Click to edit Master subtitle style

e-School of Business and Quality Management CAPSTONE Project Fall 2010

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RESEARCH METHODOLOGY
Dr. Abdullah AlSagheer Click to edit Master subtitle style

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What is Business Research?

Business Research may be defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions (Zikmund, Business Research Methods, 2002, p. 6) Systematicness and Objectivity are its distinguishing features of Business Research, which is important tool for managers and decision-makers in corporate and non-corporate organizations

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When is Business Research Used? Typically, business research methods are used in situations of uncertainty, that is, when decision-makers face two or more courses of action and seek to select the best possible alternative under the circumstances. Business Research is hence aimed at improving the quality of decisionmaking which, in turn, benefits the organization and helps ensure its continuity and efficiency

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Typical Users of Business Research Methods

Businesses and Corporations Public-Sector Agencies Consulting Firms Research Institutes Non-Governmental Organizations Non-Profit Organizations

Independent Researchers and Consultants 5/29/12

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Common Business Research Methods & Techniques

Surveys Interviews Observation Experiments Archival and Historical Data Qualitative Analysis Quantitative Analysis
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Fields Where Business Research is Often Used (1) Financial and Accounting
Research General Business Conditions and Corporate Research Short- & Long-Range Forecasting, Business and Industry Trends

Forecasts of financial interest rate trends, Stock,bond and commodity value predictions capital formation alternatives mergers and acquisitions risk-return trade-offs portfolio analysis impact of taxes research on financial institutions expected rate of return capital asset pricing models credit risk cost analysis

Management and Organizational Global Environments Behaviour Research Inflation and Pricing Total Quality ManagementLocation Plant and Warehouse Morale and Job Satisfaction Acquisitions Leadership Style Employee Productivity Organizational Effectiveness Structural ssues Absenteeism and turnover Organizational Climate

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Fields Where Business Research is Often Used Information Systems Research (2)
Sales and Marketing Research Market Potentials Market Share Market segmentation Market characteristics Sales Analysis Establishment of sales quotas Distribution channels New product concepts Test markets Advertising research Buyer behaviour

Knowledge and information needs assessment Computer information system use and evaluation Technical suppot satisfaction Database analysis Data mining Enterprise resource planning systems Customer relationship management systems

Corporate Responsibility Research Ecological Impact

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Selected Examples of Real-Life Situations in Which Business Research Methods are Used

A firm wants to produce and market a new product but first wants to ascertain if there is a potential consumer demand for this product in markets x,y and z a multinational firm wants to establish a production facility in another country after determining its technical and economic feasibility A government agency wants to ascertain the satisfaction level of its employees, the causes for any possible discontent, and propose a scheme for enhancing this level A financial institution wants to invest in commodities and commissions a study to determine the past trends and forecast future returns in a portfolio of commodities The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organizations priorities 5/29/12 99

Basic and Applied Research

Basic Research aims to expand the frontiers of science and knowledge by verifying or disproving the acceptability of a given theory or attempting to discover more about a certain concept (nonspecificity)

Example: How does motivation affect employee performance?

Applied Research focusses on a real-life problem or situation with a view to helping reach a decision how to deal with it (Specificity)

Example: Should Corporation X adopt a paperless office 5/29/12

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Science and the Scientific Method

Science has been defined as the methodological and systematic approach to acquisition of new knowledge (Geoffrey Marcyzk, David DeMatteo, David
Festinger, Essentials of Research Design and Methodology, John Wiley & Sons, 2005, p. 4)

The scientific method, which has evolved since the 13th century, concerns the set of tools, techniques and procedures used by basic and applied researchers to analyze and understand phenomena and prove or disprove prior conceptions
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The Essence of the Scientific Method

Characteristics of the Scientific Method

Objectivity Systematic Analysis Logical Interpretation of Results Scientific Method Basic Research Applied Research
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General Laws Information or Ideas for alternative

Empirical Approach Observations Questions Hypotheses Experiments Analysis Conclusion Replication

Elements of the Scientific Method

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The Value of Business Research for Managers (1)

Reduction of uncertainty and improvement in the quality of decisionmaking with several consequent advantages (e.g. strategic, operational) and benefits for organizations Business Research Methods can be employed in each of the following four stages:
(1)

Identification of problems and/or opportunities

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Useful for strategy planning, analysis of 5/29/12internal and external organizational

The Value of Business Research for Managers (2)

(2) Diagnosing and Assessment of problems and/or opportunities Its purpose is to gain insight into the underlying reasons and causes for the situation. If there is a problem, it asks what happened and why? If there is an opportunity, it seeks to explore, clarify and refine the nature of the opportunity and, in the case of multiple opportunities, seeks to set priorities (3) Selection and Implementation of Courses of Action
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The Value of Business Research for Managers (3)

An important consideration is the quality of forecasting which is an essential tool of research (4) Evaluating the Course of Action Business Research Methods are used after a course of action has been implemented in order to determine whether activities have been properly implemented and have accomplished what they intended to do
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The Value of Business Research for Managers (4)

Evaluation Research It is the formal objective measurement and evaluation of the extent which an activity, project or programme has achieved its goal, and the factors which influence performance (e.g. audits). It is also the formal objective measurement and evaluation of the extent to which on-going activities, projects or programmes are meeting their goals (performance-monitoring research)

Examples of performance-monitoring research: Are railway passengers satisfied with the level of service the railway company is providing? If not, then research may need to be undertaken to ascertain the reasons for customer 5/29/12 1616
(1)

The Value of Business Research for Managers (5)

(2)

What are the trends in retail and wholesale sector? Can research suggest new ways to improve efficiency in purchase transactions?

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When Should Business Research be Undertaken?

Is sufficient time Y available e Is ? s informati on Y inadequa e High te? s importan ce Y of e Research decision? s benefits greater 5/29/12 than N O Do not undertake Business Research

Undertake Business Research

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Value and Costs of Undertaking Business Research

VALUE Decreased Uncertainty Higher Likelihood of Correct Decisions Better Business performance 5/29/12

COSTS Research Costs Delay in Making Business Decisions Disclosure of Information to Rivals Possibility of
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The Building Blocks of Research

Blend of information, experience and in-sights that provides a framework that can be thoughtfully evaluated when assessing new information or evaluating relevant situations Determination of relationship amongst data with a view to facilitating understanding of the phenomena, their relationships and decision-making (e.g. past and predicted future sales trends) Measurements of phenomena (e.g. sales statistics of a department store)
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KNOWLED GE

INFORMAT ION

DATA

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Demands on Data & Information

Relevance to the problem or situation at hand Must be available in a timely manner to the right person (manager or decision-maker) Completeness Accuracy Accessibility Affordability Integrateability into a broader global information or decision-support system

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Global Information Support Systems

A Global Information System may be defined as an organized collection of computer hardware, communication equipment, software, data, and personnel designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities A Global Information System is a tool for providing past, current and projected information on internal operations and external activity. It organizes and integrates data from production, operations, marketing, finance, accounting and other business functions
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p. 22)

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Decision-Support System

A computer-based system that helps decision makers confront problems through direct interaction with databases and analytical software programs The purpose of a decision support system is to store data and transform them into organized information that is easily accessible to decisionmakers

Decision-Support Systems are integrated in Global Information Systems. They are aimed usually for assisting managers and decisionmakers in specific organizational business units (e.g. divisions, departments and functional areas) 5/29/12 2323

Databases & Software

Databases are collections of raw data which have been arranged in a logical manner and which can be stored and processed electronically Software are programmes that allow complex operations to be undertaken on data and which give information for managers and decision-makers Data Warehousing & Data Mining
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Data and Information Sources for Business Researchers (1)

Internal Records

Example: Data about costs, shipments, inventory, sales, and other aspects of regular operations which are collected from various functional areas of an organization

Proprietary Business Research

Example: New data and information from projects which are undertaken ad hoc to study specific company problems

Business intelligence Systems

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Data and Information Sources for Business Researchers (2)

On-Line Databases

Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones News Retrieval Services, CompuStat

Internet

Examples: World Wide Web search engines (Google, Yahoo, Altavista, Lycos, Excite etc.)

All Other Sources

5/29/12 2626 Examples: Research Institutions, Libraries, Books, Journals, Periodicals,

Business Research in the International Context

Business Research is being increasingly applied in an international context in the wake of globalization and the consequent freedom of movement of the resources of labour, capital and information of businesses and corporations:

Overseas market potential Joint ventures and relocating production lines overseas Framework considerations for investment and trade (e.g. culture, legal environment, security, physical infrastructure, availability and quality of human resources, logistics, political stability, trade and investment incentives)
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Business Recorder (www.brecorder.com)

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