1. (Business Research Methods)
RESEARCH METHODOLOGY
(Business Research Methods)
Week 1
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

2. How This Course Will Be Conducted
Comprehensive introduction to Research Methodology (Business Research Methods)
Knowledge acquisition and application of subject matter to real-life situations
Course literature (see the „must read“ section)
Use of multimedia visual aids (MS PowerPoint slides)
Reference to case studies when desirable
Encouragement of questions, comments and constructive criticism from course participants
Analytical and critical thinking, inquisitiveness as well as common sense from course participants also expected
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

3. The DO‘s and DONT‘s Catalogue for Course Participants
listen attentively
be considerate and amenable
be inquisitive, analytical and critical in your approach to learning research methodology
mention if you do not understand something and seek clarification
read the prescribed course literature. It is the basic requirement for comprehending research methodology and succeeding in this course
start reading from the beginning of the course and not towards the end!
be late to class. We start at 6 PM PM sharp!
distract the attention of other course participants
use mobile phones or send SMS messages in the class
follow a rote-learning approach. There is zero tolerance for this in all classes taught at CIIT!
feel afraid to bring up any relevant point for discussion
hesitate to visit me at my office, individually or as a group, if you have a course-related problem and seek counseling in this regard
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

4. Fundamental Course Objectives
To acquaint course participants with all salient aspects of research methodology in accordance with the current body of scientific literature on this challenging, interesting and indepensible area of management science
To show that the subject of research methodology has matured into a substantive body of knowledge, an indepth understanding of which is crucial for ensuring the success of commercial or non-commercial organizations
To show and encourage the course participants that the theoretical knowledge acquired in this course can - with the appropriate context-related modifications - be applied to numerous real-life situations in business, public-sector and non-profit enterprises
To stimulate interest in the business research field as a prospective career field
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

5. Demands on Course Participants
The essence of knowledge is having it to apply it - Confucius
Acquisition and careful application of knowledge
Analytical and critical thinking, innovation, inquisitiveness
Holistic perspective
Quizzes & (proof that the course participant is familar with the essentials
Sessionals of research methodology)
Project Work (each course participant is expected to show that he or she is able to apply the research skills learned in this course)
Examination (case study in which each course participant is expected to demonstrate his or her indepth understanding of research methodology and apply the knowledge acquired in the course to a real-life situation)
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

6. Important Information for Course Participants – (1)
You MUST read the course literature from the beginning of the semester. Relying on the PowerPoint slides is NOT sufficient! The purpose of these slides is to provide you with a broad and general introduction to research methodology. Kindly note that the slides are intended as a supplement to, and NOT as a substitute for the prescribed course literature
The prescribed course literature will be used as a reference for the quizzes, sessionals and final examination. Failure to read and understand the course literature could mean that a course participant will fail the course! An automatic passing grade in this course is NOT guaranteed, rather, a course participant‘s marks will reflect his or her effort and performance in the subject
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

7. Important Information for Course Participants – (2)
The project work to be undertaken in this course will be chosen by the course instructor and must be undertaken by the course participant according to the project guidelines which will be distributed in paper form seperately. It is essential that primary data is collected, analysed, evaluated and recorded by the course participant in his or her project report. Plagiarism will NOT be tolerated! If caught, zero marks will be given
The course lectures, discussions etc. will be conducted exclusively in english! The use of Urdu language in this course is strongly discouraged
Specific questions on the subject of research methodology may be asked from candidates in the Viva oral examination at the end of their MBA programme. Failure to answer these questions will definitely result in a deduction of examination marks
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

8. Course Highlights Primary and Secondary Data
Analyzing primary and secondary data (quantitative techniques)
Communicating Research Results
Undertaking Research Project by the course participants
Introduction to research methodology
Research Terminology and the Scientific Method
Designing and implementing a research project
Ethics in Research
Types of Research
Measurements in Research
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

9. Use of Multimedia Visual Aids in this Course
All MS PowerPoint course presentation slides, the course outline, quizzes, the two sessionals and final examination (after completion☺) supporting eDocument files and the course participants’ project reports will be uploaded to the yahoo webgroup CIIT – Research Methodology, from where they will be accessible via Internet to all course participants and any other scholars or persons in Pakistan or overseas who are interested in this CIIT – Research Methodology course
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

10. What is Business Research?
Business Research may be defined as the “systematic and objective process of gathering, recording and analyzing data for aid in making business decisions” (Zikmund, Business Research Methods, 2002, p. 6)
Systematicness and Objectivity are its distinguishing features of Business Research, which is important tool for managers and decision-makers in corporate and non-corporate organizations
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

11. When is Business Research Used?
Typically, business research methods are used in situations of uncertainty, that is, when decision-makers face two or more courses of action and seek to select the best possible alternative under the circumstances. Business Research is hence aimed at improving the quality of decision-making which, in turn, benefits the organization and helps ensure its continuity and efficiency
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

12. Typical Users of Business Research Methods
Businesses and Corporations
Public-Sector Agencies
Consulting Firms
Research Institutes
Non-Governmental Organizations
Non-Profit Organizations
Independent Researchers and Consultants
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

13. Common Business Research Methods & Techniques
Surveys
Interviews
Observation
Experiments
Archival and Historical Data
Qualitative Analysis
Quantitative Analysis
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

14. Fields Where Business Research is Often Used – (1)
General Business Conditions and
Corporate Research
Short- & Long-Range Forecasting,
Business and Industry Trends
Global Environments
Inflation and Pricing
Plant and Warehouse Location
Acquisitions
Financial and Accounting Research
Forecasts of financial interest rate trends,
Stock,bond and commodity value predictions
capital formation alternatives
mergers and acquisitions
risk-return trade-offs
portfolio analysis
impact of taxes
research on financial institutions
expected rate of return
capital asset pricing models
credit risk
cost analysis
Management and Organizational
Behaviour Research
Total Quality Management
Morale and Job Satisfaction
Leadership Style
Employee Productivity
Organizational Effectiveness
Structural ssues
Absenteeism and turnover
Organizational Climate
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

15. Fields Where Business Research is Often Used – (2)
Sales and Marketing Research
Market Potentials
Market Share
Market segmentation
Market characteristics
Sales Analysis
Establishment of sales quotas
Distribution channels
New product concepts
Test markets
Advertising research
Buyer behaviour
Customer satisfaction
Website visitation rates
Information Systems Research
Knowledge and information needs assessment
Computer information system use and evaluation
Technical suppot satisfaction
Database analysis
Data mining
Enterprise resource planning systems
Customer relationship management systems
Corporate Responsibility Research
Ecological Impact
Legal Constraints on advertising and promotion
Sex, age and racial discrimination / worker equity
Social values and ethics
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

16. Selected Examples of Real-Life Situations in Which Business Research Methods are Used
A firm wants to produce and market a new product but first wants to ascertain if there is a potential consumer demand for this product in markets x,y and z
a multinational firm wants to establish a production facility in another country after determining its technical and economic feasibility
A government agency wants to ascertain the satisfaction level of its employees, the causes for any possible discontent, and propose a scheme for enhancing this level
A financial institution wants to invest in commodities and commissions a study to determine the past trends and forecast future returns in a portfolio of commodities
The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organization’s priorities
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

17. Basic and Applied Research
Basic Research aims to expand the frontiers of science and knowledge by verifying or disproving the acceptability of a given theory or attempting to discover more about a certain concept (non-specificity)
Example: How does motivation affect employee performance?
Applied Research focusses on a real-life problem or situation with a view to helping reach a decision how to deal with it (Specificity)
Example: Should Corporation X adopt a paperless office environment?
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

18. Science and the Scientific Method
Science has been defined as “the methodological and systematic approach to acquisition of new knowledge” (Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of Research Design and Methodology, John Wiley & Sons, 2005, p. 4)
The scientific method, which has evolved since the 13th century, concerns the set of tools, techniques and procedures used by basic and applied researchers to analyze and understand phenomena and prove or disprove prior conceptions
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

19. The Essence of the Scientific Method
Characteristics of the Scientific Method
Objectivity
Systematic Analysis
Logical Interpretation of Results
Elements of the
Scientific Method
Empirical Approach
Observations
Questions
Hypotheses
Experiments
Analysis
Conclusion
Replication
General Laws
Basic
Research
Scientific
Method
Applied
Research
Information or
Ideas for alternative
Courses of action
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

20. The Value of Business Research for Managers – (1)
Reduction of uncertainty and improvement in the quality of decision-making with several consequent advantages (e.g. strategic, operational) and benefits for organizations
Business Research Methods can be employed in each of the following four stages:
Identification of problems and/or opportunities
Useful for strategy planning, analysis of internal and external organizational environment
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

21. The Value of Business Research for Managers – (2)
(2) Diagnosing and Assessment of problems and/or opportunities
Its purpose is to gain insight into the underlying reasons and causes for the situation. If there is a problem, it asks what happened and why? If there is an opportunity, it seeks to explore, clarify and refine the nature of the opportunity and, in the case of multiple opportunities, seeks to set priorities
(3) Selection and Implementation of Courses of Action
After alternative courses of action have been determined, selection of the best possible course.
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

22. The Value of Business Research for Managers – (3)
An important consideration is the quality of forecasting which is an essential tool of research
(4) Evaluating the Course of Action
Business Research Methods are used after a course of action has been implemented in order to determine whether activities have been properly implemented and have accomplished what they intended to do
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

23. The Value of Business Research for Managers – (4)
Evaluation Research – It is the formal objective measurement and evaluation of the extent which an activity, project or programme has achieved its goal, and the factors which influence performance (e.g. audits). It is also the formal objective measurement and evaluation of the extent to which on-going activities, projects or programmes are meeting their goals (performance-monitoring research)
Examples of performance-monitoring research:
Are railway passengers satisfied with the level of service the railway company is providing? If not, then research may need to be undertaken to ascertain the reasons for customer dissatisfaction and propose corrective measures
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

24. The Value of Business Research for Managers – (5)
What are the trends in retail and wholesale sector? Can research suggest new ways to improve efficiency in purchase transactions?
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

25. When Should Business Research be Undertaken?
Is sufficient time
available? NO
Yes
Is information
inadequate?
Do not
undertake Business Research
Yes
High importance
of decision?
Yes
Research benefits
greater than costs?
Undertake Business Research
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

26. Value and Costs of Undertaking Business Research
Decreased Uncertainty
Higher Likelihood of Correct Decisions
Better Business performance
Higher Profits
Better Reputation
Research Costs
Delay in Making Business Decisions
Disclosure of Information to Rivals
Possibility of Error
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

27. The Building Blocks of Research
KNOWLEDGE
Blend of information, experience and in-sights that
provides a framework that can be thoughtfully evaluated
when assessing new information or evaluating
relevant situations
Determination of relationship amongst data with a
view to facilitating understanding of the phenomena,
their relationships and decision-making
(e.g. past and predicted future sales trends)
INFORMATION
Measurements of phenomena
(e.g. sales statistics of a department store)
DATA
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

28. Demands on Data & Information
Relevance to the problem or situation at hand
Must be available in a timely manner to the right person (manager or decision-maker)
Completeness
Accuracy
Accessibility
Affordability
Integrateability into a broader global information or decision-support system
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

29. Global Information Support Systems
A Global Information System may be defined as “ an organized collection of computer hardware, communication equipment, software, data, and personnel designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities”
A Global Information System is a tool for providing past, current and projected information on internal operations and external activity. It organizes and integrates data from production, operations, marketing, finance, accounting and other business functions
(Zikmund, p. 22)
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

30. Decision-Support System
A computer-based system that helps decision makers confront problems through direct interaction with databases and analytical software programs
The purpose of a decision support system is to store data and transform them into organized information that is easily accessible to decision-makers
Decision-Support Systems are integrated in Global Information Systems. They are aimed usually for assisting managers and decision-makers in specific organizational business units (e.g. divisions, departments and functional areas) by providing organized and adaptable information
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

31. Data Warehousing & Data Mining
Databases & Software
Databases are collections of raw data which have been arranged in a logical manner and which can be stored and processed electronically
Software are programmes that allow complex operations to be undertaken on data and which give information for managers and decision-makers
Data Warehousing & Data Mining
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

32. Data and Information Sources for Business Researchers – (1)
Internal Records
Example: Data about costs, shipments, inventory, sales, and other aspects of regular operations which are collected from various functional areas of an organization
Proprietary Business Research
Example: New data and information from projects which are undertaken ad hoc to study specific company problems
Business intelligence Systems
Example: Information about nonrecurring developments in the external business environment stemming from a network of sources and regular procedures
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

33. Data and Information Sources for Business Researchers – (2)
On-Line Databases
Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones News Retrieval Services, CompuStat
Internet
Examples: World Wide Web search engines (Google, Yahoo, Altavista, Lycos, Excite etc.)
All Other Sources
Examples: Research Institutions, Libraries, Books, Journals, Periodicals,
Newspapers, Chambers of Commerce and Industry
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

34. Business Research in the International Context
Business Research is being increasingly applied in an international context in the wake of globalization and the consequent freedom of movement of the resources of labour, capital and information of businesses and corporations:
Overseas market potential
Joint ventures and relocating production lines overseas
Framework considerations for investment and trade (e.g. culture, legal environment, security, physical infrastructure, availability and quality of human resources, logistics, political stability, trade and investment incentives)
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

35. Data and Information Sources for Business Researchers (Pakistan)
Federal and provincial ministries of commerce, industries and production
Federal, provincial and city Chambers of Commerce and Industry
State Bank of Pakistan, Pakistan Banking Council, local and foreign banking institutions
Stock Exchanges
National Investment Board
Export Promotion Bureau
Manufacturers, Traders and Exporters Associations
Research Institutes (e.g. Pakistan Institute of Development Economics)
Newspapers and Magazines (e.g. Business Recorder, Pakistan and Gulf Economist)
Business and Trade Directories
Internet (e.g.:
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

36. Business Recorder (www.brecorder.com)
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan