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Research Methods for Business

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Research Methods for Business

A Skill Building Approach Eighth Edition

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Chapter 2

The scientific approach and alternative approaches to investigation

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Hallmarks of scientific research:

 Hallmarks or main distinguishing characteristics of scientific (good) research:

– Purposiveness – Rigor

– Testability – Replicability

– Precision and Confidence – Objectivity

– Generalizability – Parsimony

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Hypothetico-Deductive Research

 The Seven-Step Process in the Hypothetico- Deductive Method

– Observation

– Preliminary information gathering – Theory formulation

– Hypothesizing – Data collection – Data analysis

– Interpretation of data

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Deduction and Induction

Deductive research: a process where one starts with a general theory (often in the form of a hypothesis or proposition) and then collects specific data to test this theory.

– Hypothesis testing

Inductive research: a process where we observe specific phenomena and on this basis arrive at general conclusions.

– Counting white swans

Both inductive and deductive processes are often used in (fundamental and applied) research.

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Alternative approaches to what makes good research

 Positivism

 Constructionism

 The middle ground:

– Critical realism – Pragmatism

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Positivism

Scientific research is the way to get to the truth (which is objective)

Role of researcher: to develop theory

Rigour and replicability, reliability, and generalizability

Key approach: experiment

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Constructionism

 The world as we know it is fundamentally mentally constructed

 Aim to understand the rules people use to make sense of the world, to describe

 Research methods are often qualitative in nature

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Critical realism

 There is an external reality but we cannot always objectively measure this external reality

 Replication and building on the research of others is a way to move closer to the truth

 The critical realist is critical of our ability to understand the world with certainty

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Pragmatism

Does not take a particular position on what makes good research

Research on both objective and subjective phenomena can produce useful knowledge

Relationship between theory and practice

Purpose of theory is to inform practice

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A pragmatic approach

 A pragmatic approach is often used to help the researcher to produce useful knowledge that

informs thinking, decision making, and/or actions of managers.

 From a pragmatic perspective, the research effort is closely related to the type of problem that has triggered the research process.

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‘Fixing situations that are broken

 A change process is often set in motion when a

manager notices that the existing situation is not in line with a desired situation or with a certain norm or standard.

 When this is the case, a manager has an action problem. An action problem is called an action problem because (in the end) there is only one way to solve the problem; to take action.

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Examples of action problems

 Staff turnover is much higher (14%) than the average staff turnover (6%) in the industry.

 Customers are not satisfied with the services of the organization.

 The company’s market share is lower than required.

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Role of research

 When the manager wants to reach a specific

objective (think for instance, 6% staff turnover), but does not know how he or she can (best) reach this objective, research is needed.

 This type of research is called action-oriented

research (not to be confused with action research).

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Creating new business opportunities

 There is no law that states that managers must wait for problems to be forced upon them.

They can take the initiative and create new opportunities before a problem even arises.

 Along these lines, a second situation that often calls for more complex research can be created; a situation where managers create their own

decision problems.

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