260 likes | 307 Views
The Role of Business Research Theory Building. The scope of business research. What is “business” anyway??? Is research applicable to all business units/functions?. Business research defined.
E N D
The scope of business research What is “business” anyway??? Is research applicable to all business units/functions?
Business research defined • the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions
PURE expand the limits of knowledge not aimed at solving a specific pragmatic problem theory development APPLIED aimed at solving a specific pragmatic problem “action research” is one type Types of research
Applications • identifying problems or opportunities • diagnosis and assessment • selecting and implementing a course of action • evaluating a course of action • Evaluation • Performance monitoring
Research isn’t always the answer! • Before doing research consider the following: • time constraints • availability of data • nature of the decision • has the decision already been made? • does the cost outweigh the benefit?
Nature of truth • knowledge is socially constructed
Sources of Knowledge • Experience • but may not be systematic • may not be universal • Authority • custom • tradition • but how does authority know?
SOURCES OF KNOWLEDGE • Experience • Authority • Deductive Reasoning • Inductive Reasoning
SOURCES OF KNOWLEDGE • Experience • Authority • Deductive Reasoning • Inductive Reasoning • Scientific Method • inductive - deductive
Theory Formulation • Deductive Reasoning • The logical process of deriving a conclusion from a known premise or something known to be true. • We know that all managers are human beings. • If we also know that John Smith is a manager, • then we can deduce that John Smith is a human being. • Subject to error!
Inductive Reasoning • The logical process of establishing a general proposition on the basis of observation of particular facts. • All managers that have ever been seen are human beings; • therefore all managers are human beings. Subject to error too!
THEORY • is a system for explaining a set of phenomena by specifying constructs and the laws that relate these constructs to each other.
Purpose of Theories • to summarize and organize existing knowledge • to explain observed events and relationships • to predict the occurrence of unobserved events and relationships • to stimulate further inquiry • identifying areas • providing leads
What makes a good theory? • Validity • It fits the facts • Generalization • Makes predictions about future or other events • Replication • It can be repeated with similar findings
Constructs • In management we often use concepts or constructs as variables • examples: • leadership • social responsibility • GNP • agency • honesty • efficiency
Abstraction • Concepts abstract reality • Are expressed in words that refer to various events or objects • Vary in degree of abstraction • Research operates at abstract and empirical level linking concepts together as we begin the journey to construct theory.
Propositions • Concepts are the basic building blocks • Propositions propose the linkages between these concepts Level of abstraction theory propositions concepts
From proposition to hypothesis Proposition Concept A: Punishment Concept B: Attendance Abstract Level Yelling at students Increases attendance by 50% Emperical Level Hypothesis
A hypothesis is a proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. • A variable is anything that… varies! • Make sure that you define, or operationalize all your variables… an operational definition • Null hypothesis
What makes a good hypothesis? • precise • specifies variables to measure • specifies relationships between variables
A poor hypothesis • Students spend too much money on fast food.
A better hypothesis • Students with incomes of less than 10,000 per year spend a higher proportion of their income in fast food restaurants than the established mean for the general population.