29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan1 RESEARCH METHODOLOGY (Business Research Methods) Week 5

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan2 Secondary Data Secondary (or historical) data is data which has been acquired through a research or any other effort in the past and for another purpose Depending on the secondary data needed, there may be numerous sources for acquiring this secondary data

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan3 Advantages of Secondary Data Pool of already existing data Cost-effective vis-à-vis primary data Quick availability No need for designing and undertaking a research study Collecting primary data may not be feasible (privacy issues) Many different sources are available

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan4 Disadvantages of Secondary Data Relevance for researcher Does data apply to target population? Time-frame consistent with researchers requirement? (outdatedness) Variation in terms of definition of terms Different units of measurement (data conversion) Verification of data’s accuracy (inherent biases due to vested interests) Reputation of the data-collecting organization and research design used may not be good

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan5 Evaluating Secondary Data Do the data help answer questions set out in the problem definition? Do the data help answer questions set out in the problem definition? Do the data apply to the time period of interest? Do the data apply to the time period of interest? Do the data apply to the population of interest? Do the data apply to the population of interest? Do other terms and variable classifications presented apply to the project? Do other terms and variable classifications presented apply to the project? Are the units of measurement compatible? Can data be re- worked? If yes, continue Applicability to Current Project No! Yes No! (Next Slide!)

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan6 Evaluating Secondary Data Are the units of measurement compatible? If possible, go to the original data source Is the cost of data acquisition worth it? Is there a possibility of bias? Can accuracy of data collection be verified? Use Data No! Yes! No! Inaccurate or unsure) Yes Yes (accurate) No Is using data worth the risk? No Yes No

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan7 Fact Finding Fact finding is about collecting secondary (or descriptive) data with a view to obtaining insights which can assist in decision- making Some examples: (1)Macroeconomic Data of Pakistan (2)Global Oil price trends (3)FDI in China over the period (4)Indo-Pakistan trade statistics (5)Salary structure across ten selected industries

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan8 Model Building  Model building is about specifying relationships between two or more variables  Models can range from very simple ones, involving only two interrelated variables to complex ones involving several interrelated variables (multivariate statistical forecasting models)

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan9 Classification of Secondary Data: Internal Sources  Internal Sources (data already existing within an organization, for example, data collected and stored by various departments such as accounting and finance, marketing)  Sometimes one unit in an organization is unaware that other units may be maintaining data which may be relevant for it and undertakes unnecessary and costly data collection

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan10 Classification of Secondary Data: External Sources  External Sources (data generated or provided by individuals and entities other than the researcher or his/her organization)  There are many types of external sources of secondary data:  Books and Professional Journals  Federal Government sources  Regional / Provincial Publications  Electronic and Print Media Sources  Commercial Sources  Internet, CDs

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan11 Secondary Data in the International Context  As economies and business becomes increasingly global in outlook, so does the need for secondary data from other regions and countries  Potential Problems:  Unavailability of data in some countries  Accuracy of data may be questionable  Definitions and measurements of data may vary  Comparability of data may be difficult

29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan12 On-Line Sources of Secondary (Business) Data in Pakistan: Selected Examples  Business Recorder  Forex Pakistan  Karachi Stock Exchange  The Economist  State Bank of Pakistan  National Bank of Pakistan  Federal Ministry of Finance  Pakistan Federal Government