Download - Chapter 1 the Role of Business Research (1)
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THE ROLE OF BUSINESS RESEARCHChapter 1
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LEARNING OUTCOMES
1. Understand how research contributes to business success
2. Know how to define business research
3. Understand the difference between basic and applied
business research4. Understand how research activities can be used to address
business decisions
5. Know when business research should and should not be
conducted6. Appreciate the way technology and internationalization are
changing business research12
After studying this chapter, you should
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Business Research Defined
Business research is the application of the scientific method in
searching for the truth about business phenomena.
The process includes:
idea and theory development
problem definition
searching for and collecting information
analyzing data
communicating the findings and their implications
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Business Research Defined
This definition suggests that business research information is:
not intuitive or haphazardly gathered
accurate and objective
relevant to all aspects of the business
limited by ones definition of business
Not-for-profit organizations and governmental agencies can
use research in much the same was as managers in for-profit
organizations.
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Applied and Basic Business
Research Applied business research
conducted to address a specific business decision for a specific
firm or organization.
Example:
Should McDonalds add Italian pasta dinners to its menu? Which health insurance plan should a business provide for its
employees?
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Applied and Basic Business
Research Basic business research (also called pure research)
conducted without a specific decision in mind that usually does
not address the needs of a specific organization.
Attempts to expand the limits of knowledge in general.
Not aimed at solving a pragmatic problem.
Example:
Do consumers experience cognitive dissonance in low-involvement
situations?
Does employee tenure with a company influence productivity?
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The Scientific Method
Scientific Method
The way researchers go about using knowledge and evidence to
reach objective conclusions about the real world.
The analysis and interpretation of empirical evidence (facts from
observation or experimentation) to confirm or disprove priorconceptions
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EXHIBIT 1.1 A Summary of the Scientific Method
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Managerial Value of Business
Research There are only a few business orientations:
Product-oriented
Production-oriented
Marketing-oriented
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EXHIBIT 1.2 Business Orientations
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Managerial Value of Business
Research The decision-making process associated with the development
and implementation of a business strategy involves four
interrelated stages:
1. Identifying problems and opportunities
2. Diagnosing and assessing problems or opportunities
3. Selecting and implementing a course of action
4. Evaluating the course of action
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Evaluating the Course of
Actions Evaluation Research
The formal, objective measurement and appraisal of the extent a
given activity, project, or program has achieved its objectives.
Performance Monitoring Research
Research that regularly, sometimes routinely, provides feedbackfor evaluation and control of business activity.
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When is Business Research
Needed? The determination of the need for research centers on:
1. Time constraints
2. The availability of data
3. The nature of the decision to be made
4. Benefits versus costs (the value of the research informationin relation to costs)
Will the payoff or rate of return be worth the investment?
Will the information improve the quality of the managerial
decision enough to warrant the expenditure?
Is the expenditure the best use of the available funds?
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EXHIBIT 1.3 Determining When to Conduct Business Research
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Business Research in the 21st
Century Communication Technologies
Always connectedtime, place, and distance are irrelevant.
Decreases in information acquisition, storage, access, and
transmission costs.
Global Business Research Business research is increasingly global.
Must understand the nature of particular markets.
Cross-validation
Verify that the empirical findings from one culture also exist and
behave similarly in another culture.
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