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Chapter 1 The nature of business and management research 1 Why study research? Business Research A systematic inquiery whose objective is to provide the information that will allow managerial problems to be solved. This includes reporting, descriptive, explanatory (verklarende) and predictive (voors...

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Chapter 1 The nature of business and management research 1.1 Why study research? Business Research  A systematic inquiery whose objective is to provide the information that will allow managerial problems to be solved. This includes reporting, descriptive, explanatory (verklarende) and predictive (voorspellende) studies. Management dilemma  any problem that requires a management decision. 3 factors have stimulated the interest in the scientific approach to decision-making: 1. The need for more and better information as decisions become more complex. 2. The availability of improved techniques and tools to meet this need. 3. The resulting information overload if discipline is not employed in the process. Changes in the business environment from the past two decades, for example: - Explosive technology growth. - Continuing innovations in global communications. These kind of changes have created new knowledge need for the manager and created new publics that should be considered when evaluating any decision. Other knowledge demands have arisen as a result of problems with, for example: trade policies (handelsbeleid), protected markets, and Technology transfers. The trend towards complexity has increased the risks associated with making business decisions. We must strive for meaningful explanations / decisions should be based on good information. Factors that characterize the complex business decision-making environment: - There are more variables to consider in every decision. - More knowledge exists in every field of management. - Global and inland competition. - Improving quality of explanatory theories and models. - Government continuously showing concerns for all aspects of society. - The explosive growth of company websites on the World Wide Web, have shown the presence of new series of information. Its quality is not always impeccable. - Workers, shareholders, customers and the general public are demanding to be included in a company decision-making: they are better informed. To succeed in such an environment, we need to know how to identify high-quality information on which high-risk decisions can be based. The research process is streamlined thanks to: - Business research tools have become more sophisticated. - Improvements in information technology. The next developments have affected the business research process: - Organizations are practicing data-mining – learning to extract meaningful knowledge from volumes of data contained within internal databases. - Advances in computing technology have allowed businesses to create the architecture required for data warehousing. 1

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The power and user-friendliness of today’s computers. Quantitative analysis techniques take advantage of increasingly powerful computing capabilities. The communication and measurement techniques have been improved.

1.2 What is research? There are 4 different kinds of research/ study: 1. Reporting study (Exploratory/ verkennend) : to provide a summation of data, or to generate statistics. Conclusion drawing; most use in marketing, finance. 2. Descriptive study: tries to find answers to the who, what, when, where and how-questions, by observing and describing a subject or event (research variable). They may involve assessment of interaction between two variables. Most popular in business research. 3. Explanatory study (casual): To answer the why questions; used to explain the reasons for a phenomena that the descriptive study has only observed. Correlational studies  studies the relationship between 2 or more variables. 4. Predictive study (voorspellend): When and in what situations might it occur. 1.3 Is research always problem-solving based? Problem-solving  All research should provide an answer to a question related to action, performance or policy needs. Applied research vs pure/basic research  both problem-solving-based. Applied research  to make immediate managerial decisions. Pure/basic research  less direct impact on action, performance or policy decisions. 1.4 What makes good research? Good research has data we can trust from practices that are conducted professionally. Poor research is based on data we cannot trust. Good research follows the structure of the scientific method: 1. Purpose clearly defined. Purpose = the problem involved or decision to be made. 2. Research process detailed: Enough details so that other researcher could repeat it. 3. Research design thoroughly planned: To get objective results; evidence of the representativeness of sample; all effort that can be made to minimize bias should be planned. 4. High ethical standards applied 5. Clear limitations: Say what can be improved and were the flaws (gebreken) are. 6. A clear analysis for decision-makers’ needs: why are you’re results reliable; validity; reliability; probability of error; how did you came to the conclusion; what findings. 7. Findings presented unambiguously (eenduidig): You can understand them in only one way. 8. Conclusions justified: Limited to the conclusions for which are enough evidence. 9. Researcher’s experience reflected: information about the qualifications of the researchers; cell yourself and your research. 1.5 Research Philosophies Research is based on reasoning (theory) and observations (data or information). How observations and reasoning are related to each other is an still ongoing philosophical debate on the development of knowledge. Three different types of research. Main philosophies are positivism and interpretivism. 2

1. Positivism  adopted from the natural sciences. - The social world exists externally and is viewed objectively. - Research is value-free. The researcher has no prejudices (vooroordelen). - The researcher is independent, taking the role of an objective analyst. Assumptions (veronderstellingen): - The social world is observed by collecting objective facts. - The social world consists of simple elements to which it can be reduced. 2. Interpretivism  the social world is not objective. - Social world is constructed and people give subjectively meaning to it. - The researcher is part of what is observed. - Research is driven by interest. Assumptions: - The social world is observed by seeing what meanings people give to it and interpreting these meanings from their viewpoint. - Social phenomena can only be understood by looking at the totality. 3. Realism  share principles of positivism and interpretivism: Positivism: It accepts the existence of a reality independent of human beliefs and behavior. Interpretivism: it concedes that understanding people and their behavior requires acknowledgement of the subjectivity inherent to humans. Realist: research requires the identification of how people interpret and give meaning to the setting they are situated in. Critical realism  a branch of realism, recognizes the existence of a gap between the researcher’s concept of reality and the ‘true’ but unknown reality. Two different reasoning approaches: 1. Induction  The conclusion follows from facts or pieces of evidence. The conclusion explains the fact, and the fact support the conclusion. But the conclusion (the induction) is only a hypotheses (not proven jet), other conclusions can also explain the facts. 2. Deduction  The conclusion follows from the reasons given. - Reasons given for the conclusion must agree with the real world (true). - The conclusion most follow from the reasons (argumenten) (valid). Combining induction and deduction (‘double movement of reflecting thoughts’ – John Dewey): Induction  Observing - You observe a fact and ask: “Why is this?” The answer is the hypothesis. The hypothesis is plausible (aannemelijk/ geloofwaardig) if it explains the fact. Deduction  Hypothesis testing - You test whether the hypothesis is able to explain the fact. The task of research is largely to: - Determine the nature of the evidence needed to confirm or reject hypotheses. - Design methods by which to discover and measure this other evidence. Scientific research  a process that combines induction, deduction, observation and hypothesis testing, into a set of reflective thinking activities (weerspiegelend denken). 1.6 Understanding theory: components and connections Building blocks of a research  concepts, constructs, definitions, variables, propositions and hypotheses, theories, models.

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Concept (opvatting) a bundle of meanings or characteristics associated with events, objects, conditions situations and behaviors. Culturally shared and accepted. The success of research hinges on: how clearly we conceptualize, and how well others understand the concepts we use. Construct  an image (beeld) or idea for a given research and/or a theory-building purpose. Constructs are abstract concepts which are difficult to visualize, for example: personality. A construct can combine multiple concepts (exhibit 1.7 p.27). Definitions  to provide a way of understanding and measuring concepts. - Dictionary definitions are used for general communication but not for research. - Operational definitions  Those must be stated in terms of specific testing or measurement criteria. The definition must specify characteristics and it must be clear how we can observe or collect this information. Concepts and construct are used at the theoretic level, variables are used at the empirical level. (Empirisch = als iets gebaseerd is op waarneming. Bij empirisch onderzoek doe je proeven en experimenten.) Variables  a symbol to which we assign (toekennen) a numeral or value. -

Dichotomous variables  only have two values (yes or no, male or female 0 or 1). Continuous variables  values within a value range or an infinite set (income or temperature).

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Independent variables IV causes a dependent variable to occur (IV leidt tot een DV). IV describes direct influencing factors. Dependent variables DV  the result of an independent variable. DV describes what is investigated / explained. For example: IV participation in training  DV productivity.

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Moderating variables / Interaction variables MV a second independent variable, it has an effect on the IV-DV relationship. For example:

MV Workers’ age

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Extraneous variables EV  affect a relationship but their effect is not at the core of the problem we investigate. Control variables CV  to ensure that the results are not biased by not including them. For example: the weather could have some effect on productivity (CV  DV). Confounding variables CFV  affect the relation between IV & DV or between MV & DV. For example: pre-knowledge, those who have a higher pre-knowledge are more likely to enroll for training (so in the first place it has an influence on the IV), at the end it will have influence on the productivity (DV). (IV < - - > CFV  DV).

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Intervening variables IVV  a factor that theoretically affects the DV but cannot be observed or has not been measured. (Door middel van de IVV / mede dankzij de IVV wordt de DV bereikt.) (IV  IVV  DV).

Normally it is IV-DV-MV-EV-IVV 4

For example: “Trainings (IV) will lead to higher productivity (DV) especially among younger workers (MV) when the sun is shining (CV) by increasing the skill level (IVV).

1.7 Propositions and hypotheses Proposition  a statement about concepts that may be judged as true or false if it refers to observable phenomena. When it is stated for empirical research we call it an hypothesis. For example: “John (case) has a higher than average motivation (variable).” The case is the ‘thing’ the hypothesis talks about. The variable is the characteristic that is ascribed. If the hypothesis were based on more than one case, it would be a generalization. Types of hypotheses: - Descriptive hypotheses  state the existence, size, form or distribution (spreiding) of the variable. For example: 8% will lose their job.

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Advantages of using descriptive hypotheses: -Thinking about the likely relationship to be found. -Thinking about the implications of a supported or rejected finding. -It is useful for testing statistical significance. -

Relational hypotheses  describe a relationship between two variables. Correlational hypotheses  the variables occur together without implying that one causes the other. For example: “People in the UK give the European Commission a less favourable rating than do people in France.” Explanatory hypotheses  when something happened with the one variable it causes a change in the other variable. For example: “An increase in family income leads to an increase in the percentage of income saved.”

The role of the hypothesis: - It guides the direction of the study. - It identifies those facts that are relevant. - Suggest which form of research design is appropriate. - It provides a framework for organizing the conclusions. What makes a good hypothesis: - Adequate for it purpose. - Testable. - Better than its rivals (tegenstanders). 1.8 Theory Our ability to make rational decisions and to develop scientific knowledge, is measured by the degree to which we combine fact and theory (not opposites). Theory  a set of interrelated concepts, definitions and propositions that are advanced to explain and predict phenomena (facts). Theory versus hypothesis: Theory  complex, abstract and involves multiple variables. Hypothesis  simple, limited-variable propositions(stellingen). The value of a theory: - Narrows the range of facts we need to study. - Suggests which research approaches will yield (opleveren) the greatest meaning. - Suggest a data classification system. - Summarizes what is known about an object of study. - Predicts further facts that should be found. Models  represent phenomena through the use of analogy (analogie = overeenkomst tussen twee zaken als basis voor een redenering). Functions: description, explication and simulation. - Descriptive models  describe the behavior of elements in a system. - Explicative models  extend the application of well-developed theories. - Simulation models  clarify the structural relationships of concepts.

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Chapter 2 The research process and proposal 2.1 The research process

- Discover the research dilemma - Define the management dilemma - Define the research questions - Refine the research questions - RESEARCH PROPOSAL - RESEARCH DESIGN - Design strategy (type, purpose, time frame, scope, environment) - Data collection design / sampling design (steekproef opzet) - Question and instrument pilot testing (proeftest) - Instrument revision (correctie) - Data collection and preparation - Data analysis and interpretation - Research reporting - Policy management decision. 1

Research dilemma triggers the need for investigating how the dilemma can be solved Academic teamwork; it is important that one of the members will take on the role of the leader and that tasks are well-divided.

2.2 Management research and measurement questions Management research question hierarchy; the main questsion/problem definition needs to be divided ino a few researchable questions. !! Zie ook Exhibit 2.2, p. 48. Starting an online web shop for a retailer, because physical growth is declining. Starting an online shop as a way to expand their business in order to deal with this industry regression. How can we be sure that an online store complements a physical store? 1. Research / management dilemma What symptoms cause management concern? Which environmental stimuli raise the researcher’s or management’s interest? 2. Management questions How can management eliminate the negative symptoms? How can management capitalize fully on an opportunity? 3. Research questions What plausible courses of action are available to management to correct the problem or take advantage of the opportunity, and which should be considered? 4. Investigative questions What does the manager need to know to choose the best alternative from the available courses of action? 5. Measurement questions What should be asked or observed to obtain the information the manager needs? 6. Decision What is the recommended course of action given the research findings? Management/ research dilemma = usually a symptom of an actual problem, for example: rising costs or increased employee turnover. The manager must move from management/research dilemma to management question in order to proceed with the research process, it restates the dilemma in question form. Management question  restates the dilemma in question form, for example: ‘What should be done to reduce costs?’ Research questions are too numerous to list, but we can categorize them as follows: - Choice of purpose or objectives  ‘What do we want to achieve?’ (what goals). - Generation and evaluation of solutions  ‘How can we achieve the ends we seek?’ - Troubleshooting or control situation  involves monitoring or diagnosing various ways in which an organization is failing (tekortkomen) to achieve its goals. For axample: ‘Why does our department incur the highest costs?’ or ‘How well I sour program meeting its goals?’ 2

No matter how the management question is defined, research can take many directions. A specific question can give rise to many studies, it might lead to a survey among various groups to discover their attitude towards a company or product, secondary research into what other companies are doing to enhance their image or a study to forecast expected changes in social attitudes. The area of exploration may surface within the research process in several locations. An exploration usually typically begins with a search of public data about the topic. Researchers often seek out people who are well informed on the topic in question, especially those who have clearly stated positions on controversial aspects of the problem. Once the researcher has a clear statement of the management question, he/she must work with the manager to translate it into research question. Research question  translate the management question into a research question. The researcher’s task is to assist the manager in formulating a research question that fits the need to resolve the management dilemma. The question is the hypothesis of choice that best states the objective (doel) of the research study. Answering the research question (or more than one), will provide the manager with the information necessary to make the decision. For example: ‘What are the effects of… on…?’ or ‘How does the …. affect the….?’ Fine tuning the research question After a preliminary review of the literature, a brief exploratory study, or both, the project begins to crystallize in two ways: 1. It is apparent that the question has been answered and the process is finished. 2. A question different from that originally addressed has become apparent. In addition to fine tuning the original question, other research question related activities should be addressed in this phase in order to enhance the progress of the project. These are as follows: 1. Examine the concepts and constructs to be used in the study. 2. Review research questions: break them down into specific second/third level questions. 3. Ensure that the hypotheses meet the quality criteria mentioned in the preceding chapter. 4. Determine what evidence must be collected to answer the various questions and hypotheses. 5. Set the scope of the study by starting what is not part of the research question (this will establish a boundary that will help to separate contiguous problems from the primary objective). Investigative questions (see Exhibit 2.4, p.50) Once the research question has been selected, the researchers thinking need to move to a more specific level: investigative questions. These questions reveal the information that the manager need to know to answer the research question. Investigative questions are questions that the researcher must answer to arrive at a satisfactory conclusion about the research question. What are the effects of Strategy A? What are the effects of Strategy B? Investigative questions are questions that the researcher must answer to arrive at a satisfactory conclusion about the research question.  Should be included in the resea...