Research method chapter 1
- 1. Business Research Method in Accounting and Finance
- 2. Chapter 1 Introduction to Research
- 3. 1.1. Source of Knowledge • There are two major approaches of knowing the world: 1. everyday experience and 2. science.
- 4. 1. Everyday Experience as a source of knowledge • As we live in this world and interact with our surrounding we may be confronted with new ideas that may have important impact on our lives. • We get access to this information through our senses- the most immediate way of knowing something. This what we call sensory knowledge.
- 5. • We may also use the opinion of others as sources of knowledge. • We might have experienced a stimulus with our senses but we want to check on the accuracy and authenticity of these sensations. • We often ask: Does this food taste delicious to you:
- 6. • Exercise: • Do you rely on your senses and trust the data you collected because it has been said, ‘’seeing is believing’’? How is reliable are your senses? • There are also other ways of knowing from our every day experiences. These are presented below:
- 7. a. The method of Tenacity • It refers to the acceptance of a belief based on the ideas that ‘’we have always known it to be this way’’. • In other words, it represents the automatic acceptance of the prevailing traditional beliefs and customs in which we have been socialized. • We accept those beliefs and customs as true without exploring them and then behave with it. • Even when we come across evidences that contradict our beliefs, we still tend to cling (adhere) to our traditional belief.
- 8. • This method has two problems: • 1. The information may gain wide acceptance through its familiarity alone • 2. It offers no means for correcting erroneous ideas • For example, in some cultures Female genital Cutting (FGC) is an accepted practice.
- 9. b. The method of Authority • If we enter in to a new culture, we ask someone in that culture who is supposed to have a knowledge- an authority figure. We may then accept a new idea or information stated by this figure. • Remember that the authority may be incorrect and may lead to wrong directions. As a result it is important to check the validity of knowledge of the authority. • Exercise: Is there a problem if we unquestioningly accept the knowledge and expertise of others?
- 10. c. The prior method • In this method first we develop general knowledge, opinion, or belief about the world through the aforementioned methods or personal observations of things around us and then we draw new and specific conclusion from the general knowledge. As a result it is also known as a deductive reasoning. • Reason and logic are the basic tools of a prior method and often take the form of a logical syllogism such as All men are tall; Alemu is a man; Therefore, Alemu is tall. Hence, logical conclusions may not necessarily lead to correct conclusions. • Exercise: Draw your syllogistic conclusion. Ethiopia has the best long distance runners in the world.
- 11. d. Common sense • Is based on our own past experiences and our perceptions of the world. • It originates from our day to day practical experiences and in turn guides our daily interaction with our surrounding. • It may help us to deal with routine aspects of daily life. • Note that our perception of the world may be quite limited or may be seriously misleading. • It may prevent us from understanding new ideas.
- 12. 2. Science • Is a body of systematized knowledge. • In this method, ideas are evaluated and corrected through dispassionately(analytically) observing the means of senses or measuring devices- in this case science can been seen as a systematic and controlled extension of common senses- and using reason to compare various theoretical conceptualization based on experience- which represents a direct application of the principle of logic. • The scientific method of knowing is the scientific research, and its goal is the discovery of regularities of nature and their representation in theories from which predictions can be made
- 13. • Scientific methods: Find general rules Collect objective evidences Make testable statements Are creative Are public, and Are productive
- 14. • It follows the following logical steps: Defining the problem Making tentative explanations Gathering information Testing the validity of the hypotheses Making conclusions as to whether the hypothesis can be accepted or rejected
- 15. • Limitations of the method: 1. Cannot answer all questions 2. Its application can never capture the full richness of the individual and the environment 3. The measurement devices always have some degree of error
- 16. 1.2. (A): Definition of Scientific Research • People have been struggling to understand their environment and the nature of the phenomena it presents. • One of the means people use to achieve these ends is research. • Research is an often-misused term; its usage in everyday language is different from the scientific meaning.
- 17. • Research is defined as human activity based on intellectual application in the investigation of matter. • Research is the systematic process of collecting and analysing information in order to increase our understanding of the phenomenon about which we are interested or concerned. • Scientific research is performing a systematic study in order to test a hypothesis or answer a question.
- 18. • Scientific research is a systematic attempt to obtain answers to meaningful questions about phenomena or events through the application of scientific procedures. • It is the function of the researcher to contribute to the understanding of the phenomenon and to communicate that understanding to others.
- 19. • Scientific research must be organized and undergo planning; • Scientific research follows a set of protocols and established structures. • These protocols can vary slightly between disciplines, but all follow similar basic structure. • Failure to follow the guidelines may prevent the findings from being accepted and taken seriously.
- 20. • Scientific research looks at an area and breaks it down into easily testable/ answerable pieces, i.e. breaking down a large and seemingly impossible problem into manageable chunks (large pieces). • The treatment of the individual pieces will allow the larger problem/ question to be approached and answered. • All scientific research has a goal and ultimate (final) aim, repeated and refined study gradually reaching an answer.
- 21. • Scientific research is: • Systematic: so ordered, planned, and disciplined (closely controlled); • Controlled: the researcher can have confidence in his/her research outcomes; • Empirical: putting beliefs, ideas, or assumptions to a test; • Critical: many truths are tentative and are subject to change as a result of subsequent research.
- 22. 1.2. (B): Characteristics of scientific research • Although research projects vary in complexity and duration, research typically has the following distinct characteristics:
- 23. a. Research originates with a problem • The world is filled with unanswered questions and unresolved problems. • Everywhere we look, we see things that cause us to wonder, to speculate, to ask questions. • by asking questions, we strike the first spark igniting (lighting) a chain reaction that leads to the research process. • An inquisitive (questioning) mind is the beginning of research, as some scholars say “Inquiring (analytical) minds want to know”.
- 24. • Look around you; consider the unresolved situations that evoke these questions. • What is such a situation like? • Why does such and such phenomenon occur? • What does it all mean? • These are everyday questions. With questions like these, research begins.
- 25. b. Research requires clear articulation of a goal • The ultimate goal of the research must be set forth clearly and precisely in a grammatically complete sentence. • The statement of goal answers the question, “what problem do you intend to solve?” • It is essential for the success of any research undertaking; without it, the research is on very shaky ground.
- 26. c. Research requires a specific plan for proceeding • research is not a blind excursion into the unknown, with the hope that the data necessary to answer the question will turn up. • It is instead, a carefully planned work, a search and discover mission explicitly outlined in advance.
- 27. • Researchers plan their overall research design and specific research methods in a purposeful way so that they can acquire data relevant to their research problem. • In addition to identifying the goal of your research, you must also identify how you propose to reach your goal. • You cannot wait until you are deep in the project to plan and design your strategy.
- 28. • In the formative (determining) stages of a research project, much can be decided including: – Where are the data? – Do any existing data address themselves to the research problem? – If the data exist are you likely to have access to them? – If you have access to the data, what will you do with them after they are in your possession? • Each of the questions just listed must have an answer early in the research process.
- 29. d. Research usually divides the principal problem into more manageable sub problems • from a design standpoint it is often helpful to break a main research problem into several sub problems, that when solved, will resolve the main problem. • By closely inspecting the principal problem the researcher often uncovers important sub problems.
- 30. e. Research is guided by specific research question or hypothesis • Having stated the problem/ sub problems, the researcher usually forms one or more research questions/ hypotheses. • develop one or more tentative explanations/ questions.
- 31. f. Research requires the collection and interpretation of data • collect data and organize them in meaningful ways so that they can be interpreted. • Data demand interpretation. • Data, events and observations are, in themselves, only data, events only , observations and nothing more. • The significance of the data depends on how the researcher extracts meaning from them.
- 32. • data un-interpreted by human mind are worthless: they can never help us to answer the question. • interpretation is subjective in nature • Different minds often find different meanings in the same set of facts. • But no rule or formula can lead the researcher to a correct interpretation. • Interpretation depends entirely on the hypotheses, assumptions, and logical reasoning processes of the researcher.
- 33. 1.2. (C) Goals of scientific research • The purpose of scientific research is problem solving. • The problem could be of an immediate and practical value or they could be of theoretical nature. • Research focuses on answering various questions and acquiring new knowledge.
- 34. • It is the primary tool used in virtually all areas of science to expand the frontiers of knowledge. • In addition, by conducting research, researchers attempt to reduce the complexity of problems, discover the relationship between seemingly unrelated events, and ultimately improve the way we live.
- 35. • Research is frequently used for describing a thing or event, discovering the relationship between phenomena, or making predictions about future events. • It may be said that the general aims of research are to observe and describe, to predict, to determine causes and explain.
- 36. 1.3.Motivations in Research • What makes people to undertake research? The possible motives for doing research may be either one or more of the following among others: a. Desire to get a research degree along with its consequential benefits;
- 37. Cont’d b. Desire to face the challenges in solving the unresolved problems, i.e., concern over practical problems; c. Desire to get intellectual joy of doing some creative work; d. Desire to be of service to society; e. Desire to get respectability.
- 38. 1.4. Features of Good Research • Good research generates dependable data that are derived by professional conducted practices and that can be used reliably for decision making. • In contrast, poor research is carelessly planned and conducted, resulting in data that a manager can’t use to reduce his/her decision-making risks. • Good research follows the standards of the scientific method: systematic, empirically based procedures for generating replicable research.
- 39. • These features are described below: 1. Purpose clearly defined: • The purpose of the business research-the problem involved or the decision to be made- should be clearly defined and sharply delineated in terms as unambiguous as possible. • The statement of the decision problem should include its scope, its limitations and the precise meanings of all words and terms significant to the research.
- 40. • Failure of the researcher to do this adequately may raise legitimate doubts in the minds of research report readers as to whether the researcher has sufficient understanding of the problem to make a sound proposal attacking it. • This characteristic is comparable to developing a strategic plan for achieving an objective before developing a tactical plan or an action map.
- 41. 2. Research process detailed: • The research procedures used should be described in sufficient detail to permit another researcher to repeat the research. • Except when secrecy is imposed, research reports should reveal with candor (openness) the sources of data and the means by which they were obtained.
- 42. • Omission of significant procedural details makes it difficult or impossible to estimate the validity and reliability of the data and justifiably weakens the confidence of the reader in the research itself as well as any recommendations based on the research. • This characteristic is comparable to developing a tactical plan.
- 43. 3. Research design thoroughly planned: • The procedural design of the research should be carefully planned to yield results that are as objectives as possible. • When a sampling of the population is involved, the report should include evidence concerning the degree of representativeness of the sample. • A survey of opinions or recollections ought not to be used when more reliable evidence is available from documentary sources or by direct observation.
- 44. • Bibliographic searches should be a thorough and complete as possible. Experiments should have satisfactory controls. • Direct observations should be recorded in writing in as soon as possible after the event. • Efforts should be made to minimize the influence of personal bias in selecting and recording data. • This characteristic is comparable to developing detailed action plans for each tactic.
- 45. 4. High ethical standards applied: • Researchers often work independently and have significant latitude (autonomy) in designing and executing research projects. • Careful consideration must be given to those research situations in which there is a possibility of physical or psychological harm, exploitation, invasion of privacy, and/or loss of dignity. • The research need must be weighted against the potential for adverse effects.
- 46. 5. Limitations frankly reveled: • The researcher should report, with complete frankness, flaws in procedural design and estimate their effect on the findings. • There are very few perfect research designs. • Some of the imperfections may have little effect on the validity and reliability of the data; others may invalidate them entirely. • A competent researcher should be sensitive to the effects of imperfect design. The researcher’s experience in analyzing data should provide a basis for estimating the influence of design flaws. • As a decision maker, you should question the value of research where no limitations are reported.
- 47. 6. Adequate analysis for decision maker’s needs: • Analysis of the data should be extensive enough to reveal its significance, what managers call “insights.” • The methods of analysis used should be appropriate. • The extent to which this criterion is met is frequently a good measure of the competence of the researcher. • Adequate analysis of the data is the most difficult phase of the research for the novice. • The validity and reliability of data should be checked carefully. • The data should be classified in ways that assist the researcher in reaching pertinent conclusions and clearly reveal the findings that have led to those conclusions. • When statistical methods are used, the probability of error should be estimated and the criteria for statistical significance applied.
- 48. 7. Findings presented unambiguously: • Generalizations that outrun (escape) the evidence on which they are based, exaggerations, and unnecessary verbiage tend to be leave an unfavorable impression. • Such reports are not valuable to managers for an organizational decision making. • Presentation of data should be comprehensive, easily understood by the decision maker, organized so that the decision maker can readily locate critical findings.
- 49. 8. Conclusions justified: • Conclusions should be limited to those for which the data provide an adequate basis. • Researchers also may be tempted to rely too heavily on data collected in a prior study and use it in the interpretation of a new study. Such practice sometimes occurs among research specialists who confine their work to clients in a small industry. These actions tend to decrease the objectivity of the research and weaken reader’s confidence in the findings. • Good researchers always specify the conditions under which their conclusions seem to be valid.
- 50. 9. Researcher’s experience reflected: • Greater confidence in the research is warranted if the researcher is experienced, has a good reputation in research, and is a person of integrity. • Were it possible for the reader of a research report to obtain sufficient information about the researcher, this criterion perhaps would be one of the best bases for judging the degree of confidence a piece of research warrants and the value of any decision based upon it. • For this reason the research report should contain information about the qualifications of the researcher.
- 51. • Good business research has an inherent value only to the extent that it helps management make better decisions that help achieve organizational goals. • Interesting information about consumers, employees, competitors, or the environment might be pleasant (nice) to have, but its value is limited if the information cannot be applied to a critical decision.
- 52. • If a study does not help management select more effective, more efficient, less risky, or more profitable alternatives than otherwise would be the case, its use should be questioned. • Alternatively, management may have insufficient resources (time, money, or skill) to conduct an appropriate study or may face a low level of risk associated with the decision at hand. In these situations, it is valid to avoid business research and its associated costs in time and money. • Business research finds its justification in the contribution it makes to the decision maker’s task and to the bottom line.