Methods of Business Research

Research can be defined as “a careful study to discover correct information” or “a way of collecting information to facilitate problem solving”. In most simple words, it is “search and search again”.

Formal definition as given in Encarta Dictionary is: “A methodical investigation into a subject in order to discover facts, to establish or revise a theory, or to develop a plan of action based on the facts discovered.”

Research is a wide field and has many branches like agricultural research, medical research and physiological Research. Likewise, business research is an important sub-sector of research and encompasses: market research, financial research and human resource research.

To be brief, business research is any type of research to identify investment opportunities or start of a business or subsequent improvement. In startup, we need to know our target customers and market competition. We need to provide information for attracting potential investors. Research is a must for analyzing strengths and weaknesses of a company, what customers demand or what the business is offering. A company can focus to serve customers better or gain over competitors or merely on its survival.

As per books of Business Research, the definition is: “An organized, systematic, data-based, critical, scientific inquiry or investigation into a specific problem, undertaken with the objective of finding answers or solution to it.”

At the outset, it may be mentioned that business research or for that matter any research does not give an absolute answer to any problem but only assist in making a good decision. Research is one of the four factors for making appropriate and sustainable decisions leading to welfare of the business and eventually its owners.

While designing Sony Walkman, the market research recommended a portable gadget having both recording and playing functions. But Ibuka, the Chairman, overruled the idea and approved only playing function. He had a vision that this would not only make the apparatus cheaper but also lighter leading to high demand. The product was introduced accordingly and was an instant success.

A business manager faces problem, big or small, on daily basis which should be solved by taking a right decision. Business research is systematic or a step-by-step approach. It can help the manager to identify and solve small problems, discriminate good research from a bad one by studying its scope, methodology, check and balance to ensure authenticity. Sound knowledge of research would also enable a manager to assume calculated risks rather than total risk while deciding about a change in procedure or location. A manager participates in all types of decisions whether strategic, tactical or technical. Once again research would help make a better decision and at the same time contain the losses to a minimum level should the decision backfires.

An organization can develop a business research department where skilled administrative and technical personnel can be appointed for a full time research career. Finally, the research job can be out-sourced to consultant and researchers.

Saving in time and cost is the major advantage of internal research.  Secrecy is also maintained if any research is undertaken by own staff since they had to go through various office records.

 In case of 'the outside consultant or researcher', it is just-the-opposit. It would take more time and resources.  But if the research is important or if it relates to survival of the firm or if one has to get an impartial view, the out-sider must be engaged.  An internal researcher may be influenced or may be biased or may be afraid of losing his own job in case research related to 'turn-around' or job-reduction.  These problems would not be faced if the research is being undertaken by an outsider.

Ethics is a wide subject and is applicable to all fields. In business research, it concerns (i) code of conduct and (ii) expected societal behavioral norms. This applied to the company, its staff, researcher & respondents.

• Types of Research
• The Research Process
• Hypothetico-Deductive Method
• Hypothesis Development
• Research Design
• Experimental Designs
• Measurement of Variables -Operational Definition
• Measurement of Variable - Scales
• Sampling
• Data Collection Methods
• Data Analysis and Interpretation
• Hypothesis testing