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Business Research Methods


     Lecture 1
     Introduction
Today’s topics
   General information
       Books, teaching method, exam, portfolio,
        JMP, etc
   Why study Business Research?
   What is Business Research?
       Research and management
   The topics in the course
   Research philosophy
Evaluation
   Portfolio 40%
   Written exam 60%
Portfolio
   Market segmentation
   Three parts
       1: Presentation of product, design, etc
       2: Qualitative part
       3: Quantitative part
What is Business Research?
   A systematic inquiry whose objective
    is to provide information to solve
    managerial problems.
The Research Process
        Problem Statement
        Research Objectives

        Research Questions


         Research Design


          Data Collecting


           Data Analysis


             Reporting
Why Study Research?
   Research provides you with the
    knowledge and skills needed for the
    fast-paced decision-making
    environment
The nature of management
and business research
   Qualitative versus Quantitative
         A long standing tension
   Pure research versus Applied
    research
         For and against and the practical implications
          for the choice made
   Political
         Senior management access and, where
          possible, support
What is management?
  The modern use of the term ‘management’ derives from
   the USA, with the requirement for business and
   entrepreneurial skills in the early twentieth century when
   American industries and railroads were developing very
   rapidly (Lawrence, 1986).
  Important subject to be taught in business schools.
Early Views:
  Establishment of business schools meant greater
   systemization of techniques and knowledge.
  Taylor (1947): rational systems to simply the
   organization of work and link rewards to effort.
  Fayol ([1916] 1950): classified functions – planning,
   organizing, co-ordinating and controlling.
Seven perspectives on
management
Views of          Period of                                                  Type of
                                 Key features
management        dominance                                                  theory


Classical         1910-1950      Functional activities                       Normative


Human Relations   1940-1970      Motivating people and managing change       Normative


Decision Theory   1950-1970      Optimising decisions                        Analytic


Work Activity     1970s          What managers do                            Descriptive


Competencies      1980s          Skills required for effective performance   Normative


Critical          1990-present   Social construction and politics            Analytic


                                                                             Analytic and
Learning          1990-present   Managing knowledge and learning
                                                                             Normative
Skills and resources for management
and business research

   Evaluating the skills and qualities required to
    conduct research:
       Knowledge/awareness
       Skills and abilities
       Personal qualities
   The support required, including the importance of
    supervision
   The mind set and elements of creativity: (Austin,
    1978)
       Favouring those in motion,
       Those with a prepared mind, and
       individualized action.
Levels and outcomes of
management research
   Pure research: mainly           Mode 1: production of
    addressed at an academic         knowledge by scientists
    audience                         working from single
                                     disciplines and focusing
                                     on theoretical questions
   Applied research: solution       and problems
    of a specific problem           Mode 2: trans-
       Best practice research       disciplinary – production
       Action research              of knowledge through
       Engaged research             direct engagement with
                                     social problems
                                    Mode 1 ½: compromise
                                     position where both
                                     theoretical and practical
                                     work is required
Types of research most likely to be
associated with different levels

                Undergraduate   Postgraduate
                                               Doctoral Level   Funded Projects
                Level           Level

Applied
Research        **              **             *                **
Action/
evaluation      *               **             *                *
Research

Pure Research                   *              ***              ***


   Research involves the collection of
     primary and/or secondary data
The implications for
management researchers
Key Features             Implications for Management Researchers

Management research      Researchers need to be aware of different underlying
methods are eclectic     assumptions.
Managers and employees   Managers will have academic interest in research
are                      process/results and may want to contribute to the direction of
highly educated          work.
Action is a frequent     Research results may both derive from, and lead to, practical
outcome of               action.
management research      Both traditional analytic research and action research are
                         legitimate activities.
The Value of Acquiring
Research Skills
   To gather more information before
    selecting a course of action
   To do a high-level research study
   To understand research design
   To evaluate and resolve a current
    management dilemma
   To establish a career as a research
    specialist
Types of Studies Used to do
Research
   Reporting
   Descriptive
   Explanatory
   Predictive
What is Good Research?
   Following the standards of the
    scientific method
     Purpose clearly defined

     Research process detailed

     Research design thoroughly planned

     Limitations frankly revealed

     High ethical standards applied
What is Good Research? (cont.)
   Following the standards of the
    scientific method (cont.)
     Adequate analysis for decision-

      maker’s needs
     Findings presented unambiguously

     Conclusions justified

     Researcher’s experience reflected
The Manager-Researcher
Relationship
   Manager’s obligations
       Specify problems
       Provide adequate background information
       Access to company information gatekeepers
   Researcher’s obligations
       Develop a creative research design
       Provide answers to important business
        questions
Manager-Researcher Conflicts
   Management’s limited exposure to
    research
   Manager sees researcher as threat to
    personal status
   Researcher has to consider corporate
    culture and political situations
   Researcher’s isolation from managers
When Research Should be
Avoided
   When information cannot be applied to
    a critical managerial decision
   When managerial decision involves
    little risk
   When management has insufficient
    resources to conduct a study
   When the cost of the study outweighs
    the level of risk of the decision
The language of research
   Concepts
    A concept is a generally accepted
       collections of meanings or characteristics
       associated with certain events, objects,
       conditions, situations and behaviours.

   Constructs
       A construct is an image or abstract idea
        specifically invented for a given research
        and/or theory-building purpose.
The language of research
   Definitions
       Operational definitions

   Variables
       Independent and dependent variables
       Moderating variables
       Extraneous variables
The language of research
   Hypothesis
   Theory
   Model
Thinking like a researcher
   Deduction
   Induction
   Combining the two
The Philosophical debates
      NOMINALISM                REALISM




Ontology



Epistemology


Methodology
                             Methods and Techniques

                   VARIOUS 3rd WAYS
Ontology
       A researcher’s Ontology refers to:
           Their philosophical assumptions about the nature of
            reality.


Ontology    Realism               Internal Realism       Relativism        Nominalism


                                  Truth exists, but is   There are many
Truth       Single Truth.                                                  There is no truth.
                                  obscure.               ‘truths’.

                                  Facts are
                                                         Facts depend on
            Facts exist and can   concrete, but                            Facts are all
Facts                                                    viewpoint of
            be revealed.          cannot be access                         human creations.
                                                         observer.
                                  directly.
Epistemology
   A Researcher’s Epistemology is a
    result of their Ontological position and
    refers to:
       their assumptions about the best ways of
        inquiring into the nature of the world and
        establishing ‘truth’.
       Positivism
       Social constructionism
Philosophical assumptions of
positivism
   Independence: the observer must be independent from what is being observed.
   Value-freedom: the choice of what to study, and how to study it, can be determined by
    objective criteria rather than by human beliefs and interests.
   Causality: the aim of the social sciences should be to identify causal explanations and
    fundamental laws that explain regularities in human social behaviour.
   Hypothesis and deduction: science proceeds through a process of hypothesizing
    fundamental laws and then deducing what kinds of observations will demonstrate the truth
    or falsity of these hypotheses.
   Operationalization: concepts need to be defined in ways that enable facts to be
    measured quantitatively.
   Reductionism: problems as a whole are better understood if they are reduced into the
    simplest possible elements.
   Generalization: in order to move from the specific to the general it is necessary to select
    random samples of sufficient size, from which inferences may be drawn about the wider
    population.
   Cross-sectional analysis: such regularities can most easily be identified by making
    comparisons of variations across samples.
Contrasting implications of positivism
and social constructionism

                      Positivism                      Social Constructionism


The observer          must be independent             is part of what is being observed


Human interests       Should be irrelevant            Are the main drivers of science

                                                      Aim to increase general understanding
Explanations          Must demonstrate causality
                                                      of the situation
Research progresses                                   Gathering rich data from which ideas
                      Hypotheses and deductions
through                                               are induced
                      Need to be defined so that      Should incorporate stakeholder
Concepts
                      they can be measured            perspectives
                      Should be reduced to simplest   May include the complexity of ‘whole’
Units of analysis
                      terms                           situations

Generalization
                      Statistical probability         Theoretical abstraction
through

                      Large numbers selected          Small numbers of cases chosen for
Sampling requires
                      randomly                        specific reasons
Methodological implications of
different epistemologies A combination of techniques
                         used to inquire into a specific
                                                             situation.




Ontology              Realism             Internal Realism      Relativism          Nominalism

       Epistemology
                                                                                    Strong
                      Strong Positivism   Positivism            Constructionism
                                                                                    Constructionism
Methodology

Aims                  Discovery           Exposure              Convergence         Invention

Starting points       Hypotheses          Propositions          Questions           Critique

                                          Large surveys;        Cases and           Engagement and
Designs               Experiment
                                          multi-casts           surveys             reflexivity

                      Numbers and         Numbers and           Words and           Discourse and
Data types
                      facts               words                 numbers             experiences


Analysis/             Verification/       Correlation and       Triangulation and   Sense-making;
interpretation        falsification       regression            comparison          understanding

                      Confirmation of     Theory testing        Theory              New insights and
Outcomes
                      theories            and generation        generation          actions
Strengths and weaknesses of
different epistemologies
                    Strengths                                      Weaknesses

Strong Positivism   If it works it can provide highly              Hard to implement social experiments
                    compelling conclusions.                        and to control for alternative explanations
                                                                   of results.
                                                                   Focus may be very narrow.
Positivism          Can provide wide coverage.                     Inflexible and artificial.
                    Potentially fast and economical.               Not good for process, meanings or
                    Easier to provide justification of policies.   theory generation.
                                                                   Implications for action not obvious.
Constructionism     Accepts value of multiple data sources.        Access can be difficult
                    Enables generalizations beyond                 Cannot accommodate institutional and
                    present sample.                                cultural differences.
                    Greater efficiency including outsourcing       Problems reconciling discrepant
                    potential.                                     information.
Strong              Good for processes, and meanings.              Can be very time consuming.
Constructionism     Flexible and good for theory generation.       Analysis and interpretations are difficult.
                    Data collection less artificial.               May not have credibility with policy-
                                                                   makers.
Mapping of other philosophies
against ontologies
 Realism            Internal Realism           Relativism   Constructionism




        Critical realism
       Critical realism                 Hermeneutics
                                       Hermeneutics           Feminism
                                                              Feminism




                                        Pragmatism
                                         Feminism           Postmodernism
                                                            Postmodernism




                Critical theory
                Critical theory
A small group work
   In a municipality close to Oslo they are
    considering closing down a couple of
    small schools. You are assigned to
    determine which is the better, small
    schools or large schools.
    Consider and discuss your
    philosophical approach to the research
    problem

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Business research methods 01 a12

  • 1. Business Research Methods Lecture 1 Introduction
  • 2. Today’s topics  General information  Books, teaching method, exam, portfolio, JMP, etc  Why study Business Research?  What is Business Research?  Research and management  The topics in the course  Research philosophy
  • 3. Evaluation  Portfolio 40%  Written exam 60%
  • 4. Portfolio  Market segmentation  Three parts  1: Presentation of product, design, etc  2: Qualitative part  3: Quantitative part
  • 5. What is Business Research?  A systematic inquiry whose objective is to provide information to solve managerial problems.
  • 6. The Research Process Problem Statement Research Objectives Research Questions Research Design Data Collecting Data Analysis Reporting
  • 7. Why Study Research?  Research provides you with the knowledge and skills needed for the fast-paced decision-making environment
  • 8. The nature of management and business research  Qualitative versus Quantitative  A long standing tension  Pure research versus Applied research  For and against and the practical implications for the choice made  Political  Senior management access and, where possible, support
  • 9. What is management?  The modern use of the term ‘management’ derives from the USA, with the requirement for business and entrepreneurial skills in the early twentieth century when American industries and railroads were developing very rapidly (Lawrence, 1986).  Important subject to be taught in business schools. Early Views:  Establishment of business schools meant greater systemization of techniques and knowledge.  Taylor (1947): rational systems to simply the organization of work and link rewards to effort.  Fayol ([1916] 1950): classified functions – planning, organizing, co-ordinating and controlling.
  • 10. Seven perspectives on management Views of Period of Type of Key features management dominance theory Classical 1910-1950 Functional activities Normative Human Relations 1940-1970 Motivating people and managing change Normative Decision Theory 1950-1970 Optimising decisions Analytic Work Activity 1970s What managers do Descriptive Competencies 1980s Skills required for effective performance Normative Critical 1990-present Social construction and politics Analytic Analytic and Learning 1990-present Managing knowledge and learning Normative
  • 11. Skills and resources for management and business research  Evaluating the skills and qualities required to conduct research:  Knowledge/awareness  Skills and abilities  Personal qualities  The support required, including the importance of supervision  The mind set and elements of creativity: (Austin, 1978)  Favouring those in motion,  Those with a prepared mind, and  individualized action.
  • 12. Levels and outcomes of management research  Pure research: mainly  Mode 1: production of addressed at an academic knowledge by scientists audience working from single disciplines and focusing on theoretical questions  Applied research: solution and problems of a specific problem  Mode 2: trans-  Best practice research disciplinary – production  Action research of knowledge through  Engaged research direct engagement with social problems  Mode 1 ½: compromise position where both theoretical and practical work is required
  • 13. Types of research most likely to be associated with different levels Undergraduate Postgraduate Doctoral Level Funded Projects Level Level Applied Research ** ** * ** Action/ evaluation * ** * * Research Pure Research * *** *** Research involves the collection of primary and/or secondary data
  • 14. The implications for management researchers Key Features Implications for Management Researchers Management research Researchers need to be aware of different underlying methods are eclectic assumptions. Managers and employees Managers will have academic interest in research are process/results and may want to contribute to the direction of highly educated work. Action is a frequent Research results may both derive from, and lead to, practical outcome of action. management research Both traditional analytic research and action research are legitimate activities.
  • 15. The Value of Acquiring Research Skills  To gather more information before selecting a course of action  To do a high-level research study  To understand research design  To evaluate and resolve a current management dilemma  To establish a career as a research specialist
  • 16. Types of Studies Used to do Research  Reporting  Descriptive  Explanatory  Predictive
  • 17. What is Good Research?  Following the standards of the scientific method  Purpose clearly defined  Research process detailed  Research design thoroughly planned  Limitations frankly revealed  High ethical standards applied
  • 18. What is Good Research? (cont.)  Following the standards of the scientific method (cont.)  Adequate analysis for decision- maker’s needs  Findings presented unambiguously  Conclusions justified  Researcher’s experience reflected
  • 19. The Manager-Researcher Relationship  Manager’s obligations  Specify problems  Provide adequate background information  Access to company information gatekeepers  Researcher’s obligations  Develop a creative research design  Provide answers to important business questions
  • 20. Manager-Researcher Conflicts  Management’s limited exposure to research  Manager sees researcher as threat to personal status  Researcher has to consider corporate culture and political situations  Researcher’s isolation from managers
  • 21. When Research Should be Avoided  When information cannot be applied to a critical managerial decision  When managerial decision involves little risk  When management has insufficient resources to conduct a study  When the cost of the study outweighs the level of risk of the decision
  • 22. The language of research  Concepts A concept is a generally accepted collections of meanings or characteristics associated with certain events, objects, conditions, situations and behaviours.  Constructs  A construct is an image or abstract idea specifically invented for a given research and/or theory-building purpose.
  • 23. The language of research  Definitions  Operational definitions  Variables  Independent and dependent variables  Moderating variables  Extraneous variables
  • 24. The language of research  Hypothesis  Theory  Model
  • 25. Thinking like a researcher  Deduction  Induction  Combining the two
  • 26. The Philosophical debates NOMINALISM REALISM Ontology Epistemology Methodology Methods and Techniques VARIOUS 3rd WAYS
  • 27. Ontology  A researcher’s Ontology refers to:  Their philosophical assumptions about the nature of reality. Ontology Realism Internal Realism Relativism Nominalism Truth exists, but is There are many Truth Single Truth. There is no truth. obscure. ‘truths’. Facts are Facts depend on Facts exist and can concrete, but Facts are all Facts viewpoint of be revealed. cannot be access human creations. observer. directly.
  • 28. Epistemology  A Researcher’s Epistemology is a result of their Ontological position and refers to:  their assumptions about the best ways of inquiring into the nature of the world and establishing ‘truth’.  Positivism  Social constructionism
  • 29. Philosophical assumptions of positivism  Independence: the observer must be independent from what is being observed.  Value-freedom: the choice of what to study, and how to study it, can be determined by objective criteria rather than by human beliefs and interests.  Causality: the aim of the social sciences should be to identify causal explanations and fundamental laws that explain regularities in human social behaviour.  Hypothesis and deduction: science proceeds through a process of hypothesizing fundamental laws and then deducing what kinds of observations will demonstrate the truth or falsity of these hypotheses.  Operationalization: concepts need to be defined in ways that enable facts to be measured quantitatively.  Reductionism: problems as a whole are better understood if they are reduced into the simplest possible elements.  Generalization: in order to move from the specific to the general it is necessary to select random samples of sufficient size, from which inferences may be drawn about the wider population.  Cross-sectional analysis: such regularities can most easily be identified by making comparisons of variations across samples.
  • 30. Contrasting implications of positivism and social constructionism Positivism Social Constructionism The observer must be independent is part of what is being observed Human interests Should be irrelevant Are the main drivers of science Aim to increase general understanding Explanations Must demonstrate causality of the situation Research progresses Gathering rich data from which ideas Hypotheses and deductions through are induced Need to be defined so that Should incorporate stakeholder Concepts they can be measured perspectives Should be reduced to simplest May include the complexity of ‘whole’ Units of analysis terms situations Generalization Statistical probability Theoretical abstraction through Large numbers selected Small numbers of cases chosen for Sampling requires randomly specific reasons
  • 31. Methodological implications of different epistemologies A combination of techniques used to inquire into a specific situation. Ontology Realism Internal Realism Relativism Nominalism Epistemology Strong Strong Positivism Positivism Constructionism Constructionism Methodology Aims Discovery Exposure Convergence Invention Starting points Hypotheses Propositions Questions Critique Large surveys; Cases and Engagement and Designs Experiment multi-casts surveys reflexivity Numbers and Numbers and Words and Discourse and Data types facts words numbers experiences Analysis/ Verification/ Correlation and Triangulation and Sense-making; interpretation falsification regression comparison understanding Confirmation of Theory testing Theory New insights and Outcomes theories and generation generation actions
  • 32. Strengths and weaknesses of different epistemologies Strengths Weaknesses Strong Positivism If it works it can provide highly Hard to implement social experiments compelling conclusions. and to control for alternative explanations of results. Focus may be very narrow. Positivism Can provide wide coverage. Inflexible and artificial. Potentially fast and economical. Not good for process, meanings or Easier to provide justification of policies. theory generation. Implications for action not obvious. Constructionism Accepts value of multiple data sources. Access can be difficult Enables generalizations beyond Cannot accommodate institutional and present sample. cultural differences. Greater efficiency including outsourcing Problems reconciling discrepant potential. information. Strong Good for processes, and meanings. Can be very time consuming. Constructionism Flexible and good for theory generation. Analysis and interpretations are difficult. Data collection less artificial. May not have credibility with policy- makers.
  • 33. Mapping of other philosophies against ontologies Realism Internal Realism Relativism Constructionism Critical realism Critical realism Hermeneutics Hermeneutics Feminism Feminism Pragmatism Feminism Postmodernism Postmodernism Critical theory Critical theory
  • 34. A small group work  In a municipality close to Oslo they are considering closing down a couple of small schools. You are assigned to determine which is the better, small schools or large schools. Consider and discuss your philosophical approach to the research problem