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BUSINESS RESEARCH METHODS

Prof. Dr. Rosmimah Mohd Roslin


Arshad Ayub Graduate Business School
Universiti Teknologi MARA
40450 Shah Alam
E-mail: rosmimah@salam.uitm.edu.my
CATEGORIES OF RESEARCH
Applied Research
Research done for the purpose of solving current problems in
the work setting
Basic/Fundamental Research
Research done to add or contribute to the general body of
knowledge
TYPES OF RESEARCH
Qualitative Research
Case Studies
Language, Business, Islamic Studies, etc.
Historical Research - Secondary data
Accounting, Finance, Art & Design, Performing Arts, Islamic
Studies, etc
Ethnography, Phenomenology
Language, Education, etc.
Methods used: In-depth interviews, focus-group interviews, participant
observation, observation, etc.

Commonly regarded as Exploratory Studies


Quantitative Research

Survey
mail, telephone, drop-off method, e-mail, CATI (computer-assisted
telephone interviews) etc.
Experiments
True experimental designs (Pretest-Posttest Control Group design,
Posttest Only,Solomon Four-Group)
Quasi experimental designs (One-shot design, one-group pretest-posttest)
Time Series Design
Statistical designs (Complete Randomized designs, Randomized block
designs, Factorial designs)

Commonly regarded as Conclusive Studies


Research Process

Define Problems/Identify Opportunities

Establish Research Framework

Formulate Research Design


Methodology

Writing the proposal

Preparing for the field work

Managing Data

Presenting Report
Do you have a Research Topic?
How to develop research topics?
Observation
Initial interviews
Literature/Secondary data
Journals
Research findings
Proceedings
Develop Problem Statement
This is a clear, precise, and succinct statement of the
question or issue that is to be investigated with the goal
of finding an answer or solution
- It answers the question of why the
need to conduct the research?
- What is your contribution to
existing body of knowledge?
Now its time to think of

RESEARCH METHODOLOGY
METHODOLOGY REQUIREMENTS
Framework Development
Research Design
Data Collection Requirements
Sampling Methods
Analytical Process
Report Writing
Develop a Research Framework
What is a Theoretical Framework?
It is a conceptual model of how the researcher feels the
variables are related to one another
It is the foundation on which the entire research is based upon.
The theoretical framework discusses the interrelationships
among the variables that are integral to the dynamics of the
situation to be investigated.
Source of Information for Framework
Development?
LITERATURE
the documentation of a comprehensive review
of the published and unpublished work done
thus far in the area of investigation
written in a clear and logical presentation
Components of a Theoretical
Framework
variables that are clearly identified and labeled
relationship among the variables is shown
direction of the relationship
clear explanation of why such relationship exists
A schematic diagram is shown
What are variables?
Anything that can take on differing or varying values.
The values can differ at different times for the same object or
they can differ at the same time for different objects.
Sometimes termed as construct
A construct is an image or idea specifically developed by the
researcher to explain possible relationships in the research.
Types of Variables
Dependent variables
Independent variables
Moderating variables
Intervening variables
Dependent Variables
Is the variable of primary interest to the researcher.
The researchers goal is to explain or predict the
differences or changes in the dependent variable.
The solution to a problem can be found by analyzing the
dependent variable.
Independent Variable
Is the variable that influences the dependent variable in
either a positive or a negative way
Moderating Variable
Is the variable that has a strong contingent effect on the
independent-dependent variable relationship.
The presence of the third variable modifies the original
relationship between the independent and dependent
variables.
Intervening Variable
Is one that surfaces between the time the independent
variables operate to influence the dependent variable.
There is a temporal quality or time dimension to the
intervening variables.
Example of A Framework

Ethnicity
Nationalistic
inclinations among
participants of the NS
Geo- program
demographic
Independent variables Dependent variable
Example..

Ethinicity
Nationalistic
inclinations among
participants of the NS
Geo-
program
demographic
Independent variables Dependent variable

Job position
Social status

Moderating variable
Example.

Intervening variable

Ethnicity Leadership
Nationalistic
influence
inclinations among
participants of the
Geo- NS program
demographic
Dependent variable
Independent variables
MEASUREMENT OF VARIABLES
How variables are measured:
Objective data
Example: weight, absenteeism, temperature
Use appropriate measuring instruments

Subjective data
Example: feelings, attitudes, perceptions
Operationalise the concept
Operational Definition
Is a statement of the specific dimensions and elements
through which a concept will become measurable.
It is the researchers own interpretation of how the
variables are to be measured

Example
Dimensions (D) and Elements (E) of the
Concept (C) Achievement Motivation
Examples of Questions to Tap the level of
Achievement Motivation
1. To what extent would you say you push yourself to get
the job done on time?
2. How frequently do you think of your work when you
are at home?
3. How much do you concentrate on achieving your goals?
4. How annoyed do you get when you make mistakes?
Common Mistakes with Operational
Definitions
Excluding some of the important dimensions and
elements
Arising from failure to recognise or conceptualise them
Including certain irrelevant features mistakenly thought to
be relevant.
What an Operational Definition is Not
An operational definition does not consist of delineating
the reasons, antecedents, consequences or correlates of
the concept
Rather, it describes its observable characteristics in order
to be able to measure the concept.

Another example..
Dimensions (D) and Elements (E) of the
Concept (C) Learning
SCALES IN RESEARCH
Types of Scales
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale
Nominal Scale
The aim is to classify or partition a set into categories
that are mutually exclusive and collectively exhaustive.
For instance, when you assign 1 = Married and 2 =
Single.
It is useful especially in exploratory work where the aim
is to uncover relationship rather than secure precise
measurements.
Similarly, if your aim is simply to classify consumers
through their gender, marital status, and social class, for
instance, nominal scales are very useful.
Nominal Scale

Categories of Athletes

GENDER
Ordinal Scale
An ordinal scale is a ranking scale in which numbers are
assigned to objects to indicate the relative extent to
which the objects possess some characteristics.
For instance you could ask the respondent to rank an
attribute on this scale: 1 = the best, 2 = the second best,
3 = the third best, and 4 = the last.
Ordinal scales include the characteristics of the nominal
scale plus an indicator of order.
Ordinal Scale
Interval Scale
An interval scale measures a numerically equal distances
that represent equal values in the characteristics being
measured.
An interval scale has the power of nominal and ordinal
scales plus an additional strength - it incorporates the
concept of equality of interval.
Besides using interval scales to measure central
tendency, these scales are also commonly used in
multivariate analysis such as factor and cluster analysis
Ratio Scale
This is the most powerful scale as it possesses all the
properties of the nominal, ordinal and interval scales, and
in addition, an absolute zero point.
Using this scale, not only the difference between 2 and 5
can be interpreted as the same as the difference between
14 and 17, but also 14 is seven times a large as 2 in an
absolute sense (Malhotra, 1996).
Interval and Ratio
Rating and Ranking Scales
Rating Scales
have several response categories and are used to elicit responses
with regard to the object, event or person studied.
Ranking Scales
make comparisons between or among objects, events or persons,
and elicit the preferred choices and ranking among them.
Rating Scales
Rating Scales
dichotomous scale
category scale
Likert scale
numerical scales
semantic differential scale
itemised rating scale
fixed or constant sum rating scale
Stapel scale
graphic rating scale
consensus scale
Dichotomous Scale

Used to elicit a Yes or No answer,

For example.

Do you own a car? Yes No


Category Scales

Quality
Excellent Good Fair Poor
Importance
Very Fairly Neutral Not so Not at all
important important important important
Interest
Very Somewhat Not very
interested interested interested
Frequency
All of the time Very often Often Sometimes Hardly ever
Source: Zikmund (2000:292)
Likert Scale

Strongly Disagree Neither agree Agree Strong agree


disagree nor disagree
1 2 3 4 5

FOR EXAMPLE.

Indicate the extent to which you agree or disagree with the following
statements:
My work is very interesting 1 2 3 4 5
Life without my work would be dull 1 2 3 4 5
Semantic Differential Scale

Responsive Unresponsive

Good Bad

Courageous Timid
Numerical Scale
How pleased are you with your new car?

Extremely Extremely
pleased 7 6 5 4 3 2 1 displeased
Itemised Rating Scale

Not at all Somewhat Moderately Very much


interested interested interested interested
1 2 3 4
How would you rate your interest in changing
current organisational policies? 1 2 3 4

This is an unbalanced rating scale which does not have a


neutral point.
Fixed or Constant Sum Rating Scale
Respondents are asked to distribute a given number of
points across various items, eg:

Fragrance
Colour
Shape
Size
Texture of lather
Total points 100
Stapel Scale
Measures the direction and intensity of the attitude
towards the items under study, eg

+3 +3 +3

+2 +2 +2

+1 +1 +1

Adopting modern Product innovation Interpersonal skills


technology
1 1 1

2 2 2

3 3 3
Graphic Rating Scale

On a scale of 1 to 10, how would you rate your


supervisor?

10 Excellent

5 All right

1 Very bad
Ranking Scales
Ranking Scales
paired comparison
forced choice
comparative scale
Paired Comparison Scale
Used when, among a small number of objects,
respondents are asked to choose between two objects at
a time.
For example, respondents are asked to compare their
preferences for toothpaste with kayu sugi or toothpaste
with fluoride.
Forced Choice
Rank your preferences among the following magazines, 1 being
your preferred choice and 5 being your least preferred:
Australian Financial Review __
Business Review Weekly __
Playboy __
The Economist __
Time __
Comparative Scale
In a volatile financial environment, compared with shares, how
useful is it to invest in government bonds?

More useful About the same Less useful


1 2 3 4 5
Goodness of Measures
Reliability measures
How stable and consistent is the measuring instrument?

Validity measures
Are we measuring the right thing?
Reliability
Stability
refers to the ability of a measure to maintain stability over
time, despite uncontrollable testing conditions or the state of
the respondents themselves
Internal consistency
indicates how well the items hang together as a set and can
independently measure the same concept, so respondents
attach the same overall meaning to each of the items
Stability of Measures
Test-retest reliability
the reliability coefficient obtained with a repetition of the same
measure on a second occasion
Parallel-form reliability
the correlation obtained from responses on two comparable
sets of measures (changed for wording & question order)
tapping the same construct
Internal Consistency of Measures
Inter-item consistency reliability
test of the consistency of respondents answers to all the items
in a measure
usually tested by Cronbachs coefficient alpha
Split-half reliability
reflects the correlations between two halves of an instrument
Validity Measures
Face validity
Construct validity
Criterion validity
Content validity
Predictive validity
Convergent validity
Discriminant validity
Concurrent validity
Methods of Data Collection
Methods of Data Collection
Exploratory
In-depth interviews
Face-to-face
Telephone interview
Focus group interviews
Observation
Participant Observation
Full observation
In Depth Interviews
Face-to face
Develop an Interview Guide
Open ended questions and semi structured questions
Guidelines for Interviewing
Questions should be short and precise
Ask only one question at a time
Avoid questions in which the answer is either given or
implied
Use language that is understandable and comfortable for
your informants.
Avoid why questions. Because why questions ask informants to justify
previous responses, thoughts, or feelings, "why" questions can potentially be
interpreted by informants as threatening. If threatened, informants may
become defensive in their responses, affecting the data obtained. "Why"
questions such as "Why do you arrange student desks in rows?," can be
easily rephrased as "What are some reasons for the way you arranged your
classroom?
Advantages and Disadvantages of
Personal or Face-to-face Interviews
Focus Group Interviews
A technique of data collection through group interaction
on a particular topic determined by the researcher
The selection of participants for the focus group
interview is critical so that homogenous respondents are
allowed to interact confidently.
Usually 6-10 participants are appropriate
Observation
Develop observation checklist
Select the observation site or subject to observe
What are you looking for?
Are there new things observed?
Note down all things observed precisely


Sampling Techniques for Exploratory Studies

Non Probability Sampling Techniques

Convenience Judgmental Quota Snowball


Sampling Sampling Sampling Sampling
Convenience Sampling
Select any sample that is convenient to the researcher.
For example, researchers neighbour, good friend etc.
Judgement Sampling
Involves the choice of subjects who are in the best
position to provide the information required
Experts opinions could be sought
Eg, Doctors surveyed for cancer causes
Snowball Sampling
Used when elements in population have specific characteristics
or knowledge, but are very difficult to locate and contact.
Initial sample group can be selected by probability or non-
probability methods, but new subjects are selected based on
information provided by initial subjects.
Eg, used to locate members of different stakeholder groups
regarding their opinions of a new public works project.
Quota Sampling
Quotas for numbers or proportion of people to be
sampled, established.
Examples:
1) survey for research on dual career families: 50% working
men and 50% working women surveyed.
2) Women in management survey: 70% women surveyed and
30% men surveyed.
Sample Size for Exploratory Studies
Small and purposive
Need not be representative of population but must meet
research purpose
For case study analysis 6 to 10 samples are common.
Methods of Data Collection for
Conclusive Research
Survey
Person administered survey
In-home interview
Mall intercept
Purchase intercept
Telephone administered
Telephone interview or Computer Assisted Telephone Interview
(CATI)
Self administered
Mail survey
Drop-off survey
Computer assisted
Internet survey
E-mail survey
Survey Method
Develop questionnaire
Identify sampling technique
Determine sampling frame
Determine sample
Determine sample size
Based on existing literature (Sekaran, 2000), for most studies, a
sample ranging from 200 to 1000 is more than sufficient to meet
the requirements of the research.
Sample must be representative
Questionnaire Design
Why are questionnaires important?
Managers and business practitioners must:
have a working knowledge of the common business research
processes
with limited knowledge they could run a high risk of
potential litigation
be aware of the weaknesses of the resultant data from that
limited questionnaire
be able to understand & intepret the analysis
need to know when to call in experts to provide assistance
Definition of a Questionnaire

A questionnaire is a pre-formulated written set of questions to


which respondents record their answers, usually within closely
defined alternatives
Example of a Questionnaire
When to Use a Questionnaire
When the researcher knows precisely what information is
needed
When large numbers of people are to be reached in different
geographical regions
When groups of people can be assembled in a convenient
location (eg conference rooms) to whom questionnaires can
be administered, and collected immediately
Advantages of Questionnaires
Helps a researcher or manager obtain data fairly easily
Information from questionnaires is easily coded
Benefits the scientific community if the measures are well
validated and reliable
Impact of Other Aspects of a Survey
on Questionnaire Design
Principles of Questionnaire Design
Principles of wording
Principles of measurement
General appearance
Questionnaire administration & testing
Principles of Wording
To minimise bias:
Content and purpose of questions
Language and wording of the questionnaire
Type and form of questions
Biases in questions
Sequencing of questions
Classification data or personal information
Content and Purpose of Questions
To get at objective facts or subjective feelings and perceptions?
Language and Wording of the Questionnaire
Would the respondent understand the words in the
questionnaire?
Are the questions ambiguous?
Are there double-barrelled questions?
Are the questions leading?
Are there recall-dependent questions?
Any social desirability?
Does the length of the question exceed 20 words or one line
of print?
Type of Questions
Open-ended questions
Freedom to answer the question any way one wants
Could pose problems for researcher in coding the response
Closed questions
Alternatives that are mutually exclusive and collectively exhaustive,
given
Respondent can make a quick decision
Easy to interpret and code
Form of Questions

Should be positively and negatively worded to reduce


response bias or halo effects
Sequencing of Questions

The Funnel Approach


From general to specific questions
From easy to difficult questions
The Funnel Approach
Classification Data
Personal Information or Demographic Data
Decisions on:
Name, number required? (anonymity)
What info required? (income, marital status, etc needed?)
Age, income, etc, should a range be given? If so, what are the
appropriate ranges?
Eg, <20, 20 40, >40
Should personal info be at beginning or end of questionnaire?
General Appearance of the Questionnaire
Introduction to respondents
Instructions and organising questions
Demographic data
Sensitive personal data
Open-ended question at end
Concluding the questionnaire
Introduction to respondents
identity of researcher
purpose of survey
establish rapport
motivate respondents
confidentiality & anonymity
summarised results
distribution and/or publication of results
courteous note, thanks
Pre-testing Questionnaires
Face validity
Content validity
Pilot study
With sample of respondents from target population
Ideal research design
Factor analysis
Reality less than ideal
Collecting and analysing data
Eg, SPSS or Excel
Gathering the Data

Personally administered questionnaires


Mail questionnaires
Electronic questionnaires
Multi-methods of Data Collection
Data from different sources and through different methods
could improve the goodness of the data
Interview
Observation
Questionnaire
Same source and other source data
Objective measures (physical measurement, counting, etc)
Eg, performance data get from all the above sources. See
how they correlate.
Sampling Techniques for Conclusive Research

Probability Sampling Techniques

Simple Random Systematic Stratified Cluster


Sampling Sampling Sampling Sampling
Population, Element, Sampling
Frame, Sample and Subject
Population (or target population)
entire group of people, events or things of interest that the
researcher wishes to investigate
Element
a single member of the population
Sampling Frame
a listing of all the elements in the population from which the
sample is drawn
Sample
a subset of the population
Subject
a single member of the sample
Probability & Non-probability Sampling
Probability Sampling
the elements in the population have some known chance or
probability of being selected as sample subjects
For conclusive research

Non-probability Sampling
the elements do not have a known or predetermined chance of
being selected as subjects
For exploratory studies
Simple Random Sampling
Is the most representative of the population for most
purposes

Disadvantages are:
Most cumbersome and tedious
The entire listing of elements in population frequently unavailable
Very expensive
Not the most efficient design
Complex Probability Sampling

Systematic sampling
Stratified random sampling
Cluster sampling
Area sampling
Double sampling
Systematic Sampling
Every nth element in the population starting with a randomly
chosen element

Example:
Want a sample of 35 households from a total of 260 houses.
Could sample every 7th house starting from a randomly chosen
number from 1 to 10. If that random number is 7, sample 35
houses starting with 7th house (14th house, 21st house, etc)

Possible problem is that there could be systematic bias. eg every


7th house could be a corner house, with different
characteristics of both house and dwellers.
Stratified Random Sampling
Comprises sampling from populations segregated into a
number of mutually exclusive sub-populations or strata. Eg
University students divided into juniors, seniors, etc
Employees stratified into clerks, supervisors, managers, etc
Homogeneity within stratum and heterogeneity between strata
Statistical efficiency greater in stratified samples
Sub-groups can be analysed
Different methods of analysis can be used for different sub-
groups.
Stratified Random Sampling Example
Stratum Motivation Level
Clerks Low
Middle Managers Very high
Top Managers Medium

Stratified Sampling
Proportionate sampling
Disproportionate sampling
Proportionate & Disproportionate Stratified
Random Sampling
Cluster Sampling
Take clusters or chunks of elements for study
Eg, sample all students in MGMT 303 and MGMT 304 to study
the characteristics of Management Science majors
Advantage of cluster sampling is lower costs
Statistically it is less efficient than other probability sampling
procedures discussed so far
Area Sampling:
Cluster sampling confined to a particular area
Eg, sampling residents of a particular locality, county, etc
Double Sampling
Collect preliminary data from a sample, and choose a sub-
sample of that sample for more detailed investigation.
Example:
Conduct unstructured interviews with a sample of 50.
Repeat a structured interview with 30 from the 50 originally
sampled.
Factors to consider in determining
sample size

The variability in the population.


This refers to the proportionate distribution of the characteristics that are being
studied.
The required level of confidence.
If a higher level of confidence is required in the result of the research, then the larger
the sample size is necessary.
The required limits of accuracy.
Generally, the larger the sample size, the more accurate the results are likely to be as
a predictor of population values.
Allowance for non-response
It is to be expected that non-response will occur in any the survey. Therefore, it is
best to make allowance for the non-response by increasing the sample size by the
estimated amount of non-response.
Practical factors
- It is important for a researcher to consider the resource constraints. Time
and money are important factors to consider when selecting the appropriate
sample size.
Analytical Process
Managing Data
Data Preparation
Editing Data
the first step in data preparation is to look over the research
instrument to review the completeness of the gathered response.
Decisions have to be made on the definition of completeness.
After making this decision, you will select the good questionnaires and
discard the bad ones.
Handling Unwanted Responses
Generally, unwanted responses can be grouped into three
categories:
1 Inaccurate, non uniformly, and
inconsistent answers
2. Blank answers
3. Do not know answers
When confronted with inaccurate, non-
uniformly, and inconsistent answers:

Go back to the same respondent and clarify the answers with


him or her (if possible).
If it is not possible, in cases where the correct answer is clear
cut, you could make your own deduction.
The other way is to assign a number to indicate a missing
value. This missing value means the respondent did not answer
that specific question.
The last choice is to throw away that whole set of
questionnaire!
When confronted with blank responses, Sekaran
(1992) suggests:

One way to handle a blank response to an interval scale item


with a midpoint would be to assign the midpoint in the scale
for that particular item.
The second way is to treat that question as having no answer
and to allow the computer to ignore blank responses when
the analyses are done.
The third way is to assign the item the mean value of the
responses of all those who have responded to that particular
item.
The fourth way is to give the item the mean of all responses
given by that respondent.
A fifth way is to give the missing response a random number
within the range of numbers that could occur.
Coding
Coding involves assigning numbers or symbols to answers
so that responses can be grouped into limited number of
classes or categories.
Data Entry
This activity refers to inputting the data in a proper
manner so that data analysis can be done smoothly
There are many statistical packages for data entry. For
Social Sciences, SPSS is one of the most useful statistical
package.
Data Analysis
Basic Data Analysis:
1. Feel of data frequency, mean, median, and mode
2. Goodness of data Reliability and validity
3. Cross tabulation, and
4. Hypothesis testing
Statistics Associated with Frequency
Distribution

Measures of Location
Mean
Mode
Median
Measures of Variability
Range
Variance and Standard deviation
Coefficient of variation
Cross-Tabulations
In cross tabulations- at least two variables are considered at
one time. This technique is useful when a researcher wants to
describe the relationship or the phenomenon between these
two/more variables. For instance:
1. A researcher is interested to know whether female and male
students behave differently to a stimulus.
2.A researcher is interested to know the opinion of different
segment of people - divided according to demographic
characteristics or other dimensions
The Report
Integral Parts of the Report
Title page
Table of Contents
Authorization Letter
List of Tables
List of Graphs
List of Appendices
List of Exhibits
Executive Summary - Major Findings, Conclusion, Recommendation
Introduction
Problem Studied
Background Information
Research Objectives
Literature Review/Theoretical Background
Methodology
Data Analysis
Research Findings
Conclusion and Recommendations
Bibliography
Oral Presentation

Decide on the content


Organize the presentation well
Clarify the problem investigated
Discuss the results found
Describe the conclusions drawn
Relate the recommendations made
Decide on relevant visual aids
The presenter
Present with confidence
Dress well
The presentation
Plan a presentation with impact know your audience
Handling questions
Do not be defensive
Be tactful
Best of Luck!

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