Introduction to Research Methodology

for Business and Economics PhD students

András István KUN

UD FEB, associate professor

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?

Introduction

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…).

How does it differ from other answer seeking methods?

• Everyday/Normal

• Vocational/Professional

• Artistic

• Mystical

• Mythological/Religious/Ideological

• Metaphysical/Philosophical

• Scientific

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

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

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

Different fields of research

• The everyday research

• Professional research:– Economic– Management

• Development, R&D (applied research)

• Academic research („blue sky” research)

Everybody is a researcher

• Looking for job

• Looking for housing

• Searching a real bargain

• …

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?

• …

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

Research & Development

• Term used in the industrial/business sector

• Research is a process creating new knowledge

• Development is a process that applies knowledge

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

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)

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.

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

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.

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.

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

Some specifications of the social sciences

• Hardness of controlling variables: the role of experiences is very limited.

• Subjectivity is harder to be eliminated.

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.

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

The research process

Different disciplines

• Research methodology is a supporting subject

• Different disciplines have different paradigms

• Only the substance of research is similar

The „research journey”

• (I) Deciding what

• (II) Planning how

• (III) Actually doing

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

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

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.

Exploratory Conclusive

Table 3.1

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 surveysPilot surveysSecondary dataQualitative research

Describe market characteristics or functions

Marked by the prior formulation of specific hypotheses

Preplanned and structured design

Secondary dataSurveysPanelsObservation and other data

Determine cause and effect relationships

Manipulation of one or more independent variables

Control of other mediating variables

Experiments

Exploratory Descriptive Causal

An 8 step model of research processes

1. Formulating the research problem (specification)

2. Conceptualising1. (valid, workable, managable)

3. Constructing an instrument for data collection4. Selecting a sample (sampling)5. Writing a research proposal6. Collecting data7. Processing data8. Writing a report9. Writing the article

Cyclic (‘never-ending’) process of research

Inductive

Deductive

Dataanalysis

Empirical data

Conceptstheory

Researchquestion

Where is the place of literature reviewing?

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

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

Improving methodology

• What are the accepted methodologies

• Methodological problems and solutions

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

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.

Main sources

• Books

• Journals

• Grey literature

• Statistical data

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

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

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.

Scientometrics

• What is it about?

• Metrics:– IF– Hirsch index– Cited Half-life index– Immediacy index– others

Other current trends

• Open Access movement

• Predatory journals

Where to start…

• Electronic databases:– www.jstor.org– search.epnet.com (EBSCO database)– www.eisz.hu (many databases)– http://www.nber.com/– http://econpapers.repec.org/

• University pages• Pages of libraries• Library…

End of class no. 1