LECTURE (3)

2


LEARNING OBJECTIVES:

To explain what theoretical framework is and
process of building it
To fully explain types of variables in research
To discuss development of research
hypotheses
3
INTRODUCTION TO BUSINESS RESEARCH
THE RESEARCH PROCESS
THEORETICAL FRAMEWORK
A conceptual model of how one theorizes the
relationships among the several factors that have
been identified as important to the problem.
It discusses the interrelationships among the
variables that are deemed to be integral to the
dynamics of the situation being investigated.

INTRODUCTION TO BUSINESS RESEARCH
THE RESEARCH PROCESS
THEORETICAL FRAMEWORK
A theoretical framework represents a researchers
beliefs on how certain variables, such as dependent
variable, independent variable, intervening variable
and moderating variable are related to each other
It is the basis on which the entire research rests.


INTRODUCTION TO BUSINESS RESEARCH
THE RESEARCH PROCESS
THEORETICAL FRAMEWORK
The process of building a theoretical framework
includes:
Introducing definitions of the concepts or
variables in your model.
Developing a conceptual model that provides a
descriptive representation of your theory.
Coming up with a theory that provides an
explanation for relationships between the
variables in your model.

INTRODUCTION TO BUSINESS RESEARCH
THE RESEARCH PROCESS
Variable
Is anything that can take on differing or varying values.
The values can differ at various times for the object or
person, or the values can differ at the same time for
different objects or persons.
In research, it is an item like sale and profit. Normally,
the profit increases with the increase in sales. So both
sales and profit could be variables in any study.


INTRODUCTION TO BUSINESS RESEARCH
TYPES OF VARIABLES
a. Dependent variable (criterion variables)
Is the variable of primary interest to the researcher & the
main variable that lends itself as viable issue for
investigation.
Example
A manager is concerned that the sales of a new product
introduced after market testing is not as high as she
had expected.
The dependent variable here is sale. Since the sales of
the product can vary can be low, medium, high it is a
variable; since sales is the main factor of interest to the
manager, it is the dependent variable.

INTRODUCTION TO BUSINESS RESEARCH
TYPES OF VARIABLES
b. Independent variable (predictor variable)
Is one that influences the dependent variable in either a
positive or negative way.

Example
Cross-cultural research indicates that managerial values
govern the power distance between supervisors and
subordinates.
Here, power distance is the subject of interest and
hence is the dependent variable.
Managerial values, which explains the variance in power
distance, is the independent variable.

EXAMPLE (THEORETICAL FRAMEWORK)
With the airline deregulation, there
were price wars among the various
airlines, which tried to cut costs in
different ways. In 1987, Delta Airlines
faced charges of AIR SAFETY
VIOLATIONS where there were several
near collisions midair and one
accident resulting in 137 deaths.
EXAMPLE
Four important factors that seemed to have
influenced these are
1. POOR COMMUNICATION AMONG THE COCKPIT
CREW MEMBERS THEMSELVES,
2. POOR COORDINATION BETWEEN GROUND STAFF
AND COCKPIT CREW,
3. MINIMAL TRAINING GIVEN TO THE COCKPIT
CREW, and
4. MANAGEMENT PHILOSOPHY THAT ENCOURAGED
A DECENTRALIZED STRUCTURE.
Communication among
cockpit members
Communication
between ground control
& cockpit
Decentralization
Training of cockpit
crew

Air-safety
violations
INTRODUCTION TO BUSINESS RESEARCH
TYPES OF VARIABLES
d. Intervening variable
Is one that surfaces between the time the independent variables
operate to influence the dependent variable & their impact on the
dependent variable.
Example
If workforce diversity influenced the organizational
effectiveness, an intervening variable that surfaces as a
function of the diversity in the workforce is creative
synergy. This creative synergy results from a multiethnic,
multiracial, and multinational workforce interacting and
bringing together their multifaceted expertise in problem
solving. Note that creative synergy, the intervening
variable, surfaces at time t2 as a function of workforce
diversity, which was in place at time t1, to bring about
organizational effectiveness in time t3.

EXAMPLE (MEDIATING/INTERVENING VARIABLE)

Organizational
effectiveness

Workforce
diversity

Creative
Synergy
INTRODUCTION TO BUSINESS RESEARCH
TYPES OF VARIABLES
c. Moderating variable
Is one that has a strong contingent effect on the independent
variable-dependent variable relationship.
EXAMPLE (MODERATING VARIABLE)
It would be interesting to see how the inclusion of
the moderating variable - managerial expertise.
Creative synergy will not result from the multifaceted
problem solving skills of the diverse workforce
unless the manager is capable of harnessing that
synergy by creatively coordinating the different skills.
EXAMPLE (MODERATING VARIABLE)

Organizational
effectiveness

Workforce
diversity

Managerial
expertise
EXAMPLE (DIAGRAM OF RELATIONSHIP)

Organizational
effectiveness

Workforce
diversity

Creative
Synergy

Managerial
expertise
INTRODUCTION TO BUSINESS RESEARCH
GENERATION OF HYPOTHESES
An hypothesis is an educated guess about
a problems solution.
Can be defined as a logically conjectured
relationship between 2 or more variables
expresses in the form of testable
statements.



INTRODUCTION TO BUSINESS RESEARCH
Directional & nondirectional hypotheses
Directional hypothesis
If, in stating the relationship between 2
variables or comparing 2 groups, terms such as
POSITIVE, NEGATIVE, MORE THAN, LESS
THAN, etc.
Nondirectional hypothesis
Those that do postulate a relationship or
difference, but offer no indication of the
direction of these relationships or differences.

INTRODUCTION TO BUSINESS RESEARCH
Null & alternate hypotheses
Null hypothesis
a proportion that states a definitive, exact
relationship between 2 variables
it states the difference in the means of 2 groups
in the population is equal to zero
Alternate hypothesis
the opposite of the null
a statement expressing a relationship between 2
variables OR indicating differences between
groups

INTRODUCTION TO BUSINESS RESEARCH
A null hypothesis is a statement of the status quo, one of
no difference or no effect. If the null hypothesis is not
rejected, no changes will be made.

An alternative hypothesis is one in which some difference
or effect is expected. Accepting the alternative hypothesis
will lead to changes in opinions or actions.


H
0
:
p
= 0 . 4 0
H
1
: p > 0 . 4 0
INTRODUCTION TO BUSINESS RESEARCH
A one-tailed hypothesis makes prediction
about both the presence of a significant effect
(e.g., there will be a difference in purchase
intention of male and female customers?) and
of the direction of this differences or
association (e.g., male customers will have a
higher level of purchase intention than females)
A two-tailed hypothesis predicts only the
presence of a statistically significant effect, not
its direction