RESEARCH

METHODOLOGY
(Business Research Methods)
Week 1

29 August 2005

MBA III (Research Methodology)

Course

How This Course Will Be Conducted

Comprehensive introduction to Research Methodology (Business Research
Methods)
Knowledge acquisition and application of subject matter to real-life situations
Course literature (see the must read section)
Use of multimedia visual aids (MS PowerPoint slides)
Reference to case studies when desirable
Encouragement of questions, comments and constructive criticism from course
participants
Analytical and critical thinking, inquisitiveness as well as common sense from
course participants also expected

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MBA III (Research Methodology)

Course

The DOs and DONTs Catalogue for Course Participants

listen attentively
be considerate and amenable
be inquisitive, analytical and critical
in your approach to learning
research methodology
mention if you do not understand
something and seek clarification
read the prescribed course
literature. It is the basic
requirement for comprehending
research methodology and
succeeding in this course
start reading from the beginning
of the course and not towards the
end!
29 August 2005

be late to class. We start at 6 PM

PM sharp!
distract the attention of other
course participants
use mobile phones or send SMS
messages in the class
follow a rote-learning approach.
There is zero tolerance for this in
all classes taught at CIIT!
feel afraid to bring up any relevant
point for discussion
hesitate to visit me at my office,
individually or as a group, if you
have a course-related problem and
seek counseling in this regard

MBA III (Research Methodology)

Course

Fundamental Course Objectives

To acquaint course participants with all salient aspects of research methodology in accordance with the
current body of scientific literature on this challenging, interesting and indepensible area of
management science

To show that the subject of research methodology has matured into a substantive body of knowledge,
an indepth understanding of which is crucial for ensuring the success of commercial or non-commercial
organizations

To show and encourage the course participants that the theoretical knowledge acquired in this course
can - with the appropriate context-related modifications - be applied to numerous real-life situations in
business, public-sector and non-profit enterprises

To stimulate interest in the business research field as a prospective career field

29 August 2005

MBA III (Research Methodology)

Course

Demands on Course Participants

The essence of knowledge is having it to apply it - Confucius
Acquisition and careful application of knowledge
Analytical and critical thinking, innovation, inquisitiveness
Holistic perspective

Quizzes &
Sessionals

Project Work
(each course participant is expected to show that he or she is able to
apply the research skills learned in this course)

Examination
(case study in which each course participant is expected to demonstrate
his or her indepth understanding of research methodology and apply the knowledge
acquired in the course to a
real-life situation)

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(proof that the course participant is familar with the essentials

of research methodology)

MBA III (Research Methodology)

Course

Important Information for Course Participants (1)

You MUST read the course literature from the beginning of the semester. Relying
on the PowerPoint slides is NOT sufficient! The purpose of these slides is to provide
you with a broad and general introduction to research methodology. Kindly note
that the slides are intended as a supplement to, and NOT as a substitute for
the prescribed course literature
The prescribed course literature will be used as a reference for the quizzes,
sessionals and final examination. Failure to read and understand the course
literature could mean that a course participant will fail the course! An automatic
passing grade in this course is NOT guaranteed, rather, a course participants
marks will reflect his or her effort and performance in the subject

29 August 2005

MBA III (Research Methodology)

Course

Important Information for Course Participants (2)

The project work to be undertaken in this course will be chosen by the course instructor and

must be undertaken by the course participant according to the project guidelines which will
be distributed in paper form seperately. It is essential that primary data is collected,
analysed, evaluated and recorded by the course participant in his or her project report.
Plagiarism will NOT be tolerated! If caught, zero marks will be given
The course lectures, discussions etc. will be conducted exclusively in english! The use of

Urdu language in this course is strongly discouraged

Specific questions on the subject of research methodology may be asked from candidates in

the Viva oral examination at the end of their MBA programme. Failure to answer these
questions will definitely result in a deduction of examination marks

29 August 2005

MBA III (Research Methodology)

Course

Course Highlights

Introduction to research
methodology

Research Terminology and the

Scientific Method

Designing and implementing a

research project

Ethics in Research

Types of Research

Measurements in Research

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Primary and Secondary Data

Analyzing primary and

secondary data (quantitative
techniques)

Communicating Research
Results

Undertaking Research Project by

the course participants

MBA III (Research Methodology)

Course

Use of Multimedia Visual Aids in this Course

All MS PowerPoint course presentation slides, the
course outline, quizzes, the two sessionals and final
examination (after completion) supporting
eDocument files and the course participants project
reports will be uploaded to the yahoo webgroup CIIT
Research Methodology, from where they will be
accessible via Internet to all course participants and
any other scholars or persons in Pakistan or overseas
who are interested in this CIIT Research
Methodology course
29 August 2005

MBA III (Research Methodology)

Course

What is Business Research?

Business Research may be defined as the
systematic and objective process of gathering,
recording and analyzing data for aid in making
business decisions (Zikmund, Business Research Methods,
2002, p. 6)
Systematicness and Objectivity are its
distinguishing features of Business Research,
which is important tool for managers and
decision-makers in corporate and non-corporate
organizations
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Course

10

When is Business Research Used?

Typically, business research methods are

used in situations of uncertainty, that is,
when decision-makers face two or more
courses of action and seek to select the
best possible alternative under the
circumstances. Business Research is
hence aimed at improving the quality of
decision-making which, in turn, benefits
the organization and helps ensure its
continuity and efficiency
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Course

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Typical Users of Business Research Methods

Businesses and Corporations
Public-Sector Agencies
Consulting Firms
Research Institutes
Non-Governmental Organizations
Non-Profit Organizations
Independent Researchers and Consultants
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Common Business Research Methods &

Techniques

Surveys
Interviews
Observation
Experiments
Archival and Historical Data
Qualitative Analysis
Quantitative Analysis

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MBA III (Research Methodology)

Course

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Fields Where Business Research is Often Used (1)

General Business Conditions and
Corporate Research

Short- & Long-Range Forecasting,

Business and Industry Trends
Global Environments
Inflation and Pricing
Plant and Warehouse Location
Acquisitions
Management and Organizational
Behaviour Research

Total Quality Management

Morale and Job Satisfaction
Leadership Style
Employee Productivity
Organizational Effectiveness
Structural ssues
Absenteeism and turnover
Organizational Climate

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Financial and Accounting Research

Forecasts of financial interest rate

trends,
Stock,bond and commodity value
predictions
capital formation alternatives
mergers and acquisitions
risk-return trade-offs
portfolio analysis
impact of taxes
research on financial institutions
expected rate of return
capital asset pricing models
credit risk
cost analysis

MBA III (Research Methodology)

Course

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Fields Where Business Research is Often Used (2)

Information Systems Research

Sales and Marketing Research

Market Potentials
Market Share
Market segmentation
Market characteristics
Sales Analysis
Establishment of sales quotas
Distribution channels
New product concepts
Test markets
Advertising research
Buyer behaviour
Customer satisfaction
Website visitation rates

Corporate Responsibility Research

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Knowledge and information needs

assessment
Computer information system use and
evaluation
Technical suppot satisfaction
Database analysis
Data mining
Enterprise resource planning systems
Customer relationship management
systems

Ecological Impact
Legal Constraints on advertising and
promotion
Sex, age and racial discrimination / worker
equity
Social values and ethics

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Course

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Selected Examples of Real-Life Situations in

Which Business Research Methods are Used
A firm wants to produce and market a new product but first wants to
ascertain if there is a potential consumer demand for this product in markets
x,y and z
a multinational firm wants to establish a production facility in another
country after determining its technical and economic feasibility
A government agency wants to ascertain the satisfaction level of its
employees, the causes for any possible discontent, and propose a scheme
for enhancing this level
A financial institution wants to invest in commodities and commissions a
study to determine the past trends and forecast future returns in a portfolio
of commodities
The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan
to redefine his organizations priorities

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Basic and Applied Research

Basic Research aims to expand the frontiers of science and knowledge by
verifying or disproving the acceptability of a given theory or attempting to
discover more about a certain concept (non-specificity)
Example: How does motivation affect employee performance?

Applied Research focusses on a real-life problem or situation with a view to

helping reach a decision how to deal with it (Specificity)
Example: Should Corporation X adopt a paperless office environment?

29 August 2005

MBA III (Research Methodology)

Course

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Science and the Scientific Method

Science has been defined as the methodological and
systematic approach to acquisition of new knowledge
(Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of
Research Design and Methodology, John Wiley & Sons, 2005, p. 4)
The scientific method, which has evolved since the 13 th
century, concerns the set of tools, techniques and
procedures used by basic and applied researchers to
analyze and understand phenomena and prove or
disprove prior conceptions

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MBA III (Research Methodology)

Course

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The Essence of the Scientific Method

Characteristics of the Scientific Method

Basic
Research
Applied
Research

Scientific
Method

Objectivity
Systematic Analysis
Logical Interpretation of Results

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General Laws

Information or
Ideas for alternative
Courses of action
MBA III (Research Methodology)

Elements of the
Scientific Method

Empirical Approach
Observations
Questions
Hypotheses
Experiments
Analysis
Conclusion
Replication

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The Value of Business Research for Managers (1)

Reduction of uncertainty and improvement in the

quality of decision-making with several
consequent advantages (e.g. strategic,
operational) and benefits for organizations
Business Research Methods can be employed in
each of the following four stages:
(1) Identification of problems and/or opportunities
Useful for strategy planning, analysis of internal and
external organizational environment
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The Value of Business Research for Managers (2)

(2) Diagnosing and Assessment of problems and/or
opportunities
Its purpose is to gain insight into the underlying reasons
and causes for the situation. If there is a problem, it
asks what happened and why? If there is an
opportunity, it seeks to explore, clarify and refine the
nature of the opportunity and, in the case of multiple
opportunities, seeks to set priorities
(3) Selection and Implementation of Courses of Action
After alternative courses of action have been
determined, selection of the best possible course.
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The Value of Business Research for Managers (3)

An important consideration is the quality of
forecasting which is an essential tool of research
(4) Evaluating the Course of Action
Business Research Methods are used after a course
of action has been implemented in order to
determine whether activities have been properly
implemented and have accomplished what they
intended to do

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The Value of Business Research for Managers (4)

Evaluation Research It is the formal objective measurement
and evaluation of the extent which an activity, project or
programme has achieved its goal, and the factors which
influence performance (e.g. audits). It is also the formal
objective measurement and evaluation of the extent to which
on-going activities, projects or programmes are meeting their
goals (performance-monitoring research)
Examples of performance-monitoring research:
(1) Are railway passengers satisfied with the level of service
the railway company is providing? If not, then research
may need to be undertaken to ascertain the reasons for
customer dissatisfaction and propose corrective measures

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The Value of Business Research for Managers (5)

(2) What are the trends in retail and wholesale sector?
Can research suggest new ways to improve efficiency
in purchase transactions?

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When Should Business Research be Undertaken?

Is sufficient time
available?
Yes
Is information
inadequate?

NO

Do not
undertake Business Research

Yes
High importance
of decision?
Yes
Research benefits
greater than costs?
29 August 2005

Undertake Business Research

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Course

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Value and Costs of Undertaking Business

Research
VALUE

COSTS

Decreased Uncertainty

Research Costs

Higher Likelihood of
Correct Decisions

Delay in Making
Business Decisions

Better Business
performance

Disclosure of
Information to Rivals

Higher Profits

Possibility of Error

Better Reputation

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The Building Blocks of Research

KNOWLEDGE

Blend of information, experience and in-sights that

provides a framework that can be thoughtfully evaluated
when assessing new information or evaluating
relevant situations

INFORMATION

Determination of relationship amongst data with a

view to facilitating understanding of the phenomena,
their relationships and decision-making
(e.g. past and predicted future sales trends)

DATA

Measurements of phenomena
(e.g. sales statistics of a department store)

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Demands on Data & Information

Relevance to the problem or situation at hand
Must be available in a timely manner to the right person (manager or
decision-maker)
Completeness
Accuracy
Accessibility
Affordability
Integrateability into a broader global information or decision-support
system

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Global Information Support Systems

A Global Information System may be defined as an
organized collection of computer hardware,
communication equipment, software, data, and
personnel designed to capture, store, update, manipulate,
analyze, and immediately display information about
worldwide business activities
A Global Information System is a tool for providing past,
current and projected information on internal operations
and external activity. It organizes and integrates data from
production, operations, marketing, finance, accounting
and other business functions
(Zikmund, p. 22)
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Decision-Support System
A computer-based system that helps decision makers
confront problems through direct interaction with
databases and analytical software programs
The purpose of a decision support system is to store data
and transform them into organized information that is
easily accessible to decision-makers
Decision-Support Systems are integrated in Global
Information Systems. They are aimed usually for assisting
managers and decision-makers in specific organizational
business units (e.g. divisions, departments and functional
areas) by providing organized and adaptable information
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Databases & Software

Databases are collections of raw data which
have been arranged in a logical manner and
which can be stored and processed
electronically
Software are programmes that allow complex
operations to be undertaken on data and which
give information for managers and decisionmakers
Data Warehousing & Data Mining
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Data and Information Sources for Business

Researchers (1)
Internal Records
Example: Data about costs, shipments, inventory, sales, and other aspects
of regular operations which are collected from various functional areas of an
organization
Proprietary Business Research
Example: New data and information from projects which are undertaken ad
hoc to study specific company problems
Business intelligence Systems
Example: Information about nonrecurring developments in the external
business environment stemming from a network of sources and regular
procedures
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Data and Information Sources for Business

Researchers (2)
On-Line Databases
Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones
News Retrieval Services, CompuStat
Internet
Examples: World Wide Web search engines (Google, Yahoo, Altavista,
Lycos, Excite etc.)
All Other Sources
Examples: Research Institutions, Libraries, Books, Journals, Periodicals,
Newspapers, Chambers of Commerce and Industry

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Business Research in the International Context

Business Research is being increasingly applied in an international
context in the wake of globalization and the consequent freedom of
movement of the resources of labour, capital and information of
businesses and corporations:

Overseas market potential

Joint ventures and relocating production lines overseas

Framework considerations for investment and trade (e.g. culture,

legal environment, security, physical infrastructure, availability and
quality of human resources, logistics, political stability, trade and
investment incentives)

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Data and Information Sources for Business

Researchers (Pakistan)

Federal and provincial ministries of commerce, industries and production

Federal, provincial and city Chambers of Commerce and Industry

State Bank of Pakistan, Pakistan Banking Council, local and foreign banking
institutions

Stock Exchanges

National Investment Board

Export Promotion Bureau

Manufacturers, Traders and Exporters Associations

Research Institutes (e.g. Pakistan Institute of Development Economics)

Newspapers and Magazines (e.g. Business Recorder, Pakistan and Gulf

Economist)

Business and Trade Directories

Internet (e.g.: www.forexpk.com)

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Business Recorder
(www.brecorder.com)

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