CPU College Business Research Methods MBA 601 ACFN

CPU College Business Research Methods (MBA 601) (ACFN 628) CHAPTER 5 RESEARCH DESIGN

Contents n What is research design? n Importance of Research Design n Features of Good Research Design n Components of Research Design n Variables and measurement scales

What is Research Design? There is no single definition imparts the full range of important aspects of research design. n A research design is a master plan that specifies the methods and procedures for collecting and analyzing the needed information. n It provides a framework or plan of action for the research as it constitutes the blueprint for the collection, measurement and analysis of data.

What is research design? n Research design is the plan and structure of investigation so conceived as to obtain answers to research questions. The plan is the overall scheme or program of the research. It includes an outline of what the investigator will do from writing hypotheses and their operational implications to the final data analysis. n Research design expresses both the structure of research problem-the framework, organization, or configuration of the relationships among variables of a study-and the plan of investigation used to obtain empirical evidence on those relationships.

The Essentials of Research Design n The above definitions differ in detail, but together they give the essentials of research design: q q q An activity-and time-based plan A plan always based on the research question A guide for selecting sources and types of information A framework for specifying the relationships among the study’s variables A procedural outline for every research activity

Need for Research Design n It makes research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. Thoughtlessness in designing the research project may result in rendering the research exercise futile It helps the researcher to organize his ideas in a form whereby it will be possible for him to look for flaws and inadequacies

Features of a Good Research Design n RD that minimizes bias and maximizes the reliability of n n n the data collected analyzed. RD which gives the smallest experimental error. RD which yields maximal information and provides an opportunity for considering many different aspects of a problem. The question of good research design is related to the purpose or objective of the research problem and also with the nature of the problem to be studied.

Features of … n n n A design may be quite suitable in one case, but may be found wanting in one respect or the other in the context of some other research problem. One single design cannot serve the purpose of all types of research problems. A research design appropriate for a particular research problem, usually involves the consideration of the following factors: q the means of obtaining information; q the availability and skills of the researcher and his staff, if any; q the objective of the problem to be studied; q the nature of the problem to be studied; and q the availability of time and money for the research work.

Qualities of a Good Research n Good research is systematic q n Good research is logical q n i. e. research is guided by the rules of logical reasoning and the logical process of induction and deduction are of great value in carrying out research. Good research is empirical q n i. e. research is structured with specified steps to be taken in a specified sequence in accordance with the well defined set of rules research is related basically to one or more aspects of a real situation and deals with concrete data that provides a basis for external validity to research results. Good research is replicable

Components of Research The following are features that explain what a research design n design is: It is a plan that specifies the sources and types of information relevant to the research problem. b) It is a strategy specifying which approach will be used for gathering and analyzing the data. c) It also includes the time and cost budgets since most studies are done under these two constraints. a) q Hence, a research design has the following components.

Components of … n A clear statement of the research problem; n Procedures and techniques to be used for gathering information; n The population to be studied, and n Methods to be used in processing and analyzing data

Important concepts relevant to research design Variable A concept which can take on different quantitative values is called a variable. Eg. weight, height, income are all examples of variables. n continuous variables: Phenomena which can take on quantitatively different values even in decimal points But all variables are not continuous. n If they can only be expressed in integer values, they are non-continuous variables or in statistical n language ‘discrete variables’. Age is an example of continuous variable, but the number of children is n

• • • Dependent Variable: If one variable depends upon or a consequence of the other variable is called a dependent variable. Is a variable that is to be predicted or explained? Independent variable: is a variable that is expected to influence the dependent variable. Extraneous variable: Independent variables that are not related to the purpose of a study, but may affect the dependent variable are termed as extraneous variable. E. g. , if some one wants to test the relation ship between intensity of light on the level of productivity. Other variables like age of workers, heat in the working place or personal problem of worker may as well affect the level of productivity. Since they are not related to the purpose of a study, they are called extraneous variable.

n n n Confounded relationship: When dependent variable is not free from the influence of extraneous variable, then the relationship between dependent and independent variables is said to be confounded by an extraneous variable Experimental error: Whatever effect is noticed on dependent variable as a result of extraneous variable(s) A study must always be so designed that the effect upon the dependent variable is attributed entirely to the independent variable(s), and not to some extraneous variable

n n Control: A good research design has to minimize the influences of extraneous variable. The technical term ‘control’ is used when we design the study minimizing the effects of extraneous independent variables. In experimental research control refers to restrain to experimental condition. Experimental and control groups: In experimental research when a group is exposed to usual condition is called control group, but when a group is exposed to special condition is an experimental group.

• • • Treatments: The different condition under which experimental and controlled groups are put are referred to us treatment. The usual study program and the special study program are an example of two treatments in studying the effects new or special study program on performance of students. Experiment: The process of examining the truth of a statistical hypothesis, relating to some problem. Experiment can be comparative or absolute experiment. If we want to determine the impact of newly developed drug against the existing drug is an example of comparative experiment. E. g. , examining the usefulness of a newly developed drug. is an example of absolute experiment. Experimental unit: the pre-determined plots (or blocks or group) where different treatments are used are known experimental units.

Types of Research Designs

Generally, we have three types of research designs. 1. Exploratory study 2. Descriptive 3. Causal

1. Exploratory n Conducted to clarify ambiguous situations or discover n n n ideas that may be potential business opportunities. Exploratory research is particularly useful for new product/service development It is not intended to provide conclusive evidence from which to determine a particular course of action. The objective is to generate more information about the situation before launching a formal study It is done to define clearly the research question in the form of investigative questions Helps to identify possible extraneous variables that can be ignored Suggests if doing additional and more formal research is feasible or not needed Although both qualitative & quantitative methods could be used, it relies heavily on qualitative methods

Cont… The following approaches could be used in exploratory research: q q q q In-depth interviewing, which is not structured Participant observation Photographs and videotaping Role play Case studies for an in-depth contextual analysis Key informants/elites interviewing Documents analysis

2. Descriptive n n n Used to describe characteristics of objects, people, groups, organizations, or environments. More structured in terms of stating research hypothesis/ questions. It serves to achieve a variety of research objectives: q q q To describe the characteristics of the study subject (who, what, when and how) To estimate the proportions of a population that have particular characteristics To discover association/correlation among different variables Example: In a saving association one might be interested to develop the profile of savers such as: Age, sex, amount saved, the number of accounts opened within the last six months, frequency of withdrawal per year, distance of the individual from the main office, education level, family size, etc

Cont… It could be simple or complex. The simplest form of descriptive study addresses only a univariate question or hypothesis to state the size, form, distribution or existence of a variable. n In its complex form, it demands to collect information about multiple variables and carry out chi-square/cross-tabulation analysis and correlation matrix analysis Example: § Association/correlation could be done between amount saved and income/family size n

3. Causal n n n It allows to make causal inferences It seeks to identify cause-and-effect relationships. Correlation is different from causation. In causation, “A” forces “B” to occur or “A” is responsible for the changes occurred in “B”. In testing causal hypothesis, we collect evidence that increases our belief that A leads to B. Criteria for causality: q q q Concomitant variation Temporal sequence Non-spurious association

Cont. . . 1. Concomitant variation: Is there a predicted co-variation between “A” & “B”? n When “A” doesn’t occur is there also an absence of “B”? n When there is less of “A”, do you find more/less of “B”? 2. Temporal sequence: Is there time order of events moving towards the hypothesized direction? n Does “A” occurs before “B”? Or the cause must occur before the effect. 3. Non-spurious association: is it possible to eliminate other possible causes of B? Is the co-variation between a cause and an effect is true, rather than due to some other variable? Ø Theory helps to rule out spurious association Ø Often, a causal inference cannot be made even though the other two conditions exist because both the cause and effect have some common cause. q Eg. Correlation of ice cream consumption & crime rate: Inflation could be a cause for both

Cont… Degree of causality n Three types of causality based on degree 1. Absolute causality: the cause is necessary & sufficient to bring the effect q 2. In behavioral science it is a rarity Conditional causality: the cause is necessary but not sufficient to bring the effect q q The cause can bring about the effect but it can not do so alone Smoking is a conditional cause for cancer as there are some other variables disposing oneself to cancer Contributory causality: the cause is neither necessary nor sufficient to bring the effect How do you measure degree of causality in research? R 2 measures degree of causality 3.

n 1. n Basic principle of experimental design The Principle of Replication According to the Principle of Replication, the experiment should be repeated more than once. Thus, each treatment is applied in many experimental units instead of one. By doing so the statistical accuracy of the experiments is increased.

2. The Principle of Randomization n n provides protection, when we conduct an experiment, against the effect of extraneous factors by randomization. In other words, this principle indicates that we should design or plan the experiment in such a way that the variations caused by extraneous factors can all be combined under the general heading of “chance. ”

3. The Principle of Local control n Under this the extraneous factor, the known source of n variability, is made to vary deliberately over as wide a range as necessary and this needs to be done in such a way that the variability it causes can be measured and hence eliminated from the experimental error. This means that we should plan the experiment in a manner that we can perform a two-way analysis of variance’

Forms of Experimental design The experimental design can be classified into two categories. 1) Informal Experimental Designs 2) Formal Experimental Design

Informal Experimental Design: Are those designs that normally use a less sophisticated form of analysis. Important informal experimental designs are of the followings 1) • – – – Before-And-After without Control After- only -with Control Design Before -And -After with Control Design

A). Before – And – After Without Control n Ø Ø Ø Design A single test group or area is selected the dependent variable is measured before the introduction of treatment. The treatment is then introduced and the dependent variable is measured again after the treatment has been introduced. Level of phenomenon before treatment (X) Treatment Level of phenomenon after treatment (Y) Treatment effect = Y – X

B). After Only With Control Design n In this design two groups or areas (test area and control area) are selected Ø the treatment is introduced into the test area only. Ø The dependent variable is then measured in both areas at the same time. Ø Treatment impact is assessed by subtracting the value of the independent variable in the control area from its value in the test area.

C). Before And After With Control Design n Ø Ø Ø Under this design two groups are selected the dependent variable is measured in both groups for an identical time period before the treatment. The treatment is then introduced into the test area only, the dependent variable is measured in both areas in identical time period after the introduction of the treatment.

Cont… n The different types of research designs discussed here serve each other as building blocks q q Exploratory research builds the foundation for descriptive research, Descriptive research usually establishes the basis for causal research.

Comparisons Criteria Exploratory Descriptive Causal Amount of uncertainty for decision making Highly ambiguous Partially defined Clearly defined Key research statement Research question Research hypothesis When conducted? Early stage of decision Later stage of making decision making Later stage of decision making Research approach Unstructured Highly structured Nature of result Discovery oriented Result can be often in need of further managerially research applicable but still further research may be needed Structured Confirmatory oriented & fairly conclusive with managerially actionable results

End of Chapter Five