1. Introduction to Research Methodology for Business and Economics PhD students András István KUN UD FEB, associate professor

2. Before we start… Scheduling the next class We have to have 7*45 minutes more ~ 5.5 hrs Options: –Fridays: 27 November (whole day) 4 December (whole day) 11 December (whole day) 18 December (whole day) –Or another day during the week?

3. Introduction

4. The scientific method In its broadest sense science is any systematic knowledge that is capable of resulting in a correct prediction or reliable outcome. A scientific method seeks to explain the events of nature in a reproducible way, and to use these findings to make useful predictions. Scientific thinking is one of the ways to find answeres (besides practical thinking, professional thinking, religious thinking, ideological thinking…).

5. How does it differ from other answer seeking methods? Everyday/Normal Vocational/Professional Artistic Mystical Mythological/Religious/Ideological Metaphysical/Philosophical Scientific

6. Thus science is… Efficient and effective Rational, generalizable, verifiable (is it?), coherent, analytical, predictive Auxiliary attributes (rules of thumb): simple, useful, added value Objective (can it be?) Empirical (how?) and inductive (is it?) Game of language

7. Possible definitions of research A way of thinking: a habit of questioning what you do a systematic examination to find answeres search for knowledge via systematic investigation investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws

8. Why doing research? A quest for knowledge and understanding An interesting and useful experience A course for qualification A career A style of life A way to improve quality of life An ego boost

9. Different fields of research The everyday research Professional research: –Economic –Management Development, R&D (applied research) Academic research („blue sky” research)

10. Everybody is a researcher Looking for job Looking for housing Searching a real bargain …

11. An example: Typical research questions in marketing How much is the reservation price of the costumers? Which features of the product is not needed and which features should be improved? How much should I spend on advertising? …

12. Development Apply scientific, engineering or technological knowledge in a systematic manner to improve performance –Exploits knowledge created elsewhere –Has a final product, service or process –Usually strict time constraints –Budget constraints –Targeting profit increase

13. Research & Development Term used in the industrial/business sector Research is a process creating new knowledge Development is a process that applies knowledge

14. Academic research vs. R&D Academic research seeks truth vs. R&D seeks utility Industry can’t afford luxury of research vs. Academics don’t want to be bothered with financial problems Scientific vs. effective methodology

15. The scientific research The aim of scientific research is to establish facts. The classical model of scientific inquiry that forms of approximate and exact reasoning in a threefold scheme (Aristotle) : –Abductive reasoning –Deductive reasoning –Induction (inductive reasoning)

16. Abductive reasoning It is a process of choosing the hypothesis, which would best explain the available evidence. Usually a natural and instinctive process. Its role in the scientific research: it offers appropiate hypotheses built on observations and/or previous studies. Abduction is not necessarily correct, but enhancing or exploring different hypotheses will allow a systematic approach to scientific research. Occam’s Razor: the rule of thumb known as ‘Occam’s Razor’, where the simplest explanation is likely to be the correct one.

17. Deductive reasoning …is reasoning which constructs or evaluates deductive arguments. Deductive arguments are attempts to show that a conclusion necessarily follows from a set of premises. An example of a deductive argument: 1.All men are mortal 2.Socrates is a man 3.Therefore, Socrates is mortal

18. Induction (inductive reasoning) ‘the real science is inductive’ (?) = positivist paradigm reasoning from a specific case or cases and deriving a general rule. It draws inferences from observations in order to make generalizations. Stages: –Observation: collect facts, without bias. –Analysis: classify the facts, identifying patterns o of regularity. –Inference: From the patterns, infer generalizations about the relations between the facts. –Confirmation: Testing the inference through further observation.

19. Definition of scientific research A research process is scientific, if it is –undertaken within the framework of a set of philosophies (according to the specific field of science), –using procedures, methods and techniques that have been tested for their validity and reliability, –designed to be unbiased and objective. –It is empirical.

20. Some notions form the definition Set of philosophies: paradigm Reliability: the quality of measurement Validity: ‘Do we measure the right thing?’ Unbiased: a built in error in sampling or in the method of analising Objective: independent from the personal characteristics and attitudes of the researcher

21. Some specifications of the social sciences Hardness of controlling variables: the role of experiences is very limited. Subjectivity is harder to be eliminated.

22. Characteristics of research Controlled: to link the effect to the cause (and vice versa) one should minimize the effect of factors other than want to measure. Or in social sciences, you have to measure as many factors as you can. Rigorous Systematic: one should follow a certain logocal sequence. Valid and verifiable Empirical Critical: process, procedures and conclusions have to be able to whitstand critical scrutiny.

23. Types of research Application: –Pure (‘blue sky’) research –Applied research Objectives: –Descriptive: descibes the research object systematically –Correlational: discovers relationship/association/interdependence between research objects or factors –Explanatory: explaines the relationship between variables –Exploratory: explores a research field that is undiscovered. If it succeeds, other types of research could follow. Inquiry mode –Qualitative: unstructured, flexible process, more able to explore or explain –Quantitative: structured, strict process, more able to measure, quantify, compare and describe

24. The research process

25. Different disciplines Research methodology is a supporting subject Different disciplines have different paradigms Only the substance of research is similar

26. The „research journey” (I) Deciding what (II) Planning how (III) Actually doing

27. Difference between qualitative and quantitative research Qualitative: –Empiricist (sensation) –Flexible/open/unstructured –To describe variation, situation, issue… –Fewer cases –Wider focus (multiple issues) –To explore –Narrative Quantitative: –Rationalism (reason) –Rigid/predetermined/structured –Quantification –Greater sample –Narrow focus –To explain –Statistical methods, analytical

28. A Classification of Marketing Research Designs Single Cross- Sectional Design Multiple Cross- Sectional Design Research Design Conclusive Research Design Exploratory Research Design Descriptive Research Causal Research Cross-Sectional Design Longitudinal Design Source: Internet

29. Exploratory & Conclusive Research Differences Objective: Character- istics: Findings /Results: Outcome: To provide insights and understanding. Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non- representative. Analysis of primary data is qualitative. Tentative. Generally followed by further exploratory or conclusive research. To test specific hypotheses and examine relationships. Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative. Conclusive. Findings used as input into decision making. ExploratoryConclusive Table 3.1

30. Objective: Characteristics: Methods: A Comparison of Basic Research Designs Discovery of ideas and insights Flexible, versatile Often the front end of total research design Expert surveys Pilot surveys Secondary data Qualitative research Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of one or more independent variables Control of other mediating variables Experiments ExploratoryDescriptive Causal

31. An 8 step model of research processes 1.Formulating the research problem (specification) 2.Conceptualising 1.(valid, workable, managable) 3.Constructing an instrument for data collection 4.Selecting a sample (sampling) 5.Writing a research proposal 6.Collecting data 7.Processing data 8.Writing a report 9.Writing the article

32. Cyclic (‘never-ending’) process of research Inductive Deductive Data analysis Empirical data Concepts theory Research question Where is the place of literature reviewing?

33. Functions of reviewing literature Knowledge basis Theoretical background Help to find a research problem: –What is known and what is unknown –How can you contribute to the existing knowledge body of your profession –Finding the appropriate hyptheses (abduction) Help to find out what methodology to use –Formal hypotheses, research techniqe, sampling… Enables you to contextualize your findings

34. Paradox of literature review You read to know, but You have to know what to read (and you have to have some knowledge to understand) Solution: iterative process of research reviewing

35. Improving methodology What are the accepted methodologies Methodological problems and solutions

36. Knowledge basis To some extent it is needed to show the context of your research and your findings Obligatory chapter of Master and PhD theses

37. 5 steps of reviewing literature 1.Search for existing literature in your of study; 2.Review the literature selected; 3.Develop a theoretical framework; 4.Develop a conceptual framework; 5.Writing up the literature reviewed.

38. Main sources Books Journals Grey literature Statistical data

39. Books Availability –Libraries –Bookshops –Bibliographies (!) –Internet: computer catalogs (keywords, subject) Advantages: greater likelihood of importance, relevance, quality Disadvantages: not up to date, price, avaliability, quality-control (bibliography!) They serve best as starters

40. Journals Advantages: up-to-date (depends on the journal), area-specific journals Disadvantages: need more knowledge to understand They serve best for focused study Availability: –Libraries –Electronic databases (!) –Internet

41. Gray literature Grey literature (or gray literature) is a term used variably by the intelligence community, librarians, and medical and research professionals to refer to a body of materials that cannot be found easily through conventional channels such as publishers, "but which is frequently original and usually recent„ –Working papers –Theses –Company documents –Magazines –etc.

42. Scientometrics What is it about? Metrics: –IF –Hirsch index –Cited Half-life index –Immediacy index –others

43. Other current trends Open Access movement Predatory journals

44. Where to start… Electronic databases: –www.jstor.orgwww.jstor.org –search.epnet.com (EBSCO database) –www.eisz.hu (many databases)www.eisz.hu –http://www.nber.com/http://www.nber.com/ –http://econpapers.repec.org/http://econpapers.repec.org/ University pages Pages of libraries Library…

45. End of class no. 1