Module 1

Research and importance of business research Types of research Scientific approach to research in physical and management science, Limitations of applying scientific methods in business research problems, Criteria of good research, marketing research, Information systems like knowledge management systems etc. Ethical issues in business research, Referencing

Research Defined
Research is a process of systematic enquiry or investigation into a specific problem or issue that leads to new or improved knowledge. systematized effort to gain new knowledge -L.V.Redman and A.V.H.Mory. The
Romance of Research

Research Defined (contd.)

The manipulation of things, concepts, or symbols for the purpose of generalizing to extend, correct or verify knowledge Slesinger and Stephenshon
Research contributes to the existing stock of knowledge making for its advancement.

Method Vs. Methodology

Method: Techniques for gathering evidence The various ways of proceeding in gathering information Methodology: The underlying theory and analysis of how research does or should proceed, often influenced by discipline
(Sandra Harding)

Common techniques and methods

1. 2. 3. 4. 5. 6. 7. Surveys Interviews Observation Experiments Archival and Historical Data Qualitative Analysis Quantitative Analysis

According to Sandra Harding: "a research method is a technique for (or way of proceeding in) gathering evidence" (p. 2) while "methodology is a theory and analysis of how research does or should proceed" (p. 3) and "an epistemology is a theory of knowledge" (p. 3).
From Is There a Feminist Method?

Why do we need research?

1) Desire to get a research degree 2) Desire to face the challenge in solving the unsolved problems 3) Desire to get respectability 4) Desire to learn something and get intellectual joy

Objectives of Research
1) Gain insights 2) Portray the characteristics of a particular organization or situation 3) To test hypothesis of a casual relationship 4) To determine the frequency with which something occurs 5) To test the relationships between various variables.

Significance of Research
1) Research is needed to understand the complexity of business 2) Helps the management to solve various operational and planning problems of business 3) Explains the social relationships and in seeking answers to various social problems. 4) Helps in decision making

Business Research
Business research is defined as the systematic and objective process of generating information for aid in making business decisions. Information is neither intuitive nor haphazardly gathered. Literally, research (re-search) -search again Business research must be objective Detached and impersonal rather than biased It facilitates the managerial decision process for all aspects of a business.

When is Business Research Used?

1) Typically, business research methods are used in situations of uncertainty, that is, when decisionmakers face two or more courses of action and seek to select the best possible alternative under the circumstances. 2) Business Research is hence aimed at improving the quality of decision-making which, in turn, benefits the organization and helps to ensure its continuity and efficiency.

Importance of Business Research

1) Provide insights into and solutions for organizational problems. 2) Provides information that influences the decision making. 3) Information is essential to have an effective decision making that will help the organization to grow.

Scope of Business Research

1) To fulfill the need for knowledge of the organization, the market, the economy and other areas of uncertainty. 2) Research yields information which helps the manager to design their strategy. 3) Information for decision making to improve business performance and competitive advantage

Who uses Business Research?

1) Businesses and Corporations
2) Public-Sector Agencies 3) Consulting Firms 4) Research Institutes 5) Non-Governmental Organizations

6) Non-Profit Organizations
7) Independent Researchers and Consultants

Area of Business Research

1) General business conditions and Corporate Research 2) Financial and Accounting Research 3) Management and Organizational Behavior Research 4) Sales and Marketing Research 5) Information Systems Research 6) Corporate Responsibility Research

General Business Conditions and Corporate Research

1) 2) 3) 4) 5) 6) Short- & Long-Range Forecasting, Business and Industry Trends Global Environments Inflation and Pricing Plant and Warehouse Location Acquisitions

Management and Organizational Behaviour Research

1) 2) 3) 4) 5) 6) 7) 8) Total Quality Management Morale and Job Satisfaction Leadership Style Employee Productivity Organizational Effectiveness Structural issues Absenteeism and turnover Organizational Climate

Financial and Accounting Research

1) Forecasts of financial interest rate trends, 2) Stock, bond and commodity value predictions 3) Capital formation alternatives 4) Mergers and acquisitions 5) Risk-return trade-offs 6) Portfolio analysis 7) Research on financial institutions 8) Expected rate of return 9) Capital Asset Pricing Models 10)Credit risk 11)Cost analysis

Sales and Marketing Research

1) Market Potentials 2) Market Share 3) Market segmentation 4) Market characteristics 5) Sales Analysis 6) Establishment of sales quotas 7) Distribution channels 8) New product concepts 9) Test markets 10)Advertising research 11)Buyer behaviour 12)Customer satisfaction 13)Website visitation rates

Information Systems Research

1) 2) 3) 4) 5) 6) 7) 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

1) Ecological Impact 2) Legal Constraints on advertising and promotion 3) Sex, age and racial discrimination / worker equity 4) Social values and ethics

Stages of Business Research

1) Identifying problems or/and opportunities 2) Diagnosis and assessment 3) Selecting and implementing a course of action 4) Evaluating the course of action

Identifying Problems and/or Opportunities

Where does the organization want to go? How will it get there? Business research as a scanning activity to:
Provide information about the organizations internal external environment Familiarize the DM with organizational and environmental occurrences

Examples:
Exploratory research on the dividend history of a group of stocks may point out to a business opportunity or indicate potential problems Interviews of airline reservation clerks reveal that they perceive competence/efficiency as more important than courtesy/friendliness

Diagnosis and Assessment

The purpose is to gain insight about the underlying factors associated with the problem or the opportunity For a problem, explain:
Exactly what happened? Why?

For an opportunity:
Explore, clarify (quantify), and refine the nature of the opportunity Set priorities when multiple opportunities exist

Researchers often use a mix of

Quantitative/Qualitative analysis Exploratory and explanatory research

Selecting and Implementing a Course of Action

1) At this step, the alternatives identified in the previous step are evaluated, and the best course(s) of action for the organization identified 2) Performance metrics are important at this stage to evaluate the degree of adequacy of a course of action; Examples: revenue, cost, customer satisfaction, etc. 3) Generally, forecasts of environmental parameters (macroeconomic environment, customer behavior, etc.) are needed to measure performance

Determining When to Conduct Business Research

1) 2) 3) 4) Time constraints Availability of data Nature of the decision Benefits versus costs

Determining When to Conduct Business Research

Availability of Time Constraints information
Is sufficient time available before a managerial decision must be made? Is the information already on hand inadequate for making the decision?

Nature of the Decision

Is the decision of strategic or tactical importance?

Benefits vs. Costs

Does the value of the research information exceed the cost of conducting research?

Yes

Yes

Yes

Yes

Conduct Business Research

No

No

No

No

Do Not Conduct Business Research

Value Should Exceed Estimated Costs

Costs Value
Decreased uncertainty Increased likelihood of a correct decision Improved business performance and resulting higher profits Research expenditures Delay of business decision and possible disclosure of information to rivals Possible erroneous research results