Mekelle University

College of Business and Economics

Department of Management

Business Research Methods

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Chapter 1
Business Research Methods :
An Overview

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 Chapter outline

1.1. Meaning and Concepts of Research

1.2. Objectives and Significance of Research
1.3. Research Strategies and Designs
1.4 Stages in the Research Process
1.5 Characteristics of Scientific Business Research

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 1.1 Definitions and Basic Concepts of
Research
Research Definition
 The word research is composed of two syllables, re
and search.
 Literally the meaning of research is searching
again.
 Research, in simple terms, refers to a search for
knowledge
 It is also known as a scientific and systematic
search for information on particular topic or issue.

o But note that information is power, the basis for decision

making (specially to managers).

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Research may be defined as ‘ the
systematic and objective process of
planning, gathering, recording, analyzing
and interpreting data for some purpose,
for example, to prove or disprove a
hypothesis (Zikmund, 2000). ‘

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 Important Points in the Definition:
 Research is a process that involves planning,
gathering, recording, processing, analyzing and
interpreting data; the data can be primary or
secondary.
 Research is systematic that it is based on
scientific techniques of inquiry and analysis; it does
not refer haphazard and subjective processes.
 Research is objective that it is reliable and can be
repeated by the same or other researchers; consider
the qualitative research.
 Research is purposeful that it aims, for example,
at testing a hypothesis or a tentative solution

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1.2 Objectives & Significances of
Research
1.2.1 Objectives of Research
• The objective of research is to
discover answers to questions by
applying scientific procedures.

• Although every research study has

its own specific objectives,
research objectives may be
broadly grouped as follows:
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To gain familiarity with a phenomenon or
to achieve new insights into it (studies
with this object in view are termed as
exploratory research studies);
To portray accurately the characteristics of
a particular individual, situation or a
group (studies with this object in view are
known as descriptive research studies);
To test a hypothesis of a causal
relationship between variables (such
studies are known as explanatory
research)
etc DestaK 8
 1.2.2 Significance of Research
• “All progress is born of inquiry”
• Doubt is often better than overconfidence, for it leads
to inquiry, and inquiry leads to invention“(Wilkinson
and Bhandarkar 1979).
• Generally, research is:
 the basis for nearly all government policies
 Solving various operational and planning
problems
 Studying social relationships and it is seeking
answers to various social problems.
 the out let for new ideas and insights
Is Conducting Research Necessary?
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 Decision Making Situations
• Certainty: • The decision maker knows the exact
nature of the business problem or
opportunity.
• Uncertainty: • Uncertainty means that decision
makers grasp the general nature of the
objectives they wish to achieve, but the
information about alternatives is
incomplete.
• Ambiguity: • Ambiguity means that the nature of the
problem to be solved is unclear.
• The objectives are vague and the
alternatives are difficult to define
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• In what decision making situations is
business research needed?

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• Can research be used/ done by
all types of organizations/
organs? Why or why not?
Academics
Students
Government organizations
Business organizations
Consultants
Others
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When Business Research can be conducted?

Yes Yes Yes

Yes Conduct it !
Is sufficient Is the Is the Does the
time informatio decision of value of the
available n already considerabl research
before a on hand e strategic or information
managerial inadequate tactical exceed the
decision for making importance? cost of
must be the conducting
made? decision? research?

No

Not to be Conduced
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1.3 Research Strategies and Designs
(For detail refer chapter-3)
1.3.1.Research Strategies: Quantitative
Vs Qualitative
• useful way of classifying methods of
social research two distinctive
clusters of research strategies:
quantitative, and
qualitative

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 1.3.2.Research Designs (For
detail, refer chapter-3)
• Cross sectional design
• Case study design
• Comparative design
• Longitudinal design
• Experimental design
• Observation design

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1.4 Classification of Research
Research can be classified from three
perspectives:

→Application of research study

→Objectives in undertaking the research
→Inquiry mode employed

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1.4.1 Types of Research: Based on
Application of Research Study:

Pure or Basic Research

Applied Research

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 Pure or Basic Research
Conducted only to increase our
knowledge of what is being studied.

It is made for the sake of research and is

not applied.
It is “Gathering knowledge for
knowledge’s sake is termed ‘pure’ or
‘basic’ research.”

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Attempts to expand the limits of
knowledge.

Not directly involved in the solution

to a pragmatic problem.

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 Applied Research
 It is conducted to be applied in solving
socio-economic or industrial problems; and
thus have policy implication.
 Applied research is done to solve specific,
practical questions; for policy formulation,
administration and understanding of a
phenomenon.
 Applied research is concerned with the
discovery of solutions to practical problems.
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1.4.2 Types of Research from the
View Point of Objectives:

Descriptive Research
Exploratory Research
Correlational Research
Explanatory Research

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 Descriptive Research
It aims only at describing a situation
or a set of circumstances.
It tries to answer questions like how
many, how, and what is happening.
Example: providing information
about, living condition of a
community, or describing attitudes
towards an issue.
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The main characteristic of this
method is that the researcher has no
control over the variables; he can
only report what has happened or
what is happening.

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 Correlational Research
• Correlational research attempts to
discover or establish the existence of a
relationship/ interdependence between
two or more aspects of a situation.
• But it doesn’t show causality
• Example
Price Quantity
10 1500
12 1600
14 1300
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 Explanatory Research
 It aims at explaining the relationship
between or among variables.
 It answers the question of why?
 It attempts to clarify why and how there is a
relationship between two or more aspects of
a situation or phenomenon.
 It is deeper in the sense that it describes
phenomena and attempts to explain why
behaviour is the way it is.
 It shows causality between/among variables

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 Exploratory Research
 The purpose of exploratory research is
making available what is not basically
available.
 Often it is not an independent research by
itself.
 The purpose of exploratory research is to
collect unavailable basic information on a
certain phenomena or issue, on the basis of
which it would be possible to formulate a
hypothesis and tests it at a later date.
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Exploratory research is undertaken to
explore an area where little is known or
to investigate the possibilities of
undertaking a particular research study
(feasibility study/ pilot study).
Exploratory research is undertaken when
few or no previous studies exist.

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1.4.3 Types of Research Based on the
Approaches Utilized/ Data Utilized:

Structured Approach/ Quantitative

Research
Unstructured Approach/ Qualitative
Research
Mixed Research

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 Structured Approach/ Quantitative Research

The structured approach to inquiry is

usually classified as quantitative
research.
Quantitative research involves analysis
of quantifiable or statistical data that is
often measurable.
It is applicable to phenomena that can be
expressed in terms of quantity.

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• The common research
design is survey
• numerical and statistical
data
• deductive theory testing

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 Unstructured Approach/ Qualitative Research

The unstructured approach to inquiry is

usually classified as qualitative research.
Qualitative research is used to analyze
qualitative variables such as attitude,
behavior, feeling, satisfaction, belief, etc.
It is more appropriate to explore the
nature of a problem, issue or
phenomenon without quantifying it.

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Qualitative research is more
subjective in nature than
Quantitative research and involves
examining and reflecting on the less
tangible aspects of a research
subject, e.g. values, attitudes,
perceptions.

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common methods:
interviews, ethnography
data are words, texts and
stories
inductive approach: theory
emerges from data

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 Mixed Research
• Mixed methods research is an intellectual and
practical synthesis based on qualitative and
quantitative research; it is the third
methodological or research paradigm (along
with qualitative and quantitative research).

• It recognizes the importance of traditional

quantitative and qualitative research but also
offers a powerful third paradigm choice that
often will provide the most informative,
complete, balanced, and useful research results.
(Johnson et al. 2007: 129).

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1.4 Stages in the Research Process

1. Problem Identification and/or

Topic selection
2. Problem Definition
3. Literature review
–Familiarize yourself with existing
research and theory on the topic
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4. Redefine the problem
–(Based on evidence from literature)
5. Develop Research Questions/
Objectives/Formulate
Hypothesis
–What do you intent to test?
–What is the r/s b/n the variables?

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6. Select a Research Design
–Choose one or more research methods
–Census, survey, experiment,
observation, case study.
7.Carryout the Research.
–Gathering data
–Processing data
–Analyzing data
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8. Interpret Results
–Work with implications of the data
collected and analyzed.
9. Report Research Findings
–What is the significance
–How do they relate to previous finding
and/or existing theory)

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 1.5 Characteristics of Scientific
Business Research
∆ Directed towards the solution of a
problem or to exploit an opportunity
∆ Based on empirical evidence/ Based upon
observable experience
∆ Requires expertise

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 The purpose of the research, or
the problem involved, should
be clearly defined
 The research procedures used
should be described in
sufficient detail to permit
another researcher to repeat the
research.

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 The procedural design of the
research should be carefully
planned to yield results that are
as objective as possible.

 The researcher should report,

with complete frankness, flaws
in procedural design and
estimate their effect upon the
findings.

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 Analysis of the data should be
sufficiently adequate to reveal its
significance, and the methods of
analysis used should be
appropriate.

 Conclusions should be confined to

those justified by the data of the
research and limited to those for
which the data provide an
adequate basis.
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