Research Methods

for Business
A Skill-Building Approach

SIXTH EDITION

Uma Sekaran
and
Roger Bougie

WILEY
 CONTENTS

About the Authors xvii

Preface xix
Acknowledgments xxi

1 Introduction to research 1
What is research? 2
Business research 2
Definition of business research 3
Research and the manager 3
Types of business research: applied and basic ^ 5
Applied research ! 6
Basic or fundamental research 6
Managers and research 8
The manager and the consultant-researcher 9
The manager-researcher relationship 9
Internal versus external consultants/researchers 10
Internal consultants/researchers 10
Advantages of internal consultants/researchers 70
Disadvantages of internal consultants/researchers 77
External consultants/researchers 11
Advantages of external consultants/researchers 77
Disadvantages of external consultants/researchers 72
Knowledge about research and managerial effectiveness 12
Ethics and business research 13
Summary - 13
Discussion questions 14
Case: The Laroche Candy Company 15

2 The scientific approach and alternative approaches to investigation 18

The hallmarks of scientific research 19
Purposiveness 20
Rigor 20
Testability 20
Replicability 21
Precision and confidence 21
Objectivity 22
VI CONTENTS

Ceneralizability 22
Parsimony 22
The hypothetico-deductive method 23
The seven-step process in the hypothetico-deductive method 23
Identify a broad problem area 23
Define the problem statement 24
Develop hypotheses 24
Determine measures 24
Data collection ^ 24
Data analysis 24
Interpretation of data 25
Review of the hypothetico-deductive method ' * 26
Some obstacles to conducting scientific research in the management area 28
Alternative approaches to research 28
Positivism / 29
Constructionism 29
Critical realism 29
Pragmatism 30
Summary 31
Discussion questions 31

3 The broad problem area and defining t h e problem statement 33

The broad problem area 33

Preliminary information gathering 36
Nature of information to be gathered 36
Background information on the organization / 36
Literature - the body of knowledge available to you •- 37
Defining the problem statement 38
What makes a good problem statement? 38
The research proposal ' 42
Managerial implications 43
Ethical issues in the preliminary stages of investigation 44
Summary 45
Discussion questions 45
Practice projects 47

4 The critical literature review 48

The purpose of a critical literature review 50
How to approach the literature review 51
Data sources 51
Searching for literature 53
 CONTENTS VII

Evaluating the literature 54

Documenting the literature review 55
Ethical issues 56
""Summary 58
Discussion questions 58
Practice project 58
Appendix 59
Some online resources useful for business research 59
Bibliographical databases I 62
APA format for referencing relevant articles 63
Referencing and quotation in the literature review section 64

5 Theoretical framework and hypothesis development 67

The need for a theoretical framework 68

Variables / 68
Dependent variable 69
Independent variable , 70
Moderating variable 72
The distinction between an independent variable and a moderating variable 73
Mediating variable " 75
Theoretical framework 77
The components of the theoretical framework 78
Theoretical framework for the example of air safety violations 79
Hypothesis development 83
Definition of a hypothesis , 83
Statement of hypotheses: formats 83
If-then statements 83
Directional and nondirectional hypotheses 84
Null and alternate hypotheses > 84
Hypothesis testing with qualitative research: negative case analysis 87
Managerial implications 90
Summary 90
Discussion questions 91
Practice project 93

6 Elements of research design 94

The research design 94•__
Purpose of the study: exploratory, descriptive, causal 96
Exploratory study 96
Descriptive study 97
Causal study 98
VIII CONTENTS

Extent of researcher interference with the study 99

Study setting: contrived and noncontrived 100
Research strategies 102
Experiments 102
Survey research 102
Observation 102
Case studies 103
Grounded theory 103
Action research I 103
Mixed methods 104
Unit of analysis: individuals, dyads, groups, organizations, cultures 104
Time horizon: cross-sectional versus longitudinal studies • * 106
Cross-sectional studies . 106
Longitudinal studies 107
Reviewof elements of research design y 107
Managerial implications ^ 109
Summary 109
Discussion questions 110

7 Data collection methods: Introduction and interviews 112

Sources of data 113
Primary sources of data 113
Focus groups 113
Panels 114
Unobtrusive measures 7 75
Secondary sources of data , 116
Methods of data collection 116
Interviewing . 118
Unstructured and structured interviews ' 118
Unstructured interviews 118
Structured interviews 7 79
Review of unstructured and structured interviews • 120
Training interviewers 120
Some tips to follow when interviewing 121
Establishing credibility and rapport, and motivating individuals to respond 727
The questioning technique 722
Review of tips to follow when interviewing 123
Face-to-face and telephone interviews 123
Face-to-face interviews: advantages and disadvantages 124
Telephone interviews: advantages and disadvantages 124
Additional sources of bias in interview data 124
 CONTENTS IX

Computer-assisted interviewing 124

CATIandCAPI 725
Advantages of software packages 725
Review of interviewing 125
Projective methods 126
Summary 127
Discussion questions 127

8 Data collection methods: Observation 129

Definition and purpose of research 130

Four key dimensions that characterize the type of observation 131
Controlled versus uncontrolled observational studies 131
Participant versus nonparticipant observation 131
Structured versus unstructured observational studies 132
Concealed versus unconcealed observation ^ 133
Two important approaches to observation 134
Participant observation: introduction 134
The participatory aspect of participant observation 134
The observation aspect of participant observation 136
What to observe 137
Structured observation: introduction 139
The use of coding schemes in structured observation 140
Advantages and disadvantages of observation 142
Summary 143
Discussion questions 144

9 Data collection methods: Questionnaires 146

Types of questionnaire 147

Personally administered questionnaires 147
Mail and electronic questionnaires 147
Guidelines for questionnaire design . 149
Principles of wording 149
Content and purpose of the questions 150
Language and wording of the questionnaire 1 SO
Type and form of questions 750
Principles of measurement ^ 154
General appearance or "getup" of the questionnaire 154
Review of questionnaire design 158
Pretesting of structured questions 158
Electronic questionnaire and survey design 158
 CONTENTS

ernational dimensions of surveys 159

Special issues in instrumentation for cross-cultural research 159
Issues in data collection 160
/iew of the advantages and disadvantages of different
data collection methods and when to use each 160
iltimethods of data collection 161
inagerial implications • 162
lies in data collection 162
Ethics and the researcher 162
Ethical behavior of respondents 163
mmary 163
icussion questions * 164

I Experimental designs y 168

e lab experiment 171
Control 171
Manipulation . 171
Controlling the contaminating exogenous or "nuisance" variables 173
Matching groups 173
Randomization 773
Internal validity of lab experiments 174
External validity or generalizability of lab experiments 175
e field experiment 175
External validity 175
ide-off between internal and external validity 176
:tors affecting the validity of experiments 176
History effects 176
Maturation effects 177
Testing effects • 177
Selection bias effects 178
Mortality effects 179
Statistical regression effects • 179
Instrumentation effects 180
;ntifying threats to validity 180
ernal validity in case studies 181
view of factors affecting internal and external validity 182
pes of experimental designs and validity 182
Quasi-experimental designs 182
Pretest and posttest experimental group design 182
Posttests only with experimental and control groups 183
Time series design 183
 CONTENTS XI

True experimental designs 184

Pretest and posttest experimental and control group design 184
Solomon four-group design 785
Double-blind studies 787
Ex post facto designs 187
Simulation 188
Ethical issues in experimental design research 189
Managerial implications (J 189
Summary 191
Discussion questions 191
Appendix: Further experimental designs 193
The completely randomized design « 193
Randomized block design 194
Latin square design 194
Factorial design 195

11 Measurement of variables: Operational definition 197

How variables are measured 197

Operational definition (operationalization) 199
Operationalization: dimensions and elements 201
Operationalizing the (multidimensional) concept of achievement motivation 201
Dimensions and elements of achievement motivation 203
What operationalization is not - 206
Review of operationalization 207
International dimensions of operationalization 208
Summary 208
Discussion questions '. 209

12 Measurement: Scaling, reliability, validity 210

Four types of scales 211
Nominal scale , 212
Ordinal scale 213
Interval scale 214
Ratio scale 215
Review of scales 217
Rating scales 218
Dichotomous scale 218"
Category scale 218
Semantic differential scale 219
Numerical scale 219
XII CONTENTS

Itemized rating scale 219

Likert scale 220
Fixed or constant sum scale 221
Stapel scale 221
Graphic rating scale 222
Consensus scale 223
Other scales 223
Ranking scales 223
Paired comparison 223
Forced choice 223
Comparative scale 224
International dimensions of scaling - * 224
Goodness of measures 225
Item analysis 225
Validity 225
Content validity 226
Criterion-related validity 226
Construct validity 227
Reliability 228
Stability of measures 229
Internal consistency of measures 229
Reflective versus formative measurement scales 230
What is a reflective scale? 230
What is a formative scale and why do the items of a formative scale not necessarily hang together? 230
Summary 231
Discussion questions 232
Appendix: Examples of some measures , 233
Measures from behavioral finance research - 233
Measures from management accounting research 234
Measures from management research 235
Measures from marketing research 236

13 Sampling 239

Population, element, sample, sampling unit, and subject 240

Population 240
Element 241
Sample 241
Sampling unit 242
Subject 242
Parameters 242
Reasons for sampling 242
 CONTENTS XIII

Representativeness of samples 243

Normality of distributions 243
The sampling process 244
Defining the population 245
Determining the sample frame 245
Determining the sampling design 245
Determining the sample size . 246
Executing the sampling process 246
Probability sampling 247
Unrestricted or simple random sampling 247
Restricted or complex probability sampling 248
Systematic sampling * 248
Stratified random sampling 248
Cluster sampling - 250
Double sampling , 257
ff
Review of probability sampling designs 251
Nonprobability sampling 252
Convenience sampling .. 252
Purposive sampling 252
judgment sampling 252
Quota sampling 253
Review of nonprobability sampling designs 253
Examples of when certain sampling designs would be appropriate 256
Simple random sampling 256
Stratified random sampling 256
Systematic sampling 257
Cluster sampling , 258
Area sampling 258
Double sampling 259
Convenience sampling 259
Judgment sampling: one type of purposive sampling 259
Quota sampling: a second type of purposive sampling 260
Sampling in cross-cultural research 261
Issues of precision and confidence in determining sample size 261
Precision „ 261
Confidence 262
Sample data, precision, and confidence in estimation 262
Trade-off between confidence and precision 263
Sample data and hypothesis testing 264
Determining the sample size 266
Importance of sampling design and sample size 269
XIV CONTENTS

Efficiency in sampling 269

Sampling as related to qualitative studies 270
Managerial implications 270
Sumrrtary 270
Discussion questions 271

14 Quantitative data analysis . 274

Getting the data ready for analysis 276
Coding and data entry 276
Coding the responses 276
Data entry ^ 278
Editing data 279
Data transformation 280
Getting a feel for the data " 281
Frequencies J 283
Bar charts and pie charts 283
Measures of central tendency and dispersion 285
Measures of central tendency , - 285
Measures of dispersion 286
Relationships between variables .,>.... 288
Relationship between two nominal variables: x2 test 288
Correlations 289
Excelsior Enterprises: descriptive statistics part 1 290
Testing goodness of data , 292
Reliability 292
Excelsior Enterprises: checking the reliability of the multi-item measures 293
Validity 295
Excelsior Enterprises: descriptive statistics part 2 296
Summary 298
Discussion questions 299

15 Q u a n t i t a t i v e data analysis: Hypothesis testing 302

Type I errors, type II errors, and statistical power 303

Choosing the appropriate statistical technique 304
Testing a hypothesis about a single mean 306
Testing hypotheses about two related means 308
Testing hypotheses about two unrelated means 312
Testing hypotheses about several means 314
•Regression analysis 315
Standardized regression coefficients 318
Regression with dum my variables 318
 CONTENTS XV

Multicollinearity 319
Testing moderation using regression analysis: interaction effects 320
Other multivariate tests and analyses 322
Discriminant analysis 323
Logistic regression ^ - 324
Conjoint analysis 325
Two-way ANOVA 325
MANOVA 325
Canonical correlation t 326
Excelsior Enterprises: hypothesis testing 326
Overall interpretation and recommendations to the president 329
Data warehousing, data mining, and operations research- * 330
Some software packages useful for data analysis 331
Summary - 332
Discussion questions y 332

16 Qualitative data analysis 336

Data reduction 337

Case: Instigations of customer anger 338
Data display 349
Drawing conclusions 349
Reliability and validity in qualitative research 350
Some other methods of gathering and analyzing qualitative data 352
Content analysis 352
Narrative analysis 352
Analytic induction . 352
Summary 353
Discussion questions 353

17 The research report 354

The written report 355

The purpose of the written report 355
The audience for the written report 357
Characteristics of a well-written report 358
Contents of the research report - , 358
Integral parts of the report 358
The title and the title page 358
The executive summary or abstract 359
Table of contents 360
List of tables,figures,and other materials 360
XVI CONTENTS

Preface 361
The authorization letter 361
The introductory section 361
The body of the report 361
The final part of the^report 362
References . 364
Appendix 364
Oral presentation 365
Deciding on the content 366
Visual aids 366
The presenter 366
The presentation . ' ' * 367
Handling questions 367
Summary 367
Discussion questions / 368
Appendix: Examples 369
Report 1: Sample of a report involving a descriptive study 369
Report 2: Sample of a report offering alternative solutions and explaining
the pros and cons of each alternative 372
Report 3: Example of an abridged basic research report 374

A Final Note to Students 379

Statistical Tables 381
Glossary 391
Bibliography 401
Index 409