11

Mgt 540Mgt 540

Research MethodsResearch Methods

ResearchResearch

FrameworkFramework

22

The Basic Research ProcessThe Basic Research Process

33

Conceptual / Theoretical frameworkConceptual / Theoretical framework

44

Theoretical FrameworkTheoretical Framework

5 Basic Features5 Basic Features1.1. Identifying and labelingIdentifying and labeling variables variables

correctlycorrectly2.2. Stating the Stating the relationshipsrelationships among the among the

variables of interestvariables of interest3.3. Theorizing the Theorizing the nature and directionnature and direction

of these relationshipsof these relationships4.4. Explaining Explaining how or whyhow or why we expect the we expect the

relationships to existrelationships to exist5.5. Offering a Offering a schematic diagramschematic diagram of the of the

modelmodel

55

Common flawsCommon flaws

Including elements that are not Including elements that are not part of the theoretical frameworkpart of the theoretical framework

Including moderating variable in Including moderating variable in the hypothesisthe hypothesis Treating moderating variable as Treating moderating variable as

an independent variablean independent variable

66

Dependent / Independent Dependent / Independent Variables Variables Fig. 5.1 and 5.2Fig. 5.1 and 5.2

77

Moderating Variables Moderating Variables p. 91p. 91

88

Moderating Variable Moderating Variable p. 92p. 92Building models with increasing complexityBuilding models with increasing complexity

99

Intervening variable Intervening variable p. 95p. 95

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Independent Variable effectIndependent Variable effectExercise 5.5 and 5.6, pg. 93 / 94Exercise 5.5 and 5.6, pg. 93 / 94

1111

Effects of Moderating VariableEffects of Moderating Variablep. 94p. 94

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Delta Airlines Delta Airlines Example 5.13, p. 99Example 5.13, p. 99

1313

Delta Airlines Delta Airlines Adding intervening variableAdding intervening variable

Intervening Variable – Strong theoretical model with face validity

1414

Delta AirlinesDelta AirlinesWith moderating variable (weak)With moderating variable (weak)

1515

Exxon Mobil is a well-oiled machine that is pumping profits. How does it do it? By using technology to evaluate potential deposits. It displays a 3-D computer image, IMAX style, on a 32 -foot wrap around screen. It then drills underwater. Once oil is found, Exxon Mobil (EM) pumps the oil without any significant lapse of time.

Its investment in R&D is over $ 600 million per year, and it employs 15OO Ph.Ds. Unlike companies that finance both applied and basic research, EM demands work that produces a measurable impact and competitive advantage. Dissemination of findings among scientists is thus high.

EM is also getting payoffs from older technologies, like increasing the recovery rate from existing deposits. For example, the so called reservoir analysis has enabled EM to boost reserves and improve recovery from fields.

The merger of the two companies, Exxon and Mobil was remarkable, given their two divergent philosophies and cultures. Exxon had top efficiency born out of command and control, while Mobil was loose and informal; but the elaborate restructuring worked out well.

The return on capital deployed was 21% in the year 2000, more than double the level of the past two years and the best among big oil companies.

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Exxon-MobileExxon-Mobile

What accounts for Exxon-What accounts for Exxon-Mobil’s success? Mobil’s success? (dependant variable)(dependant variable) Three Three (independent)(independent) variables variables

Use of old and new technologiesUse of old and new technologies Investment in R&D (expecting Investment in R&D (expecting

results)results) Blending of two different culturesBlending of two different cultures

Dissemination of informationDissemination of information Intervening variableIntervening variable

Diagram the theoretical Diagram the theoretical frameworkframework

1717

Exxon - MobilExxon - Mobil

Use of New & Old Technology

Blending two differentcultures

Investment in R&D withExpectation of Results

Disseminationof Information

Success of EM ($$$)

Independent Variables

Intervening Variable

Dependant Variable

1818

Once given, perks are extraordinarily hard to take away without seriously decreasing employee morale. The adverse effects of these cuts far outweigh the anticipated savings in dollars. Research has shown that when the reason behind the cuts is explained to employees, morale does not drop.

Withholding Perks

Employee Morale

Explanation of cuts

Independent Variables

Dependant Variable

Moderating Variable

1919

Hypotheses Hypotheses (p. 105-107)(p. 105-107)

Statement of a relationship Statement of a relationship between two or more variables.between two or more variables. ““null” hypotheses is phrased to null” hypotheses is phrased to

equal “0” (no relationship)equal “0” (no relationship) ““alternative” hypotheses is alternative” hypotheses is

phrased to show some definitive phrased to show some definitive relationship (difference)relationship (difference)

2020

Haines Company Haines Company (Ex 5.9)(Ex 5.9)

Working Conditions

Pay

Vacation Benefits

Side Income

Happiness

Morale

2121

Haines Company Haines Company (Ex 5.12)(Ex 5.12)

1.1. Ho: There is no relationship between working Ho: There is no relationship between working conditions and the morale of employees. conditions and the morale of employees.

1.1. HA: If working conditions are improved, then the HA: If working conditions are improved, then the morale of the employees will also improve. morale of the employees will also improve.

2.2. HO: There is no relationship between vacation HO: There is no relationship between vacation benefits and employees' morale. benefits and employees' morale.

1.1. HA: Better vacation benefits will improve HA: Better vacation benefits will improve employees' morale. employees' morale.

3.3. HO: There is no difference in the relationship HO: There is no difference in the relationship between pay and happiness among those who between pay and happiness among those who have side incomes and those who do not. have side incomes and those who do not.

1.1. HA: Only those who do not have side incomes Mil HA: Only those who do not have side incomes Mil become happier if their pay is increased. become happier if their pay is increased.

4.4. HO: There is no relationship between happiness HO: There is no relationship between happiness and morale. and morale.

1.1. HA.- Happiness and morale are positively correlated. HA.- Happiness and morale are positively correlated. 5.5. HO: Working conditions, vacation benefits, and pay HO: Working conditions, vacation benefits, and pay

have no influence on the morale of employees. have no influence on the morale of employees. 1.1. HA: Working conditions, vacation benefits, and pay all HA: Working conditions, vacation benefits, and pay all

have a positive influence on morale. have a positive influence on morale.

2222

Modeling from qualitative theoryModeling from qualitative theoryExample 5.21, p. 109 and (fig. 5.11, p. 111)Example 5.21, p. 109 and (fig. 5.11, p. 111)

2323

Text Exercise models Text Exercise models ex. 5.11ex. 5.11

2424

Text Exercise models Text Exercise models ex. 5.13ex. 5.13

2525

Factors Influencing ProfitabilityFactors Influencing Profitability

2626

Factors Affecting Stock ValuesFactors Affecting Stock Values