprehending research methodology and succeeding in this course

• start reading from the beginning of the course and not towards the end!

• be late to class. We start at 6 PM PM sharp!

• distract the attention of other course participants

• use mobile phones or send SMS messages in the class

• follow a rote-learning approach. There is zero tolerance for this in all classes taught at CIIT!

• feel afraid to bring up any relevant point for discussion

• hesitate to visit me at my office, individually or as a group, if you have a course-related problem and seek counseling in this regard

The DO‘s and DONT‘s Catalogue for Course Participants


• To acquaint course participants with all salient aspects of research methodology in accordance with

the current body of scientific literature on this challenging, interesting and indepensible area of

management science

• To show that the subject of research methodology has matured into a substantive body of knowledge,

an indepth understanding of which is crucial for ensuring the success of commercial or non-

commercial organizations

• To show and encourage the course participants that the theoretical knowledge acquired in this course

can - with the appropriate context-related modifications - be applied to numerous real-life situations in

business, public-sector and non-profit enterprises

• To stimulate interest in the business research field as a prospective career field

Fundamental Course Objectives


Demands on Course Participants

Acquisition and careful application of knowledge Analytical and critical thinking, innovation, inquisitiveness Holistic perspective

• Quizzes & (proof that the course participant is familar with the essentials

Sessionals of research methodology)

• Project Work (each course participant is expected to show that he or she is able to apply the research skills learned in this course)

• Examination (case study in which each course participant is expected to demonstrate his or her indepth understanding of research

methodology and apply the knowledge acquired in the course to a real-life situation)

The essence of knowledge is having it to apply it - Confucius


Important Information for Course Participants – (1)

You MUST read the course literature from the beginning of the semester.

Relying on the PowerPoint slides is NOT sufficient! The purpose of these slides is

to provide you with a broad and general introduction to research methodology.

Kindly note that the slides are intended as a supplement to, and NOT as a

substitute for the prescribed course literature

The prescribed course literature will be used as a reference for the quizzes,

sessionals and final examination. Failure to read and understand the course

literature could mean that a course participant will fail the course! An automatic

passing grade in this course is NOT guaranteed, rather, a course participant‘s

marks will reflect his or her effort and performance in the subject


The project work to be undertaken in this course will be chosen by the course instructor

and must be undertaken by the course participant according to the project guidelines which

will be distributed in paper form seperately. It is essential that primary data is collected,

analysed, evaluated and recorded by the course participant in his or her project report.

Plagiarism will NOT be tolerated! If caught, zero marks will be given

The course lectures, discussions etc. will be conducted exclusively in english! The use of

Urdu language in this course is strongly discouraged

Specific questions on the subject of research methodology may be asked from candidates

in the Viva oral examination at the end of their MBA programme. Failure to answer these

questions will definitely result in a deduction of examination marks

Important Information for Course Participants – (2)


Course Highlights

• Introduction to research methodology

• Research Terminology and the Scientific Method

• Designing and implementing a research project

• Ethics in Research

• Types of Research

• Measurements in Research

• Primary and Secondary Data

• Analyzing primary and secondary data (quantitative techniques)

• Communicating Research Results

• Undertaking Research Project by the course participants


All MS PowerPoint course presentation slides, the

course outline, quizzes, the two sessionals and final

examination (after completion☺) supporting

eDocument files and the course participants’ project

reports will be uploaded to the yahoo webgroup CIIT –

Research Methodology, from where they will be

accessible via Internet to all course participants and

any other scholars or persons in Pakistan or overseas

who are interested in this CIIT – Research

Methodology course

Use of Multimedia Visual Aids in this Course


What is Business Research?

• Business Research may be defined as the “systematic and objective process of gathering, recording and analyzing data for aid in making business decisions” (Zikmund, Business Research

Methods, 2002, p. 6)

• Systematicness and Objectivity are its distinguishing features of Business Research, which is important tool for managers and decision-makers in corporate and non-corporate organizations


When is Business Research Used?

Typically, business research methods are used in situations of uncertainty, that is, when decision-makers face two or more courses of action and seek to select the best possible alternative under the circumstances. Business Research is hence aimed at improving the quality of decision-making which, in turn, benefits the organization and helps ensure its continuity and efficiency


Typical Users of Business Research Methods

• Businesses and Corporations

• Public-Sector Agencies

• Consulting Firms

• Research Institutes

• Non-Governmental Organizations

• Non-Profit Organizations

• Independent Researchers and Consultants


Common Business Research Methods & Techniques

• Surveys

• Interviews

• Observation

• Experiments

• Archival and Historical Data

• Qualitative Analysis

• Quantitative Analysis


General Business Conditions andCorporate Research

• Short- & Long-Range Forecasting, • Business and Industry Trends• Global Environments • Inflation and Pricing • Plant and Warehouse Location • Acquisitions

Financial and Accounting Research

• Forecasts of financial interest rate trends,

• Stock,bond and commodity value predictions

• capital formation alternatives• mergers and acquisitions • risk-return trade-offs • portfolio analysis • impact of taxes • research on financial institutions • expected rate of return • capital asset pricing models • credit risk • cost analysis

Fields Where Business Research is Often Used – (1)

Management and OrganizationalBehaviour Research

• Total Quality Management• Morale and Job Satisfaction• Leadership Style• Employee Productivity• Organizational Effectiveness• Structural ssues• Absenteeism and turnover• Organizational Climate


Sales and Marketing Research

• Market Potentials• Market Share• Market segmentation• Market characteristics• Sales Analysis• Establishment of sales quotas• Distribution channels• New product concepts• Test markets• Advertising research• Buyer behaviour• Customer satisfaction• Website visitation rates

Information Systems Research

• Knowledge and information needs assessment

• Computer information system use and evaluation

• Technical suppot satisfaction• Database analysis• Data mining• Enterprise resource planning systems• Customer relationship management

systems

Corporate Responsibility Research

• Ecological Impact• Legal Constraints on advertising and

promotion• Sex, age and racial discrimination / worker

equity• Social values and ethics

Fields Where Business Research is Often Used – (2)


Selected Examples of Real-Life Situations in Which Business Research Methods are Used

A firm wants to produce and market a new product but first wants to ascertain if there is a potential consumer demand for this product in markets x,y and z

a multinational firm wants to establish a production facility in another country after determining its technical and economic feasibility

A government agency wants to ascertain the satisfaction level of its employees, the causes for any possible discontent, and propose a scheme for enhancing this level

A financial institution wants to invest in commodities and commissions a study to determine the past trends and forecast future returns in a portfolio of commodities

The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organization’s priorities


Basic and Applied Research

Basic Research aims to expand the frontiers of science and knowledge by

verifying or disproving the acceptability of a given theory or attempting to

discover more about a certain concept (non-specificity)

Example: How does motivation affect employee performance?

Applied Research focusses on a real-life problem or situation with a view

to helping reach a decision how to deal with it (Specificity)

Example: Should Corporation X adopt a paperless office environment?


Science and the Scientific Method

Science has been defined as “the methodological and

systematic approach to acquisition of new knowledge”

(Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of

Research Design and Methodology, John Wiley & Sons, 2005, p. 4)

The scientific method, which has evolved since the 13th

century, concerns the set of tools, techniques and

procedures used by basic and applied researchers to

analyze and understand phenomena and prove or

disprove prior conceptions


The Essence of the Scientific Method

Characteristics of the Scientific Method

ObjectivitySystematic Analysis

Logical Interpretation of Results

Elements of the Scientific Method

Empirical ApproachObservations

QuestionsHypothesesExperiments

AnalysisConclusionReplication

Basic Research

Applied Research

Sci

entif

icM

etho

d

Information or Ideas for alternativeCourses of action

General Laws


The Value of Business Research for Managers – (1)

Reduction of uncertainty and improvement in the quality of decision-making with several consequent advantages (e.g. strategic, operational) and benefits for organizations

Business Research Methods can be employed in each of the following four stages:

(1) Identification of problems and/or opportunitiesUseful for strategy planning, analysis of internal and external organizational environment



(2) Diagnosing and Assessment of problems and/or opportunities

Its purpose is to gain insight into the underlying reasons and causes for the situation. If there is a problem, it asks what happened and why? If there is an opportunity, it seeks to explore, clarify and refine the nature of the opportunity and, in the case of multiple opportunities, seeks to set priorities

(3) Selection and Implementation of Courses of Action

After alternative courses of action have been determined, selection of the best possible course.



An important consideration is the quality of forecasting which is an essential tool of research

(4) Evaluating the Course of Action

Business Research Methods are used after a course of action has been implemented in order to determine whether activities have been properly implemented and have accomplished what they intended to do


The Value of Business Research for Managers – (4)Evaluation Research – It is the formal objective measurement and evaluation of the extent which an activity, project or programme has achieved its goal, and the factors which influence performance (e.g. audits). It is also the formal objective measurement and evaluation of the extent to which on-going activities, projects or programmes are meeting their goals (performance-monitoring research)

Examples of performance-monitoring research:

(1) Are railway passengers satisfied with the level of service the railway company is providing? If not, then research may need to be undertaken to ascertain the reasons for customer dissatisfaction and propose corrective measures



(2) What are the trends in retail and wholesale sector? Can research suggest new ways to improve efficiency in purchase transactions?


When Should Business Research be Undertaken?

Is sufficient timeavailable?

Is information inadequate?

High importance of decision?

Research benefits greater than costs?

Yes

Yes

Yes

Undertake Business Research

NO Do notundertake Business Research


Value and Costs of Undertaking Business Research

VALUE

Decreased Uncertainty

Higher Likelihood of Correct Decisions

Better Business performance

Higher Profits

Better Reputation

COSTS

Research Costs

Delay in Making Business Decisions

Disclosure of Information to Rivals

Possibility of Error


The Building Blocks of Research

Measurements of phenomena (e.g. sales statistics of a department store)

DATA

Determination of relationship amongst data with a view to facilitating understanding of the phenomena,

their relationships and decision-making(e.g. past and predicted future sales trends)

INFORMATION

KNOWLEDGE

Blend of information, experience and in-sights that provides a framework that can be thoughtfully evaluated

when assessing new information or evaluating relevant situations


Demands on Data & Information

• Relevance to the problem or situation at hand

• Must be available in a timely manner to the right person (manager or

decision-maker)

• Completeness

• Accuracy

• Accessibility

• Affordability

• Integrateability into a broader global information or decision-support

system


Global Information Support Systems

A Global Information System may be defined as “ an organized collection of computer hardware, communication equipment, software, data, and personnel designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities”

A Global Information System is a tool for providing past, current and projected information on internal operations and external activity. It organizes and integrates data from production, operations, marketing, finance, accounting and other business functions

(Zikmund, p. 22)


Decision-Support System

• A computer-based system that helps decision makers confront problems through direct interaction with databases and analytical software programs

• The purpose of a decision support system is to store data and transform them into organized information that is easily accessible to decision-makers

• Decision-Support Systems are integrated in Global Information Systems. They are aimed usually for assisting managers and decision-makers in specific organizational business units (e.g. divisions, departments and functional areas) by providing organized and adaptable information


Databases & Software

• Databases are collections of raw data which have been arranged in a logical manner and which can be stored and processed electronically

• Software are programmes that allow complex operations to be undertaken on data and which give information for managers and decision-makers

• Data Warehousing & Data Mining


Data and Information Sources for Business Researchers – (1)

Internal Records

Example: Data about costs, shipments, inventory, sales, and other aspects of regular operations which are collected from various functional areas of an organization

Proprietary Business Research

Example: New data and information from projects which are undertaken ad hoc to study specific company problems

Business intelligence Systems

Example: Information about nonrecurring developments in the external business environment stemming from a network of sources and regular procedures


Data and Information Sources for Business Researchers – (2)

On-Line Databases

Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones News Retrieval Services, CompuStat

Internet

Examples: World Wide Web search engines (Google, Yahoo, Altavista, Lycos, Excite etc.)

All Other Sources

Examples: Research Institutions, Libraries, Books, Journals, Periodicals, Newspapers, Chambers of Commerce and Industry


Business Research in the International Context

Business Research is being increasingly applied in an international context in the wake of globalization and the consequent freedom of movement of the resources of labour, capital and information of businesses and corporations:

• Overseas market potential

• Joint ventures and relocating production lines overseas

• Framework considerations for investment and trade (e.g. culture, legal environment, security, physical infrastructure, availability and quality of human resources, logistics, political stability, trade and investment incentives)


Data and Information Sources for Business Researchers (Pakistan)

• Federal and provincial ministries of commerce, industries and production

• Federal, provincial and city Chambers of Commerce and Industry

• State Bank of Pakistan, Pakistan Banking Council, local and foreign banking institutions

• Stock Exchanges

• National Investment Board

• Export Promotion Bureau

• Manufacturers, Traders and Exporters Associations

• Research Institutes (e.g. Pakistan Institute of Development Economics)

• Newspapers and Magazines (e.g. Business Recorder, Pakistan and Gulf Economist)

• Business and Trade Directories

• Internet (e.g.: www.forexpk.com)


Business Recorder(www.brecorder.com)

Documents

Research Methodology