Theoretical Framework & Hypothesis Development
THEORETICAL FRAMEWORK
and
Hypothesis Development
Business Research Methods
MGMT 381
Theory
- An interrelated set of statements of relationships whose purpose is to explain or predict
- Device for interpreting, criticizing established laws, modifying them, guiding to discovery of new theories/generalizations
- Purpose of theory: to a) explain or b) predict of occurrences of certain phenomena and to c) highlight the important concepts and relationships in a problem situation
How are theories generated?
Deductive reasoning (conclusion derives from something known to be true) 1.Identify problem 2.Define purpose
3.Develop research questions 4.Conduct review of literature 5.Develop hypotheses
6. Determine measures
7. Collect data
8. Analyze data
9. Interpret data
How are theories generated?
- Science is accomplished by deduction
How are theories generated?
-
- Inductive reasoning (conclusion derives on the basis of observation of phenomena or facts)
- We observe cars on a street and note that 10 cars in a raw are white. But this does not mean 11th car will be white
- Why does this happen? Develop hypothesis. Test hypothesis.
Where do original ideas come from?
- Intensive case study investigation
- Rules of thumb
- Hypotheses testing
Good Theory
- Guides the study
- Limits what the study wants to achieve
- Suggests the most appropriate research design
- Provides a framework for the study
Theoretical Framework
- A conceptual framework of how a researcher theorizes the relationships among different phenomena and explains these phenomena and why they are associated with each other
- Identifies several factors and variables that are important to the problem at hand
Theoretical Framework
- It is a logically developed, described and elaborated network of associations among variables identified through interviews, observations and literature review
Theoretical Framework
- Identifies the relationships among the variables considered important to the study of a problem
- Explains the theory underlying these relationships, describes the nature and direction of these relationships
- Foundation of the entire research project
The process of building theoretical framework
- Introducing definitions of the concepts examined or variables
- Developing a conceptual model that provides a descriptive representation of the theory developed
- Introducing a theory that provides an explanation of relationships between the variables in the model
Components of the Theoretical Framework
- Variables relevant to the study
- Relationships among variables
- Nature and direction of the relationship based on previous research. Positive ? Negative?
- Explanation of why we would expect these relationships to exist
- A schematic diagram of the theoretical framework to visualize the theorized relationships (visual model)
Main types of variables
- A variable is anything that can take on differing or varying values
- Dependent (criterion) (DV)
- Independent (predictor) (IV)
- Moderating or explanatory – has a strong influence on the IV-DV relationship, modifies this relationship
- Intervening or mediating- temporarily influences the DV and IV relationship
- Extraneous
The relationships between independent and dependent variables
Cultural Values
Number of Books
Behavior
Reading Ability
IV
DV
IV
DV
The relationships between IV, DV and moderating variables
Number of Books
Reading Ability
IV
DV
Parents’ Literacy
Moderating variable
The relationships between IV, DV and moderating variables
Quality of
Products
Purchases
IV
DV
Consumers’ Needs
Moderating variable
The relationships between IV, DV, intervening and moderating variables
Quality of
Products
Purchases
IV
DV
Consumers’ Needs
Moderating variable
WEATHER
Intervening variable
Model
- Formalized (visual) representation of a theoretical framework
- Designed through the use of symbols or physical analogues
- Represents theory so that theory can be tested, examined and analyzed
- Simplified versions of phenomena under study
Example of a Model
Price Setting
Cost
Competitor’s price
Target profit
Target market
DV
IV
IV
IV
IV
Example of a Model
DV
IV
IV
IV
IV
Student Performance
Instructor
Student Effort
Study
Time
Student Abilities
Technology
MV
IVs
Propositions and Hypotheses
- Statements about concepts which may be judged as true or false if it refers to observable phenomena
- When a proposition is formulated for empirical testing it is called a hypothesis
- A concrete statement of an abstract relationship described in a theory (e.g. sales and economic hardship are related)
- Relational (relationships between two or more variables)
- Explanatory or causal (one concept explains or causes the other one)
Hypotheses
- Guide the direction of the study
- Limit what we study
- Suggest the most appropriate research design
- Provide a framework to organize the conclusions
- Play an important role in the development of theory
- Can be developed from the theoretical framework
Definition of Hypothesis
- A hypothesis is an educated guess about a problem’s solution
- Example: If the pilots are given adequate training to handle a plane, air safety violations will be reduced
Directional Hypotheses
- If in stating the relationships between two variables or comparing two groups terms, such as ‘positive’, ‘negative’, ‘more than’, ‘less than’ and ‘the like’ are used then these hypotheses are directional.
- Examples:
- Employees who are more healthy take sick leave less frequently
- The greater the stress on the job, the lower the job satisfaction
Non-directional Hypotheses
- If there is no indication of the direction of the relationships or differences then these hypotheses are non-directional
- Examples: There is a relationships between age and job satisfaction. There is a difference between the work ethic values of American and Asian employees.
Null Hypothesis
- Null Hypothesis (Ho)–the statement expressed as no (significant) relationships between the 2 variables or no (significant) differences between 2 groups exist
- Null hypothesis is set up to be rejected in order to support an alternative hypothesis
Alternative Hypothesis
-
- Alternative Hypothesis (H1) –is the opposite of the null: statement expressing a relationship between 2 variables or indicating differences between 2 groups
- Ho is rejected if the results do not meet the p<0.05 level of significance
Examples of Hypotheses
- Null Hypothesis: There is no relationship between stress experienced on the job and the job satisfaction of employees.
- Alternative Hypothesis: There is a relationships between stress experienced on the job and the job satisfaction of employees.
Why do we develop hypotheses?
- Suggest variables to be included in the research design
- Provide possible answers to the research questions
- Allow researchers to speculate about possible research question answers
- Example: Housing sales decrease because the level of competition is extremely high
- Imply problem (decreased housing sales)
How to develop hypotheses?
- Depends on information available:
- 1) Information from previous research
- 2) Information from economics, marketing, social, psychological impacts of pricing on…, etc.
- 3) Manager’s experience with a problem
When developing hypotheses
- Need to look at three elements: a) Research question(s) b) Hypothesis c) Boundaries of study
- Example: Research question: “Will our TV ad attract clients? Hypothesis: “Yes, it will attract”
- Example: Boundaries limit the research process, e g. research is limited to only female and male, a specific geographical region, a certain product.
Boundaries depend on the research purpose and influence the value of the answer.
Do you need a similar assignment done for you from scratch? Order now!
Use Discount Code "Newclient" for a 15% Discount!
