EC Research Methodology

1. EC Research Methodology Instructor: Dr Bruce Ho TEL：(04) 2284-0515 ext 16 E-MAIL ： bruceho@nchu.edu.tw

2. Chapter 1 Introduction to Business Research

3. Chapter Objectives (1) • Describe what research is and state how it is defined • Distinguish between applied and basic research • Distinguish between positivist, interpretivist and critical research • Explain why managers should know about research. • Discuss how managers should interact with researchers

4. Chapter Objectives (2) • Identify when a manager would be better using a research team • Describe how you, as a manager, might apply the knowledge gained about research • Describe the role of ethics in business research

5. What is Research ?

6. 1. Research is the process of problem-solving 2. Successful managerial problem solving is nothing other than understanding and analysing the situation at hand, which is what research is all about.3. Hope you to recognise that research is useful for solving problems in ALL areas of business.

7. The excitement of research which includes the creative search for patterns, discovery, and problem solution, can be explained with enthusiasm. Exploring the internet meaningfully to obtain useful information, even from across the globe can be highlighted.

8. It is important to stress that research is an organised and systematiceffort and not a hit-and-miss process. It is data based as opposed to hunches, needs critical examination of all aspects, should beobjectiveand not based on pet ideas, and should be scientific as discussed in the next chapter.

9. Why managers should know about research?

10. Why managers should know about research? • 1.Managers have to understand, describe, analyse, and predict situational factors. • 2.They should develop sensitivity to subtle nuances in the situation. • 3.They should be able to process information contained in published Journal articles and business periodicals. • 4.They should be able to interact effectively with consultants engaged in problem solving endeavours. • 5.Since all activities are governed by certain values held by individuals and the organisation, it is important to identify and articulate such values in research.

11. What is Business Research?

12. Scenarios for Business • On August 27, 2001, Chunk Orlando, CEO of a 14-year-old automobile company, was mentally assessing and pondering over the state of affairs in his organization. Of late, things had not been going well, and matters seemed to be getting out of hand. • The market share of the shares was down 72% (from $60/share to $16.75/share) • Performance and productivity levels were on the decline and the quarterly loss of $206 Million on sales • The advertising agency did not seem to be doing a good job • A lawsuit against female employees in the company Chunk felt he had to take a very active role to run the company. What is your suggestions to Chunk?

13. Tips for Chunk • 1.Teaching Chunk identify where exactly the problem is. (Searching Real Problems) • 2.Teaching Chunk correctly recognize the relevant factors in the situation needing investigation. (Reviewing related information) • 3.Teaching Chunk guess the real problem (Making hypothesis for problem) • 4.Teaching Chunk what types of information are to be gathered and how? (Collecting information and Test Hypothesis) • 5.Teaching Chunk how to make use of the information so collected and draw appropriate conclusions to make the right decisions. (Analyzing Information and Explanation) • 6.Teaching Chunk how to implement the results of this process to solve the problem. (Results and Implementation)

14. Business Research • Business Research is a management tool that companies use to reduce uncertainty. • Managers can use business research in all stages of the decision-making process: to define problems, identify opportunities, and to clarify alternatives.

15. Business Research Business research is an organised, systematic, data-based, critical, objective, scientific inquiry or investigation into a specific problem or issue with the purpose of finding solutions to it or clarifying it.

16. When is Business Research Needed? • A manager determines whether business research should be conducted based on (1) time constraints (2) the availability of data (3) the nature of the decision to be made, and (4) the benefits of the research information in relation to its costs.

17. The difference between Good and Bad decisions lies in how mangers go about the decision-making process (or the research process).

18. Research and The manager • Managers encounter problems big and small every day, which they have to solve by making the right decisions. In business, research is usually primarily conducted to resolve problematic issue in, or interrelated among, the areas of Accounting, Finance, Management and Marketing.

19. What is Paradigm? • A paradigm reflects a basic set of philosophical beliefs about the nature of the world. It provides guidelines and principles concerning the way research is conducted within the paradigm.

20. Philosophical Bases of Business Research • There are three schools of thoughts (or Paradigms) • Positivist Research • Interpretivist Research • Critical Research

21. Positivist Research • Uses precise, objective measures and is usually associated with quantitative data • Researcher remains separate from the subjects and uses deductive reasoning • See the example 1.1 in page 9

22. Interpretivist Research • Believes that people experience physical and social reality in different ways • Reality is socially constructed • Researcher becomes fully involved with individual subjects • See the example 1.2 in page 9

23. Critical Research • Empower people to create a better world • Uncovering and going beyond surface illusions • Uncover myths and hidden meanings • See the example 1.3 in page 10

24. Comparison of the three major paradigms underpinning business researchSee the Table 1.1 in page 10

25. Question • If the organization is looking for a strategic change towards a more independent staff decision-making process, what kind of research will be conducted perfectly based on the three major paradigms?

26. Methods of scoring Self-diagnose your research approachDo a Survey

27. Methods of scoring Self-diagnose your research approach • Count each tick as a plus and each cross as minus. Subtract ticks from crosses. • The greater your minus score the more you are disposed towards inductive research approaches. (Interpretivist) • The greater your plus score the more you are disposed towards deductive approaches. (Positivist) • The nearer your score is to zero, the more flexible you are likely to be when making methodological choices. (Critical)

28. Types of Business Research Applied – done with the intention of applying results to specific problems in the business Basic – to enhance the understanding of problems that commonly occur across a range of organisations

29. What is Applied research? Applied research is designed to solve practical problems of the modern world, rather than to acquire knowledge for knowledge's sake. One might say that the goal of the applied scientist is to improve the human condition . (Please see the example in page 13) 應用研究一般是先有實務上問題才做的研究 1.旨在解決管理問題 2.直接回應某些決策問題

30. What is Basic Research? Basic ( fundamental or pure ) research is driven by a scientist's curiosity or interest in a scientific question. The main motivation is to expand man's knowledge , not to create or invent something. There is no obvious commercial value to the discoveries that result from basic research. (Please see the example in page 14) 基礎研究非用於解決現實問題,而是創造某些知識,也可能發生在研究問題之前 1.擴展知識的前緣 2.未直接涉及實務問題

31. Please do Discussion points No. 8 in page 26

32. Answer • This is a general issue that relates to all or most companies contemplating acquisitions. Of course, the results of the study are likely to be useful to and applied by all the concerned companies. This could fall into the realm of basic or applied research, depending on who sponsors the study. If one company or a consortium of companies investigate the issue to find an answer for immediate application, then it will be an applied research On the other hand, if a Finance professor in a university undertakes the study as a matter of academic interest, it will be basic research. Either an individual such as a professor or a finance expert can do this basic research, or a company or consortium of companies can undertake the applied research.

33. The Manager and the Researcher • How to locate and select a researcher • The manager-researcher relationship • Values

34. Internal vs External Researchers • Advantages • Disadvantages

35. 研究（診斷）的陷阱(Traps for Researchers) • 1.借刀殺人：例如誘導研究者介入勞資問題， 藉以解決勞工問題 (Using researcher to solve big problem between employer and employee) • 2.派系紛爭：例如借助（研究者）外力達成派系整肅目的(Using researcher to solve the political problem) • 3.凸顯問題：例如研究者來掀開問題，讓高階層相信問題 (Using researcher to bugle the problem) • 4.預設目的：為達到某特定目的，不尋正常方式解決，欲透過研究者之手，以彰顯其達成目的客觀性 (Using researcher to achieve their purpose) • Conclusions: 避免涉入公司內部派系糾紛乃研究者之智慧與原則

36. 研究者的戒律 (Norm and Behavior for Researchers) • 企業研究者除了專業服務，肩負人格教育，要有風骨 • Do not accept the following cases or projects: • 1.為富不仁 (To be rich but unkind (cruel) )，不接（助紂為虐） • 2.財大氣粗 (To be rich but country folk)， 不接（人格受損) • 3.不學無術 (Unlearned and incapable)， 不接(不會成就)

37. Ethics and Business Research Consequentialist vs Deontological view The Consequentialist view focuses on what is good or bad by concentrating on the consequences of the actions. The Deontological view asserts that the end cannot justify the means. This view proposes absolute moral strictures which can never be violated.

38. Ethics and Business Research • Professional Accountability: is concerned with upholding the standards of one’s profession. • Corporate Accountability: means being accountable to the sponsor or client of the research project. • MoralAccountability: focuses on the relationship between the researcher and the subject.

39. Ethical issues • Subjects’ cultural, age and other sensitivities eg. Aboriginals, children • Participation is voluntary and not induced or coerced • Subjects’ identity is protected, or else revealed with written consent • Research will not endanger researcher, subjects, their organizations or NCHU in any way • Methodology used is recognized and acceptable academically • Raw data are kept secure • Findings are reported in academically acceptable channels

40. Insert fig. 1.1 Ethical Pressures the business researcher face

41. Checklist for Ethical Research(Please see the Table 1.2 in page 25)

42. The hallmarks of Good Research • 1. Objective observation • 2. Precise measurements • 3. Statistical analysis • 4. Verifiable truths

43. Conclusions • It is clear that methodological choices are determined not only by the nature of the topic being investigated and the resources available but also by the particular training and socialization process to which the researcher has been exposed.