This document provides an overview of developing a research problem statement and theoretical framework. It begins with moving from a broad problem area to a specific problem statement. It then discusses the key components of a theoretical framework, including identifying variables, stating relationships among variables through hypotheses, and explaining the hypothesized relationships. Key variable types are independent, dependent, moderating, and mediating variables. Examples are provided to illustrate theoretical frameworks and hypotheses. The document emphasizes that a theoretical framework provides the foundation for deductive research by linking general theories to specific observations through hypotheses.

1. Research Methods
for Business
FROM BROAD PROBLEM TO PROBLEM
STATEMENT
1
PROBLEM STATEMENT
BROAD PROBLEM RESEARCH OBJECTIVE RESEARCH QUESTIONS
“Job stress” in employees is a
constantly increasing matter
with significant costs to
employees, organizations and
the society.
To identify the role of
personality in employees’
experience of work stress.
1) Are people with certain
personality characteristics
more tolerant of stressful
work events?
2) What are the most
important personality
traits that influence
employees’ experience of
job stress?
3) What can be done to
prevent these personality
traits from increasing
employees’ stress?

2. Research Methods
for Business
Question: Read the scenario and answer the
questions.
While Chrysler’s minivans, pickups, and sports
utilities take a big share of the truck market,
its cars trail behind those of GM, Ford, Honda,
and Toyota. Quality problems include, among
other things, water leaks and defective parts.
• After reading it, (a) identify the broad
problem area, (b) define the problem, and (c)
explain how you would proceed further.
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3. Research Methods
for Business
Theoretical framework
• Foundation of deductive research project!
• Deductive research: moving from the general (a theory) to the
specific (observations).
– Researcher provides tentative answers to her research questions using
theory / logic and then collect data to evaluate whether these
answers / claims are supported.

4. Research Methods
for Business
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
with each other (a theory).

5. Research Methods
for Business
Theoretical framework
• Basic steps:
– Identify and label the variables correctly
– State the relationships among the
variables: formulate hypotheses
– Explain how or why you expect these
relationships

6. Research Methods
for Business
Variable
• Any concept or construct that varies or
changes in value
• Main types of variables:
– Dependent variable
– Independent variable
– Moderating variable
– Mediating variable
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7. Research Methods
for Business
• Is of primary interest to the researcher. The
goal of the research project is to understand,
predict or explain the variability of this
variable.
• Ex: Research in behavioral finance has shown
that overconfidence can cause investors to
underreact to new information.
• Dependent Variable?
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Dependent variable (DV)

8. Research Methods
for Business
Independent variable (IV)
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• Influences the DV in either positive or negative way. The
variance in the DV is accounted for / explained by the IV.
• Ex: A marketing manager believes that selecting physically
attractive spokespersons and models to endorse their
products increases the persuasiveness of a message.
• Independent Variable?

9. Research Methods
for Business
Example
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Job Satisfaction
Employee
performance
IV DV
Employee Performance = B1 Job Satisfaction
DV = f(IV)
Affective
Organizational
Commitment
IV
+ B2 Commitment

10. Research Methods
for Business
Moderators
• Moderating variable
– Moderator is qualitative (e.g., gender, race, class)
or quantitative (e.g., level of reward) variable that
affects the direction and/or strength of relation
between independent and dependent variable.
Job Satisfaction
Employee
performance
Job Skill

11. Research Methods
for Business
Example
Job Satisfaction
Employee
performance
Job Skill
IV DV
MV
0
1
2
3
4
5
6
7
8
Low Job
satisfaction
High job
satisfaction
Employee
Performance
Job Satisfaction
Low skill
High Skill

12. Research Methods
for Business
Examples
• A manager finds that off- the- job classroom training
has a great impact on the productivity of the
employees in her department. However, she also
observes that employees over 60 years of age do not
seem to derive much benefit and do not improve with
such training.
• A manager of an insurance company finds that fear
appeals in commercials are positively associated with
consumers’ behavioral intentions to insure their house.
This effect is particularly strong for people with a high
inherent level of anxiety.
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13. Research Methods
for Business
Mediating variable
• Mediating variable
– surfaces between the time the independent
variables start operating to influence the
dependent variable and the time their impact is
felt on it.
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14. Research Methods
for Business
Example
• Failure to follow accounting principles causes
immense confusion, which in turn creates a
number of problems for the organization.
Those with vast experience in bookkeeping,
however, are able to avert the problems by
taking timely corrective action.
• List and label the variables in this situation.
Explain the relationships among the
variables.
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15. Research Methods
for Business
Example
• The manager of Haines Company observes that the morale
of employees in her company is low. She thinks that if their
working conditions are improved, pay scales raised, and the
vacation benefits made attractive, the morale will be
boosted. She doubts however, if an increase in pay scales
would raise the morale of all employees. Her conjecture is
that those who have supplemental incomes will just not be
turned on by higher pay, and only those without side
incomes will be happy with increased pay, with a resultant
boost in morale.
• List and label the variables in this situation. Explain the
relationships among the variables. What might be the
problem statement or problem definition for the
situtation?
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16. Research Methods
for Business
Theoretical Framework
• Air safety violations put the safety of airplane
passengers at risk. Four important factors
seem to have influenced air safety violations
are poor communication among the cockpit
crew members, poor coordination between
ground staff and cockpit crew, minimal
training given to the cockpit crew and a
management philosophy that has encouraged
a decentralized structure.
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17. Research Methods
for Business
Schematic Diagram for Theoretical Framework
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Communication Among
Cockpit Members
Communication Between
Ground Control and Cockpit
Decentralization
Training of Cockpit Crew
Air Safety
Violations
Independent Variables Dependent Variable

18. Research Methods
for Business
Avatars are virtual characters that can be used as
representatives of a company that is using the Internet as
a distribution channel. For instance, avatars can be used
as shopping assistants, website guides or as identification
figures. A manager of an online company believes that
avatar-mediated communication will have a positive
effect on satisfaction with her company and on purchase
intentions of consumers, because avatars enhance the
value of information provided on the website and
increase the pleasure of the shopping experience. She
also believes that the positive effect of the perceived
information value on satisfaction with the company and
purchase intentions is stronger when customers are
highly involved. Define the problem statement and
develop a theoretical framework for this situation
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19. Research Methods
for Business
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19
Conceptual Model
Involvement
Informative Site Satisfaction with
Avatar Presence the Company
Entertaining Site Purchase Intentions
Problem Statement
What are the benefits of using avatars as company
representatives on commercial Web sites?

20. Research Methods
for Business
Hypothesis
• A proposition that is empirically testable. It is
an empirical statement concerned with the
relationship among variables.
• If the pilots are given adequate training to
handle mid-air crowded situations, air safety
violations will be reduced.
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21. Research Methods
for Business
Statement of Hypotheses
• If – then statements
– Employees who are more healthy will take sick
leave less frequently.
– If employees are more healthy, then they will
take sick leave less frequently.
• Directional and non-directional hypotheses
– The greater the stress experienced in the job,
the lower the job satisfaction of employees.
– Women are more motivated than men
– There is a relationship between age and job
satisfaction.
– There is a difference between the work ethic
values of American and Asian employees
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22. Research Methods
for Business
The Null Hypothesis, H0
• Begin with the assumption that the null
hypothesis is true until statistical evidence
indicates otherwise.
– Similar to the notion of innocent until
proven guilty
• Always contains “=” , “≤” or “” sign
• May or may not be rejected
• Formulated so that it can be rejected in order to
support an alternate hypothesis (HA)

23. Research Methods
for Business
The Alternative Hypothesis, HA
• Is the opposite of the null hypothesis
– e.g., The average number of TV sets in U.S.
homes is not equal to 3 ( H1: μ ≠ 3 )
• Challenges the status quo
• Never contains the “=” , “≤” or “” sign
• May or may not be supported
• Is generally the hypothesis that the
researcher is trying to support

24. Research Methods
for Business
• Women are more motivated than men
• There is a difference between work ethic
values of American and Asian employees
• There is a relationship between age and job
satisfaction
• The greater the stress experienced in the job,
the lower the job satisfaction of employees
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www.wiley.com/college/sekaran
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25. Research Methods
for Business
Exercise
Here are eight variables:
1) Understanding Student Needs (by teacher);
2) Developing appropriate teaching strategies (by teacher);
3) In-class examples and exercises;
4) Student entry level skills;
5) Student understanding;
6) Student exam performance;
7) Difficulty of exam;
8) Stress.
With these eight variables, develop a Theoretical Framework,
treating variable #4 as a moderator, and variable #5 as an
intervening variable.
Develop four hypotheses.
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