Business Business Research Research Methods Methods

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DMS 411:

BUSINESS
RESEARCH
METHODS

Lecture II
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"Well begun is half done" –
Aristotle, quoting an old proverb

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A researcher
spends a great
deal of time
refining a
research idea
into a testable
research problem
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Scientific research process
Desktop
Field work & Define the problem research
report writing
=
Research
Review literature: proposal
Report writing Theory Vs Empirical
(findings)?
Concepts & Theories Previous research findings

Formulate Hypothesis
Data analysis

Design research

Collect data

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The “hourglass” notion of research

Begin with broad question


Narrow down
Focus on operationalization
Observe \ collect data
Analyze data
Reach conclusions
Generalize back to question

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Research Process
1. Formulating the problem 9. Conducting pilot study &
2. Reviewing related literature making revisions
3. Developing/utilizing a 10. Selecting the sample
theoretical framework 11. Collecting the data
4. Identifying research 12. Organizing the data for
variables analysis
5. Formulating hypotheses 13. Analyzing the data
6. Selecting a research design 14. Interpreting the results
7. Specifying the population 15. Communicating the
8. Operationalizing & findings
measuring research
variables
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Problem formulation
• Problem statement
– Problem identification
– Characteristics of a problem statement
– Study hypothesis
– Sources of problem statement

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PROBLEM IDENTIFICATION
• What is a research problem?
– Some difficulty/concerns which a researcher
experiences in a given context (theoretical or
empirical), & wants to obtain a
solution/knowledge for the same.

• Components of a research problem.


• An individual/group with some difficulty
• Objectives to be attained (specific need to be
achieved)
• Alternative means for attaining objectives
• Some doubt in the mind of the researcher
w.r.t. selection/order of alternative
• Environment to which the problem pertains

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PROBLEM IDENTIFICATION
• How?
– Identify broad area of interest
– Identify specific problems within the identified area as
the basis of the study i.e. narrow from broad to specific.

• In so doing, there are certain key factors namely:

– Should lead to findings with widespread implications in a


particular area
– Challenge some commonly held believes/ facts
– Review the inadequacies of existing knowledge, law,
views, policies, etc.
– Cover a reasonable scope – not too narrow, or too general.

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The Management - Research
Question Hierarchy
6. Management Decision

5. Measurement Question
4. Investigative Question
3. Management Question
2. Research Question
1. Management Dilemma / Knowledge gap
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Selecting research problem
• Research problem/subject must be
carefully selected. Key guidelines include:

– Subject that is overdone should be


avoided.
– Controversial subjects should be
carefully evaluated
– Too narrow or too vague problems
should be avoided
– One should be familiar with the
selected subject.
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Selecting research problem
• Research problem/subject must be
carefully selected. Key guidelines
include:

– Selected subject should be feasible


– Selection should be preceded by a
preliminary study
– Other consideration such as time,
cost, researchers capability,
logistical issues, etc
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Cycles of Research
Question Development

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Sources of problem statements
• Existing theories
• Existing literature – systematic
reading in general area of interest
/book….)
• Discussion with experts
• Previous research
• Replication
• The media
• Personal experiences.
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Stating the research Problem
• This forms the nucleus of any research.

• The section needs to capture the reader’s


attention and convince him/her to continue
reading the proposal.

• After reading this section, the potential


reader should know the research dilemma &
the arising research question, its
significance, and why something should be
done to change the status quo.

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Stating a Problem
• Over and above, A well written problem
statement should have:
– Sound theoretical arguments
– Sufficient empirical evidence
– Clearly indicate concept(s) of interest

• The problem statement should state:


– the research dilemma, its background,
consequences, the resulting research question.

• The scope should be well articulated, as


problem statements too broadly defined
cannot be addressed adequately in one study.
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Stating a Problem

• The research problem within this study

• Justification for the problem (based on past


research and practice)

• Shortcoming of past research or practice

• The importance / significance of the problem

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Stating a Problem
• Problem statement is composed of:
• Concept
– (area of interest & predominant theories,
logical arguments, supporting evidence as
well as the deriving variables)
• Context (background/ study setting)
– Briefly describe unique characteristics of
the proposed study setting
• Deriving/arising research questions
– (allude to the specific dilemma to be
addressed).
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Sample problem
statement

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Statement of the Problem
The importance of leadership in determining organizational Performance
has generated strong debate over the years (Channon, 2001). Scholars such as
Hambrick (1994; 1995) propose that top executives are critical, while other
scholars directly or indirectly support a view that organizations are highly
influenced by the context (Hannan & Freeman, 1977). Other scholars have
argued for the primacy of human agency in determining an organization’s
destiny, as reflected through economic performance (Cyert & March, 1992; and
Hakansson & Johanson, 1992).
Similarly, some scholars argue that the influence of leadership on
organizational performance is positively or negatively influenced by the
environment (Perrow, 1970; Lawrence & Lorsch, 1967; Pfeffer & Salancik, 1978;
and Aldrich, 1979). Finally, there are scholars who have taken the middle ground
(Thompson, 1967; Child, 1972; Crozier & Friedberg, 1980; and Astley, 1985)

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...Statement of the Problem

A review of relevant literature has revealed that there is no consensus


regarding the impact of TMTs on organizational performance. Hambrick
and Mason (1984) argue that statistical studies may be fruitful for
uncovering broad relationships in the TMTs perspectives, they take
cognizant that certain strategies & performance levels ‘cause’ managerial
profiles, as well as the reverse. Hamel and Prahalad (1989) acknowledge
that a dilemma exists, as empirical evidence shows that organizations
have suffered for not trying to invent their future while others have suffered
for attempting to invent it.
The conflicting positions as to the influence of TMTs on organizational
performance, have implications for practice as well as development of
theory; hence the need for further evaluation.
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...Statement of the Problem

Based on the above argument, The proposed research will


study the influence of top management teams’ on organizational
performance in a developing economy by answering the
following key questions: To what extent do organizations in
Kenya utilize TMTs for strategic decision making? To what
degree do TMTs demographics and cognitive influence
organizational performance? To what extend does
organizational decision making processes influence
organizational performance? To what degree do operating
environment and organizational structure moderate the influence
of organizational performance?
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Sample problem
statement

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...Statement of the Problem
Well-rehearsed axioms such as “what gets measured gets
done”, “you get what you measure”, “if you cannot reward
success, you are probably rewarding failure”, and “if you cannot
recognize success, you may not be able to sustain it” are
salient in literature supporting the introduction of performance
measurement as a promising way to improve organizational
performance (Halachmi, 2005).

The various slogans connote the need and purpose for


performance measurement in any organization. Numerous
performance measurement frameworks and prescriptive
literature are widely available, emphasizing the “control” aspect
of performance (Simmons, 2002). However, Duffuaa et al (1999)
notes that there are few papers in the literature on developing
performance measures for educational institutions, and further
state that measuring the quality and quantity of outputs from
academic institutions is not an easy task.

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...Statement of the Problem
Crowther (1996) acknowledges that any consideration of
measures suitable for evaluation needs to consider the whole
purpose for which evaluation takes place to avoid the problem
of meeting one need at the expense of others. Measurement
theory states that measurement is a comparative process,
and comparison provides the purpose for measurement
(Churchman, 1967).

It is further argued that appropriate measures cannot be


selected until the purpose of the evaluation has been
determined (Crowther, 1996). This argument demonstrates
that the foundation of performance measurement is the
identification of the reasons for the evaluation. Various
reasons for which organizations measure performance have
been identified (Crowther, 1996; Parker, 2000). In light of this,
it is important to establish reasons for measuring performance
with respect to institutions of higher learning.
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...Statement of the Problem
In line with foregoing discussion, and with the
understanding that all organizations measure performance
(Parker, 2000), this study sought to explore answers to the
following questions;

• (i) What is the purpose of embarking on performance


measurement in institutions of higher learning?

• (ii) What measures are appropriate for evaluating


performance in institutions of higher learning?

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1: INTRODUCTION
• Usually has the following sections
1.1 Background
1.2 Problem Statement
1.3 Research Objectives
1.4 Study hypothesis
1.5 Scope of the study
1.6 Significance of the Study

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Research Objectives
• Research Objectives addresses the purpose of the
investigation, thus lay out exactly what is being planned
by the proposed research.

• Research objectives provide an avenue for breaking


down the research question down into specific
investigative questions.

• Objectives are more specific and relate directly to


research question. They may be divided into two types:

– Primary objectives à (bound to be achieved)


– Secondary objectives à (by the way)

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Research Objectives
• The objectives flows naturally from the problem statement,
giving the reader specific, concrete, and achievable goals

The research objectives should be:


• Result from the research question
• Cover specific aspects of the problem
• Very specific
• Ordered in a logical sequence
• Stated in action verbs that could be evaluated e.g. to describe,
to identify, to measure, to compare, etc.
• Achievable, taking into consideration the available resources
and time
• Mutually exclusive, with no repetitions or overlaps

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• Class video for assignment

• https://www.youtube.com/watch?v=VxA
5cxdQ2uA

• Into groups of 10
• Students to identify 2 research
questions, come up with an appropriate
problem statement, study objectives
and suggest an appropriate
approach/methodology.
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Research Objectives
• It is best to list the objectives either in order
of importance or in general terms first, moving
to specific terms (i.e., research question
followed by underlying investigative questions).

• The research objectives section is the basis


for judging the remainder of the proposal and,
ultimately, the final report. i.e. basis for
verifying the consistency of the proposal by
checking to see that each objective is
discussed in the research design, data
collection & analysis, and results sections.

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...Examples
Information Gap/Question Research Objective(s)

How will prospective residents To establish extent to which


react to the inclusion of the prospective student residents want
satellite television programming satellite television
package with the base apartment?

Will University hostels be more Evaluate if University hostels can


competitive if it adds a satellite be more attractive than competing
television package? apartment complexes if it has the
satellite television programming
package

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...Statement of the Problem
• Objectives of the study
• The primary objectives of this study, with respect to
institutions of higher learning were:

(i) Establish the purpose underlying measurement of


performance.

(ii) Establish appropriate performance indicators for the


institutions.

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Objectives of the Study
• The broad objective of the proposed study is to determine the
influence of top management teams on organizational performance in
Kenya. Arising from these, the specific objectives are to:

– Assess the extent to which top management teams are used to make
strategic decisions.

– Determine the influence of TMTs’ demographic and cognitive


characteristics on organizational performance.

– Determine the influence of TMTs’ on organizational decision making


processes.

– Assess the influence of organizational decision making processes on


corporate performance

– Assess the impact of operating environment and organizational structure


on corporate performance

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1: INTRODUCTION
• Usually has the following sections
1.1 Background
1.2 Problem Statement
1.3 Research Objectives
1.4 Study hypothesis
1.5 Scope of the study
1.6 Significance of the Study

Tuesday, May 12, 2015 35


Hypothesis
• A hypothesis is a declarative statement that is
tentative (may be judged as true or false) in
relation to observable phenomena.

• “ Research hypothesis is a statement of the


research question in a measurable form”

• A hypothesis is a proposed explanation for an


observable phenomenon.

• Stated as either:
– Null hypothesis
– Alternative hypothesis

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Hypothesis
• Null Hypothesis
– typically proposes a general or default
position, E.G. there is no relationship
between two measured phenomena, or
that a potential treatment has no
effect, there is no difference between
two or more variables…. etc
– Represents the situation that a
researcher seeks to refute, thus the
hypothesis one seeks to reject
– Usually denoted as H0

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Hypothesis
• Alternative Hypothesis
– Negates the null hypothesis i.e. Asserts
a particular relationship between the
phenomena, or significant difference
exists, or there is causality between
variables, etc
– It is the hypothesis that holds, if null
hypothesis is rejected
– Usually denoted as Ha or H1

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Why use hypothesis?
• Provides specific focus
• Provides for testing of aspects/issues of interest in
a study
• Directs the investigation
• Allows the investigator to confirm or not confirm
aspects of interest
• Provides a framework for reporting the results
and explanations deriving from them
• When supported provides empirical evidence
hence creation/confirmation of knowledge
• Provides a useful framework for organizing and
summarizing the results and conclusions

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Hypothesis
• Characteristics of Hypothesis
– Should be clear and precise.

– Should be capable of being tested – “if


deductions can be made from it, which in
turn can be confirmed or disapproved by
observation/study”.

– Should state relationship between variables


– if a relational hypothesis

– Limited in scope and specific “the narrower


the hypothesis, the more testable and
conclusive the study”

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Hypothesis
• Characteristics of Hypothesis
– Should be stated in most simple terms – to
enable ease of understanding by all
concerned. (simplicity)

– Should be consistent with most known facts


(Conservatism – the degree of "fit" with
existing recognized knowledge-systems)

– Should be subject to testing within


reasonable time.

– Must give explanation to the need for the


study (adequate for its purpose).
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Fig. 1: Conceptual Framework for the Proposed Study
H 1

Operating Environment
TMT demographic
characteristics Govt control, competition, availability and cost of
· Average members’ age resources (vital inputs), interest rates, taxation, H 4
· TMT tenure political activities, change in information
· Education level technology,
· Functional background
· TMT members experience
(tenure) Organizational Performance
Decision making process Economic/financial
· TMT size Collective ownership for
· Gender performance
corporate affairs, group
H 5 · Gross profit
discussions & consultations, H
frequency of meetings, level
6 · Turn over
of communication & · Earnings per share
information sharing · Dividends per share
TMT cognitive · Average stock price
characteristics · Market share
· Innovativeness · Return on capital
· Proactiveness
·
Organizational structure
Perception to risk
· Locus of control
· Tolerance for ambiguity · Organization’s age,
H 3
· Open-mindedness · Organization’s size
· Aggression

H 2
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Hypotheses of the Study
Top management team demographic characteristics
H1o: TMTs demographic characteristics do not influence organizational performance.
H1A: TMTs demographic characteristics influence organizational performance.

Top management team cognitive characteristics


H2o: TMTs cognitive characteristics do not influence organizational performance.
H2A: TMTs cognitive characteristics influence organizational performance.

Influence of organizational structure on organizational performance.


H3O: Organizational structure does not influence organizational performance.
H3A: Organizational structure influences organizational performance

Influence of contextual factors on organizational performance.


H4O: Operating environmental forces do not influence organizational performance
H4A: Operating environmental forces influence organizational performance

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Hypotheses of the Study ……..
Influence of TMT demographic and cognitive characteristics on organizational decision making
processes, and the impact of organizational decision making processes on organizational
performance.

H5O: TMT demographic & cognitive characteristics do not influence organizational decision making processes
H5A: TMT demographic & cognitive characteristics influence organizational decision making processes

H6O: Organizational decision making processes do not influence organizational performance


H6A: Organizational decision making processes influence organizational performance

TMTs characteristics will impact organizational performance through organizational decision


making processes whose influence is moderated by operating environments and
organizational structure.

H7O: The TMTs demographic and cognitive characteristics, organizational decision making processes moderated by
the environmental forces and organizational structure do not influence organizational performance
H7A: The TMTs demographic and cognitive characteristics, organizational decision making processes moderated by
the environmental forces and organizational structure influence organizational performance

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Hypothesis
• A hypothesis may not be appropriate
if:
– You do not have a hunch or educated
guess about a particular situation
– You do not have a set of defined
variables.
– Your question centres on
phenomenological description
– Your aim is to engage in, and research,
the process of collaborative change

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• General questions and
answers?

• Lessons learnt?

• General comments?
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Thank you

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