The Role of Business Research

Question 1

Business Research Defined

Answer 1

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
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 one’s definition of business
• Not-for-profit organizations and
governmental agencies can use research in
much the same was as managers in for- profit organizations.

Question 2

Applied and Basic Business Research

Answer 2

Applied business research
• conducted to address a specific business
decision for a specific firm or organization.
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.

Question 3

The Scientific Method

Answer 3

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 prior
conceptions

Question 4

Managerial Value of Business Research

Answer 4

There are only a few business
orientations:
• Product-oriented
• Production-oriented
• Marketing-oriented
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

Question 5

Evaluating the Course of Actions

Answer 5

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 feedback for evaluation and control of
business activity.

Question 6

When is Business Research Needed?

Answer 6

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
information in 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?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
information in 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?

Question 7

Business Research in the 21st Century

Answer 7

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.