Data Analysis

CHAPTER 4: RESEARCH METHODOLOGY

4.1 Introduction 101

4.2 Research Design 101

4.2.1 Types of Research Design 102

4.2.2 The Quantitative Design 102

4.3 Automotive Industry in Malaysia 103

4.4 Population of the Study 108

4.5 Sampling Method 108

4.5.1 Sample Size 109

4.6 Respondents 110

4.7 Measurement of Variables 111

4.7.1 Quality Management Practices 111

4.7.1.1 Leadership 112

4.7.1.2 Human Resources Management 112

4.7.1.3 Supplier Management 113

4.7.1.4 Customer Focus 113

4.7.1.5 Process Approach 113

4.7.1.6 Design of Products 114

4.7.1.7 Strategic Planning 114

4.7.1.8 Information Analysis 114

4.7.1.9 Continuous Improvement 115

4.7.2 Sustainable Product Development 115

4.7.3 Organizational Performance 115

4.7.4 Organization Characteristics 116

4.8 Questionnaire Development 116

4.8.1 Structure of the Questionnnaire 117

4.8.2 Quality Management Practices of Dimensions and Items 119

4.8.3 Sustainable Product Development Constructs and Dimensions 125

4.8.4 Organizational Performance Construct and Dimensions 127

4.9 Measurement Scale 129

4.10 Pretesting the Questionnaire 130

4.11 Survey Adminstration 133

4.12 Statistical Analysis Techniques 134

4.13 Data Analysis Techniques 135

4.13.1 Descriptive Ststistics 135

4.13.2 Factor Analysis 136

4.13.3 Factor Analysis Assumption 136

4.13.4 Instrument Reliability and Validity 137

4.13.5 Test for Differences 139

4.13.6 Correlation Analysis 139

4.13.7 Multiple Regression Analysis 140

4.13.8 Hierarchical Multiple Regression Analysis 142

4.14 Summary 142

It is critical for the researchers to be able to
link the statistical data analyses they choose
with the research questions/objectives,
research design, sampling design and level of
measurement of data collected.

Allows us to critically analyze the results.

Provide to the readers meaning to data.

 Where Do You Find Them?
Methodology section will contain the planned
statistical analysis.

Findings section will provide the data

generated from testing the hypothesis or
research questions. Data analysis using
descriptive and inferential statistics.
 Data Analysis
Objectives:
1. testing the goodness of data: test the
reliability and validity
2. getting a feel for the data: descriptive
analysis
3. Test of statistical significance / test of
differences: testing the hypotheses
4. Test of association: correlation analysis;
regression analysis
TESTING GOODNESS OF DATA
 Testing Goodness of Data
For each variable measured, obtain:
1. Reliability
– Split half
– Internal consistency – Cronbach Alpha
2. Validity
– Content *
– Construct – Factor Analysis
GETTING A FEEL FOR THE DATA
 Getting a Feel for the Data
• Descriptive statistics for your sample’s key
characteristics (eg demographic details)
• Get mean, variance and standard deviation for
each vaiable
• See if all items, responses range over the scale,
and not restricted to one end of the scale alone
• Tabulate your data
 Descriptive Analysis
• The transformation of raw data into a form
that will make them easy to understand and
interpret; rearranging, ordering, and
manipulating data to generate descriptive
information
 Type of Type of
Measurement descriptive analysis

Frequency table
Two Proportion (percentage)
categories

Nominal Frequency table

Category proportions
More than
(percentages)
two categories
Mode
 Type of Type of
Measurement descriptive analysis

Ordinal Rank order

Median
 Type of Type of
Measurement descriptive analysis

Interval Arithmetic mean

 Type of Type of
Measurement descriptive analysis

Index numbers
Ratio Geometric mean
Harmonic mean
 Central Tendency

Measure of
Central Measure of
Type of Scale Tendency Dispersion

Nominal Mode None

Ordinal Median Percentile
Interval or ratio Mean Standard Deviation
 Tabulation
• Tabulation - Orderly arrangement of data in a
table or other summary format
• Frequency table
• Percentages
 Frequency Table
• The arrangement of statistical data in a row-
and-column format that exhibits the count of
responses or observations for each category
assigned to a variable
 Cross-Tabulation

• A technique for organizing data by groups,

categories, or classes, thus facilitating
comparisons; a joint frequency distribution of
observations on two or more sets of variables
• Contingency table- The results of a cross-
tabulation of two variables, such as survey
questions
 Cross-Tabulation
• Analyze data by groups or categories
• Compare differences
• Contingency table
• Percentage cross-tabulations
TEST OF STATISTICAL SIGNIFICANCE:
INFERENTIAL STATISTICS ..
HYPOTHESIS TESTING
 Inferential Statistics
Data collection procedures that allow
researchers to estimate how reliably they can
make predictions and generalize findings.
Allows us to compare groups and test
hypothesis.
Answer research question in a study.
 Inferential Statistics
2 important qualifications must be conducted
to use inferential statistics.
Sample must be representative (drawn with
probability, some form of random selection).
Scale used must be either interval or ratio
level of measurement.
 Inferential Statistics
Probability- the notion that in a repeated
trial/study under the same conditions we
would get the same results.

Statistical probability is based on sampling

error. The tendency for stastics to fluctuate
from one sample to another is known as
sampling error.
 Level of Significance

Minimum accepted level for quantitative

research at Phd is usually 0.05.

“ If I conduct this study 100 times, the

decision to reject the null hypothesis would be
wrong 5 times out of 100”
 Testing Hypotheses
Using appropriate statistical analysis, test
hypotheses, eg:
 t-test to test the significance of differences of the means
of two groups
 Analysis of variance (ANOVA) to test significance of
differences among the means of more than two different
groups, using the F test
 Using regression analysis to establish the variance
explained in the DV through independent variables
 Tests of Relationships
Interested in exploring the relationship
between 2 or more variables.
Studies would use statistics to determine the
correlation or degree of association between 2
or more variables.
Pearson r, the sign test, the Wilcoxon matched
pairs, signed rank test and multiple regression.
Dependent and Independent Variable
Dependent Variable- The variable that is being predicted
or estimated. It is scaled on Y-axis.

Independent Variable- The variable that provides the

basis for estimation. It is the predictor variable. It is
plotted on X-Axis
 The coefficient of Correlation
Originated by Karl Pearson in 1900, the coefficient of
correlation describes the strength of the
relationship between two sets of interval or ratio
scaled variables.

Designated r, it is called Pearson’s r and can assume any

value from -1 to +1
 The coefficient of Correlation
• What does a correlation coefficient of +1 mean?

• What does a correlation coefficient of -1 mean?

• What does a correlation coefficient of 0 mean?

 Correlation Coefficient
• A statistical measure of the covariation or
association between two variables.
• Are dollar sales associated with advertising
dollar expenditures?
Correlation Does Not Mean Causation
• High correlation
• Rooster’s crow and the rising of the sun
– Rooster does not cause the sun to rise.
• Quality Management Practices and
Organizational Competitiveness
– Covary because they are both influenced by a
third variable
 Correlation Matrix

• The standard form for reporting correlational

results.
 Correlation Matrix
Var1 Var2 Var3

Var1 1.0 0.45 0.31

Var2 0.45 1.0 0.10

Var3 0.31 0.10 1.0

 Walkup’s
First Laws of Statistics
• Law No. 1
– Everything correlates with everything, especially when
the same individual defines the variables to be
correlated.
• Law No. 2
– It won’t help very much to find a good correlation
between the variable you are interested in and some
other variable that you don’t understand any better.
 Walkup’s
First Laws of Statistics
• Law No. 3
– Unless you can think of a logical reason why two
variables should be connected as cause and effect,
it doesn’t help much to find a correlation between
them. Eg Rooster’s crow and the rising of the sun
Regression
 Bivariate Regression
• A measure of linear association that
investigates a straight line relationship
• Useful in forecasting
 Bivariate Linear Regression

• A measure of linear association that

investigates a straight-line relationship
• Y = a + bX
• where
• Y is the dependent variable
• X is the independent variable
• a and b are two constants to be estimated
 Multiple Regression
• Extension of Bivariate Regression
• Multidimensional when three or more
variables are involved
• Simultaneously investigates the effect of two
or more variables on a single dependent
variable
PROBLEM STATEMENTS - GAPS

Theoretical Gaps

Contextual & Methodological

Applied Gaps Gaps