1. THE RESEARCH PROCESS - THEORETICAL FRAMEWORK & HYPOTHESIS DEVELOPMENT
CHAPTER 4
THE RESEARCH PROCESS - THEORETICAL FRAMEWORK & HYPOTHESIS DEVELOPMENT
© 2009 John Wiley & Sons Ltd. 1

2. 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).
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3. 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
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4. VARIABLE Any concept or construct that varies or changes in value
Main types of variables:
Dependent variable
Independent variable
Moderating variable
Mediating variable
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5. (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.
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6. 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.
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7. 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.

8. 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.

9. 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.
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10. 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.
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11. 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.

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

13. 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
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14. EXERCISE Give the hypotheses for the following framework:
Service quality
Customer switching
Switching cost
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15. Customer satisfaction
EXERCISE
Give the hypotheses for the following framework:
Service quality
Customer satisfaction
Customer switching
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16. ARGUMENTATION
The expected relationships / hypotheses are an integration of:
Exploratory research
Common sense and logical reasoning
© 2009 John Wiley & Sons Ltd.