THE RESEARCH PROCESS - THEORETICAL FRAMEWORK & HYPOTHESIS DEVELOPMENT CHAPTER 4 THE RESEARCH PROCESS - THEORETICAL FRAMEWORK & HYPOTHESIS DEVELOPMENT © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran 1

THEORETICAL FRAMEWORK A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) are related to each other (a model) and an explanation on why you believe that these variables are associated to each other (a theory). © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

THEORETICAL FRAMEWORK Basic steps: Identify and label the variables correctly State the relationships among the variables: formulate hypotheses Explain how or why you expect these relationships © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

VARIABLE Any concept or construct that varies or changes in value Main types of variables: Dependent variable Independent variable Moderating variable Mediating variable © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

(IN)DEPENDENT VARIABLES Dependent variable (DV) Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable. Independent variable (IV) Influences the DV in either positive or negative way. The variance in the DV is accounted for by the IV. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

EXAMPLE Cross-cultural research indicates that managerial values govern the power distance between superiors and subordinates. Here, power distance is the subject of interest and hence the dependent variables. Managerial values that explain the variance in power distance comprise the independent variable. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

MODERATING VARIABLES One that has a strong contingent effect on the independent variable dependent variable relationship. The present modifies the original relationship between the independent and the dependent variables.

EXAMPLES It has been found that there is a relationship between the availability of reference manuals that the manufacturing employees have access to, and the product rejects. When workers follow the procedures laid down in the manual, they are able to manufacture products that are flawless. Those who have interest and urge to refer to manual will produce flawless product.

MODERATORS Moderating variable Moderator is qualitative (e.g., gender, race, class) or quantitative (e.g., level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

MEDIATING VARIABLE Intervening variables Surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it. Help to model a process. Help to conceptualize and explain the influence of the independent variable on the dependent variables. © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

EXAMPLES Where workforce diversity (IV) influences the organizational effectiveness (DV), the mediating variable that surfaces as a function of the diversity in the workforce is “creative synergy”. “Creative synergy” results from a multiethnic, multiracial, and multinational workforce interacting and bringing together their multifaceted expertise in problem solving.

Diagram of the relationship among the independent, mediating, moderating and dependent variables. Time: t1 t2 t3 CREATIVE SYNERGY (Mediating Variables) WORKFORCE DIVERSITY (IV) ORGANIZATIONAL EFFECTIVENESS (DV) MANAGERIAL EXPERTISE (Moderating Variable)

HYPOTHESIS A proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. Good hypothesis: Must be adequate for its purpose Must be testable Must be better than its rivals Can be: Directional Non-directional © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

EXERCISE Give the hypotheses for the following framework: Service quality Customer switching Switching cost © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

Customer satisfaction EXERCISE Give the hypotheses for the following framework: Service quality Customer satisfaction Customer switching © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran

ARGUMENTATION The expected relationships / hypotheses are an integration of: Exploratory research Common sense and logical reasoning © 2009 John Wiley & Sons Ltd. www.wileyeurope.com/college/sekaran