Business Research Methods

2. Business Research Methods Theoretical Framework & Hypothesis Development

3. Theoretical Framework • After choosing a broad area of research, completing a literature review, and defining problem, one is now ready to develop a theoretical framework. • A theoretical framework represents your beliefs on how certain phenomena (or variables) are related to each other (a model) and an explanation on why you believe that these variables are associated to each other (a theory). • This theory flows logically from the documentation of previous research in the problem area. • In sum, the theoretical framework discusses the interrelationships among the variables that are deemed to be integral to the dynamics of the situation being investigated.

4. Theoretical Framework • After the theoretical framework, testable hypothesis can be developed and tested through appropriate statistical analysis. • So, a theoretical framework is none other than identifying the network of relationships among the important variables in the study. • Basic steps: • Identify and label the variables correctly • State the relationships among the variables: formulate hypotheses • Explain how or why you expect these relationships

5. Variable • An image, perception or concept that is capable of measurement- hence capable of taking on different values! • The food is excellent; I don’t like this; I think this is wonderful; service quality is not good; There is no accountability; • A variable is anything that varies or changes in value. • The value can differ at various times for the same object or person, or at the same time for different objects or persons. E.g. absenteeism, motivation, production units, etc. • A concept that can be measured on any one of the four types of measurement scale, which have varying degrees of precision in measurement, is called a variable

6. Variables • Difference between Concepts & Variables • Concepts are mental images or perceptions; therefore their meaning will be different from person to person • Variables are measureable, of course with varying degrees of accuracy • Measurability is the main difference • A concept cannot be measured and a variable can be subjected to measurement by crude /refined or subjective/objective units of measurement • Concepts are subjective impressions – their understanding may differ from person to person – which, if measured, would cause problems in comparing responses. • Discuss Examples in class!!!!

7. Types of Variables • Main types of variables: • Dependent variable (criterion, outcome, result or effect variable) • Independent variable ( predictor or cause variable) • Moderating variable • Mediating variable / Intervening variable

8. Types of Variables • Connecting or linking variables (4) • Cause • Effect • Connect or link • Outcome Variables (2) • Change variables (1) • Variables that effect the relationship (3)

9. Types of Variables • In-Dependent Variables • The cause supposed to be responsible for bringing about change(s) in a phenomenon or situation. • Dependent Variables • The outcome of the change(s) brought about by introduction of an independent variable • Moderating Variables • Factors may affect changes in the dependent variable; these factors not measured in the study, may increase or decrease the magnitude or strength of the relationship between dependent and independent variables • Mediating Variables • Confounding variables; links the independent and dependent variables. The cause variable will have the assumed effect only in the presence of an intervening variable

10. Dependent & Independent variable • Dependent variable (DV) • Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable. • It is the main variable which lends itself for investigation. • A study may have more than one DV (multivariate statistical analysis) • Independent variable (IV) • It is the variable which Influences the DV in either positive or negative way. That is when IV is presented, the DV is also present, & with each unit of increase in the IV, there is an increase or decrease in the DV also.

11. Example • Relationship between smoking(IV) and cancer (DV) • A manager is considered about sales of a new product launched after test marketing (S=DV) • A vice president is concerned that employees are not loyal to the organization and turnover rate is high (Org. commitment=DV) • Now respond • A marketing manager wonders why the recent advertising strategy does not work. What would be the dependent variable? • A researcher wants to increase the performance of organizational members? What would be the dependent variable here? • Relationship between counseling service on marriage problems. What would be the dependent variable here?

12. Example • Successful new product development has an influence on the stock market price of the company. The more successful the new product, higher will be the stock market. • So, the success of the new product is IV and stock market price is DV. • Managerial values govern the power distance between superiors and subordinates. Here power distance is variable of interest thus is DV and managerial values are IV. • Now respond • A manager believes that good supervision would increase production level of workers. What would be the IV?

13. Moderators • Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable. • Presence of this variable modifies the original relationship between DV and IV.

14. Mediating variable • surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it.

15. Exercise Give the hypotheses for the following framework: Customer switching Servicequality Switching cost

16. Exercise Give the hypotheses for the following framework: Customer satisfaction Customer switching Servicequality

17. Thanks to Allah