STAT6123-

Business Statistics and Research

Methodology

Session 2 - The Research Process :

Theorotical Framework
Hypothesis Development
 Learning Outcomes
After studying this chapter, the students should be able
to :
• Identify and label variables associated with any given
situation.
• Trace and establish the links among the variables and
envolve a theorotical framework.
• Develop a set of hypotheses to be tested and state
them in the null and the alternate.
• Apply what has been learned to a research project.
 The Research Process
OBSERVATION
(1)

(4)
THEOROTICAL
FRAMEWORK
(3) (6) (7)
BUSINESS (5)
PROBLEM SCIENTIFIC DATA COLLECTION,
PROBLEM GENERATION of
DEFINITION RESEARCH ANALYSIS, and
(Phenomena) HYPOTHESES
DESIGN INTERPRETATION
Variables clearly
identified and labeled

(8)
DEDUCTION
Hypotheses
substantiated?
(2)
PRELIMINARY DATA
GATHERING
-Interviewing
- Literature Survey
RQ
GO BACK Yes/No
Answered?

Ok

(11) (10) (9)

MANAGERIAL REPORT REPORT Research Implication
DECISION MAKING PRESENTATION WRITING

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 The Need For a
Theoretical Framework
• A theoretical framework is the foundation of
hypothetico-deductive research as it is the basis
of the hypotheses that you will develop.
• A theoretical framework represents your beliefs
on how certain phenomena (or variables or
concepts) are related to each other (a model)
and an explanation of why you believe that these
variables are associated with each other (a
theory).

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 • The process of building theoretical
framework includes:

 Introducing definitions of the concepts or variables in

your model
 Developing a conceptual model that provides a
descriptive representation of your theory
 Coming up with a theory that provides an explanation
for relationship between the variables in your model.

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 Variables
 It is anything that can take on differing or varying values.
 The values can differ at various times for the same object
or person, or at the same time for different object or
person (exp: production units, absenteeism, motivation)
 Types of variables:
• The dependent variable (also known as the criterion
variable)
• The independent variable (also known as the predictor
variable)
• The moderating variable
• The mediating variable

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• Dependent Variable

 Is the variables of primary interest to the researcher .

 The researcher’s goal is to understand and describe the
dependent variable, or to explain its variability , or
predict it.

 Example ....... ?

 Exercise
7
• Independent Variable

 Is one that influences the dependent variable in either

positive or negative way.
 The variance in the dependent variable is accounted for
by the independent variable.

 Example ....... ?

 Exercise
8
• Moderating Variable

 Is one that has a strong contingent effect on the

independent variable-dependent variable relationship.

 Example ....... ?

 Exercise

9
• Mediating (or intervening) Variable

 Is one that surfaces between the time the independent

variables start operating to influence the dependent
variable and the time their impact is felt on it.

 Example ....... ?

 Exercise

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 Theoretical Framework

• The theoretical framework is the foundation on which the

entire reseaarch project is based.
• The theoretical framework is a logically developed,
described, and elaborated network of associations among
the variables deemed relevant to the problem situation and
identified through such processes as interviews,
observations, and literature survey.
• A good theoretical framework identifies and labels the
important variables in the situation that are relevant to the
problem defined.

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• There are three basic features that should be incorporated in any
theoretical framework :
 The variables considered relevant to the study shoul be clearly defined.
 A conceptual model that describes the relationship between the variables in
the model should be given.
 There should be a clear explanation of why we expect these relationships to
exist.
 A conceptual model helps you to structure your discussion of the
literature.
 A conceptual model describes how the concepts in your model are
related to each other.
 A good model is based on a sound theory.

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 HYPOTHESES DEVELOPMENT
• A hypothesis is a tentative, yet testable, statement, which
predicts what you expect to find in your empirical data.
• Hypothesis are derived from the theory on which your
conceptual model is based and are often relational in
nature.
• Hypothesis can be defined as logically conjectured
relationship between two or more variables expressed in the
form of testable statements.
• Example : if the pilots are given adequate training to handle
midair crowded situations, air-safety violations will be
reduced.

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 Statement of Hypotheses:
• If-Then Statements
– Example ...?

• Directional and Nondirectional Hyphotheses

– Example ...?

• Null and Alternate Hypotheses

– Example ...?

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Thank You