University Of Mysore

E-Content Development
Course: Business Research Methods

Chapter 1: Introduction To Business Research

Topic: Scientific Approach To Research In Physical And Management Sciences

Learning Objectives:

 To know scientific method of investigation

 To understand the steps of scientific method of research
 To explain the basis of scientific method of research.
 To ascertain the concept of logical reasoning process
 To discuss the limitations of scientific methods in business research problems.

The topic for today’s discussion is ‘Scientific Approach to Research in Physical and
Management Sciences’. For a better understanding, this episode is divided into five parts,
namely:

Part 1: It defines and describes the ‘scientific method of investigation’

Part 2: The Flow chart envisages the Scientific method of research.
Part 3: Discusses the ‘Basis of Scientific method of research’
Part 4: It probes insights into the ‘Logical Reasoning Process’
Part 5: It discusses on Limitations of applying scientific methods in business research problems

Introduction
All types of research, whether basic or applied, employ the scientific method of investigation.
The scientific method is the way, on how the researchers go about using knowledge and
evidences to reach the objective conclusion on the real world. Business research is often defined
as the application of scientific methods to business decisions. But how do we know if a research
is scientific or not? Before answering to this question, let us understand the two major
classifications of science. They are physical and social sciences. Physical science is also known
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as natural science. This classification of science focuses on experimental studies and it deals with
some disciplines such as physics, chemistry, biology, mathematics etc. On the other hand social
sciences, study of social environment, man and his society. It includes psychology, sociology,
geography, economics, commerce, management etc.

However, whether the discipline is physical science or management science, the

objectives of conducting research is same. The major objective of any scientific research is to
identify and pursue the research path. Scientific research clarifies what exactly the research
question is? And it can lead the researcher in the line of logical reasoning process to arrive at
conclusions. Therefore one can say that, the research is a scientific endeavor. It involves
scientific methods for investigation, evaluation, experimentation, interpretation and theorizing.

Business is an art more than a science. Successful decision making in a business depends
on the skills and judgment of the individual involved. Most of the business decisions are made
quickly and are based on experiences. When managers make decisions, they normally use the
information that they have already been collected as a part of their accumulated knowledge. If a
particular decision is important or if a manager feels uncertain he may decide to gather additional
data pertinent to the problem. Such data gathering is called ‘research’ if it is collected and
organized in systematic and scientific manner. The function of scientific research is to reduce the
degree of uncertainty in a decision making. Therefore, whenever the managers use research,
they apply the methods of science to the art of business. More often, the term research might be
substituted for scientific method in this quotation without changing the general meaning. No
research is perfect, but a good research is better than an effortless research because it is done in a
scientific manner. Accordingly, it is worthwhile to consider the scientific method as it makes the
undertaken research more scientific.

Meaning of scientific research:

Research is a scientific endeavor. It involves scientific methods. The scientific method of
research is systematic; a step by step procedure is to be followed to assess the validity of
conclusions about the collected data, by following the logical process of reasoning.
The scientific method of research is a systematic method of investigation, evaluation,
experimentation, interpretation and theorizing. It is characterized by a systematic study, based
on theory and facts. It consists of a number of formalities and procedures.

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 The scientific method and scientific enquiry is generally described as a puzzle-solving
activity. For the researcher, puzzles are solvable problems that may be clarified or resolved
through logical process of reasoning.
In any kind of research a careful reasoning is essential for producing scientific results. In
the reasoning process, induction, deduction, observation, and hypothesis testing can be combined
in a systematic way to solve the research problem.

PART 2
Flow chart of Scientific method of research:
The scientific methods should produce the same results even when it is used by different
individuals. On the other hand, business research relies on many of the same techniques of
scientific research. The scientific method use systematic processes to move from the need to
solve a problem, via the creation of hypotheses to testing the usefulness of the hypothesis.
Scientific methods consists of four important steps, the flowchart explains the key steps involved
in scientific research.

Step1: Defining the problem:

The scientific method requires a clear and well defined problem in the beginning of the
research process. The nature of the problem depends on what one already knows, and
what one needs to know. The challenge that a business manager faces is not only to
identify and define the decision of the problem; but is to convert the decision into a
research problem. Therefore, one needs to narrow down the decision problem and
rephrase it into researchable terms. Meanwhile in this process, a scientific research
method helps the business manager a lot.

Step 2: Collect the relevant data: Data collection is a major step in research process.
The researcher has to thoroughly study the different sources of data collection methods.

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 The primary sources of data, is the first hand information, where as secondary sources are
already available data which provides an idea as to how the research work could be
undertaken. The relevant data can include:
 Existing data, such as reports and institutional knowledge
 Observational data
 Experimental data, that includes survey responses, or information gathered via
discussions etc.

Step 3: Formulation of hypotheses: In the scientific method there are multiple routes for
developing ideas. When these ideas are stated in researchable terms, then one can say that, the
hypothesis stage is reached. The researcher formulates a hypothesis which will explain what he
has observed and it is an assumption about the population.

Step 4: Testing of hypotheses:

This step involves testing the hypothesis against empirical evidences such as facts from
observation or experimentation. Hypothesis testing is a well defined scientific procedure which
helps us to decide objectively. The result either supports or denotes a hypothesis. From these
results, new knowledge may generate.
In basic research, testing these prior conceptions or assumptions, making inferences and
conclusion about the phenomena leads to the establishment of general laws that deal with
scientific method phenomena.

PART 3
Basis of scientific method
The scientific method is based on certain ‘articles of faith” that are:
 Reliance on empirical evidence
 Use of relevant concepts
 Commitment to objectivity
 Validity
 Reliability
 Generalization
 Logical reasoning process

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 Reliance on evidence: Any research question cannot be answered by imagination. The reason
is that, research is based on the truth and facts. The truth is established on the basis of evidence.
Conclusion is admitted only when it is based on evidence. Scientific method of research involves
a systematic process. Relevant data is collected through observation or experimentation. Then
validity and the reliability of the data are checked carefully and the data is analyzed using
appropriate methods of statistical analysis. Thus a line of conclusion is drawn on the basis of the
result of analysis.

Use of concepts: We experience a vast number of facts through our senses. Facts are the things
that already exist. In order to deal with it, the concept with specific meaning is used. These
Concepts are logical constructs or abstracts created by experience. It uses thinking and
communication without which clarity and correct understanding cannot be achieved.

Commitment to objectivity: Objectivity is the hallmark of the scientific method. It means

forming a judgment upon facts unbiased by personal impressions. The conclusions should not
vary from person to person. The researcher should not proceed with pre-conceived notions. He
must keep an open mind and be objective. Sometimes, researchers approach the respondents,
who are easy to reach, and with whom they feel comfortable even though they may not represent
the true sample. In this case, the objectivity is sacrificed.

Validity: Validity is the ability of a measuring instrument to measure what it is supposed to be

measured. A questionnaire is administered to determine the attitudes of the respondents towards
a movie. As long as the questionnaire serves this purpose, one can say that the instrument is
valid. In physical sciences, the instruments such as barometer, thermometer or foot ruler are
used to measure what is meant to be. Also the measurement can be repeated any number of
times by different individuals, but the result will be the same.

Reliability:
Reliability refers to whether or not the same answer got by using an instrument to measure
something more than once. In simple terms, research reliability is the degree to which research
method produces a stable and consistent result. Reliability concerns the faith that one has in the
data obtained from the use of an instrument, which is the degree to which any measuring tools
control random errors. The importance of measuring the accuracy and consistency of research

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instruments is known as validity and reliability. Validity refers to express degree to which a
measurement is what purports to measure. On the other hand, reliability refers to the degree to
which the results obtained by a measurement and procedure can be replicated.

Generalization:
Generalization is an essential component in the scientific research process. It is an act of
reasoning that involves drawing broad inferences or conclusions from particular observations.
The ultimate objective of any research study is to generalize the results to the entire population.

PART 4
Logical Reasoning process:
The scientific method involves the logical process of reasoning. This reasoning process is used
for drawing inference from the finding of the study or arriving at conclusion.
Logical reasoning process consists of two methods:
 Induction
 Deduction
The logical processes of both induction and deduction are useful in research studies. Both are
inseparable parts of the system of reasoning. Both processes are often used simultaneously.

Induction:
Induction is one among the methods of logical reasoning process. This method is followed when
new facts are studied. The inductive method consists of studying several individual cases and
drawing a generalization.
Therefore, induction involves two processes (i) observation and (ii) generalization.
Conclusions from induction are tentative inferences and they are subject to further confirmation
based on more evidence.
Four conditions are essential to satisfactory induction. They are
 Observations must be correctly performed and recorded, data collected should be
accurate.
 There must be a sample representative of a specific universe
 Number of observations made must be large enough to get reliable results.
 Conclusions must be confined to inferences drawn from the findings. They should not
be generalized to apply to the population.

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Deduction:
Deduction is reasoning process of applying generally accepted principles to a specific individual
case falling under the general principle.
Essential conditions for valid deduction are:
 The general rule or assumption must be correct. If it is not correct, then
conclusions drawn cannot be correct.
 The general rule must be applied only to the cases which properly fall under it.
Example to understand the logical reasoning process. Suppose a company spends Rs. 10,00,000
on regional promotion campaign but the sales does not increase during or after the promotional
campaign. In such conditions, a question may arise on ‘why the required sale didn’t increase?’
The likely answer to this question is that the promotional campaign was poorly executed. This
conclusion is an induction, because it is known from experience that, regional sales should go up
during a promotional campaign. The nature of induction is that, the conclusion is only a
hypotheses and inductive argument is radically different. There is no such strength of
relationship between reasons and conclusions in induction. In induction, we can draw
conclusions from one or more particular facts or piece of evidence.

But deduction is a form of argument that purports to be conclusive, i.e. the conclusion
must necessarily follow from the reasons given. These reasons are said to imply the conclusions
and represent a proof. In turn, the hypothesis is used in the deduction of further facts which can
confirm or deny the truth of the hypothesis. In the deduction process, it is tested whether the
hypothesis is capable of explaining the fact.
In this example,
 The company spends on promotional campaign, but the sales didn’t increase (i.e. fact 1)
 Question is ‘why didn’t sales increase?’ (i.e. induction)
 The conclusion drawn is the hypothesis, the answer to this question is that the promotion
was poorly executed.
 This hypothesis is tested to conclude the process of deduction to confirm the inference,
which the sales will not increase during a poorly executed promotion. And one can know
from experience that effective promotion campaign will increase the sales.
From this example, it is clearly understandable that, both induction and deduction are
inseparable parts of a system of reasoning. Both are often used simultaneously. There is

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 a sequencing of induction and deduction processes, when there is a research question; one
seeks inductively to explain hypothesis. In turn, the hypothesis is used in the deduction of
further facts which can confirm or deny the truth of the hypothesis.

PART 5
Limitations of applying scientific methods in business research problems. The scientific
method is effective in the physical sciences, because the researcher can repeat an experiment any
number of times to get the same results. But it is not possible in the case of business research.
Since the human beings are participants, most of the information obtained in qualitative in nature
and it is difficult to quantify it. Many managerial factors, like the behavior aspects in
organization cannot be absolutely tested or verified physically. As a result, the scope of the
scientific method in business is profoundly affected. Many management problems cannot be
empirically tested, in spite of the extensive use of quantitative techniques in the latter half of this
century. At the same time, the scientific method does not find favor with many organizations
and functional executives because of the heavy demand it makes on time, exposure, resource and
manpower. Even in science where quantitative, empirical and scientific methods are extensively
employed, the qualitative approach is made simultaneously, thus limiting the importance of
scientific method. Business researchers are subjected to pressure. The research is to be
completed quickly before competitors enter the market. Due to this pressure, reliability might
suffer and face the difficulty in testing the hypothesis. Testing the hypothesis is the core in
scientific research, but in business research it is very difficult to control external factors in the
field.
There are five problems faced by researcher regarding validity and reliability of the
instrument. In business research, the instrument used is a questionnaire.
i) Different respondents interpret the same question in different manner. So the reply of
the respondents will be different.
ii) It is difficult to ascertain whether the sample is a representative of the population or
not.
iii) The same questionnaire administered by different interviewers would provide
different results.
iv) The measuring instrument, namely the questionnaire may not clearly state what is
being measured.

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 v) Science experiments are held under controlled conditions, such as temperature,
humidity etc. In business research, it is not possible to control external factors
surrounding the study. For example, the respondent is interviewed on a specific
subject. After 2 months, the respondent is interviewed again and the replay could be
very different from what was said earlier. This may happen because of the additional
information gathered or the subject would have been discussed with others during this
period.

What can be done to make business research more scientific? Answer to this question is that,
the business researcher may focus more on two general characteristics of the scientific method;
validity and reliability. Validity is the characteristics used to describe research that measures
what it claims to measure. Reliability refers to the ability to consistently produce a given result.
It is the characteristic of a research methodology that allows it to be repeated again and again by
any researcher – always with the same results. Hence, reliability and validity are two important
considerations that must be made with any type of data collection. In the context of business
research, this would mean that any instrument or tools used to collect data are consistent and
reproducible in possible ways.

Conclusion
The scientific method of research consists of observation, formulation of hypotheses and testing
of the hypotheses. The basis for scientific method consists of reliance on empirical evidence, use
of relevant concepts, commitment to objectivity, validity, reliability, generalization, and logical
reasoning process. The logical processes of both induction and deduction are useful in research
studies. Both are inseparable parts of the system of reasoning. There are several limitations to
apply scientific method in business research problems. Such limitations can overcome by the
researcher by concentrating more on validity and reliability factors.