The Role of Business Research

Transcription

1 1 The Role of Business Research 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2013 website, Cengage in whole Learning. or part. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1. Understand how research contributes to business success 2. Know how to define business research 3. Understand the difference between basic and applied business research 4. Understand how research activities can be used to address business decisions 5. Know when business research should and should not be conducted 6. Appreciate the way technology and internationalization are changing business research 1-2 What is business research? 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 1 3 1

2 What is business research? Business research is a process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance (Cooper and Schindler 2015:4) 1 4 Is business research relevant? Yes! There are several factors increasing relevance for studying business research including; Information overload technology shifting global centre of economics activity and competition Demand for transparency of big business Government intervention New perspectives 1 5 Purpose of business research Provide knowledge regarding the organisation, the market, the economy or other areas of uncertainty To help businesses to respond to change To help managers make informed decisions To reduce risks associated with managing in an uncertain workplace 1 6 2

3 Research outcomes Innovative new products and services Enhanced business relationships Value add concepts Improved internal processes 1 7 Applied Business Research Applied business research conducted to address a specific business decision for a specific firm or organization. What examples of applied business research can you think of? 1 8 Basic Business Research 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

4 The Scientific Method 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 1 10 EXHIBIT 1.1 A Summary of the Scientific Method 1 11 Managerial Value of Business Research There are only a few business orientations: Product-oriented Production-oriented Marketing-oriented

5 Managerial Value of Business Research 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 1 13 Evaluating the Course of Actions 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 When is Business Research Needed? 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)

6 Harley-Davidson Goes Abroad Consumers in different countries have different preferences. Even if consumers want it, government regulations can make it prohibitive (e.g., India). Harley is pursuing the U.S. women s market for bikes Business Research in the 21st Century Communication Technologies Always connected time, place, and distance are irrelevant. Decreases in information acquisition, storage, access, and transmission costs Business Research in the 21st Century 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

7 Summary Business research is the application of the scientific method in searching for truth about business phenomena. By first researching and gathering appropriate information managers can make a more informed decision Applied business research seeks to facilitate managerial decision making Basic business research seeks to increase knowledge of theories and concepts Summary continued Managers determine whether research should be conducted based on a number of factors including time constraints, availability of data, nature of the decision to be made and the benefits versus costs. Technology has made business research easier, more accessible and more effective References Cooper, D. R., & Schindler, P. S. (2013). Business Research Methods (12th Edition ed.). New York: McGraw-Hill Higher Education