CHAPTER 4

The Research Process

Theoretical framework and
hypothesis development

Chapter Objectives
The need for theoretical framework

Components of theoretical framework

Variables and its types

Identify and label variables associated with any given situation.

Defining

hypothesis

Null and alternative hypothesis

Managerial

implications

The Steps for Research process Step 45

Theoretical Framework
A theoretical framework represents your
beliefs on how certain phenomena
(or variables or concepts)

are related to each other (a model)

and an explanation on why you believe

that these variables are associated to each
other (a theory).

Theoretical Framework
A framework is a model of how one
theorizes or makes logical sense of the
relationships among several factors that
have been identified as important to the
problem.

(Sekaran, 2001)

Components of Theoretical Framework

Identify and label the variables correctly.

State the relationships among the

variables:

known as formulate hypotheses.

Explain how or why you expect these

relationships.

So, Theoretical Framework is ?

A mechanism
A means

that helps to clarify a big idea.

through which you can explore the

multiple dimensions of a big idea.

An
A filter

instrument for judgment.

through which you can consider various

ideas in order to further clarify a position.

So, Theoretical Framework is?

A guides

to your research, determining what

things you will measure, and what statistical

relationships you will look for.
A simply

the structure of the idea or concept

and how it is put together.

An

essay that interrelate the theories involved in

the question.

Theoretical Framework

So

it is the foundation to proceed with the research, and

involve nothing more than identifying the network of

relationship among the variables. So it is vital to
understand, what a variable mean and what are its
different types.

Variables
Any concept or construct that
varies or changes in value is called variable.

Cases are objects whose behavior or characteristics we study.

Usually, the cases are persons, but they can also be groups,
departments, organizations, Job satisfaction, etc.

Variables are characteristics of cases. Qualities of the cases

that we measure or record. For example, if the case is a person, the
variables could be sex, age, height, weight, feeling, ability (Physical/
Intellectual), etc.

Variables

Cases

Types of Variables
1.Dependent variable (DV)
2.Independent variable (IV)
3.Moderating variable
4.Mediating variable (or intervening)

Types of Variables
1-Dependent variable (DV) (Criterion Variable)

DV is a primary interest to the researcher. The goal of the research project

is to understand, predict or explain the variability of this variable.
What is been observed.
What is been measured.

2-Independent variable (IV) (Or Predictor)

Something that is changed by the scientist/researcher is called IV.

Influences that DV have, either positive/negative way, on a variable is IV.

What is tested.

What is manipulated.

Examples for Dependent Variables

Example 1:

An applied researcher wants to increase the performance of organizational

members

in particular bank.

Answer:

The dependent variable is organizational performance because it is the

primary

variable of interest to the applied researcher. Independent variables could be

Wages,

bonuses, Organizational culture, etc

Example 2: A marketing manager wonders why the recent advertisement

strategy does not work. What would be the dependent variable here?

Answer:

The dependent variable is advertisement strategy because the marketing

manager is interested in knowing why the recent strategy does not work. And IV
could be advertising channel, distributer, market segment, etc.

Example 3:

Research studies indicate that successful new product development has an

influence on the stock market price of the company. That is, the more successful the
new product turns out to be, the higher will be the stock market price of the firm.

Answer:

Dependent Variable is the stock market price.

And new product success is independent variable.

Exercise: If in above example if New product

Types of Variables
3-Moderating Variable

(Through Example)

It has been found that there is a relationship between the availability of

Reference Manuals that manufacturing employees have access to, and
the Product rejects. That is, when workers follow the procedures laid
down in the manual, they are able to manufacture products that are
flawless. So,

Dependent Variable: Number of Rejects/faulty products.

Independent Variable: Availability of Reference Manuals.

Moderating Variable

(Example Continued)

Although this relationship is true in general for all workers, but it is not
true for workers who are not using the manual every time they need it.

Thus, the interest and inclination of the workers is a Moderating

Variable.

Definition:

So, moderator is qualitative (e.g., gender, race, class) or quantitative

(e.g.,
level of reward) variable that affects the direction and/or strength of

Moderating Variable- (Example-2)

A prevalent theory is that the diversity of the workforce

(according to different ethnic origins, races, and nationalities)
contributes more to organizational effectiveness because each
group brings it own special expertise and skills to the workplace.
This synergy can be exploited, however, only if managers know
how to harness the special talents of the diverse work group;
otherwise, they will remain untapped.

Types of Variables

4-Intervening Variable
Is one that surfaces between the time the
independent variables start operating to influence
the dependent variable and the time their impact is
felt on it.

Follow the Last Example:

A prevalent theory is that the diversity of the workforce (according to
different ethnic origins, races, and nationalities) contributes more to
organizational effectiveness because each group brings it own special
expertise and skills to the workplace. This synergy can be exploited,
however, only if managers know how to harness the special talents of the
diverse work group; otherwise, they will remain untapped.

The dependent variable:

The organizational

The Intervening Variable

This creative synergy results from the "diverse" workforce interacting and
bringing together their expertise in problem solving.

Note that creative synergy, the intervening variable, surfaces at time t2, as
a function of workforce diversity, which was in place at time t1, to bring
about organizational effectiveness in time t3. The dynamics of these
relationships are illustrated in Figures 6 and 7.

Types of Variables
Assignment:

(Hand written/Due in next class)

Try to explain the following examples

Suppose a patient is feeling some normal headache. She/he

is looking to get rid off it. Explain DV, IVs first.

Suppose a patient is feeling some serious problem in

stomach. She/he is looking to get rid off it. Explain DV, IVs
first. Then Moderating and intervening variable with your
own explanation.

The Relationship Between the

Literature Survey and the Theoretical Framework

The

literature survey provides a solid foundation for developing

the theoretical framework.

The

literature survey identifies the variables that might be

important, as determined by previous research findings.

The

theoretical framework elaborates the relationships among

the variables, explains the theory underlying these relations, and

describes the nature and direction of the relationships.
The

theoretical framework provides the logical base for

developing testable hypotheses.

Example:
DEFINE THE PROBLEM AND DEVELOP THE THEORETICAL FRAMEWORK.

The probability of cancer victims successfully

recovering under treatment was studied by a
medical researcher in a hospital. She found three
variables to be important for recovery:

1.Early
2.The

and correct diagnosis by the doctor.

nurses careful follow-up of the doctors instructions.

3.Peace

and quit in the vicinity.

Example (Cont)
In a quiet atmosphere, the patient rested well and recovered sooner.
Patients who were admitted in advanced stages of cancer did not
respond to treatment even though the doctors diagnosis was
performed immediately on arrival, the nurses did their best, and there
was plenty of peace and quit in the area.
Thus, Stage of cancer is a moderating variable.

Also, we could use the patient rest as an intervening variable.

Hypothesi
s
Definition of Hypotheses:

A logical relationship between two or more

variables (DV & IV)
expressed in the form of a testable statement.
(e.g.) Women are more motivated than men.
Good hypothesis:
Must

be adequate (sufficient/satisfactory) for its purpose

Must

be testable

Must

be better than its rivals

Can be:

Directional and No-directional Hypotheses

DIRECTIONAL HYPOTHESES:
The direction of the relationship between the
variables (positive/negative) is indicated.
Example:

The greater the stress experienced in the job, the lower

the job satisfaction of employees.

Women are more motivated than men.

Directional and Nondirectional

Hypotheses
NONDIRECTIONAL HYPOTHESES:
are those which shows no indication of the
direction of the relationships between variables.
Example:

There is a relationship between age and Job satisfaction.

There is a differences between the work ethic values of

American and Arabian employees.

Null and Alternate Hypotheses

Null Hypotheses:
is a proposition that states a definitive, exact relationship between
two variables.

In general, the null statement is expressed as no (significant) difference

between two groups.

H0: M = w

It can also be stated as the population correlation between two variables is

equal to zero (or some definite number).

H0: M - w = 0
Where

H0 represents the null hypotheses,

M is the mean motivational level of the men,
w is the mean motivational level of women.

Null and Alternate Hypotheses

Alternate Hypotheses
is a statement expressing a relationship between two variables or indicating

differences between groups.

(e.g.)

Women are more motivated than men.

The alternate hypotheses for the above example is

HA : M < w

If we reverse the above statement like

Men are more motivated than women.

HA : M > w

Where HA represents the alternate hypotheses.

Examples for the Non directional relationship

There is a difference between the work ethic of American and Arabian

employees.

The null hypotheses would be:

Ho: AM = AR

Ho: AM - AR = 0

Or

Where,
AM

is the mean work ethic value of Americans

AR is the mean work ethic value of Arabs.

The alternate hypotheses for the above example would statistically be

set as:

Managerial Implications
At this junction, we have understood the
1.Broad problem area
2.Preliminary data gathering
3.Theoretical framework based on literature review
4.Hypotheses formulation for testing on the bases of experience and intuition.

Also understanding of variables and its types help the mangers/researcher to

associate the
link of problem and there reasons (Why & How).