BUSINESS RESEARCH INTRODUCTION

1. The Nature of Business &The Nature of Business &
Management ResearchManagement Research
The Nature of Business &The Nature of Business &
Management ResearchManagement Research
MBA2216 BUSINESS RESEARCH PROJECTMBA2216 BUSINESS RESEARCH PROJECT
by
Stephen Ong
Visiting Fellow, Birmingham City
University, UK

2. Topics of DiscussionTopics of Discussion
1.1. Introduction to Research :Introduction to Research :
What is Research?What is Research?
2.2. Research and BusinessResearch and Business
3.3. Scientific ResearchScientific Research
4.4. The Research ProcessThe Research Process

3. INTRODUCTION TOINTRODUCTION TO
RESEARCHRESEARCH
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4. What is Research?What is Research?
 Robert has Developed ‘Protein-based ComputerRobert has Developed ‘Protein-based Computer
Memories”.Memories”.
 ““Many agree that any kind of Malaria Vaccine is notMany agree that any kind of Malaria Vaccine is not
perfect”.perfect”.
 ““Government (Malaysian) will amend the CompaniesGovernment (Malaysian) will amend the Companies
Act soon to enhance Corporate Governance”.Act soon to enhance Corporate Governance”.
 ““US FDI shifts to service-Based Business (inUS FDI shifts to service-Based Business (in
Malaysia)”.Malaysia)”.
 ““Global Oil Production Up 185000 bpd in NovemberGlobal Oil Production Up 185000 bpd in November
2002”2002”

5. What Research Is NotWhat Research Is Not
 Research isn’t information gathering:Research isn’t information gathering:
 Gathering information from resources such booksGathering information from resources such books
or magazines isn’t research.or magazines isn’t research.
 No contribution toNo contribution to new knowledgenew knowledge..
 Research isn’t the transportation of facts:Research isn’t the transportation of facts:
 Merely transporting facts from one resource toMerely transporting facts from one resource to
another doesn’t constitute research.another doesn’t constitute research.
 No contribution to new knowledge although thisNo contribution to new knowledge although this
might make existing knowledge more accessible.might make existing knowledge more accessible.

6. What Research IsWhat Research Is
 Research is:Research is:
“…“…the systematic process of collectingthe systematic process of collecting
and analyzing information (data) inand analyzing information (data) in
order to increase ourorder to increase our understandingunderstanding ofof
thethe phenomenonphenomenon about which we areabout which we are
concerned or interested.”concerned or interested.”

7. ResearchResearch
 Research is the way of thinking, examiningResearch is the way of thinking, examining
critically the various aspects of yourcritically the various aspects of your
profession, understanding and formulatingprofession, understanding and formulating
guiding principles that govern a particularguiding principles that govern a particular
procedure and developing and testing newprocedure and developing and testing new
theories for the enhancement of yourtheories for the enhancement of your
profession. It is a habit of questioning aboutprofession. It is a habit of questioning about
what you do and empirical examination towhat you do and empirical examination to
find answers, with a view to institutingfind answers, with a view to instituting
appropriate changes for a more effectiveappropriate changes for a more effective
professional services.professional services.

8. Business research is defined as the
systematic and objective process of
generating information for solving a
problem or finding solution to a
complex issue (aid in making
business decisions).
Business Research DefinedBusiness Research Defined

9. Business ResearchBusiness Research
 Literally, research (re-search) -“searchLiterally, research (re-search) -“search
again”again”
 Business research must be objectiveBusiness research must be objective
 Detached and impersonal rather thanDetached and impersonal rather than
biasedbiased
 It facilitates the managerial decisionIt facilitates the managerial decision
process for all aspects of a business.process for all aspects of a business.

10. Objectives of BusinessObjectives of Business
ResearchResearch
 To extends knowledgeTo extends knowledge
 To discovered new informationTo discovered new information
 Theory buildingTheory building
 To verify and test existing facts and theoryTo verify and test existing facts and theory
 To analysis inter-relationships betweenTo analysis inter-relationships between
variablesvariables
 Aims to find solution to current problemAims to find solution to current problem
 In total, to make more effective professionalIn total, to make more effective professional
servicesservices

11. Types/Classifications ofTypes/Classifications of
ResearchResearch
 The research can be classified fromThe research can be classified from
three perspectives:three perspectives:
 ApplicationApplication
 Basic or pure and applied researchBasic or pure and applied research
 ObjectivesObjectives
 Exploratory, Descriptive, or explanatoryExploratory, Descriptive, or explanatory
(causal, hypothesis testing)(causal, hypothesis testing)
 Type of informationType of information
 Qualitative and quantitativeQualitative and quantitative

12. Figure 1.1 Basic and applied research
Sources: Authors’ experience; Easterby-Smith et al. (2008), Hedrick et al. (1993)

13. Types of ResearchTypes of Research
(Basic)(Basic)
 Basic ResearchBasic Research
 Generating scientific knowledge for future useGenerating scientific knowledge for future use
(Common use). It also known as pure or(Common use). It also known as pure or
fundamental research. Basic research isfundamental research. Basic research is
undertaken for the sake of knowledge without anyundertaken for the sake of knowledge without any
intention to apply it in practice. It is undertakenintention to apply it in practice. It is undertaken
out of intellectual curiosity. It may lead toout of intellectual curiosity. It may lead to
discovery of new theory or refinement of andiscovery of new theory or refinement of an
existing theory. The findings or basic researchexisting theory. The findings or basic research
enrich the storehouse of knowledge that can beenrich the storehouse of knowledge that can be
drawn upon in future to formulate significantdrawn upon in future to formulate significant
practical research.practical research.

14. Types of ResearchTypes of Research
(Applied)(Applied)
 Applied Research:Applied Research:
 Applied research is carried on to findApplied research is carried on to find
solution to a real life problem oriented andsolution to a real life problem oriented and
action directed. It seeks an immediate andaction directed. It seeks an immediate and
practical results. However, it maypractical results. However, it may
indirectly contribute to the development ofindirectly contribute to the development of
theoretical knowledge by leading to atheoretical knowledge by leading to a
discovery of new facts or testing of adiscovery of new facts or testing of a
theory or to conceptual clarity.theory or to conceptual clarity.

15. Basic ResearchBasic Research
 Attempts to expand the limits ofAttempts to expand the limits of
knowledge.knowledge.
 Not directly involved in the solution toNot directly involved in the solution to
a practical problem.a practical problem.

16. Basic Research ExampleBasic Research Example
 Is executive success correlated withIs executive success correlated with
high need for achievement?high need for achievement?
 Coupons versus rebates as demandCoupons versus rebates as demand
stimulation tacticsstimulation tactics
 Compensation Systems and LabourCompensation Systems and Labour
ProductivityProductivity
 Factors determining share pricesFactors determining share prices

17. Applied ResearchApplied Research
 Conducted when a decision must beConducted when a decision must be
made about a specific real-life problemmade about a specific real-life problem

18. Applied Research ExamplesApplied Research Examples
 Should McDonalds addShould McDonalds add
Italian pasta dinners to itsItalian pasta dinners to its
menu?menu?
 Business research toldBusiness research told
McDonald’s it should not?McDonald’s it should not?
 Should Procter & Gamble addShould Procter & Gamble add
a high-priced home teetha high-priced home teeth
bleaching kit to its productbleaching kit to its product
line?line?
 Research showed Crest WhiteResearch showed Crest White
strips would sell well at a retailstrips would sell well at a retail
price of RM44price of RM44

19. Basic Differences BetweenBasic Differences Between
Basic and Applied ResearchBasic and Applied Research
 Applied ResearchApplied Research
 ““what is the problem”what is the problem”
is an important step inis an important step in
resolving that problem.resolving that problem.
 What problems toWhat problems to
analysis may be outsideanalysis may be outside
the individual researcherthe individual researcher
domaindomain
 Researcher role isResearcher role is
examine analytically andexamine analytically and
aa course of actioncourse of action
recommendedrecommended
 Basic ResearchBasic Research
 Problem based on theProblem based on the
researcher interest toresearcher interest to
explain andexplain and
understanding of theunderstanding of the
subjectsubject
 Selection of theSelection of the
problem is totally theproblem is totally the
choicechoice of theof the
researcherresearcher
 Some value judgmentSome value judgment
may be made, action ismay be made, action is
not recommendednot recommended

20. Exploratory ResearchExploratory Research
 It is undertaken to find out ‘It is undertaken to find out ‘what iswhat is
happeninghappening, to seek insights, to ask, to seek insights, to ask
question and to assess phenomena inquestion and to assess phenomena in
a new light. It is useful if you wish toa new light. It is useful if you wish to
clarify your understanding of aclarify your understanding of a
problem. This is carried out toproblem. This is carried out to
investigate the possibilities ofinvestigate the possibilities of
undertaking a particular researchundertaking a particular research
study.study.

21. Descriptive ResearchDescriptive Research
 Attempts toAttempts to describe systematicallydescribe systematically aa
situation, problem, phenomenon,situation, problem, phenomenon,
programme or provide informationprogramme or provide information
about living conditions, or describesabout living conditions, or describes
attitudes towards an issue.attitudes towards an issue.

22. Correlation ResearchCorrelation Research
 Discover the relationship/ association /Discover the relationship/ association /
interdependenceinterdependence between two or morebetween two or more
variables or situations.variables or situations.

23. Explanatory ResearchExplanatory Research
 Study and explain theStudy and explain the exactexact
relationshiprelationship between two or morebetween two or more
variables.variables.

24. RESEARCH AND BUSINESSRESEARCH AND BUSINESS
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25. Research and BusinessResearch and Business
 Primary objective is to providePrimary objective is to provide
information that improves theinformation that improves the
decision-making processdecision-making process of anof an
organization.organization.
 These information reduce managerialThese information reduce managerial
uncertaintyuncertainty in each stages ofin each stages of
development and implementation of adevelopment and implementation of a
strategy.strategy.

26. Business Managers andBusiness Managers and
ResearchResearch
 Nestle buysNestle buys
Pfizer’s Nutrition.Pfizer’s Nutrition.
 Monsanto’s GMOMonsanto’s GMO
wheat found inwheat found in
Oregon.Oregon.
 ““Instagram andInstagram and
Facebook Merges”.Facebook Merges”.

27. The Decision-making ProcessThe Decision-making Process
Associated with the DevelopmentAssociated with the Development
and Implementation of a Strategyand Implementation of a Strategy
 Identifying problems andIdentifying problems and
opportunitiesopportunities
 Diagnosis and assessmentDiagnosis and assessment
 Selecting and implementing a courseSelecting and implementing a course
of actionof action
 Evaluating the course of actionEvaluating the course of action

28. Determining When to ConductDetermining When to Conduct
Business ResearchBusiness Research
 Time constraintsTime constraints
 Availability of dataAvailability of data
 Nature of the decisionNature of the decision
 Benefits versus costsBenefits versus costs

29. Is sufficient timeIs sufficient time
available beforeavailable before
a manageriala managerial
decisiondecision
must be made?must be made?
Is the infor-Is the infor-
mation alreadymation already
on handon hand
inadequateinadequate
for makingfor making
the decision?the decision?
Is the decisionIs the decision
of considerableof considerable
strategicstrategic
or tacticalor tactical
importance?importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
ConductingConducting
BusinessBusiness
ResearchResearch
Do Not Conduct Business Research
Time ConstraintsTime Constraints
Availability ofAvailability of
DataData Nature of the DecisionNature of the Decision
BenefitsBenefits
vs. Costsvs. Costs
Yes YesYesYes
No No No No
Determining When to ConductDetermining When to Conduct
Business ResearchBusiness Research

30. Value versus CostsValue versus Costs
 Potential Value of a BusinessPotential Value of a Business
Research Effort Should Exceed ItsResearch Effort Should Exceed Its
Estimated CostsEstimated Costs

31. Value
•Decreased
uncertainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
Costs
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
Value Should ExceedValue Should Exceed
Estimated CostsEstimated Costs

32. Why should a Manager KnowWhy should a Manager Know
Research?Research?
 Facilitate good decision makingFacilitate good decision making
 Become discriminating about researchBecome discriminating about research
findingsfindings
 Issues of inside versus outsideIssues of inside versus outside
researcherresearcher
 To share relevant information withTo share relevant information with
researcherresearcher
 Understand complex issues, variables,Understand complex issues, variables,
calculate risk, probabilities, etc.calculate risk, probabilities, etc.

33. Internal ResearcherInternal Researcher
 Advantages:Advantages:
 Better acceptance from the staffBetter acceptance from the staff
 Knowledge about the organizationKnowledge about the organization
 Would be integral part of implementationWould be integral part of implementation
and evaluation of the researchand evaluation of the research
recommendationsrecommendations
 Limitations:Limitations:
 Less fresh ideasLess fresh ideas
 Power PoliticsPower Politics
 May not be valued as experts by staffMay not be valued as experts by staff

34. External ResearcherExternal Researcher
 Advantages:Advantages:
 Divergent and convergent thinkingDivergent and convergent thinking
 Experience from several situationsExperience from several situations
 Better technical trainingBetter technical training
 Limitations:Limitations:
 Time to understand the organizational systemTime to understand the organizational system
 Cooperation from the staffs is not easyCooperation from the staffs is not easy
 Leakage of business secretesLeakage of business secretes
 Not available for evaluation afterNot available for evaluation after
implementationimplementation
 costcost

35. SCIENTIFIC RESEARCHSCIENTIFIC RESEARCH
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36. Approach to BusinessApproach to Business
ResearchResearch
 Scientific ResearchScientific Research
 Characteristics of ScientificCharacteristics of Scientific
ResearchResearch
 Process of Scientific ReasoningProcess of Scientific Reasoning
 Hypothetico-deductive MethodHypothetico-deductive Method
 Case StudyCase Study
 Action ResearchAction Research

37. Characteristics of ScientificCharacteristics of Scientific
ResearchResearch
 PurposivePurposive
 RigourRigour
 TestabilityTestability
 ReplicabilityReplicability
 Precision and ConfidencePrecision and Confidence
 ObjectivityObjectivity
 ParsimonyParsimony

38. Scientific Approach andScientific Approach and
Business ResearchBusiness Research
 It is not always possible to conduct investigationIt is not always possible to conduct investigation
100 percent scientific100 percent scientific in business research.in business research.
 Unlike the physical sciences, the results obtainedUnlike the physical sciences, the results obtained
will not be exact and error free, since most of thewill not be exact and error free, since most of the
business research deals withbusiness research deals with human behaviourhuman behaviour..
 It is very difficult to measure and collect ofIt is very difficult to measure and collect of
subjectivesubjective information like, feelings, emotions,information like, feelings, emotions,
attitudes and etc.attitudes and etc.
 Hence, it may not possible forHence, it may not possible for comparability,comparability,
consistency and wide generalizabilityconsistency and wide generalizability in most ofin most of
the business research.the business research.

39. Logical Reasoning ProcessLogical Reasoning Process
 InductionInduction
 The inductive method consists of studyingThe inductive method consists of studying
several individual cases and drawing aseveral individual cases and drawing a
generalization. It involves two process –generalization. It involves two process –
observation and generalizationobservation and generalization. Conclusions. Conclusions
from induction are tentative inferences andfrom induction are tentative inferences and
they are subject to further confirmation basedthey are subject to further confirmation based
on more evidence.on more evidence.
 DeductionDeduction
 Deduction is reasoning process of applying aDeduction is reasoning process of applying a
general accepted principlegeneral accepted principle to a specificto a specific
individual case falling under the generalindividual case falling under the general
principle.principle.

40. InductionInduction
 Form of reasoning – bottom upForm of reasoning – bottom up
Observations
Measures
Identifying
Patterns
Tentative
Hypothesis or
proposition
Theory

41. Induction MethodInduction Method
 Example: “Advertising ExpenditureExample: “Advertising Expenditure
and Sales”and Sales”
 Observe the facts, collect relevantObserve the facts, collect relevant
data, then look for the pattern ordata, then look for the pattern or
summarize the observation andsummarize the observation and
finally tentative conclusions.finally tentative conclusions.
 When followed: When new facts areWhen followed: When new facts are
studied, new truth are uncovered.studied, new truth are uncovered.

42. DeductionDeduction
 Top down reasoningTop down reasoning
Theory
Hypothesis
To test
Observations to address
the hypothesis
Test the hypothesis with specific data
Confirm/or disconfirm
the original hypothesis

43. Deductive MethodDeductive Method
Reasoning form theReasoning form the general to the particulargeneral to the particular
Like: All Men are mortalLike: All Men are mortal
““A” is a manA” is a man
Conclusion: “A” is mortalConclusion: “A” is mortal
Example: “Advertising Expenditure and Sales”Example: “Advertising Expenditure and Sales”
Hypothesis:Hypothesis: “There is a positive relationship between“There is a positive relationship between
expenditure on advertising and sales revenue”expenditure on advertising and sales revenue”
Make ObservationMake Observation
Accept or reject hypothesis.Accept or reject hypothesis.

44. Hypothetico-deductiveHypothetico-deductive
MethodMethod
 The method of starting with aThe method of starting with a
theoretical framework,theoretical framework,
formulating hypothesesformulating hypotheses andand
logically deducinglogically deducing from the results offrom the results of
the study is known as the hypothetico-the study is known as the hypothetico-
deductive method. This method is muchdeductive method. This method is much
popular in business research. Thispopular in business research. This
method involves seven important steps.method involves seven important steps.

45. Process in Hypothetico-deductiveProcess in Hypothetico-deductive
MethodMethod
1.1. ObservationObservation
2.2. Preliminary informationPreliminary information
gatheringgathering
3.3. Theory formulationTheory formulation
4.4. HypothesizingHypothesizing
5.5. Data collectionData collection
6.6. Data AnalysisData Analysis
7.7. DeductionDeduction

46. Case StudyCase Study
 To examine complex factors involved in a givenTo examine complex factors involved in a given
situation so as to identifysituation so as to identify causal factorscausal factors operating in it.operating in it.
 A case study aims at studying everything aboutA case study aims at studying everything about
something rather than something about everything, assomething rather than something about everything, as
in the case of a statistical method or quantitativein the case of a statistical method or quantitative
analysis. In quantitative analysis, ‘individual’analysis. In quantitative analysis, ‘individual’
disappears and in the case of case studydisappears and in the case of case study ‘individual’‘individual’
representing the wholeness.representing the wholeness.
 Suitability: This flexible method provide muchSuitability: This flexible method provide much
information about the unit of analysis. However, it hasinformation about the unit of analysis. However, it has
limited use in business research due tolimited use in business research due to its limitedits limited
generalizationgeneralization and it is aand it is a time consumingtime consuming method ofmethod of
research.research.
 Examples: A Study of Labour Participation in Management in a particularExamples: A Study of Labour Participation in Management in a particular
Enterprise ; A Study of life-style of Working Women.Enterprise ; A Study of life-style of Working Women.

47. Action ResearchAction Research
 It is a type of evaluation study. It is aIt is a type of evaluation study. It is a
concurrent evaluation study of anconcurrent evaluation study of an
action programmeaction programme launched tolaunched to solve asolve a
problem or to improveproblem or to improve an existingan existing
situation. It consists of a number ofsituation. It consists of a number of
phases, like,phases, like, base-line survey,base-line survey,
systematic action and assessmentsystematic action and assessment. It is. It is
a concurrent evaluation study of ana concurrent evaluation study of an
action programme launched for solvingaction programme launched for solving
a problem/for improving an existinga problem/for improving an existing
situation.situation.

48. THE RESEARCH PROCESSTHE RESEARCH PROCESS
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49. Figure 1.2 The research process
Source: © Mark Saunders, Philip Lewis and Adrian Thornhill 2011

50. 1 - 50
Figure 1.1 A simple concept map showing representation of competitive advantage
Source: Institute for Manufacturing (www.ifm.eng.cam.ac.uk/csp/news/05april/4.html)

51. 1 - 51
Grand, middle-range and substantive theoriesGrand, middle-range and substantive theories
SourceSource: Saunders et al. (2009), developed from Creswell (2008): Saunders et al. (2009), developed from Creswell (2008)

52. RESEARCH IDEARESEARCH IDEA
GENERATIONGENERATION
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53. 2 - 53
How Creative Are You?How Creative Are You?
HundredHundred
Chun HundredChun Hundred
Chun HundredChun Hundred
Chun HundredChun Hundred
Chun HundredChun Hundred
OO
RR
H EH E
S WS W
SS
Umph Umph UmphUmph Umph Umph
Of the SpiritOf the Spirit
Grace.Grace.
StandStand
II
S MediaS Media
2 1111 STO CK2 1111 STO CK THEBLUEFACETHEBLUEFACE
IntensityIntensity
S H E E TS H E E T
ObjectionObjection
RuledRuled
W E BW E B Roll RollRoll Roll
Roy RoyRoy Roy
Tomb of 210,NTomb of 210,N
Scholar

54. 2 - 54
Brainstorming GuidelinesBrainstorming Guidelines
 Keep the group small – “Two pizza rule.”Keep the group small – “Two pizza rule.”
 Make the group as diverse as possible.Make the group as diverse as possible.
 Emphasize that company rank isEmphasize that company rank is
irrelevant.irrelevant.
 Have a well-defined problem, but don’tHave a well-defined problem, but don’t
reveal it ahead of time.reveal it ahead of time.
 Limit the session to 40 to 60 minutes.Limit the session to 40 to 60 minutes.
 Take a field trip.Take a field trip.
 Appoint a recorder.Appoint a recorder.

55. 2 - 55
Brainstorming GuidelinesBrainstorming Guidelines
 Use a seating pattern that encouragesUse a seating pattern that encourages
interaction.interaction.
 Throw logic out the window.Throw logic out the window.
 EncourageEncourage allall ideas from the team.ideas from the team.
 Shoot forShoot for quantityquantity of ideas overof ideas over qualityquality ofof
ideas.ideas.
 ForbidForbid criticism.criticism.
 Encourage idea “hitch-hiking.”Encourage idea “hitch-hiking.”
 Dare to imagine the unreasonable.Dare to imagine the unreasonable.

56. 1 - 56
Further ReadingFurther Reading
 ZIKMUND, W.G., BABIN, B.J., CARR, J.C.
AND GRIFFIN, M. (2010) BUSINESS
RESEARCH METHODS, 8TH
EDN, SOUTH-
WESTERN
 SAUNDERS, M., LEWIS, P. AND
THORNHILL, A. (2012) RESEARCH
METHODS FOR BUSINESS STUDENTS, 6TH
EDN, PRENTICE HALL.
 SAUNDERS, M. AND LEWIS, P. (2012)
DOING RESEARCH IN BUSINESS &
MANAGEMENT, FT PRENTICE HALL.

57. 2 - 57
How Creative Are You?How Creative Are You?
ANSWERSANSWERS
Fortune 500Fortune 500 ScatteredScattered
ShowersShowers
Triumph of theTriumph of the
SpiritSpirit
Grace PeriodGrace Period
Rhodes ScholarRhodes Scholar I UnderstandI Understand Spring BreakSpring Break Media BiasMedia Bias
Two for OneTwo for One
Stock SplitStock Split
Blue in the FaceBlue in the Face High IntensityHigh Intensity SpreadsheetSpreadsheet
ObjectionObjection
OverruledOverruled
Web LinksWeb Links Rolls RoyceRolls Royce Tomb ofTomb of
TutankhamenTutankhamen