Business Research for IBA
With regard to this course, the following learning objectives are determined. These goals will be
tested by means of an exam and/or assignment.
Being able to describe the research process for a business economic problem;
Formulate problem statement based on a business economic problem;
Make an argued choice for a research strategy given a problem statement;
Being able to create a conceptual model that shows the relationship between variables;
Being able to formulate hypotheses based on a business economic problem;
Being able to select an appropriate research method and research strategy for a given
business economic problem, explain their fundamentals, including the (dis)advantages;
Being able to apply research methods and strategies in an (inter)national context, including
different national standards;
Being able to make an argued choice for a business economic topic and translate that into an
academic research proposal according to a given format.
Written Exam Weight 70% (consisting of multiple choice questions)
Team Assignment: Weight 30% (based on individual assignment grade after SPA)
Exam: 3-6-2016
1
,Chapter 1
What is research?
Research is simply the process of finding solutions to a problem after thorough study and
analysis of the situational factors.
Managers are involved in some form of research activity as they make decisions at the
workplace (whilst they engage themselves in studying and analyzing issues).
Business research
Business research can be described as a systematic and organized effort to investigate a
specific problem encountered in the work setting, which needs a solution. The steps:
1. To know where the problem areas exist in the organization, and to identify the
problems as clearly and specifically as possible that need to be studied and resolved.
2. Determine factors that are associated with the problem, gather information, and
analyze the data and then solve it by taking the necessary corrective measures.
This entire process by which we attempt to solve problems is called research.
Definition of business research
Business research = an organized, systematic, data-based, critical, objective, inquiry or
investigation into a specific problem, undertaken with the purpose of finding answers or
solutions to it. Research provides managers the necessary information that guides managers to
make informed decisions to successfully deal with problems.
Types of business research: applied and basic
Research can be undertaken for two different purposes;
- Solve a current problem faced by the manager in the work setting, demanding a timely
solution. Applied research
- To generate a body of knowledge by trying to comprehend how certain problems that
occur in organizations can be solved. Basic, fundamental or pure research.
Despite the distinction, both types of research may benefit from following the same steps of
systematic inquiry to arrive at solutions to problems. Both basic and applied research are
often carried out in a scientific manner so that the findings or results generated by them can be
relied upon to effectively solve the problem investigated.
Managers and Research
As a manager, you have to understand, predict, and control events that are dysfunctional
within the organization. Managers with knowledge of research have an advantage over
those without.
Being knowledgeable about research and research methods helps managers to:
- Identify and effectively solve minor problems in the work setting.
- Know how to discriminate good from bad research.
2
, - Appreciate and be constantly aware of the multiple influences and multiple effects of
factors impinging (have a negative effect) on a situation.
- Take calculated risks in decision making, knowing full well the probabilities associated
with the different possible outcomes.
- Prevent possible vested interests from exercising their influence in a situation.
- Relate to hired researchers and consultants more effectively.
- Combine experience with scientific knowledge while making decisions.
The manager and consultant-researcher
Manager-researcher relationship
Managers must interact effectively with the research team, but also delineate the roles for the
researchers and the management (explain which information may become available and which
may not). Managers who are very knowledgeable about research can more easily foresee what
information the researchers might require. If researchers know the constraints right from the
beginning, the researchers might be able to identify alternate ways of tackling problems
etcetera.
Managers should also make sure that there is congruence in the value systems of management
and the consultants, since there might be a clash of ideologies between them. Research
knowledge will help managers to identify and explicitly state, even at the outset, the values that
the organizations holds dear, so that there are no surprises down the road.
While hiring researchers or consultants the manager should make sure that:
1. The roles and expectations of both parties are made explicit.
2. Relevant philosophies and value systems of the organization are clearly stated and
constraints, if any, are communicated.
3. A good rapport is established with the researchers, and between the researchers and
the employees in the organization, enabling the full cooperation of the latter.
Internal versus External consultants/researchers
Internal consultants/researchers
There are at least four advantages in engaging an internal team to do the research project:
1. The internal team stands a better chance of being readily accepted by the employees in
the subunit of the organization where research needs to be done.
2. The team requires much less time to understand the structure, the philosophy and
climate, and the functioning and work systems of the organization.
3. They are available to implement their recommendations after the research findings
have been accepted. This is very important because any “bugs” in the implementation
of the recommendations may be removed with their help. They are also available to
evaluate the effectiveness of the changes, and to consider further changes if and when
necessary.
4. The internal team might cost considerably less than an external team for the
department enlisting help in problem solving, because they will need less time to
3
, understand the system due to their continuous involvement with various units of the
organization.
For problems of low complexity, the internal team would be ideal
There are also certain disadvantages to engaging in internal research teams for the purposes of
problem solving, the four most critical are:
1. In view of their long tenure as internal consultants, the internal team may quite possibly
fall into a stereotyped way of looking at the organization and its problems.
2. There is scope for certain powerful coalitions in the organization to influence the
internal team to conceal, distort, or misrepresent certain facts. In other words, certain
vested interests could dominate, especially in securing a sizable portion of the available
scant (= barely sufficient) resources.
3. There is also a possibility that even the most highly qualified internal research teams are
not perceived as “experts” by the staff and management, and hence their
recommendations may not get the consideration and attention they deserve.
4. Certain organizational biases of the internal research team might make the findings less
objective and consequently less scientific.
External consultants/researchers
The advantages of the external team are;
1. The external team can draw on a wealth of experience from having worked with
different types of organizations that have had the same or similar types of problems.
enables to think both divergently and convergently rather than hurry to an
instant solution.
2. The external teams might have more knowledge of current sophisticated problem-
solving models through their periodic training programs, which the internal teams might
not have access to.
The disadvantages are:
1. The cost of hiring an external research team is usually high and is the main deterrent,
unless the problems are critical.
2. In addition to the considerable time the external team takes to understand the
organization being researched, they are seldom accepted by employees.
3. The external team also charges additional fees for their assistance in the
implementation and evaluation phases.
Knowledge about research and managerial effectiveness
Knowledge of research heightens the sensitivity of managers to the innumerable internal and
external factors of a varied nature operating in their work and organizational environment.
As the manager, you will be the one to make the final decision on the implementation of
recommen-dations made by the research team. Remaining objective, focusing on problem
4
With regard to this course, the following learning objectives are determined. These goals will be
tested by means of an exam and/or assignment.
Being able to describe the research process for a business economic problem;
Formulate problem statement based on a business economic problem;
Make an argued choice for a research strategy given a problem statement;
Being able to create a conceptual model that shows the relationship between variables;
Being able to formulate hypotheses based on a business economic problem;
Being able to select an appropriate research method and research strategy for a given
business economic problem, explain their fundamentals, including the (dis)advantages;
Being able to apply research methods and strategies in an (inter)national context, including
different national standards;
Being able to make an argued choice for a business economic topic and translate that into an
academic research proposal according to a given format.
Written Exam Weight 70% (consisting of multiple choice questions)
Team Assignment: Weight 30% (based on individual assignment grade after SPA)
Exam: 3-6-2016
1
,Chapter 1
What is research?
Research is simply the process of finding solutions to a problem after thorough study and
analysis of the situational factors.
Managers are involved in some form of research activity as they make decisions at the
workplace (whilst they engage themselves in studying and analyzing issues).
Business research
Business research can be described as a systematic and organized effort to investigate a
specific problem encountered in the work setting, which needs a solution. The steps:
1. To know where the problem areas exist in the organization, and to identify the
problems as clearly and specifically as possible that need to be studied and resolved.
2. Determine factors that are associated with the problem, gather information, and
analyze the data and then solve it by taking the necessary corrective measures.
This entire process by which we attempt to solve problems is called research.
Definition of business research
Business research = an organized, systematic, data-based, critical, objective, inquiry or
investigation into a specific problem, undertaken with the purpose of finding answers or
solutions to it. Research provides managers the necessary information that guides managers to
make informed decisions to successfully deal with problems.
Types of business research: applied and basic
Research can be undertaken for two different purposes;
- Solve a current problem faced by the manager in the work setting, demanding a timely
solution. Applied research
- To generate a body of knowledge by trying to comprehend how certain problems that
occur in organizations can be solved. Basic, fundamental or pure research.
Despite the distinction, both types of research may benefit from following the same steps of
systematic inquiry to arrive at solutions to problems. Both basic and applied research are
often carried out in a scientific manner so that the findings or results generated by them can be
relied upon to effectively solve the problem investigated.
Managers and Research
As a manager, you have to understand, predict, and control events that are dysfunctional
within the organization. Managers with knowledge of research have an advantage over
those without.
Being knowledgeable about research and research methods helps managers to:
- Identify and effectively solve minor problems in the work setting.
- Know how to discriminate good from bad research.
2
, - Appreciate and be constantly aware of the multiple influences and multiple effects of
factors impinging (have a negative effect) on a situation.
- Take calculated risks in decision making, knowing full well the probabilities associated
with the different possible outcomes.
- Prevent possible vested interests from exercising their influence in a situation.
- Relate to hired researchers and consultants more effectively.
- Combine experience with scientific knowledge while making decisions.
The manager and consultant-researcher
Manager-researcher relationship
Managers must interact effectively with the research team, but also delineate the roles for the
researchers and the management (explain which information may become available and which
may not). Managers who are very knowledgeable about research can more easily foresee what
information the researchers might require. If researchers know the constraints right from the
beginning, the researchers might be able to identify alternate ways of tackling problems
etcetera.
Managers should also make sure that there is congruence in the value systems of management
and the consultants, since there might be a clash of ideologies between them. Research
knowledge will help managers to identify and explicitly state, even at the outset, the values that
the organizations holds dear, so that there are no surprises down the road.
While hiring researchers or consultants the manager should make sure that:
1. The roles and expectations of both parties are made explicit.
2. Relevant philosophies and value systems of the organization are clearly stated and
constraints, if any, are communicated.
3. A good rapport is established with the researchers, and between the researchers and
the employees in the organization, enabling the full cooperation of the latter.
Internal versus External consultants/researchers
Internal consultants/researchers
There are at least four advantages in engaging an internal team to do the research project:
1. The internal team stands a better chance of being readily accepted by the employees in
the subunit of the organization where research needs to be done.
2. The team requires much less time to understand the structure, the philosophy and
climate, and the functioning and work systems of the organization.
3. They are available to implement their recommendations after the research findings
have been accepted. This is very important because any “bugs” in the implementation
of the recommendations may be removed with their help. They are also available to
evaluate the effectiveness of the changes, and to consider further changes if and when
necessary.
4. The internal team might cost considerably less than an external team for the
department enlisting help in problem solving, because they will need less time to
3
, understand the system due to their continuous involvement with various units of the
organization.
For problems of low complexity, the internal team would be ideal
There are also certain disadvantages to engaging in internal research teams for the purposes of
problem solving, the four most critical are:
1. In view of their long tenure as internal consultants, the internal team may quite possibly
fall into a stereotyped way of looking at the organization and its problems.
2. There is scope for certain powerful coalitions in the organization to influence the
internal team to conceal, distort, or misrepresent certain facts. In other words, certain
vested interests could dominate, especially in securing a sizable portion of the available
scant (= barely sufficient) resources.
3. There is also a possibility that even the most highly qualified internal research teams are
not perceived as “experts” by the staff and management, and hence their
recommendations may not get the consideration and attention they deserve.
4. Certain organizational biases of the internal research team might make the findings less
objective and consequently less scientific.
External consultants/researchers
The advantages of the external team are;
1. The external team can draw on a wealth of experience from having worked with
different types of organizations that have had the same or similar types of problems.
enables to think both divergently and convergently rather than hurry to an
instant solution.
2. The external teams might have more knowledge of current sophisticated problem-
solving models through their periodic training programs, which the internal teams might
not have access to.
The disadvantages are:
1. The cost of hiring an external research team is usually high and is the main deterrent,
unless the problems are critical.
2. In addition to the considerable time the external team takes to understand the
organization being researched, they are seldom accepted by employees.
3. The external team also charges additional fees for their assistance in the
implementation and evaluation phases.
Knowledge about research and managerial effectiveness
Knowledge of research heightens the sensitivity of managers to the innumerable internal and
external factors of a varied nature operating in their work and organizational environment.
As the manager, you will be the one to make the final decision on the implementation of
recommen-dations made by the research team. Remaining objective, focusing on problem
4
