4 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Business Research Process: An Overview Causality in research Research Methods in Management

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Causal Research Research conducted to identify cause and effect relationships (inferences). Cause Effect

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Causal Research Cause 1 Problem Cause 2 Cause 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. (1) A causes B (Unidirectional relationship) A A B B (2) B causes A (Unidirectional relationship) A A B B (3) A and B cause each other (Bidirectional relationship) A A B B (4) A and B just correlate (The direction of causality cannot be implied) A A B B

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reverse causation Reverse causality means that the direction of causality between two factors may be opposite from what we expect 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job satisfaction makes employees have better job performance Reverse causation 6 Job satisfaction Job performance Having good job performance will make an employee satisfied more with a job Job satisfaction Job performance

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reverse causation 7 Job satisfaction Job performance Reverse causality makes it difficult for researchers to infer the direction of causality between job satisfaction and job performance

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–8 Evidence of causality Temporal sequence Concomitant variation Nonspurious association

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–9 Evidence of causality Temporal sequence—the appropriate causal order of events. Cause Effect Happened at Time t (e.g. year 2000) Happened at Time t+1 (e.g. year 2001) Cause Effect Happened at Time t-1 (e.g. year 2001) Happened at Time t (e.g. year 2000)

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–10 Evidence of causality Concomitant variation—two phenomena vary together. Occur when two events “covary” or “correlate”

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–11 Evidence of causality Nonspurious association—an absence of alternative plausible explanations. For example: There is a positive relationship between “ice cream sales” and “murder cases”. When ice cream sales increase, murder cases increase. When ice cream sales drop, murder cases reduce.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.2 The Spurious Effect of Ice Cream 4–12

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Association does not imply causation a correlation between two variables does not necessarily imply that one causes the other. 13

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Different types of effect Main effect Moderating (interacting) effect Mediating effect 12–14

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–15 Main Effect The influence of a single independent variable on a dependent variable. Independent Variable (X) Independent Variable (X) Dependent Variable (Y) Dependent Variable (Y) Main effect

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–16 Moderating effect The effect of the independent variable (cause) on the dependent variable (effect) is contingent on the third factor which can either enhance or suppress the effect. The third factor that influences the relationship is called a “moderator”.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Interaction (Moderating) effect Independent Variable (X) Independent Variable (X) Dependent Variable (Y) Dependent Variable (Y) Moderator Main effect Moderating effect

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Moderating effect Does a training program increase sale performance? Number of training sessions Sale performance

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Moderating effect Young employees Old employees

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12–20 Moderating effect Young employeesOld employees

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Interaction (Moderating) effect Age of employee “moderates” the effect of training program on sale performance. Only “young employees” who “received more training” tend to have higher sale performance Number of training sessions Sale performance Age of employee

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Does using social media at work affect job performance? 1–22 Social media use at work Job performance

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–23

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Do employees who have higher job stress benefit more from using social media during work than employees who have lower job stress? 1–24 Social media use at work Job performance Job demands

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–25

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Do employees who access to social media from PC benefit from using social media during work more than employees who access from mobile gadgets? 1–26 Social media use at work Job performance Access from PC or Mobile gadgets

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–27

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Do employees who work for a firm that allow social media at work obtain more benefit than employee who work for a firm that prohibit social media at work? 1–28 Social media use at work Job performance Social media is prohibited at work

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–29

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–30 Social media use at work Job performance Access from PC or Mobile gadgets Social media is prohibited at work Job demands

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mediating effect X does not influence Y directly. But it can influence Y indirectly through a third variable called a “Mediator” M mediates the relationship between X and Y Independent Variable (X) Independent Variable (X) Dependent Variable (Y) Dependent Variable (Y) Mediator

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mediating effect Full mediation occurs when the direct relationship between the independent variable and the dependent variable disappear when the mediator is included. Partial mediation occurs when the direct relationship between the independent variable and the dependent variable is still strong even when the mediator is included.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–33 Independent Variable (X) Independent Variable (X) Dependent Variable (Y) Dependent Variable (Y) Mediator Weak relationship or no relationship Strong relationship Strong relationship

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1–34 Independent Variable (X) Independent Variable (X) Dependent Variable (Y) Dependent Variable (Y) Mediator Strong relationship Strong relationship Strong relationship

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of mediating effect 1 Mindfulness meditation Self-efficacy Positive and strong

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of mediating effect 1 Mindfulness meditation Self-efficacy Emotional intelligence Positive but weak Emotional intelligence “fully mediates” the link between mindfulness meditation and self-efficacy

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of mediating effect 2 Perceived product quality Buying decision Positive and strong

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of mediating effect 2 Perceived product quality Buying decision Product satisfaction Positive and strong Product satisfaction “partially mediates” the link between Perceived product quality and buying decision