CH.

5
Research Process:
Theoretical Framework &
Hypothesis Development

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The research Process For Applied and Basic
Research

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 The Research Process
Topics Discussed (cont.)
The Theoretical Framework and Its Five Basic Features.
Hypothesis Development
 Definition
 If-Then Statements
 Directional and Nondirectional Hypothesis
 Null and Alternate Hypothesis
Managerial Implication

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 Chapter Objectives
 Identify and label variables associated with any situation.
 Trace and establish the links among the variables and evolve a
theoretical framework.
 Develop a set of hypotheses to be tested and state them in the
null and the alternate.
 Apply what has been learned to a research project.

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Types of study (Research)
 Exploratory Study
 Descriptive Study
 Causal Study (Cause and effect)
 The Need for a Theoretical Framework
 After a critical review of the literature you are ready to develop a theoretical framework.
 A theoretical framework is a conceptual model of how one theorizes or makes logical
sense of the relationships among the several factors that have been identified as important
to the problem.
 It represents your beliefs on how certain phenomena (VARIABLES) are related to each
other (MODEL) and an explanation of why you believe that these variables are associated
with each other (THEORY).
 From the theoretical framework, then, testable hypotheses can be developed to examine
whether the theory formulated is valid or not. The hypothesized relationships can
thereafter be tested through appropriate statistical analysis.

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Process of Building Theoretical
Framework
1. Introducing definitions of the concepts or variables in your
model
2. Developing a conceptual model that provides a descriptive
representation of your theory
3. Coming up with a theory that provides an explanation for
relationships between the variables in your model.
 Variables
A variable is anything that can take on differing or varying values. The
values can differ at various times for the same object or person, or at
the same time for different objects or persons.
 Type of variables:
 The dependent variable. (criterion variable)
 The independent variable (also known as the predictor variable)
 The moderating variables.
 The intervening variables.
 Variables can be discrete or continuous

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 1. Continuous Variables

 Variables have different properties and to these properties we assig

n numerical values.
 If the values of a
variable can be divided into fractions then we call it
a continuous variable.
 Such a variable can take infinite number of
values. Income, temperature, age, or
a test score are examples of continuous
variables. These variables may take on
values within a given range or, in some cases, an infinite set.
 Discontinuous variables
 Any variable that has a limited number of distinct values
and which cannot be divided into fractions, is a
discontinuous variable.
 Such a variable is also called as categorical variable or classificat
ory variable, or discrete variable.
 Some variables have only two values, reflecting the presence
or absence of a property: employed-unemployed or male-
female have two values. These variables are referred to as
dichotomous.
 Dependent Variable
 The dependent variable is the variable of primary interest to the
researcher. The researcher’s goal is to understand and describe the
dependent variable, or to explain its variability, or predict it. It is
the main variable that lends itself for investigation as a viable
factor. Through the analysis of the dependent variable, it is possible
to find answers or solutions to the problem.
 It is possible to have more than one dependent variable in a study.
For example there is a tussle between quality and volume of
output, low cost production and customer satisfaction,
(Multivariate statistical analysis)

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 Independent Variable
 is one that influences the dependent variable in either a positive or negative way.
That is, when the independent variable is present, the dependent variable is also
present, and with each unit of increase in the independent variable, there is an
increase or decrease in the dependent variable also. (the variance in the
dependent variable is accounted for by the independent variable.
 E.g. An investor believes that more information increases the accuracy of his
forecasts.
 What is dependent variable?
 What is independent variable?

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 In statistical analysis a variable is identified by
the symbol (X) for independent variable and by the symbol (Y) for the
dependent variable. In
the research vocabulary different labels have been associated
with the independent and dependent variables like:
Independent variable Dependent variable
 Presumed cause presumed effect
 Stimulus Response
 Predicted from ... Predicted to ...
 Antecedent Consequence
 Manipulated Measured outcome
 Predictor Criterion
Four conditions
 To establish that a change in the independent variable
causes a change in the dependent variable, all four of the
following conditions should be met:
1. The independent and the dependent variable should ovary
2. Cause must occur before the effect
3. The researcher should control for the effects of other variables.
4. A logical explanation (theory) is needed about why the
independent variable affects the dependent variable.
 Moderating Variable
The moderating variable is one that has a strong contingent effect
on the independent-dependent variable relationship. That is, the
presence of a third variable (the moderating variable) modifies
the original relationship between the independent and the
dependent variables.
Whenever a relationship between IV and DV becomes dependent
on another variable, we say that third variable has a moderating
effect on the IV and DV relationship.
EXAMPLE PAGE 72 & 73

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 For example:
 a strong relationship has been observed between
the quality of library facilities (X) and the performance of
the students (Y). Although this relationship is supposed to
be true generally, it is Nevertheless contingent on the interest
and inclination of the students.
 It means that only those students who have the interest
and inclination to use the library will show improved performance
in their studies.
 In this relationship interest and inclination is moderating variable
i.e. which moderates the strength of the association between
X andY variables.
 The Moderating Variable
Example: It has been found that there is a relationship between the
availability of Reference Manuals that manufacturing employees have
access to, and the product rejects. That is, when workers follow the
procedures laid down in the manual, they are able to manufacture
products that are flawless. (see fig on p72)
Although this relationship can be said to hold true generally for all
workers, it is nevertheless contingent on the inclination or urge of the
employees to look into the Manual every time a new procedure is to be
adopted. In other words, only those who have the interest and urge to
refer to the manual every time a new process is adopted will produce
flawless products. Other who do not will not be benefited and will
continue to produce defective products.

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 Intervening Variable
The intervening variables (mediating variable) is one that surfaces
between the time the independent variables start operating to
influence the dependent variable and the time their impact is felt on
it.
There is thus a temporal quality or time dimension to the
intervening variable.
The intervening variable surfaces as a function of the independent
variable(s) operating in any situation, and helps to conceptualize and
explain the influence of the independent variable(s) on the
dependent variable.
EXAMPLE 75

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 EXAMPLE:
 A theory of suicide states that married people are less likely to commit suicide than single people. T
he assumption is that married people have greater social integration (e.g. feelings of belonging to
a group or family). Hence a major cause of
one type of suicide was that people lacked a sense of belonging to
group (family). Thus this theory can be restated as a three-
variable relationship: marital status(independent variable) causes the degree of
social integration (intervening variable), which affects
suicide (dependent variable). Specifying the chain of causality makes the linkages in theory clearer
and helps a researcher test complex relationships.

 a moderator variable is one that influences the strength of a relationship between two other
variables, and a mediator variable is one that explains why the relationship between the two other
variables (IV & DV) exists.
 When effect of the mediator variable is removed, the relation between IV & DV disappears.
 Theoretical Framework
The theoretical framework is the foundation on which the entire research project is
based. It is a logically developed, described, and elaborated network of associations
among the variables deemed relevant to the problem situation and identified through
such processes as interviews, observation, and literature survey. Experience and
intuition also guide in developing the theoretical framework.
There are five basic features that should be incorporated in any theoretical
framework:
1. The variables considered relevant to the study should be clearly identified
and labeled in the discussions.
2. The discussions should state how two or more variables are related to one
another.
3. If the nature and direction of the relationships can be theorized on the basis
of the findings of previous research, then there should be an indication in the
discussions.
4. There should be a clear explanation of why we would expect these
relationships to exist.
5. A schematic diagram of the theoretical framework should be given so that the
reader can see and easily comprehend the theorized relationships.

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 Delta Airlines Example
With airline deregulation, there were price wars among the
airlines that cut costs in different ways. According to reports,
Delta Airlines faced charges air-safety violations when there were
several near collisions in midair, and one accident that resulted in
137 deaths in1987. Four important factors that seem to have
influenced these are poor communication among the cockpit crew
members themselves, poor coordination between ground staff and
cockpit crew, minimal training given to the cockpit crew, and
management philosophy that encouraged decentralized structure.
The following is the conceptual framework to show if these factors
did indeed contribute to the safety violations.

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Copyright © 2003 John Wiley & Sons, Inc. Sekaran/RESEARCH 4E FIGURE 5.8
 Hypotheses Development
 Once we have identified the important variables in a
situation and established the relationships among them
through logical reasoning in the theoretical framework, we
are in a position to test whether the relationships hold
true.
 By testing these relationships scientifically through
appropriate statistical analysis, or through negative case
analysis in qualitative research. Formulating such testable
statements is called hypotheses development.

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 Definition of Hypothesis
A hypothesis can be defined as a logically conjectured
relationship between two or more variables expressed in the
form of a testable statement. Relationships are conjectured on
the basis of the network of associations established in the
theoretical framework formulated for the research study.
Example: if the pilots are given adequate training to handle mid air
crowded situations, air safety violations will be reduced.

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 Statement of Hypotheses: Formats
 If – Then statements:
A hypothesis can also test whether there are differences
between two groups (or among several groups) with
respect to any variable or variables. To examine whether
or not the conjectured relationships or differences exist,
these hypotheses can be set either as propositions or in the
form of if-then statements.
Example: If Employees who are more healthy, then they
will take sick leave less frequently.

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 Directional and Non-directional
Hypotheses
 If, in stating the relationship between two variables or
comparing two groups, terms such as positive, negative,
more than, less than, and the like are used, then these
hypotheses are directional because the direction of the
relationship between the variables is indicated.
Example: The greater the stress experienced in the job, the
lower the job satisfaction of employee
Example: Women are more motivated than men

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 Directional and Non-directional
Hypotheses
 Non-directional hypotheses are formulated either because
the relationships or differences have never been previously
explored and hence there is no basis for indicating the
direction, or because there have been conflicting findings
in previous research studies on the variable.
Example: There is a relationship between age and job
satisfaction.
Example: There is a difference between the work ethic
values of American and Asian employees.

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 Null and Alternate Hypotheses
 The null hypothesis is a proposition that states a definitive,
exact relationship between two variables. That is, it states
that the population correlation between two variables is
equal to zero or that the difference in the means of two
groups in the population is equal to zero (or some definite
number).
 The Alternate hypothesis, which is the opposite of the null,
is a statement expressing a relationship between two
variables or indicating differences between groups. (see
cases page 89)

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Examples
 Women are more motivated than men
 H0; Um = Uw or Um – Uw= 0
 Ha: Um < Uw or Uw > Um
 There is a difference between the work ethic values of american and Asian
employees
 H0: Uam = Uas or Uam – Uas= 0
 Ha: Uam # Uas
 The greater the stress experienced in the job, the lower the job satisfaction of
employee
 H0: r= 0
 Ha: r <0
 There is a relationship between age and job satisfaction
 H0: r= 0
 Ha: r# 0
 Hypothesis Testing
 The steps to be followed in hypothesis testing are:
1. State the null and the alternate hypotheses.
2. Choose the appropriate statistical test depending on whether the
data collected are parametric or nonparametric.
3. Determine the level of significance desired.
4. See if the output results from computer analysis indicate that the
significance level is met.
5. When the resultant value is larger than the critical value, the
null hypothesis is rejected, and the alternate accepted.

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 Hypothesis Testing With Qualitative
Research: Negative Case Analysis
Hypotheses can also be tested with qualitative data. For
example, a researcher has developed a theoretical
framework, that unethical practices by employees are a
function of their inability to discriminate between right and
wrong(1),
or due to a dire need for money(2),
or the organization’s indifference to such practices (3). To test
the hypothesis that these three factors are the primary ones
that influence unethical practices. When even a single case
does not support the hypothesis, the researcher would refute
it, and the theory would be revised.

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