Chapter 1

Introduction to Business Research

Prepared by
Dr. Mohammad Bayezid Ali
Associate Professor
Department of Finance
Jagannath University, Dhaka.
 Chapter Objectives
• The meaning and basic concepts of research and
business research.
• Objectives of research
• Research methods Vs Methodology
• Research Approaches
• Who does Research
• Types of research
• Importance of knowing how to conduct a research
• The Research Process
• Criteria of a good research
• Problems of conducting research
 The meaning and Basic concepts of research and
business research
The word ‘research’ perhaps originates from the old French
word ‘recerchier’ that meant to search again. It implicitly
assumes that the earlier search is not exhaustive and complete
and hence a repeated search is required. In practice, the term
research refers to a scientific process of generating an
unexplored horizon of knowledge, aiming at discovering or
establishing facts, solving problem and reaching a decision.

In other words, research is a scientific approach of answering a

research question, solving a research problem or generating
new knowledge through a systematic and orderly collection,
organization, and analysis of data with an ultimate goal of
making the findings of research useful in decision-making.
 Definitions of Originality
 Saying something nobody has said before
 Carrying out empirical work that has not been done before
 Synthesizing something that has not been put together
before
 Making a new interpretation of someone else’s material or
ideas
 Taking a new technique and applying it to an existing area
 Taking an existing technique and applying it to a new area
 Continuing a previously original piece of work
 Being cross‐disciplinary and using different methodologies
 Testing existing knowledge in an original way"
 Business Research cont..
Thus, research is an original addition to the available
knowledge, which contributes to its further advancement.
It is an attempt to pursue truth through the methods of
study, observation, comparison and experiment.

Business research is a systematic enquiry that provides

information to guide business decisions. That means,
whenever the research job is done to solve particular
business problem, then it is known as business research.
 Objectives of research
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find out the
truth which is hidden and which has not been discovered yet. Though each
research study has its own specific purpose, we may think of research
objectives as falling into a number of following broad groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it
(studies with this object in view are termed as exploratory or formulative
research studies);
2. 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);
3. To determine the frequency with which something occurs or with which it is
associated with something else (studies with this object in view are known as
diagnostic research studies);
4. To test a hypothesis of a causal relationship between variables (such studies
are known as hypothesis-testing research studies).
 Research methods vs. Methodology
Research methods include all those research tools and
techniques that are adopted for conducting research.
Thus research techniques or methods are the methods
the researchers adopt for conducting the research
operations.
These techniques of conducting research includes:
 Techniques of collecting, summarizing and describing
data;
 Techniques of establishing relationship between
variables;
 Techniques of evaluating the reliability, validity, and
accuracy of the results exhibits by the data.
Research methods vs. Methodology
On the other hand, research methodology is the way
of systematically solving the research problem. It is a
science of studying how research is conducted
scientifically. Under it, the researcher acquaints
himself/ herself with the various steps generally
adopted to study a research problem, along with the
underlying logic, assumptions and rationale behind
them. Whenever we choose a research method, we
must justify why we are preferring this particular
method over other methods.
 Research Method Research Methodology
 Research methods are the  Research methodology explains and
techniques and tools by which a justifies the techniques and tools by
person conduct a research. which a person may proceed by the
research.
 It involve the tasks of conducting  It involves the learning of various
experiments, tests, surveys and techniques to conduct research and
the like utilizing the knowledge acquiring knowledge to perform tests,
and skills learned through experiments, surveys and critical
research methodology. studies.
 Research methods aim at finding  Research methodology aims at the
solutions to research problems. employment of the correct procedures
at arrive at a solution.
 It the end of any scientific or  It paves the way to choose appropriate
non-scientific research research methods to be conducted
properly and thus is the beginning of
any scientific or non-scientific research
 Who does Research
A very wide array of organizations and individuals do
research. The following is just a small sample of the kinds
of organizations and individuals who conduct research:
• Government departments
• Manufacturing or service companies
• Research companies
• Consultancy companies
• Academics
• Voluntary organizations
• Advertising agencies
• Market research companies
• And of course you, students!
 Types of research
There are different types of research. The basic types of
research are as follows:
1. Descriptive Vs. Analytical:
• Descriptive research is all about an attempt to determine,
describe and identify the characteristics of population or
phenomenon, estimating the fact and status on the subject
matter of study. It comprises surveys and fact-finding
enquiries of different types. The main objective of descriptive
research is describing the state of affairs as it prevails at the
time of study. This type of research describes what exists and
may help to uncover new facts and meaning. The purpose of
descriptive research is to observe, describe, and document
the aspects of a situation as it naturally occurs.
 Analytical Research
In the analytical research, the researcher has to use
the already available facts or information, and
analyze them to make a critical evaluation of the
subject.
It involves the in-depth study and the evaluation of
available information in an attempt to explain
complex phenomenon. Analytical research is
primarily concerned with testing hypothesis and
specifying and interpreting relationships, by
analyzing the facts or information already available.
 Types of Research cont..
2. Applied vs. Fundamental:
Research can also be applied or fundamental. An attempt to find a
solution to an immediate problem encountered by a firm, an
industry, a business organization, or a society is known as applied
research. Researchers engaged in such researches aim at drawing
certain conclusions confronting a concrete social or business
problem.
On the other hand, fundamental research mainly concerns
generalizations and formulation of a theory. It means experimental
or theoretical work undertaken primarily to acquire new knowledge
of the underlying foundations of phenomena and observational facts,
without any direct practical application or use in view. . Thus, while
the principal objective of applied research is to find a solution to
some pressing practical problem, the objective of basic research is to
find information with a broad base of application and add to the
already existing organized body of scientific knowledge.
 Types of Research cont..
3. Quantitative vs. Qualitative:
Quantitative research emphasize objective measurements and the
statistical, mathematical, or numerical analysis of data collected through
polls, questionnaires, and surveys, or by manipulating pre-existing
statistical data using computational techniques. The various available
statistical and econometric methods are adopted for analysis in such
research they include correlation, regressions, time series analysis etc.
Qualitative Research is primarily exploratory research. It is used to gain
an understanding of underlying reasons, opinions, and motivations. It
provides insights into the problem or helps to develop ideas or
hypotheses for potential quantitative research. Qualitative Research is
also used to uncover trends in thought and opinions, and dive deeper
into the problem. Qualitative data collection methods vary using
unstructured or semi-structured techniques. Some common methods
include focus groups (group discussions), individual interviews, and
participation/observations. The sample size is typically small, and
respondents are selected to fulfil a given quota..
 Types of Research cont..
4. Conceptual vs. Empirical:
A research related to some abstract idea or theory is known as conceptual
research. Conceptual analysis is the preferred method of analysis in social
sciences and philosophy. Here, a researcher breaks down a theorem or
concept into its constituent parts to gain a better understanding of the
deeper philosophical issue concerning the theorem. Generally,
philosophers and thinkers use it for developing new concepts or
reinterpreting the existing ones.
Empirical research, on the other hand, exclusively relies on observations
or experience with hardly any regard for theory and system. Such research
is idea based. They often come up with conclusions that can be verified
through experiment or observation. They are also known as experimental
type research. In empirical research, researchers have control over the
variables used to study their effects. This research is most appropriate
when attempt is made to prove that certain variables influence the other
variables in some way. Therefore, the results obtained using the
experimental or empirical studies are considered as one of the most
powerful evidence for a given hypothesis.
 Types of Research cont..
5. Other types of research:
The remaining types of research are variations of one
or more of the afore-mentioned methods. They vary in
terms of the purpose of research, or the time required
to complete it or based on some other similar factor.
On the basis of time, research may either be in the
nature of one-time or longitudinal research.
Depending upon the environment, research may be
laboratory or field-setting research or simulation
research . Research is also categorized as decision-
oriented and conclusion-oriented.
 Importance of knowing how to conduct a research
The following are the important of knowing how to conduct a
research:
i. The knowledge of research methodology provides training
to new researchers and enable them to do research
properly. It helps them to develop disciplined thinking or
an ‘bent of mind’ to objectively observe the field;
ii. the knowledge of doing research would inculcate the
ability to evaluate and utilize the research findings with
confidence;
iii. The knowledge of doing research methodology equips the
researcher with tools that help him/her to observe things
objectively; and
iv. The knowledge of methodology helps the research
consumer to evaluate research and make rational
decisions.
 The Research Process
Research process comprises a series of steps or actions required for
effectively conducting research and for the sequencing of these steps. The
following are the various steps that provide useful procedural guideline
regarding the conducting a research:
1. Formulating the research problem
2. Extensive literature survey
3. Developing hypothesis
4. Preparing the research design
5. Determining sample design
6. Collecting data
7. Execution of the project
8. Analysis of data
9. Hypothesis testing
10. Generalization and interpretation and
11. Preparation of the report or presentation of the result. In other words,
it involves formal write-up of conclusion.
 Criteria of a Good Research
1. The research should focus on priority problems.
2. The purpose of the research should be clearly defined and
common concepts be used.
3. The research procedure used should be described in
sufficient detail to permit another researcher to repeat the
research for further advancement, keeping the continuity
of what has already been attained.
4. The procedural design of the research should be carefully
planned to yield results that are as objective as possible.
5. Research procedure must consider the ethical issues. In
conducting any research, careful consideration must also be
given when there is a possibility of exploitation, invasion of
privacy, and a loss of dignity of all those who are involved in
the study.
 Criteria of a Good Research cont…
6. The researcher should report with complete frankness, flaws in
procedural design and estimate their effects upon the findings.
7. The analysis of data should be sufficiently adequate to reveal its
significance and the methods of analysis used should be appropriate.
The validity and reliability of the data should be checked carefully.
8. The research should be action oriented. In other words, it should be
aimed at reaching a solution leading to the implementation of its
findings.
9. Conclusions should be confined to those justified by the data of the
research.
10. The research should follow an integrated multidisciplinary approach.
11. Greater confidence in research is warranted if the researcher is
experienced, has a good reputation in research and is a person of
integrity.
 Criteria of a Good Research cont…
In other words, we can state the quality of a good
research as under:
1. Good research is systematic
2. Good research is logical.
3. Good research is empirical
4. Good research is replicable.
Justifying the Merit of a Proposed
Research Topic

Reading Assignment from the Text

Evaluating a Proposed Research

Reading Assignment from the Text

 Problems of Conducting Research
1. Lack of scientific training in the methodology of research.
2. There is insufficient interaction between the university research
departments on one side and business establishments, government
departments and research institutions on the other side.
3. Most of the business units do not have the confidence that the
material supplied by them to researcher will not be misused and as
such they are often reluctant in supplying the needed information to
researchers.
4. Research studies overlapping one another are undertaken quite
often for want of adequate information.
5. There does not exist a code of conduct for researcher and inter-
university and inter-departmental rivalries are also quite common.
6. Many researcher also face the difficulty of adequate and timely
secretarial assistance, including computerial assistance.
 Problems of Conducting Research cont…
7. Library management and functioning is not satisfactory at
many places and much of the time and energy of the
researchers are spent in tracing out the books, journals,
reports etc., rather than in tracing out relevant material
from them.
8. There is also the problem that many of our libraries are not
able to get copies of old and new Acts/Rules, reports and
other government publications in time.
9. There is also the difficulty of timely availability of published
data from various government and other agencies doing
this job.
10. There may, at times, take place the problem of
conceptualization and also problems relating to the process
of data collection and related things.
End of Chapter