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Title: Research methods for business : a skill-building approach
/ Uma
Sekaran and Roger Bougie.
Description: Seventh edition. | Chichester, West Sussex, United
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John Wiley & Sons, [2016] | Includes bibliographical
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Identifiers: LCCN 2015051045 | ISBN 9781119165552 (pbk.)
Subjects: LCSH: Business—Research—Methodology.
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LC record available at http://lccn.loc.gov/2015051045
ISBN: 9781119165552 (pbk)
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- 4. For more information about Wiley products, visit www.wiley.com. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging‐ in‐ Publication Data Names: Sekaran, Uma, author. | Bougie, Roger, author. Title: Research methods for business : a skill-building approach / Uma Sekaran and Roger Bougie. Description: Seventh edition. | Chichester, West Sussex, United Kingdom : John Wiley & Sons, [2016] | Includes bibliographical references and index. Identifiers: LCCN 2015051045 | ISBN 9781119165552 (pbk.) Subjects: LCSH: Business—Research—Methodology. Classification: LCC HD30.4 .S435 2016 | DDC 650.072—dc23 LC record available at http://lccn.loc.gov/2015051045 ISBN: 9781119165552 (pbk) ISBN: 9781119266846 (ebk) A catalogue record for this book is available from the British
- 5. Library. Set in 10/12 Minion Pro by SPi Global Printed and bound in Italy by Printer Trento Srl. vii CONTENTS About the Authors xix Preface xxi Acknowledgments xxiii 1 Introduction to research 1 Introduction 1 Business research 2 The role of theory and information in research 3 Research and the manager 3 Types of business research: applied and basic 5 Applied research 6 Basic or fundamental research 7 Managers and research 8 Why managers need to know about research 8 The manager and the consultant–researcher 9 Internal versus external consultants/researchers 10 Internal consultants/researchers 10 Advantages of internal consultants/researchers 10 Disadvantages of internal consultants/researchers 11
- 6. External consultants/researchers 11 Advantages of external consultants/researchers 11 Disadvantages of external consultants/researchers 12 Knowledge about research and managerial effectiveness 12 Ethics and business research 13 Summary 13 Discussion questions 14 Case: The Laroche Candy Company 15 2 The scientific approach and alternative approaches to investigation 18 Introduction 18 The hallmarks of scientific research 19 Purposiveness 19 Rigor 19 Testability 20 Replicability 20 Precision and confidence 21 viii contents Objectivity 21 Generalizability 22 Parsimony 22 The hypothetico-deductive method 23 The seven-step process in the hypothetico-deductive method 23 Identify a broad problem area 23 Define the problem statement 23 Develop hypotheses 23
- 7. Determine measures 24 Data collection 24 Data analysis 24 Interpretation of data 24 Review of the hypothetico-deductive method 26 Some obstacles to conducting scientific research in the management area 27 Alternative approaches to research 28 Positivism 28 Constructionism 28 Critical realism 29 Pragmatism 29 Conclusion 29 Summary 30 Discussion questions 31 3 Defining and refining the problem 33 Introduction 33 The broad problem area 33 Preliminary research 37 Nature of information to be gathered 37 Background information on the organization 37 Information on the topic or subject area 38 Defining the problem statement 39 What makes a good problem statement? 39 Basic types of questions: exploratory and descriptive 43 Exploratory research questions 43 Descriptive research questions 43 Causal research questions 44
- 8. The research proposal 45 Managerial implications 47 Ethical issues in the preliminary stages of investigation 47 Summary 48 Discussion questions 49 contents ix 4 The critical literature review 51 Introduction 51 How to approach the literature review 54 Data sources 54 Textbooks 54 Journals 54 Theses 55 Conference proceedings 55 Unpublished manuscripts 55 Reports 55 Newspapers 55 The Internet 55 Searching for literature 56 Evaluating the literature 56 Documenting the literature review 57 Ethical issues 59 Summary 60 Discussion questions 61 Practice project 62 Appendix 63 Some online resources useful for business research 63 Bibliographical databases 66 Apa format for referencing relevant articles 66
- 9. Referencing and quotation in the literature review section 69 5 Theoretical framework and hypothesis development 71 Introduction 71 The need for a theoretical framework 72 Variables 72 Dependent variable 73 Independent variable 74 Moderating variable 75 The distinction between an independent variable and a moderating variable 77 Mediating variable 79 How theory is generated 81 The components of the theoretical framework 82 Hypothesis development 83 Definition of a hypothesis 84 Statement of hypotheses: formats 84 If–then statements 84 x contents Directional and nondirectional hypotheses 84 Null and alternate hypotheses 85 Managerial implications 90 Summary 91 Discussion questions 92 Practice project 94
- 10. 6 Elements of research design 95 Introduction 95 The research design 95 Elements of research design 96 Research strategies 96 Experiments 97 Survey research 97 Ethnography 97 Case studies 98 Grounded theory 98 Action research 98 Extent of researcher interference with the study 99 Study setting: contrived and noncontrived 100 Unit of analysis: individuals, dyads, groups, organizations, cultures 102 Time horizon: cross-sectional versus longitudinal studies 104 Cross-sectional studies 104 Longitudinal studies 105 Mixed methods 106 Trade-offs and compromises 107 Managerial implications 108 Summary 108 Discussion questions 109 7 Interviews 111 Introduction 111 Primary data collection methods 111 Interviews 113 Unstructured and structured interviews 113 Unstructured interviews 113
- 11. Structured interviews 115 Review of unstructured and structured interviews 116 Training interviewers 116 Some tips to follow when interviewing 117 Establishing credibility and rapport, and motivating individuals to respond 117 The questioning technique 118 Review of tips to follow when interviewing 119 contents xi Face-to-face and telephone interviews 119 Face-to-face interviews: advantages and disadvantages 120 Telephone interviews: advantages and disadvantages 120 Additional sources of bias in interview data 120 Computer-assisted interviewing 120 CATI and CAPI 121 Software packages 121 Group interviews 121 Focus groups 121 Expert panels 122 Advantages and disadvantages of interviews 123 Summary 123 Discussion questions 124 8 Data collection methods: Observation 126 Introduction 126 Definition and purpose of observation 127
- 12. Four key dimensions that characterize the type of observation 127 Controlled versus uncontrolled observational studies 127 Participant versus nonparticipant observation 128 Structured versus unstructured observational studies 128 Concealed versus unconcealed observation 129 Two important approaches to observation 130 Participant observation: introduction 130 The participatory aspect of participant observation 130 The observation aspect of participant observation 131 What to observe 133 Structured observation: introduction 134 The use of coding schemes in structured observation 136 Advantages and disadvantages of observation 137 Summary 139 Discussion questions 140 9 Administering questionnaires 142 Introduction 142 Types of questionnaires 142 Personally administered questionnaires 143 Mail questionnaires 143 Electronic and online questionnaires 143 Guidelines for questionnaire design 145 Principles of wording 146 Content and purpose of the questions 146 xii contents
- 13. Language and wording of the questionnaire 146 Type and form of questions 146 Sequencing of questions 149 Classification data or personal information 149 Principles of measurement 150 General appearance or “getup” of the questionnaire 150 Review of questionnaire design 154 Pretesting of structured questions 155 Electronic questionnaire and survey design 155 International dimensions of surveys 155 Special issues in instrumentation for cross-cultural research 156 Issues in cross-cultural data collection 156 Review of the advantages and disadvantages of different data collection methods and when to use each 157 Multimethods of data collection 158 Managerial implications 159 Ethics in data collection 159 Ethics and the researcher 159 Ethical behavior of respondents 160 Summary 160 Discussion questions 161 10 Experimental designs 165 Introduction 165 The lab experiment 167 Control 168 Manipulation 168
- 14. Controlling the contaminating exogenous or “nuisance” variables 170 Matching groups 170 Randomization 170 Internal validity of lab experiments 171 External validity or generalizability of lab experiments 171 The field experiment 172 External and internal validity in experiments 172 Trade-off between internal and external validity 172 Factors affecting the validity of experiments 173 History effects 173 Maturation effects 174 Testing effects 174 Selection bias effects 175 Mortality effects 175 Statistical regression effects 176 Instrumentation effects 176 Identifying threats to validity 177 contents xiii Review of factors affecting internal and external validity 178 Types of experimental design and validity 179 Quasi-experimental designs 179 Pretest and posttest experimental group design 179 Posttests only with experimental and control groups 179 Time series design 180
- 15. True experimental designs 181 Pretest and posttest experimental and control group design 181 Solomon four-group design 181 Double-blind studies 183 Ex post facto designs 184 Simulation 184 Ethical issues in experimental design research 185 Managerial implications 186 Summary 187 Discussion questions 189 Appendix: Further experimental designs 190 The completely randomized design 190 Randomized block design 191 Latin square design 191 Factorial design 192 11 Measurement of variables: Operational definition 193 Introduction 193 How variables are measured 193 Operational definition (operationalization) 195 Operationalization: dimensions and elements 196 Operationalizing the (multidimensional) concept of achievement motivation 197 Dimensions and elements of achievement motivation 198 What operationalization is not 202 Review of operationalization 203 International dimensions of operationalization 204 Summary 204 Discussion questions 205
- 16. 12 Measurement: Scaling, reliability and validity 206 Introduction 206 Four types of scales 207 Nominal scale 207 Ordinal scale 208 Interval scale 209 Ratio scale 209 xiv contents Ordinal or interval? 210 Review of scales 212 Rating scales 213 Dichotomous scale 213 Category scale 214 Semantic differential scale 214 Numerical scale 214 Itemized rating scale 215 Likert scale 215 Fixed or constant sum scale 216 Stapel scale 216 Graphic rating scale 217 Consensus scale 218 Other scales 218 Ranking scales 218 Paired comparison 218 Forced choice 218 Comparative scale 219 International dimensions of scaling 219 Goodness of measures 220
- 17. Item analysis 220 Validity 220 Content validity 221 Criterion-related validity 221 Construct validity 222 Reliability 223 Stability of measures 224 Internal consistency of measures 224 Reflective versus formative measurement scales 225 What is a reflective scale? 225 What is a formative scale and why do the items of a formative scale not necessarily hang together? 225 Summary 226 Discussion questions 227 Appendix: Examples of some measures 229 Measures from behavioral finance research 229 Measures from management accounting research 230 Measures from management research 230 Measures from marketing research 232 13 Sampling 235 Introduction 235 Population, element, sample, sampling unit, and subject 236 Population 236 contents xv
- 18. Element 237 Sample 237 Sampling unit 237 Subject 237 Sample data and population values 237 Parameters 238 Representativeness of Samples 238 Normality of Distributions 238 The sampling process 239 Defining the population 240 Determining the sample frame 240 Determining the sampling design 240 Determining the sample size 241 Executing the sampling process 241 Probability sampling 242 Unrestricted or simple random sampling 242 Restricted or complex probability sampling 243 Systematic sampling 243 Stratified random sampling 244 Cluster sampling 246 Double sampling 247 Review of probability sampling designs 247 Nonprobability sampling 247 Convenience sampling 247 Purposive sampling 248 Judgment sampling 248 Quota sampling 248 Review of nonprobability sampling designs 249
- 19. Intermezzo: examples of when certain sampling designs would be appropriate 252 Simple random sampling 252 Stratified random sampling 252 Systematic sampling 253 Cluster sampling 254 Area sampling 254 Double sampling 255 Convenience sampling 255 Judgment sampling: one type of purposive sampling 255 Quota sampling: a second type of purposive sampling 256 Issues of precision and confidence in determining sample size 257 Precision 257 Confidence 258 Sample data, precision, and confidence in estimation 258 Trade-off between confidence and precision 259 Sample data and hypothesis testing 260 xvi contents The sample size 261 Determining the sample size 262 Sample size and type II errors 264 Statistical and practical significance 264 Rules of thumb 264 Efficiency In Sampling 265 Sampling as related to qualitative studies 265 Managerial implications 266 Summary 266
- 20. Discussion questions 268 14 Quantitative data analysis 271 Introduction 271 Getting the data ready for analysis 273 Coding and data entry 273 Coding the responses 273 Data entry 275 Editing data 276 Data transformation 277 Getting a feel for the data 278 Frequencies 279 Bar charts and pie charts 280 Measures of central tendency and dispersion 282 Measures of central tendency 282 Measures of dispersion 283 Relationships between variables 285 Relationship between two nominal variables: χ2 test 285 Correlations 286 Excelsior enterprises: descriptive statistics part 1 287 Testing the goodness of measures 289 Reliability 289 Excelsior Enterprises: checking the reliability of the multi -item measures 290 Validity 292 Excelsior enterprises: descriptive statistics part 2 293 Summary 296
- 21. Discussion questions 297 15 Quantitative data analysis: Hypothesis testing 300 Introduction 300 Type I errors, type II errors, and statistical power 301 Choosing the appropriate statistical technique 302 Testing a hypothesis about a single mean 302 contents xvii Testing hypotheses about two related means 305 Testing hypotheses about two unrelated means 309 Testing hypotheses about several means 311 Regression analysis 312 Standardized regression coefficients 315 Regression with dummy variables 315 Multicollinearity 316 Testing moderation using regression analysis: interaction effects 316 Other multivariate tests and analyses 319 Discriminant analysis 319 Logistic regression 319 Conjoint analysis 320 Two-way ANOVA 322 MANOVA 322 Canonical correlation 322 Excelsior enterprises: hypothesis testing 323 Overall interpretation and recommendations to the president 325 Data warehousing, data mining, and operations research 326
- 22. Some software packages useful for data analysis 327 Summary 328 Discussion questions 329 16 Qualitative data analysis 332 Introduction 332 Three important steps in qualitative data analysis 332 Data reduction 334 Data display 347 Drawing conclusions 347 Reliability and validity in qualitative research 348 Some other methods of gathering and analyzing qualitative data 350 Content analysis 350 Narrative analysis 350 Analytic induction 350 Big data 351 Summary 351 Discussion questions 352 17 The research report 353 Introduction 353 The written report 354 The purpose of the written report 354 The audience for the written report 356 xviii contents Characteristics of a well-written report 356
- 23. Contents of the research report 357 The title and the title page 357 The executive summary or abstract 357 Table of contents 358 List of tables, figures, and other materials 359 Preface 359 The authorization letter 360 The introductory section 360 The body of the report 360 The final part of the report 361 References 361 Appendix 363 Oral presentation 363 Deciding on the content 364 Visual aids 364 The presenter 365 The presentation 365 Handling questions 365 Summary 366 Discussion questions 367 Appendix: Examples 368 Report 1: sample of a report involving a descriptive study 368 Report 2: sample of a report offering alternative solutions and explaining the pros and cons of each alternative 371 Report 3: example of an abridged basic research report 373 A Final Note to Students 377 Statistical Tables 379 Glossary 389 Bibliography 399 Index 407
- 24. xix ABOUT THE AUTHORS Uma Sekaran was Professor Emerita of Management, Southern Illinois University at Carbondale (SIUC), Illinois. She obtained her MBA degree from the University of Connecticut at Storrs, and her PhD from UCLA. She was the Chair of the Department of Management and also the Director of University Women’s Professional Advancement at SIUC when she retired from the University and moved to California to be closer to her family. Professor Sekaran authored or co‐ authored eight books, 12 book chapters, and more than 55 refereed journal articles in the management area, and presented more than 70 papers at regional, national, and international management conferences. She also won recognition for significant research contributions to cross‐ cultural research from US and international professional organizations. She received Meritorious Research Awards both from the Academy of Management and SIUC, and was conferred the Best Teacher Award by the University. Roger Bougie is Associate Professor at the TIAS School for Business and Society (Tilburg University, The Netherlands), where he teaches executive courses in Business Research Methods. He has received a number of teaching awards, including the Best Course Award for his course on Business Research Methods. Dr Bougie’s main research interest is in emotions and their impact on consumer behavior, service quality, and satisfaction. Dr Bougie authored or co‐ authored numerous papers, books, book chapters, and cases in the area of Marketing
- 25. and Business Research Methods. Dr Bougie is ad hoc reviewer for the Journal of the Academy of Marketing Science, the Journal of Business Research, the Journal of Marketing Research, and Marketing Letters. xxi PREFACE I have used previous editions of this book in various research methods courses with great success. For many years the book has helped thousands of my own students (undergraduate students, graduate students, and executive students), as well as many more around the world, to carry out their research projects. The great strength of Research Methods for Business is that students find it clear, informal, easy to use and unintimidating. I have tried to maintain these strengths in this seventh edition. CHANGES IN THE SEVENTH EDITION The seventh edition of Research Methods for Business has been thoroughly revised. ● Chapter 3 (Defining and Refining the Problem), Chapter 4 (The Critical Literature Review), Chapter 6 (Elements of Research Design), Chapter 7 (Interviews), Chapter 9 (Administering Questionnaires), Chapters 14 and 15 (Quantitative Data Analysis), and Chapter 17 (The Research Report) have been substantially modified and updated in this edition.
- 26. ● Examples, exercises, and other pedagogical features have been revised and updated in all the chapters. ● The structure of the book has not changed, but the storyline has been greatly improved. As in previous editions, the accessible and informal style of presenting information has been maintained and the focus on practical skill building preserved. ● Chapter 2 introduces and discusses alternative approaches to research. In the new edition, subsequent chapters follow up on this by reviewing a range of topics (such as research questions, research design, and measurement) from various perspectives. This allows users of this book to recognize and develop their personal ideas on research and how it should be done, to determine which kinds of research questions are important to them, and what methods for collecting and analyzing data will give them the best answers to their research questions. The book provides numerous examples to illustrate the concepts and points presented. Users will also note the variety of examples from different areas of the world as well as different areas of business – human resources management, strategic management, operations management, management control, marketing, finance, accounting, and information management. Most chapters in the book include managerial implications of the contents discussed, emphasizing the need for managers to understand research. The ethical considerations involved in conducting research are also clearly brought out. The dynamics of cross‐ cultural research in terms of instrument development, surveys, and sam- pling are discussed, which, in the context of today’s global economy, will be useful to students.
- 27. We expect that students and instructors alike will enjoy this edition. Students should become effective researchers, helped by the requisite knowledge and skills acquired by the study of this book. Finally, it is hoped that students will find research interesting, unintimidating, and of practical use. HOW TO USE THIS SEVENTH EDITION You can read this book in a variety of ways, depending on your reasons for using this book. If the book is part of a Business Research Methods course, the order in which you read the chapters will be prescribed by your instructor. If you are reading the book because you are engaged in a project (a consultancy project, a research project, or a dissertation) then the order in which your read the chapters is your own choice. However, we recommend that you follow the structure of the book rather closely. This means that we advise you to start with reading the first three chapters that introduce research, various approaches to what makes good research, and the develop- ment of a problem statement and a research proposal. Based on the type of research questions and whether, as a result of your research questions, your study is either qualitative or quantitative in nature you may decide to read the book in the following way. In the case of qualitative research: 4 The critical literature review 6 Research design
- 28. 7, 8, and/or 9 Data collection methods 13 Sampling 16 Qualitative data analysis 17 The research report In the case of quantitative research: 4 The critical literature review 5 Theoretical framework 6 Research design 9 Questionnaires 10 Experimental designs 11 and 12 Measurement and Scaling 13 Sampling 14 and 15 Quantitative data analysis 17 The research report COMPANION WEBSITES Lecturers and students have a dedicated companion website available at www.wiley.com/college/sekaran. Lecturers will find a range of bespoke video material, developed by the author to provide extra explanation on difficult topics; videos are signposted in the text. The lecturer website also houses additional case studies related to each chapter, including accompanying cases for the three new chapters. There is also an extensive test bank for lecturers, a comprehensive set of PowerPoint slides to accompany the new edition, and an instructor’s manual, which offers an up‐ to‐ date and valuable additional teaching aid. Students will find an online glossary and flashcards, which are useful for self‐ study and revision. In addition, the student website provides self‐ test quizzes with over 250
- 29. questions for students to use while studying outside the classroom. xxii PREFACE ACKNOWLEDGMENTS Working on the seventh edition of Research Methods for Business has been a positive and rewarding experience. Many people have contributed to this in many different ways. Thank you colleagues at Tilburg University and the TIAS School for Business and Society for your feedback on earlier versions of this book. Thank you for providing me with a pleasant, professional and inspiring work environment. Thank you dear students for the lively and inspiring discussions we have had during the past twenty years; I have learned a lot from these discus- sions. Thanks everybody at John Wiley & Sons, in particular Steve Hardman, for your support, your patience, and your confidence. Thank you reviewers for your constructive and insightful comments on earlier drafts of this book. Roger Bougie PREFACE xxiii 1
- 30. INTRODUCTION Just close your eyes for a minute and utter the word research to yourself. What kinds of images does this word conjure up for you? Do you visualize a lab with scientists at work with Bunsen burners and test tubes, or an Einstein‐ like character writing a dissertation on some complex subject such as ‘behavioral heterogeneity in eco- nomic institutions’, or someone analyzing large amounts of scanner data to assess the impact of a price reduction on sales? Most certainly, all these images do represent different aspects of research. However, research is not necessarily characterized by Bunsen burners, Einstein‐ like characters or Big Data. Research, a somewhat intimi- dating term for some, is simply the process of finding solutions to a problem after a thorough study and analysis of the situational factors. Along these lines, people (consumers, investors, managers) constantly engage them- selves in exploring and examining issues – and hence are involved in some form of research activity‐ as they want to change mobile phone providers, buy a new car, go to the movies, invest in a business startup, or increase advertising expenditures in their role as a manager. Introduction to research C H A P T E R 1 LEARNING OBJECTIVES After completing Chapter 1 you should be able to: 1. Describe and define business research. 2. Distinguish between applied and basic research, giving examples, and discussing why they fall into one or the other of the two categories. 3. Explain why managers should know about research and discuss what managers should and
- 31. should not do in order to interact effectively with researchers. 4. Identify and fully discuss specific situations in which a manager would be better off using an internal research team, and when an external research team would be more advisable, giving reasons for the decisions. 5. Discuss what research means to you and describe how you, as a manager, might apply the knowledge gained about research. 6. Demonstrate awareness of the role of ethics in business research. 2 research methods for business Research, in some form or another, may help managers in organizations to make decisions …