Lecture 1: Introduction & Foundations of Social Science

What is methodology? Field level definition: A body of methods, rules, and postulates employed by a given discipline in the design, execution, and interpretation of its empirical work Study level definition: The rationale and the philosophical assumptions that underlie a particular study and that inform the research design Objective: Matching research problems with appropriate research methods (the methods choice problem) Criteria of choice, what is considered as appropriate: Characteristics of the research problem; Researcher skills and capabilities; Available resources; State of theorizing in a given field; Field-level assumptions about what constitutes good science. Research is a language that is objective, precise, and universal! The four main research strategies: Experiment Survey study Case study Grounded theory How do we understand the world around us? Learning from our own experience Direct observation (e.g. that the present may influence the future) Cultural knowledge (through tradition) what everyone knows Authority Problems with everyday observations: SUBJECTIVITY! Inaccurate observations Overgeneralization Selective observation Illogical reasoning Social Science: logical explanations of social phenomena based on theory, structured observation& rigorous analysis? Testing and building theory about what really is and not about what should be Systematic data collection Rigorous data analysis Formal concepts of causality and probability Disentangling complex relationships Theory = Our most general, logical, and parsimonious (geizig) account of how a specific part of the world works Systematic explanation for observations that relate to one aspect of reality, one part of foundation of social science Concepts Relationships between concepts NLC Cyrus, 2009

Provides expectations/basis for prediction and is grounded in broader theoretical paradigms (frameworks) based on our fundamental assumptions about how the world works Concept = general, abstract, and parsimonious description of a. one specific class of phenomena: A table (as opposed to this table) b. both what is common to all cases of X, and what differentiates X from not-X: A Professor, not a student; a table, not a chair Can refer to entities Humans, Startup firms, Managers Can refer to properties of entities Weight, Corporate performance, Compensation Intention of a concept: conjunction of general properties that make up the concept (=broad definition) For example: Startup firm: legally incorporated organization, less than 3 years old, not publicly traded Extension of a concept: class of real-life phenomena to which the concept applies Extension of concept X consists of all cases of X For example: Extension of the concept of RSM student consists of all RSM students Explanatory relationships between concepts: causal explanations & intentional explanations Conceptual model of research: 1. Research subjects (unit of analysis) = What existing entity are you going to say something about? People - Workgroups Departments - Organizations -Industries - National economies 2. Specification of all variables 3. Attribute on which research subjects vary Individuals (Intelligence (IQ), Income, salary, Job satisfaction) Companies (Performance: profit, revenue, Management structure: hierarchical, participative) Nations (Gross national product, Health care system) 4. Specification of all relationships between variables How does one variable influence another? = hypotheses, thinking hard about complex relationships Independent variable: active and doing the explanatory work Dependent variable: passive and is being explained, influenced by independent variable More complex relationships: moderating variable: relationship between IV and DV will be stronger in the presence of MV intervening variables: without INV, there could be no relationship (conditions: chronological ordering in the occurrence of these variables, INV must be a necessary step between IV and DV) bi-directional causation: IV and DV both influence each other

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Lecture 2: Influences and Constraints on Research

Goals of Management research: Advance social scientific theory Understand and explain: How do organizations work? Influence of organizations on society? Knowledge Production of management research: Mode 1: Academic Management Research; traditional, university-based, academic audience Goal is primarily to advance theory Built upon existing knowledge, linear process of knowledge accumulation Limited dissemination (Verbreitung) Mode 2: Goal is to inform managerial practice, Academics, policy-makers, and practitioners, More diverse audience, not easily replicated, less linear process , emphasis on dissemination & exploitation of the findings, context important REMARK: No matter which kind of management research it is never value-free! Minimization! Personal beliefs and values of the researcher Real-world constraints (availability/accessibility of resources and research variables) All research is a coming together of the ideal and feasible. Intellectual Frameworks of Management Research: 1. Ontology and Epistemology 2. Paradigms 3. Theory Guiding dichotomies: Theory vs. research Objectivism vs. constructionism Positivism vs. interpretivism Objectivism vs. subjectivism Regulatory vs. radical Deductive vs. inductive

Social Entity = Individual behavior, Interactions, Teams & Groups NLC Cyrus, 2009

Organizations Societies, Culture, Institutions (formal rules?) Poverty, Economic development = most complex research entities

Ontological Assumptions: What is the essence and nature of social entities and phenomena? Are they objective and external to us or the product of our own perceptions, experience, and actions 1. Objectivist Ontology: Social phenomena = independent of social actors, external to individuals Observable and objective, Social facts beyond our reach (Durkheim) Humans are influenced by their social context Organizations as constraining forces Culture as shared values and customs that must be observed Economics, psychology, political science, (some) sociology 2. Construcionist Ontology: Social phenomena/culture = continually constructed through interaction, created by our own perceptions and interactions with others Rules, procedures, and hierarchy in organizations can be challenged and modified Formal rules vs. informal organization Anthropology and (some) sociology Epistemological Assumptions: Best way to study social entities&phenomena? What is acceptable knowledge about social phenomena? Key question: Do we have to experience social interactions and the creation of culture and institutions to understand them? 1. Positivist Epistemology: Only social phenomena that we can concretely observe can be the basis for scientific knowledge Applying natural science model to social world, value-free (science can be objective) Goal: explanation Theory generates hypotheses to be tested Gathering of facts to provide basis for laws Large patterns and causal relationships Aston Programme What is the best way to organize? Surveys of a large sample of UK companies Emphasis on accurate measurement Structure (formalization, centralization, configuration) Environment (history, ownership, resources, interdependence) Analyzed common patterns, relationships between variables No one best way to organize Early example of structural-contingency theory Hawthorne studies with positivist approach (Separate one group of female assemblers, manipulate changes to the environment and measure effects), then shifted to more inductive and interpretivist approach (Interviews and observation, Changes not related to the specific changes in the work environment, Special attention and treatment was important, Social relationships also important)! Result: HR, Hawthorne effect NLC Cyrus, 2009

2. Interpretevist Epistemology: Humans and social interaction entities in the natural world Verstehen: social scientist has to understand the subjective meaning of social action, human beings attach meaning to their actions (Weber) Social scientists should not impose beliefs and thought structures onto subjects (Schutz) Goal: Interpretation & understanding 3. Empiricism: Ideas must be tested in order to assume that it is knowledge Leadership (Grint 2000) Traditionally, a positivist orientation Focus on the static personality traits of leaders Tried to develop a general theory of good leadership Media coverage and biographical descriptions of Richard Branson Persuasive communication Cultivates an image of a leader Employees feel part of a community Result: Effective leadership involves the management of subjective meaning Shape the way organizational problems are defined Persuading others these are correct Constructing a community Leadership is not about static traits, but about interactions between leaders and followers Paradigm = Framework for observation and understanding, Cluster of beliefs about what should be studied, how research should be done, and how results should be interpreted. (Kuhn) Shapes what we see and how understand it, shaped by our values Shaped by our ontological and epistemological assumptions Assumed, implicit, taken-for-granted Theoretical Paradigms in management research (Burrell and Morgan 1979): Functionalists may criticize normative stance of radicals Radical theorists functionalist as Interpretivists structuralists and attending to the

may criticize too narrow may criticize radical functionalists for not actors involved

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The four paradigms differ along two dimensions: 1. Assumptions about social science (ontology, epistemology, human nature, methodology) Objectivist view Objectivist ontology Researchers can objectively observe organizations Organizations/social life existence is independent of social actors Positivist epistemology Applying a natural science model Find patterns across a large number of cases Subjectivist view Constructionist ontology Organizations are socially constructed by the people within them Interpretivist epistemology Can only be understood from the perspective of these individuals Study fewer cases, but very in-depth 2. Assumptions about the goal of business research & the nature of society Regulatory (describe/explain) Focus on unity and cohesiveness of society Why and how does social order exist? Describe/suggest minor changes. Radical (judge/reform) judgments about the way organizations ought to be and try to reform them Focus on conflict and domination, emancipation of humans Example for the utilization of the four paradigms: British Fire Service and Work Organization 1. Functionalist (objectivist/regulatory) Focus: job motivation (motivating potential of job? Standard topic in organ. Psychology) Method: Psychometric survey of a random sample, Statistical analysis of different variables to find patterns Findings: Motivating potential is modest, Personal development not important to all Explanation of social reality 2. Interpretivist (subjectivist/regulatory) Focus: work routines (How does work actually get done?) Method: 1st hand accounts of work routines, Direct observation, Conversational analysis Findings: Description of routines, Routine work accomplished in a context of uncertainty Explanation of how individuals create and alter their daily work routines 3. Radical humanist (subjectivist/radical) Focus: management training Method: Qualitative study of training for promotion to first-line supervisor, Recorded classroom sessions and discussions Findings: Training uses theories and explanations that reinforce existing authority relationships Normative stance: training reproduces capitalist values 4. Radical structuralist (objectivist/radical) Focus: employment relations and conflicts over working time Method: Historical analysis of strikes and contract negotiations NLC Cyrus, 2009

Findings: Work hours have been reduced in a way similar to other manual occupations, Productivity has increased, Management has enhanced its control over work process Management exerts control over labor process in similar ways to for-profit organizations

Theory in management research = intellectual framework, systematic set of interrelated statements to explain some aspect of social life Research level? 1. Marcolevel = (Large populations of) organizations, other societal actors Influence of social movements on organizations etc. 2. Microlevel = Individuals and groups within organizations, entire organizations What are the determinants of job satisfaction? How much of the world does it explain? 1. Grand theory Explain large parts of the social world, e.g., Karl Marx, Max Weber, 19th century, philosophy, no empirical research, too abstract 2. Middle range theory Understand & explain limited aspects of social life, testing empirically, most common theory in management research (Robert Merton, sociologist) Naive empiricism: narrow empirical findings based on data availability and description Is data collected to test or build theory? 1. Deduction= Theory observations/findings Often presented as linear, but can lead to new theory (Hawthorne) - Theory - Hypothesis - Data collection - Findings - Hypotheses confirmed or rejected - Revision of theory 2. Induction= Observations/findings theory Can lead to the development of testable hypotheses - Gather information - Ask Questions - Form Categories - Look for patterns - Develop theory - Compare theory

Example for middle range theory: Institutional theory Core propositions/assumptions Managers have bounded rationality Noneconomic forces outside organizations influence organizational forms and the adoption of specific practices

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Organizational leaders engage in symbolic action to gain the social approval of different stakeholders Potential hypotheses Social movements influence corporate change only when they can focus sustained media attention on the corporation. As more firms in one industry adopt a new HR practice, other firms will feel pressured to also adopt, regardless of the perceived benefit of the practice.

Example for Deduction: TQM and firm performance (Powell 1995) Generates hypotheses based on theories of competitive advantage and diffusion Method: surveys, interviews, and performance data Findings: TQM improves performance, Conditions under which managers were satisfied with these programs (longer time, manufacturing) Example for Induction: Stock options in India (Carberry 2009) Interested in whether and why Indian high-tech firms adopted US-style stock option programs Interviews with HR executives Found that practice diffused in India, but in a different form Labor market conditions and cultural perceptions of stock ownership very important Contribution to theories of translation, cross-border diffusion

Lecture 3: Research Design

Key Considerations and Choices in the Research Process
The research process: 1. Formulating questions 2. Literature review 3. Specifying the purpose 4. Research design 5. Choosing a research strategy 6. Data collection 7. Data analysis 8. Writing up results 9. Disseminating results The research question: Provdes guidance for the research process 1. Clarity: understandable, specific (but not too narrow) 2. Researchable: can you collect data? 3. Connected to existing theory and research 4. Potential for contribution Bryman and Bell (page 87) for more info Process of narrowing down from general interest to specific question (area of interest -> one aspect) Can always be revised and may have multiple questions open- ended questions can lead to too much data collection and lack of focus NLC Cyrus, 2009

Purpose of Research: Exploratory Goals: Develop a better understanding of a new topic Test the feasibility for a more extensive study Develop methods and variables for future study Generate research questions Example: What is the effect of environmental protests on Dutch multinationals? Descriptive Goals: In-depth and accurate description of a social phenomenon: What? Where? When? How? Example: What is the experience of employees who remain after layoffs? Explanatory Goals: Causal explanation, influence of certain phenomena on other phenomena, find reasons Example: Why do some MNCs make changes to their policies in the face of protests? Research method: technique for collecting data Research design: strategy for collecting and analyzing data, guiding framework Research Methods: Interviews , Surveys, Focus groups, Direct observation, Textual data, Secondary data Participant observation/ethnography (become an active participant in the social setting in which you are interested) Research Designs: Experiments, Case S., Surveys, Grounded T., Qualitative field research, Unobtrusive research Choices in Research Design: Decisions reflect the importance of the specific social context (inductive, ideographic, qualitative) causality (deductive, longitudinal) generalization (deductive, nomothetic, quantitative) They are influenced by intellectual assumptions and values, the research question & resources available. Testing or building theory? = deductive vs. inductive

Role of social context = nomothetic vs. ideographic Ideographic approach Context is very important, inductive, interpretivist small number of cases, elaborating all features Nomothetic approach Social context not as important, deductive, positivist number of examples to find general explanations Type of data = qualitative vs. quantitative Quantitative data NLC Cyrus, 2009

Data is numerical, quantifying a concept means measuring it numerically (e.g. IQ) Objectivist ontology Positivist epistemology Deductive Surveys, Observation, Archival data, both cross-sectionally and longitudinally easier to compare & summarize data (objectivist and positivist), generalizability concepts and variables are turned into numbers, abstraction

Reliability: consistency, stable measurements? (every time the same/similar outcome) Replicability: easy repeatability of the study by other researchers Validity: integrity of the conclusions generated by a piece of research Measurement validity: Measurement of a variable reflects underlying concept? Internal validity: Causality makes sense? Other potential variables influencing Y? External validity: generalizability, representative sample? Ecological validity: applicability, applicability to everyday life? would actors agree? Qualitative data nonnumerical: words and meanings, observing qualities: someone is intelligent Constructionist ontology Subjectivist epistemology Inductive most assessment of social phenomena are qualitative! both cross-sectionally or longitudinally, interviews close to actors observations (constructionist, interpretivist) difficult to interpret and analyze many cases of a phenomenon, hard to generalize Credibility Transferability Dependability Ecological validity Confirmability Are the findings plausible? (internal validity) Are the findings appropriate to other settings? (external val.) Would the findings apply at other times? (reliability) = usually very strong Researchers values? (objectivity)

Example: Effects of the recent financial crisis Quantitative: media reports, representative sample of articles to develop thick description of the effects surveys, random sample of X people in all income groups and neighborhoods in one city, check average value lost & number of people who have lost their jobs (percentage of income groups) Qualitative: interviews with random sample of 40 people in one city government statistics about wages, examine average wages of different types of employees before and after the crisis, develop and test hypotheses about what types of workers will do better and worse NLC Cyrus, 2009

Generalizability = population and sampling Sampling: What is the population we wish to draw conclusions about? Probability sampling Statistically representative sampling of the population about which you wish to generalize = e.g. national political attitudes or employee attitudes about the workplace Theoretical sampling Focus on the relevance of the cases to your theory = e.g. negative effects of crisis: focus on those who lost jobs Causality = role of time, cause/effect Conditions for nomothetic causality: identify a few causal factors that impact a number of cases Correlation: has to be a relationship between two variables Nonspurious relationship: correlation cannot be explained in terms of a third variable Time ordering: the proposed cause has to occur before the observed effect Cross-sectional research: - Data collected at a single point in time - More than one case: variation and two or more variables - Examine relationships between variables - Not just surveys (e.g., observation, content analysis) Problems with establishing causality Example: What influences the performance of software firms? (= firms, several IVs & one DV) Longitudinal Research: - Data collected at different points in time surveys, experiments, interviews, case studies & archival data Example: panel data (observations from same cases, same variables, at different time periods) Better for analyzing causality More time-consuming and resource intensive Causality and ideographic research Exhaustively examining one case can allow a researcher to see complex causality Research Design Strategies: Experimental Ideal for illuminating causality (explanatory), nomothetic, deductive, quantitative, longitudinal Classic laboratory design Control group vs. treatment group Random selection Treatment group experiences the independent variable Measurement of dependent variable pre-test and post-test Strong internal and measurement validity, but weak external validity Survey Administer questionnaires, exploratory, descriptive, or explanatory research Who? Individuals to examine attitudes and opinions/ Representatives of organizations NLC Cyrus, 2009

Sampling and how questions should be asked= important issues Nomothetic explanations Most often used for deductive research Usually generates quantitative data Cross-sectional or longitudinal Measurement validity is strong, external validity depends on sample, Internal & ecological V.? Example: Workplace Employee Relations Survey (WERS) Case studies Detailed analysis of a single case (organization, factory, production site, person, event) Exploratory, descriptive, or explanatory Ideographic explanation Quantitative and qualitative data Surveys, historical data Interviews, observation, ethnography Tends to favor induction, but case studies can also be used to deductively test theory Internal and ecological validity are often strong External validity can be weak Usually longitudinal, but can be cross-sectional Example: Effect of downsizing on employees who remain employed Grounded theory

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