Está en la página 1de 27
Chapter 2 Theory Building Research Methodology Mrs. Suprika V Shrivastava, Assistant Professor, SCIT
Chapter 2
Theory Building
Research Methodology
Mrs. Suprika V Shrivastava, Assistant Professor, SCIT
Introduction Business research is based on sound reasoning. This process involves induction, deduction, observation, and hypothesis
Introduction
Business research is based on sound reasoning.
This process involves induction, deduction, observation, and
hypothesis testing combined in a systematic way.
Essential tenets of scientific research are:
Direct observation of phenomena.
Clearly defined variables, methods, and procedures.
Empirically testable hypotheses.
The ability to rule out rival hypotheses.
Statistical rather than linguistic justification of conclusions.
The self-correcting process.
2
Introduction Another important term is empirical testing or empiricism: to denote observations and propositions based on
Introduction
Another important term is empirical testing or empiricism: to
denote observations and propositions based on sensory
experience and/or derived from such experience by methods of
inductive logic, including mathematics and statistics term.
Researcher uses an approach to describe, explain, and make
predictions based on information gained through observations.
Based on the predictions, managers need to take decisions.
Critical thinking for managers : reasoning for whatever you say.
Two types of reasoning :deduction and induction
3
Deductions/Induction Arguments are of two types: deduction and induction Deduction: is a form of argument, where
Deductions/Induction
Arguments are of two types: deduction and induction
Deduction: is a form of argument, where the conclusions must
necessarily follow from the reasons given.
There is a strong relation between reason and conclusions.
For deduction to be correct, it must be both true and valid.
Premises (reason) given for the conclusion must agree with
the real world (true).
The conclusion must necessarily follow from the premises
(valid)
The deduction is valid if it is impossible for the conclusion to be
false if the premises are true.
4
Deductions/Induction E.g. 1: All managers are human beings. (Premises 1) Steve is a manager (Premises 2)
Deductions/Induction
E.g. 1:
All managers are human beings. (Premises 1)
Steve is a manager (Premises 2)
Steve is a human being (conclusion)
E.g. 2:
All men are mortal. (premise 1)
Socrates was a man. (premise 2)
Socrates was mortal. (conclusion)
E.g. 3: Availability of jobs in urban areas causes the migration of
people.
Based on the established facts – you have some conclusions
5
Induction Radically different; there is no strength of relationship between reasons and conclusions in induction. You
Induction
Radically different; there is no strength of relationship between
reasons and conclusions in induction.
You draw conclusion from one or more particular facts or
pieces of evidence.
The conclusions supports facts, and the facts supports
conclusions.
An inductive argument is one in which the premises are
supposed to support the conclusion in such a way that if the
premises are true, it is improbable (unlikely to be true or to
happen) that the conclusion would be false.
Thus, the conclusion follows probably from the premises and
inferences. (source:
http://atheism about com/od/criticalthinkin /a/deductivear
.
.
.
htm)
6
Induction E.g. 1: Socrates was Greek. (premise) Most Greeks eat fish. (premise) Socrates ate fish. (conclusion)
Induction
E.g. 1:
Socrates was Greek. (premise)
Most Greeks eat fish. (premise)
Socrates ate fish. (conclusion)
In this example, even if both premises are true, it is still
possible for the conclusion to be false (maybe Socrates was
allergic to fish, for example). (source:
http://atheism.about.com/od/criticalthinking/a/deductivearg.htm)
E.g.:
A stock broker observes price of gold rising with hijacking,
military attacks. (facts)
Stock broker may induce from empirical observations that the
price of gold is related to political stability. (conclusion). (zikmund)
7
Induction E.g.: sales did not increase during or after the promotional campaign. Conclusion: promotional campaign was
Induction
E.g.:
sales did not increase during or after the promotional campaign.
Conclusion: promotional campaign was poorly executed, sales will not
increase.
The conclusion is only a hypothesis
There may be other explanations also.
Retailers did not have sufficient stock to fulfill the customer’s request.
A hurricane came which closed all the retail shops.
A strike by the employees.
Inductive conclusion is an inferential jump beyond the evidence presented-
one conclusion explains the fact that no sale increase happened.
Other conclusions may also do so. Or may be non of these may support the
fact.
There is always a doubt in the findings from induction.
E.g.: mobile device usage in young generation.
8
Deductions Vs Induction With deductive arguments, our conclusions are already contained, even if implicitly, in our
Deductions Vs Induction
With deductive arguments, our conclusions are already
contained, even if implicitly, in our premises.
Strengthen the known facts.
This means that we don't arrive at new information — at best, we
are shown information which was obscured or unrecognized
previously. Thus, the sure truth-preserving nature of deductive
arguments comes at a cost.
Inductive arguments, on the other hand, do provide us with
new ideas and thus may expand our knowledge about the world
in a way that is impossible for deductive arguments to achieve.
Thus, while deductive arguments may be used most often with
mathematics, most other fields of research make extensive use
of inductive arguments.
9
Combining Induction and Deduction Inductive and deductive reasoning are used together in research. Induction occurs when
Combining Induction and Deduction
Inductive and deductive reasoning are used together in research.
Induction occurs when we observe a fact and ask an explanation for
it.
We answer the question and give tentative explanation for the same
(hypothesis).
Deduction is the process by which we test whether the hypothesis is
capable of explaining the fact.
E.g.:
Hypothesis : there is increase in the usage of mobile devises
amongst youth by 20% in last 2 years.
Secondary data : of last 2 years to prove that there is an increase in
the usage of mobile devices.
Primary data : conduct a survey and get some observations. This
will help us to infer that there is an increase in the mobile device has
taken place ..
10
Combining Induction and Deduction This is also called double movement of reflective thought (Dewey). A typical
Combining Induction and Deduction
This is also called double movement of reflective thought (Dewey).
A typical way of carrying research : we develop multiple
hypothesis which can explain a question. We then design a
study to test all the hypothesis at once. We test the hypothesis
and present the results.
11
Combining Induction and Deduction Premise 1: Use of mobile devices is increased in young people Premise
Combining Induction and Deduction
Premise 1: Use of mobile devices is increased in young people
Premise 2: sale of desktop has reduces
Mobile has replaced desktop for most of the activities.
Premises 1: Consumption of dr ugs is increased in IT youth.
Premises 2: Affluency makes IT youth spend more on drugs
Premises 3: IT has increased lot of money which is making IT
people spend more.
IT is causing youth spend more on drugs.
12
The Research Language Concepts A concept is a generally accepted collection of meaning or characteristics associated
The Research
Language
Concepts
A concept is a generally accepted collection of meaning or
characteristics associated with certain events, objects,
conditions, situations, and behaviors.
Classifying and categorizing objects or events that have a
common characteristics beyond any single observation creates
concepts.
E.g.: a man is walking, running, skipping or hopping are
concepts related to movements.
Concepts are building blocks. In organizational theory:
leadership, productivity, morale are concepts.
In the theory of Finance: gross national product, asset, inflation
are concepts (zikmund).
13
The Research Language Concepts In research, we devise hypothesis using concepts. We devise measurement concepts by
The Research
Language
Concepts
In research, we devise hypothesis using concepts.
We devise measurement concepts by which we test the
hypothesis.
While devising such and instrument, one must take care
We conceptualize clearly.
Others understand the concepts we use.
E.g.: we might want to ask about family income.
We need to narrow down the concept by specifying
Time period (weekly, monthly, annually)
Before and after taxes
Income in kind: free rent, employee discount, food stamps
Measuring attitude of people: further carefully selected concepts
are required.
14
The Research Language Constructs Concepts have progressive levels of abstraction: that is degree to which the
The Research
Language
Constructs
Concepts have progressive levels of abstraction: that is degree
to which the concepts does or does not have something
objective to refer to.
Table is an objective concept. The characteristics of table are
clear.
An abstraction like ‘Personality’ is difficult to visualize.
Such abstract concepts are called constructs.
A construct is an image or abstrac t idea specifically invented for
a given research or theory building purpose.
We build constructs by combining more concrete concepts,
especially when the idea or image we intend to convey is not
subject to direct observation.
15
The Research Language Constructs E.g.: job redesign :presentation quality, language skills, job interest Presentation quality :
The Research
Language
Constructs
E.g.: job redesign :presentation quality, language skills, job interest
Presentation quality : composed of format accuracy, manuscript
errors and keyboard errors (more concrete and easy to measure)
Language skills : vocabulary ,syntax and spelling.
Job interest is most difficult to measure. Will be composed of more
concepts and constructs.
All the three together will help to analyze job redesign required.
If the relation between these concepts and constructs can be
shown, we will form a conceptual scheme.
Definitions: can be used to reduce the confusion about the meaning
of concepts amongst various parties involved.
Two types of definitions
Dictionary definitions: concept defined with a synonym
O erational definition: definition stated in terms of s ecific criteria
p
p
for testing or measurement. (important for research)
16
The Research Language Definitions Operational definition: the definition must specify the characteristics and how they are
The Research
Language
Definitions
Operational definition: the definition must specify the
characteristics and how they are to be observed.
E.g.: classification of a college student : freshman, sophomore,
junior or senior. (Definition)
Operational definition helps you to determine, in which class a
student should fall.
Freshman : Fewer than 30 hours’ credit
Sophomore : 30-59 hours credit
Junior : 60- 89 hours’ credit
Senior : 90 or more hours’ credit.
A more abstract concept : consumer socialization: will be defined
in terms of skills, knowledge, and attitude or we may scale that
has alread
y
develo ed and validated b
p
y
someone
.
17
The Research Language Variables Variable: is a symbol of an event, characteristic, trait, or attribute that
The Research
Language
Variables
Variable: is a symbol of an event, characteristic, trait, or attribute
that can be measured and to which we assign categorical
values.
Variables can be classified as
Dichotomous variables: have only two values (0 or 1):
employed, unemployed ; male, female
Variables may take multiple values: race, religion, various
models of a machine.
Variables may also be classified as:
Discrete: can have only certain values
Continuous: variables can take values in a given range
18
The Research Language Variables Another classification Independent variable: is the predictor variable, which causes an effect
The Research
Language
Variables
Another classification
Independent variable: is the predictor variable, which causes an
effect on the dependant variable.
Dependent variable: is the measured, predicted or monitored
variable. It is affected by the manipulation of the independent
variable.
E.g.: a switch from salary compensation (IV) will lead to
increased sale productivity (DV) per worker.
Moderating Variable:
In various relationships, there is an IV and a DV.
Moderating variable is a second dependent variable that is
included because it is believed to have a significant contributory
or contingent effect on the originally stated IV-DV relationship.
A switch to commission from commission to salary compensation
system (IV) will lead to increased sales productivity (DV) per
worker, especially among young workers (MV)
19
Variables Intervening variable (IVV) : that factor which theoretically affects the observed phenomenon but cannot be
Variables
Intervening variable (IVV) : that factor which theoretically affects
the observed phenomenon but cannot be seen, measured, or
manipulated.
Proposition : Intelligent workers produce less defective product.
Boredom (IVV)
For causation: one should be able to identify the Intervening
variable
20
Proposition and Hypothesis Proposition: a statement about observable phenomenon (concepts) that may be judged as true
Proposition and Hypothesis
Proposition: a statement about observable phenomenon
(concepts) that may be judged as true or false.
When a preposition is formulated for empirical testing , we call it
a hypothesis.
A hypothesis is tentative in nature.
Hypothesis have been described as statements in which
variables are assigned to cases.
Brand Managers in company Z (cases) have a higher–than–
average achievement motivation.
Descriptive Hypothesis: they state the existence, size, form or
distribution of some variable.
E.g.: In Detroit (case)our potato chip market stands 13.7 percent.
Eighty percent of Com pany Z stockholders (cases) favor
increase in company’s cash dividend (variable)
21
The Research Language Relational hypothesis Relational Hypothesis: these statements describe relationship between two variables with respect
The Research
Language
Relational hypothesis
Relational Hypothesis: these statements describe relationship
between two variables with respect to some case.
Correlation Hypothesis
States that the variables occur together in some specified
manner without implying that one causes the other.
There are weak claims about the causal linkages.
E.g.: Women under 35 purchase fewer units of our product
than
women who are 35 years of age or older.
People in Atlanta give the president a more favorable rating
than do people in St Louis.
22
Relational hypothesis Causal Hypothesis An increase in family income (IV) leads to an increase in the
Relational hypothesis
Causal Hypothesis
An increase in family income (IV) leads to an increase in the
percentage of income saved (DV)
Exposure to company’s message concerning industry
problems (IV) leads to more favorable attitudes (DV) by
employees towards the company.
In causal hypothesis : direction is important.
Family income leads to saving.
23
Theory Theory is a set of systematically interrelated concepts, definitions, and propositions that are advanced to
Theory
Theory is a set of systematically interrelated concepts,
definitions, and propositions that are advanced to expl ai n and
predict phenomena (facts).
Difference between Hypothesis and Theory is one of degree of
complexity and abstraction.
Theories tend to be more complex, be abstract, involves multiple
variables.
Hypothesis : tends to be more simple, limited variable
statements involving concrete instances.
A theory is a set of systematically interrelated concepts,
definitions, and propositions that are advanced to explain and
predict phenomenon (facts)
24
The Research Language Theory E.g.: Product life cycle is a theory in marketing A product has
The Research
Language
Theory
E.g.: Product life cycle is a theory in marketing
A product has 4 stages :(introduction, growth, maturity, decline).
In each stage there are many concepts, constructs, and
hypothesis. Definitions are also required for communicating the
claims of the theory and its consistency in testing to reality.
Growth stage: company spends heavily on advertising and
promotion to create the awareness of the product. Focus here is
to promote the primary demand (concept).
High pricing may reflect skimming (concept) to help the company
recover the developmental costs.
Or the product manager may use low pricing or penetration
pricing (concept)
25
The Research Language Theory In the growth stage, the sale increases rapidly because the customers are
The Research
Language
Theory
In the growth stage, the sale increases rapidly because the
customers are repeatedly buying the product. There are
repeated customers (concept).
If the company is not able to attract repeated customer ’s, it
usually means, death of the product (proposition).
The maturity stage is a good time for a company to generate
cash (proposition). At this stage, the cost of development of the
product and establishing in the market is paid and its time to
make profits.
Firm now uses extension strategies (construct) to delay the
decline stage of the product.
26
Theory In the decline stage, “the product will consume disproportionate share of management time and resources
Theory
In the decline stage, “the product will consume disproportionate
share of management time and resources relati ve to their
potential future worth.” (Hypothesis)
To make the hypothesis fully testable, we need the operational
definitions of disproportionate share, tie, resources, and future
worth.
The challenge is to build more comprehensive theories to explain
and predict how modifying the product and other variables will
help the firm.
27