Lecture 2

Question 1

What makes a good business problem? 2x

Answer 1

• Feasibility is it doable?

* Relevance is it worthwhile?

Question 2

What is feasibility? 3x

Answer 2

Feasibility = doable

• How big is the problem?
• Are you able to express the problem in variables?
• Are you able to gather the required data? (existing or now)

Infeasible problem:
ABN Amro would like to know how it can increase its profitability.
• Too big
• Cannot be expressed in variables

Question 3

What is relevance? 2x

Answer 3

• Managerial relevance
Who benefits from having the problem solved?
• Academic relevance?
Has the problem not already been solved in prior research?

Question 4

What is managerial relevance? 3x

Answer 4

• Who benefits from having the problem solved?
o Managers: One company, One industry, Of multiple industries

• End users (consumers, investors, tax payers)
• Public policy makers (Government)

Question 5

What is academic relevance? 4x

Answer 5

• Completely new topic
o no research available at all, although the topic is important

• New context
o Prior research is available but not in the same context

• Integrate scattered research
o Different studies have focused on different IV’s/ moderators; consequently, their relative importance is not clear

• Reconcile contradictory research
o Solve the contradictions through introducing one or more moderators

Question 6

What makes a good problem statement? 4x

Answer 6

• Formulated items in terms of
o Variables
o Relations

• Open ended-question
• Stated clearly/unambiguously
• Managerially and academically relevant

Question 7

What makes good research questions? 3x

Answer 7

• Should collectively address the problem statement

• First theoretical, than practical research questions
o In the same order as they will be addressed in your research report

• Stated clearly/unambiguously

Question 8

What includes theoretical research questions? 3x

Answer 8

• Context question (e.g., “What is …”)
o Only if context needs elaboration

• Conceptualization question(s) (e.g., “What is ….”)
o Only for the key variable(s) that need(s) elaboration

• Relationship questions (e.g., “Which variables …”; “How does … affect …”
“How does the effect of … on … depend on …”)
o All relationships in the problem statement should be covered

Question 9

What includes practical research questions? 2x

Answer 9

• Relationship questions (e.g., “To what extent …”)
o To what extent does X affect Y?
o What is the (relative) magnitude of the relations?

• Implication question
o How can practitioners implement your results?
o Open question

Question 10

What makes a good variable definition? 3x

Answer 10

• Informative variable name (keep it short if possible)

• Variable definition without jargon
o Based on a careful literature review
o Unless very obvious (e.g., sales, profits)
o Pitfall: Examples do not substitute for a definition

• One or two supporting references per variable definition

Question 11

What if many different definitions exist in the literature? 3x

Answer 11

• Acknowledge the major differences
• End with a definition that focuses on the shared meaning across definitions or;
• Pick one definition and justify why

Question 12

What are the variables of a conceptual model?

Answer 12

Variables are building blocks of the conceptual model
• Dependent variables
• Independent variables
• Mediating variables
• Moderating variables
• Control variables

Question 13

What are the effects of a conceptual model (relationships)? 3x

Answer 13

Relationships are appointed with arrows. There are three effects:

1. Main effect
2. Direct / indirect effect
3. Moderating effect

Question 14

Explain per variable of a conceptual model what is means. 5x

Answer 14

Dependent variable (Y): The variable of primary interest

Independent variable (X): Influences the dependent variable
- in a positive way, or - in a negative way

Mediating variable: A variable that explains the mechanism at work between X and Y
How or why does X affect Y

Moderating variable: A variable that alters the strength and sometimes even the direction (positive ↔ negative) of the relationship between X and Y
When or for whom the effect is stronger

Control variable: A control variable is a variable that is not the focus of a research study but its existence has an impact on the dependent variable that cannot be ignored

Question 15

Where does a theoretical framework consist of? 3x

Answer 15

• Variable definitions
• Conceptual model
• Hypotheses

Question 16

What is a hypothesis? 3x

Answer 16

• A tentative statement
• About the coherence
• Between two or more variables

Question 17

What makes a good hypothesis? 3x

Answer 17

• Testable (measurable variables)
• Derived from theory
• Unambiguously phrased

Question 18

How to phrase testable hypotheses? 2x

Answer 18

Directional versus unidirectional hypotheses

Question 19

What is a directional hypothesis? (example) 2x

Answer 19

Higher levels of workload - leads - to lower employee morale.

Instead of: Level of workload - affects- employee morale.

The negative effect of employee morale on employee productivity - is weaker - (stronger) for older (younger) employees.

Instead of: The effect of employee morale on employee productivity - depends - on employee age.

Question 20

What are unidirectional hypotheses? 2x

Answer 20

Level of workload - affects - employee morale.

Instead of: Higher levels of workload - leads to - lower employee morale.

The effect of employee morale on employee productivity - depends - on employee age.

Instead of: The negative effect of employee morale on employee productivity - is weaker (stronger) - for older (younger) employees.

Question 21

How to justify a hypothesis? 1x

Answer 21

First argue why your hypothesis is plausible.
o Based on the literature
o Pitfall: Author X has said so, so it must be true.

Question 22

How to conclude the hypothesis (sentences)? 2x

Answer 22

• This leads to the following hypothesis:

* We therefore hypothesize/expect/propose:

Question 23

What is a null hypothesis? 2x

Answer 23

o Expresses no relationship between variables

o Set up in order to be rejected (in favor of the alternate hypothesis)

Question 24

What are alternate hypotheses? 2x

Answer 24

o Expresses a relationship between variables

o = Research hypothesis