Augusty and Uma Sekaran1

RISET BISNIS
Oleh:
Prof. Dr. Djumilah Zain, SE
Buku:
METODE PENELITIAN
MANAJEMEN
Pedoman Penelitian Untuk Penulisan Skripsi, Tesis dan
Disertasi Ilmu Manajemen
Oleh:
Prof. Dr. Augusty Ferdinand, MBA
BAB 1
PENGANTAR PENELITIAN
ILMIAH DALAM ILMU
MANAJEMEN
Definisi Penelitian
INVESTIGASI
ILMIAH Terorganisir
(Scientific Inquiry)
Sistematik
Berbasis
MASALAH Data
(SPESIFIC PROBLEM)
Kritikal
JAWABAN- Obyektif
SOLUSI
Definisi Penelitian
Penelitian adalah sebuah proses investigasi
terhadap sebuah masalah yang dilakukan
secara terorganisir, sistematik, berdasarkan
pada data yang terpercaya, bersifat kritikal dan
objektif yang mempunyai tujuan untuk
menemukan jawaban atau pemecahan atas satu
atau beberapa masalah yang diteliti.
Sumber Masalah Penelitian Ilmiah
FENOMENA BISNIS
MANAJEMEN
KESENJANGAN
PENELITIAN
(Research Gap)
MASALAH
KESENJANGAN TEORI
(Theory Gap)
Rujukan Sumber Masalah
STRATA 1 FENOMENA MANAJEMEN

DATA LAPANGAN
FENOMENA MANAJEMEN
DATA LAPANGAN
STRATA 2 RESEARCH GAP

(KESENJANGAN PENELITIAN)
RESEARCH GAP
STRATA 3 FENOMENA MANAJEMEN

DATA LAPANGAN
THEORY GAP
Jenis Penelitian
BASIC
EKSPLORASI RESEARCH
ILMU
APPLIED
RESEARCH
CAUSAL
RESEARCH
JENIS EKSPLANASI
PENELITIAN ILMU NON CAUSAL-
COMPARATIVE
RESEARCH
HYPOTHESIS
GENERATING
METODE RESEARCH
EKSPLANASI HYPOTHESIS
ILMU TESTING
RESEARCH
Model Kontingensi dari Bharadwaj dkk. mengenai
Keunggulan Bersaing Berkelanjutan dalam Industri
Jasa
Karakteristik Jasa dan

Industri Jasa
Sustainabilitas dari
Sumber Potensial bagi Keunggulan Keunggulan Kinerja
Keunggulan Bersaing Posisional Posisional Jangka Panjang
(Resources and Skills) Bersaing Bersaing
Karakteristik
Perusahaan Jasa
Reinvestasi atas
Hambatan Peniruan atas Resources & Skills
Resources & Skills
(High---Low)
Jenis Penelitian Pengujian Hipotesis
PENELITIAN
PENGUJIAN
HYPOTHESIS
BARU
HYPOTHESIS
TESTING
PENELITIAN THESA
REPLIKASI
RESEARCH SAYA
PENELITIAN
REPLIKASI
EKSTENSI
Tingkat Kebaruan Hipotesis
HIPOTESIS YANG
BENAR-BENAR BARU
HIPOTESIS MODEL
SAYA BARU
HIPOTESIS LAMA
DENGAN CARA PANDANG
DIMENSI BARU
Pilihan Penelitian
HYPOTHESIS
BASIC CAUSAL
GENERATING
RESEARCH RESEARCH
RESEARCH
BASIC COMPARATIVE HYPOTHESIS

RESEARCH RESEARCH GENERATING
RESEARCH
HYPOTHESIS HYPOTHESIS
BASIC CAUSAL
GENERATING TESTING
RESEARCH RESEARCH
RESEARCH RESEARCH
HYPOTHESIS HYPOTHESIS
BASIC COMPARATIVE
GENERATING TESTING
RESEARCH RESEARCH
RESEARCH RESEARCH
APPLIED CAUSAL HYPOTHESIS HYPOTHESIS

RESEARCH RESEARCH GENERATING TESTING
RESEARCH RESEARCH
APPLIED COMPARATIVE HYPOTHESIS HYPOTHESIS

RESEARCH RESEARCH GENERATING TESTING
RESEARCH RESEARCH
The Hallmarks of Scientific
Research
PURPOSIVENESS
RIGOR
TESTABILITY
THE HALLMARKS REPLICABILITY

OF SCIENTIFIC
RESEARCH PRECISION AND CONFIDENCE
OBJECTIVITY
GENERALISABILITY
PARSIMONY
Aspek Purposiveness
FOKUS
TUJUAN
RELEVAN
PURPOSIVENESS DENGAN
MASALAH
JUSTIFIKASI
PENTING
Aspek Rigor
HATI-HATI
CAREFULLNESS
AKURASI
RIGOR SCRUPULOUNESS
DERAJAD PASTI
DEGREE OF EXACTIDUTE
Aspek Testability
UJI
KESESUAIAN
INSTRUMEN
UJI
TESTABILITY AKSEPTANSI
MODEL
UJI
AKSEPTANSI
HIPOTESIS
Aspek Replicability
KESIMPULAN
YANG SAMA
PADA SITUASI PENERIMAAN
YANG SAMA HIPOTESIS
BUKAN KARENA
KEBETULAN
REPLICABILITY TETAPI KARENA
“THE TRUE
KESIMPULAN STATE OF
YANG SAMA AFFAIR”
DENGAN METODE
YANG SAMA
Research Gap
H1
INTENSITAS KINERJA
PROMOSI Signifikan PENJUALAN
(a)
H1
INTENSITAS KINERJA
Tidak
PROMOSI Signifikan
PENJUALAN
(b)
Pengembangan Research Gap
H1
INTENSITAS KINERJA
PROMOSI PENJUALAN
DAYA BELI
MASYARAKAT
Aspek Precision & Confidence
HASILNYA
MENDEKATI REALITAS
(Confidence Interval)
PRECISION &
CONFIDENCE
TINGGI
KEMUNGKINAN BENAR
&
RENDAH
KEMUNGKINAN SALAH
(Confidence Level)
Aspek Objectivity
MENGGUNAKAN
DATA YANG AKTUAL
OBJECTIVITY
PENARIKAN
KESIMPULAN
DIDASARKAN
PADA DATA-DATA
YANG DIGUNAKAN
Aspek Generalizability
APLIKABEL PADA
ORGANISASI ATAU
SITUASI A
APLIKABEL PADA
GENERALIZ-
ORGANISASI ATAU
ABILITY SITUASI B
APLIKABEL PADA
ORGANISASI ATAU
SITUASI C
ORGANISASI ATAU
SITUASI D,E,..DST
Aspek Parsimony
BANYAK
MENJELASKAN
SEDIKIT
BANYAK
PARSIMONY MENJELASKAN
BANYAK
SEDIKIT
MENJELASKAN Lebih
BANYAK disukai
Road Map Proses Penelitian
Manajemen
FENOMENA
BISNIS
RESEARCH RUMUSAN
LATAR RUMUSAN
GAP MASALAH
BELAKANG MASALAH
PENELITIAN
THEORY JUDUL TESIS
GAP (TITLE
WORDING)
(Untuk S3)
RINGKASAN GRAND
TEMUAN THEORICAL
PENELITIAN MODEL
UJI MODEL PROPOSISI
TELAAH
EMPIRIS PENELITIAN
PUSTAKA
RINGKASAN EMPIRIS
TEMUAN
PENELITIAN HIPOTESIS
DATA DAN ATAU
PERTANYAAN
PENELITIAN
LAPORAN
Derivasi Masalah dalam Penelitian
Ilmiah
FENOMENA BISNIS
RESEARCH GAP THEORY GAP
DATA LAPANGAN
(RG) (TG)
(FB)
PROBLEM STATEMENT
The What &
Rumusan masalah
Apa Masalahnya RESEARCH PROBLEM
diturunkan dari
STATEMENT
FB/RG/TG.
The Way/The How

Bagaimana caranya
masalah penelitian
RESEARCH PROPOSITION & Untuk
GRAND THEORETICAL MODEL Mahasiswa S3
dipecahkan
Adalah kurang benar kalau

rumusan masalah penelitian
Research Research
dikembangkan dari hipotesis,
Hypothesis and or Hypothesis and or
dengan cara menulis inti
Research Question Research Question
hipotesis dalam satu kalimat
masalah penelitian. Periksa
EMPIRICAL RESEARCH
contoh-contoh dalam jurnal
MODEL
Ilmiah internasional
Temuan Penelitian
Temuan Deskriptif; Ringkasan

Statistik deskriptif dari data
Yang dianalisis
Temuan Inferensial; Ringkasan statistik

inferensial dari hipotesis dan model yang
diuji; Kesimpulan menerima atau menolak
hipotesis serta kesimpulan atas diterima
atau ditolaknya hipotesis
TEMUAN
PENELITIAN Temuan Inferensialterhadap masalah
Penelitian yang menjadi fokus perhatian
Sebuah penelitian
Implikasi Teoritis dan Implikasi Manajerial

Yang dihasilkan
Keterbatasan Penelitian dan Berbagai

Agenda Penelitian Lanjutan
Struktur Skripsi–Tesis–Disertasi
The body of
knowledge Bab 5:
Bab 2: Model Kontribusi
dan Hipotesis terhadap ilmu
dan praktek
Bab 1:
Pendahuluan
Bab 4:
Bab 3: Metodologi Analisis
Pengumpulan Data data
Proses Penelitian
Sumber: Perry, 1998

Struktur Dasar Bab 1
Bidang yang luas

Misalnya deskripsi mengenai
Globalisasi Pemasaran
Makin lama makin menyempit

pada ‘research problem’
Misalnya: Daya tahan
instrumen kebijakan Pada bab 2 saudara
produk dalam kembangkan lagi
persaingan global menjadi research
questions atau
hypotheses
Struktur Dasar Bab 1
Telaah pustaka, termasuk parent discipline
Daerah “research problem (disajikan pada

bab 1.2 dan dijustifikasi pada bab 1.3)
Batas “research problem, misalnya hanya di

Jawa Tengah, atau khusus pada Industri
perbankan (dijustified di bab 1.6)
Bagian bagian “research problem” yang

telah dikembangkan pada penelitian-
penelitian terdahulu (dibahas di Bab 2)
Research questions atau hypotheses yang belum terjawab

pada penelitian terdahulu (dijustified pada bab.2)
Sumber: Perry, 1998

RANGKUMAN
Observasi Fenomena Isu-isu
Penelitian &Pengumpulan Data Awal Preliminary
Mulailah sebuah penelitian dengan membuat observasi awal.

Sebuah observasi awal akan mengidentifikasi daerah problem
(problem area) yang membutuhkan investigasi lebih lanjut. Disini
belum diperlukan untuk menggali isue-isue spesifik. Sebuah
applied research dapat digunakan untuk memecahkan masalah
khusus yang dihadapi sedangkan sebuah basic research akan
dilakukan pada tingkat yang paling fundamental dan memberi
kontribusi pada “the body of knowledge” dari sebuah pokok
bahasan tertentu.
Kumpulkan latar belakang informasi yang akan membantu peneliti
dalam menggambarkan masalah penelitian secara spesifik.
Mulailah pengembangan masalah dengan membaca pustaka-
pustaka yang relevan. Untuk penelitian Magister dan Doktor,
masalah dapat muncul dari hasil menelaah pustaka yang sesuai
dengan minat yang didalaminya.
Mendefinisi Masalah (Define Problem)
Research problem adalah the what of research. Sebuah

problem adalah suatu situasi dimana terjadi gap antara apa
yang ada saat ini dan apa yang sesungguhnya diharapkan.
Problem harus dirumuskan secara jelas dengan mengarah
pada “the root problem” dan bukan pada “the symptoms”. Atas
dasar gap (baik gap yang diperoleh dari data lapangan, gap
penelitian maupun gap teori) dirumuskanlah sebuah masalah
penelitian. Kalimat masalah penelitian adalah kalimat yang
diturunkan dari research gap yang ditemui. Bukanlah
gabungan dari kalimat-kalimat hipotesis. Bagaimana
memecahkan masalah yang ditemui (yaitu yang dinyatakan
dalam masalah penelitian) akan dilakukan dengan
mengembangkan hipotesis, model dan teori yang relevan,
yang dihasilkan melalui sebuah telaah pustaka yang intens.
Mendefinisi Masalah (Define Problem)
Kalimat masalah penelitian adalah kalimat yang diturunkan

dari research gap yang ditemui. Bukanlah gabungan dari
kalimat-kalimat hipotesis. Bagaimana memecahkan masalah
yang ditemui (yaitu yang dinyatakan dalam masalah
penelitian) akan dilakukan dengan mengembangkan
hipotesis, model dan teori yang relevan, yang dihasilkan
melalui sebuah telaah pustaka yang intens.
Telaah Pustaka
Telaah pustaka adalah sebuah proses ilmiah yang

dilakukan dengan menggunakan teori-teori yang ada
untuk memecahkan masalah penelitian yang
dihadapi. Sebuah telaah pustaka ditujukan untuk
membantu peneliti menemukan jalan atau cara
bagaimana memecahkan masalah yang dihadapinya
(the way to solve the research problem). Peneliti akan
bergumul dengan teori, proposisi, konsep dan
hipotesis yang akan dipadukan menjadi sebuah model
atau kerangka kerja teoritis (theoretical framework)
yang dapat membantu memecahkan masalah yang
dihadapinya.
Telaah Pustaka
Sebuah kerangka kerja teoritis adalah sebuah model

konseptual mengenai hubungan berbagai variabel
(faktor) penting yang digunakan untuk menjelaskan
atau memecahkan masalah penelitian yang
dimunculkan. Dalam pengembangan model, variabel
dapat disajikan sebagai variabel dependen, variabel
independen, variabel moderating serta variabel
intervening.
Proposi, Hipotesis & Model
Hipotesis adalah “a testable statement” yang

didasarkan pada hubungan dua atau lebih variabel
dari sebuah kerangka kerja teoritis yang
dikembangkan. Dinyatakan sebagai sebuah
pernyataan yang dapat diuji karena hubungan-
hubungan yang disajikan dalam pernyataan itu dapat
diuji untuk melihat apakah “benar” yaitu bila terjadi
perubahan pada satu variabel akan menghasilkan
respons pada variabel lainnya. Terdapat bermacam-
macam hipotesis tergantung pada apa yang diteliti
dan bagaimana masalah penelitian itu akan
dipecahkan.
Rancangan Penelitian (Scientific
Research Design)
Rancangan penelitian adalah sebuah rencana

untuk melaksanakan sebuah proyek penelitian.
Umumnya dipandang sebagai sebuah proses 6 W
yaitu: who, what, when, where, why and way dari
sebuah penelitian.
Manajemen Data (Data Collection, Screening,
Analysis & Interpretation)
Disini dilakukan pengumpulan data, editing, coding

dan verifikasi data untuk kemudahan disajikan
dalam sebuah bentuk tampilan data yang mudah
untuk dianalisis. Analisis statistik umumnya
digunakan dengan tujuan antara lain untuk
menentukan hubungan, pengaruh antara berbagai
variabel yang diamati.
RINGKASAN (Summary of findings)
Setelah data diolah dan disajikan, data harus

diformulasikan menjadi beberapa penggal informasi
yang komunikatif. Untuk itu temuan penelitian perlu
disajikan dalam bentuk ringkasan atau summary of
findings.
KESIMPULAN TEMUAN PENELITIAN (Conclusion
of the research)
Bagian ini adalah bagian yang terpenting dari sebuah penelitian,

karena bagian inilah yang paling banyak dibaca dan direferensi
oleh para pengambil keputusan atau para peneliti berikutnya.
Kesalahan yang dapat dilakukan oleh seorang peneliti adalah bila
ia melihat bahwa ringkasan (summary) dari pengujian
hipotesisnyalah yang disebut sebagai kesimpulan. Kesimpulan
lebih dari itu. Pada waktu memulai penelitian, seorang peneliti
berangkat dari fenomena manajemen yang ada, kemudian
menuju pada rumusan masalah, serta berujung pada perumusan
model dan hipotesis, maka pada waktu menyiapkan kesimpulan,
sesungguhnya ia menapaki jalan yang sama tetapi terbalik, yaitu
ia mulai dari menyajikan kesimpulan atas setiap hipotesis dalam
modelnya, untuk diagregasi menjadi kesimpulan pada masalah
penelitiannya dan berakhir pada sebuah generalisasi pada
fenomena sosial dimana penelitian ini terkait. Bagian ini adalah
bagian penting dan menjadi milik seorang peneliti.
REPORTING
(Penyusunan Laporan)
Sebuah laporan tertulis biasanya secara formal diminta

untuk disiapkan guna menyajikan temuan-temuan
penelitian serta agenda-agenda penelitian masa
mendatang. Laporan ini akan menambah kontribusi
pada “the body of knowledge” dari suatu bidang
tertentu yang telah diteliti untuk pengembangan lebih
lanjut. Isi laporan penelitian ilmiah umumnya
mencakup: ringkasan, pendahuluan, telaah pustaka,
metode penelitian, hasil penelitian, pembahasan dan
interpretasi hasil penelitian, kesimpulan dan implikasi
teori serta implikasi praktis serta daftar referensi yang
digunakan.
BAB 2
PERUMUSAN MASALAH
PENELITIAN MANAJEMEN
Perumusan Masalah Penelitian
Manajemen
1. Bagaimana menggali masalah
2. Rumusan masalah
3. Rumusan masalah penelitian
4. Merancang pemecahan masalah penelitian
5. Mengembangkan model penelitian
6. Bagaimana menyiapkan bab 1
Route Map Masalah Penelitian
FENOMENA BISNIS/
DATA LAPANGAN
S1
LATAR RUMUSAN
RESEARCH RUMUSAN
BELAKANG MASALAH
GAP: S2-S3 MASALAH
MASALAH PENELITIAN
THEORY
GAP: S2-S3
Research Gap
TATANAN KONSEPTUAL
YANG BAIK, TETAPI BELUM MASALAH
ADA PEMBUKTIAN EMPIRIK
MASALAH PENELITIAN
YANG BELUM BERHASIL
DIJAWAB ATAU HIPOTESIS MASALAH
YANG BELUM BERHASIL
RESEARCH DIBUKTIKAN
GAP
TEMUAN PENELITIAN YANG
KONTROVERSIAL TERHADAP MASALAH
PENELITIAN SEJENIS LAINNYA
HASIL PENELITIAN YANG

MENYISAKAN KELEMAHAN
MASALAH
Literatur
LITERATURE - PUSTAKA
LEVEL BUKU PELAJARAN

1 TEXT-BOOK
LEVEL LAPORAN PENELITIAN YANG

2 TIDAK DIPUBLIKASIKAN
LEVEL
PROCEEDINGS TEMU ILMIAH
3
LITERATUR
LEVEL
SCIENTIFIC READINGS
4
LEVEL
TESIS/DISERTASI
5
LEVEL NASKAH REFERAL JOURNAL

6 ILMIAH BIDANG ILMU
Proses Derivasi Masalah
Fenomena
Bisnis…1 MASALAH
2
Research
Gap…….1
Theory
Gap…1
MASALAH
PENELITIAN
3
PERTANYAAN HIPOTESIS
PENELITIAN PENELITIAN
4 4
Batasan Masalah Penelitian
APA
SIAPA
MASALAH
MASALAH
(Pertanyaan
PENELITIAN DIMANA
Deviasi)
BILAMANA
MENGAPA
BAGAIMANA
Route Map Rancangan Pemecahan
Masalah Penelitian
RUMUSAN
LATAR RUMUSAN
MASALAH
BELAKANG MASALAH
PENELITIAN
JUDUL
TESIS
(TITLE
WORDING)
(Untuk S3)
GRAND
THEORETICAL
MODEL RANCANGAN
PROPOSISI PEMECAHAN
TELAAH MASALAH
MODEL
PUSTAKA PENELITIAN
PENELITIAN
UJI EMPIRIS
EMPIRIS HIPOTESIS
DAN ATAU
PERTANYAAN
PENELITIAN
DATA
SCALING & INSTRUMENT
MEASUREMENT DATA
Model Kinerja Selling In
OUTLET
COVERAGE
FREKUENSI KINERJA
KUNJUNGAN SELLING-IN
DEAL
COMPETENCE
Bagaimana Menyiapkan
Bab 1
1 Introduction- Pendahuluan
1.1 Background to the research: Latar Belakang Penelitian
1.2 Research problem and hypotheses: Perumusan masalah, masalah
penelitian, proposisi dan hipotesis
1.3 Justification for the research: Justifikasi terhadap penelitian ini
berupa tujuan, kegunaan, orisinalitas penelitian
1.4 Methodology: Metode penelitian dan analisis data yang digunakan
1.5 Outline of the report: Outline dari skripsi, tesis, disertasi
1.6 Definitions: Definisi-definisi utama yang digunakan untuk konstruk-
konstruk utama dalam model penelitian
1.7 Deliminations of scope and key assumptions: Pembatasan
masalah (bukan keterbatasan) dan asumsi-asumsi dasar yang
digunakan
1.8 Conclusion: Kesimpulan atas bab ini
BAB 3
TELAAH PUSTAKA DAN

PENGEMBANGAN MODEL
Konsep-Porposisi-Teori
Konsep adalah abstraksi dari realitas
Level Abstrak
Tingkat Abstraksi Teori
Proposisi
Konsep
Level Empirik
Observasi Obyek atau Peristiwa

(Realitas)
Sumber: Zikmund, 2003, Hal 43

Derajad Abstraksi
TANGGA ABSTRAKSI KONSEP
VEGETASI
MAKIN KEATAS MAKIN ABSTRAK

BUAH
PISANG
REALITAS

Konsep
KONSEP ADALAH ABSTRAKSI DARI REALITAS
Level Abstrak
KONSEP
Level Empirik
Observasi Obyek atau Peristiwa
(Realitas)

Porposisi dan Hipotesis
HIPOTESIS SEBAGAI PADANAN DARI PROPOSISI
Proposisi
Level KONSEP A KONSEP B

Abstrak (Reinforcement) (Habits)
Hipotesis
Level Jumlah Jumlah

Empirik
Bonus Kunjungan

Teori, Proposisi dan Hipotesis
TEORI
(Teori Motivasi Kerja)
Level
Abstrak
Proposisi
KONSEP A KONSEP B
(Reinforcement) (Habits)
Hipotesis
Level Jumlah Jumlah

Empirik
Bonus Kunjungan

Tujuan Telaah Pustaka
Untuk menemukan apa yang selayaknya diteliti.

Telaah pustaka yang intens akan membantu
peneliti menemukan masalah dari:
1. Research Gap: Kesenjangan temuan penelitian
2. Theory Gap: Kesenjangan teori
LITERATURE
REVIEW
Untuk mengembangkan teori berbasis pada teori
dan temuan penelitian yang ada. Telaah pustaka
menuntun peneliti melihat status perkembangan
sebuah konsep (state of the art of the research
concern), mengembangkan proposisi baru,
menyusun model teoretikal dasar-kerangka
pemikiran teoritis baru untuk memecahkan
masalah penelitiannya, serta menghasilkan
hipotesis dan model penelitian empiriknya.
Bagaimana Membuat Telaah Pustaka
1. Cari jenis literatur yang sesuai
2. Cari naskah dari publikasi yang sesuai
3. Cari naskah dengan variabel yang sesuai
4. Buatlah ringkasan dari pemikiran ilmuwan atau peneliti
yang dirujuk
5. Bahas substansi
6. Carilah pro-kons
7. Kembangkan proposisi dan grand theoretical model
8. Kembangkan hipotesis dan empirical research model
Proposed Grand Theoretical Model
maupun Empirical Research Model yang
dikembangkan tidak lain merupakan
sebuah model yang merupakan
simplifikasi dari fenomena manajemen
sehari-hari.
Konten Telaah Pustaka
Ringkasan dan deskripsi pemikiran ilmuwanlain
mengenai Substansi dari sebuah Konsep berikut
elemen-elemennya
Deskripsikan berbagai pro dan kontra mengenai

konsep yang sedang ditelaah, akan lebih baik bila
disajikan “state of the art” nya
Hubungkan hasil telaah dua atau beberapa

KONTEN Konsepsi untuk memunculkan proposisi dan
TELAAH hipotesis
PUSTAKA
Gabungan dari berbagai proposisi yang
menjelaskan satu hal yang menyeluruh
dikembangkan menjadi sebuah Proposed Grand
Theoretical Model
Gabungan dari berbagai hipotesis yang

dikembangkan untuk menjawab sebuah masalah
penelitian disebut Empirical Research Model atau
Kerangka Pemikiran Teoretis yang akan dibuktikan
melalui penelitian empiris
Dasar Pengembangan Model
A model is a representation of the most important
elements of a perceived real world system”, sehingga
dapat difahami bahwa melalui sebuah model kita
berharap bahwa fenomena-fenomena nyata dalam
masyarakat, khususnya dalam dunia bisnis, dapat
dinyatakan dalam sebuah rumusan yang terstruktur dan
oleh karena itu menjadi “mudah” untuk difahami dan
dianalisis. Model dapat dipandang sebagai sebuah
gambaran realistis yang disederhanakan.
Dalam memahami model, terdapat beberapa hal yang
perlu diperhatikan sebagai berikut:
1. Dalam sebuah model terlihat sebuah sistem, bahkan komponen sistem yang
lebih detail. Sebagai gambaran sebuah sistem, model akan mendeskripsikan
sebuah “dunia kecil tetapi utuh” dari masalah yang dianalisis yang terdiri dari
berbagai elemen yang relevan untuk menjelaskan sebuah situasi masalah
tertentu. Dalam model marketing misalnya, sebuah model akan
menggambarkan komponen-komponen lingkungan pemasaran baik yang
internal maupun yang eksternal yang dihadapi dan dikelola sehari-hari.
2. Model mengandung elemen-elemen penting dan utama dari sebuah
fenomena manajemen. Hal ini membawa pengaruh bahwa boleh jadi model
yang dikembangkan akan menjadi demikian kompleks akibat dari
kompleksitasnya masalah yang dihadapi sehari-hari. Namun demikian perlu
difahami bahwa model yang rumit dapat membuat analisisnya menjadi sangat
rumit dan demikian pula interpretasinya. Oleh karena itu model dapat juga
disarankan untuk dikembangkan secara lebih sederhana dan bertahap.
3. Karena model dipandang sebagai pengejawantahan dari kenyataan yang
ada, maka sebuah model yang baik dapat menampakkan pola hubungan
yang terjadi dalam sebuah lingkungan organisasi maupun dalam lingkungan
manajemen yang lebih luas. Hubungan ini akan dinyatakan dengan
menghadirkan variabel-variabel dependen dan independen dalam sebuah
model.
Dalam mengembangkan model, terdapat beberapa langkah
dasar yang patut dipertimbangkan:
1. Tentukan tujuan utama sebuah model. Sebuah model dikembangkan atas
dasar masalah penelitian yang ingin dipecahkan melalui model itu. hal ini
berarti dalam permodelan, seorang peneliti akan berangkat dari masalah
penelitian (tentu saja atas dasar adanya masalah yang jelas), yaitu adanya
sesuatu hal yang ingin dipecahkan dan proses pemecahan itu ingin
digambarkan dalam berbagai hubungan interdependnsi yang tergambar
melalui sbuah model.
2. Rumuskan alur-alur lojik (logical-path diagram). Untuk memecahkan masalah
penelitian yang menjadi pusat perhatian sebuah model, sebaiknya seorang
peneliti mulai dengan menggambarkan berbagai alur-lojik yang akan
digunakan untuk menjelaskan masalah penelitian tersebut. Alur lojik itu
dikembangkan berdasarkan teori-teori manajemen yang ada dan yang akan
digunakan sebagai pisau analisis. Tentu saja hal ini berarti model
dikembangkan atas dasar telaah pustaka yang mendalam dan mantap, yang
face valuenya menggambarkan adanya sesuatu yang logis dan dapat diterima
akal sehat.
3. Model yang telah dinyatakan dalam sebuah diagram, dirumuskan kembali
dalam bentuk model-model matematika, statistika, ekonometrika atau
psikometrika sebagai sebuah langkah untuk memudahkan analisis serta
pengujian ketepatanberbagai hubungan yang digambarkan dalam model
tersebut.
Model Minat Pindah Tempat Belanja (1)
KEINGINAN MENCOBA
SESUATU YANG BARU
MINAT
PINDAH TEMPAT
BERBELANJA
KEINGINAN
MENCARI VARIASI
Model Minat Pindah Tempat Belanja (2)
KEINGINAN MENCOBA
SESUATU YANG BARU
MINAT
PINDAH TEMPAT
BERBELANJA
KEINGINAN
MENCARI VARIASI
Jenis-jenis Model
Jenis model menurut tujuan
1. Model deskriptif
2. Model prediktif
3. Model preskriptif/model normatif
Model menurut bidang fungsional
1. Model manajemen keuangan
2. Model manajemen SDMmodel manajemen operasi
3. Model manajemen pemasaran
4. Model manajemen stratejik
Model menurut perilaku
1. Model tanpa detail perilaku
2. Model dengan beberapa detail perilaku
3. Model dengan detail perilaku yang substansial Model
dengan detail perilaku yang substansial
Model Manajemen Keuangan
PROFIT
MARGIN
RETURN ON
INVESTMENT
NET OPERATING
ASSET
Model Manajemen SDM
DERAJAD KOHESI
ORGANISASIONAL
HARMONI
DERAJAD KINERJA
HUBUNGAN
KOHESI SOSIAL KARYAWAN
KARYAWAN
KESAMAAN
PENGALAMAN
INFERIOR
Model Manajemen SDM
ORIENTASI INTENSITAS
PELANGGAN SPC
STABILITAS
KUALITAS
PROSES
PRODUKSI
KUALITAS KINERJA
MANAJEMEN PASOKAN
PASOKAN BAHAN
Model Manajemen SDM
Patent
Barrier to Brands
Entry
Retaliatory Capability
Industry
Attractiveness Monopoly Market Share
Vertical Firm Size

Bargaining
Rate of Profit in
Power Financial Resources
Excess of the
Competitive Level
Process Technology
Cost
Size of Plants
Advantage
Access to
Competitive low-cost inputs
Advantage
Brands
Differentiation
Product Technology
Advantage
Marketing distribution
And service capabilities
Elemen Pengembangan Model
1. Spesifikasi model
2. Parameterisasi model
3. Validasi model
Persyaratan Spesifikasi
Model Kausalitas
INDEPENDEN
1. DEPENDEN
SEBAB 2. AKIBAT
3. KINERJA
INSTRUMEN
Model yang Kurang Baik
KUALITAS
RENCANA
KUNJUNGAN
KINERJA
KOMPETENSI
KUNJUNGAN
SALESMANSHIP
Call-Perform
KOMPETENSI
SALESMANSHIP
Parameterisasi Model
1. Analisis regresi
2. Analisis regresi moderasi
3. Analisis path
4. Analisis konfirmatori
5. Analisis struktural
6. Analisis model komparatif
Model Regresi
Model regresi adalah model yang digunakan untuk
menganalisis pengaruh dari beberapa variabel
independen terhadap suatu variabel dependen.
Analisis regresi
Spesifikasi Model
X1
X2
X3
Y
X4
Model Regresi Dua Tahap
Analisis regresi
Spesifikasi Model
X1
X2
X3
Y1 Y2
X4
Model Regresi Moderasi
Model regresi moderasi adalah sebuah model bersyarat atau
“conditional model” yaitu model dimana satu atau beberapa
variabel independen mempengaruhi satu variabel dependen,
dengan syarat bahwa pengaruhnya akan menjadi lebih kuat
atau lebih lemah bila sebuah variabel yang lain tampil sebagai
variabel moderasi.
Analisis Regresi Moderasi

Spesifikasi Model
OUTLET KINERJA
COVERAGE SELLING-IN
FREKUENSI
IKLAN TV
Model Analisis Faktor Konfirmatori
Analisis faktor konfirmatori digunakan untuk
mengkonfirmasi faktor-faktor yang dibentuk untuk
mendefinisikan sebuah konsep atau konstruk
penelitian.
Model Analisis Faktor Konfirmatori
Analisis Faktor Konfirmatori
Kinerja Pemasaran
Spesifikasi Model
Volume e4
Penjualan
KINERJA Pertumbuhan e5
PEMASARAN Pelanggan
Pertumbuhan e6
Penjualan
Durabilitas e8
KEUNGGULAN Imitabilitas e9
BERSAING
BERKELANJUTAN
Kemudahan e10
Menyamai
BAB 4
PENELITIAN MANAJEMEN:
PENELITIAN KUALITATIF
Penelitian Manajemen sebagai sebuah
Penelitian Proses Sosial
Peneliti harus dapat

mendeterminasi
MENDETERMINASI konstruk teoretis yang
PROSES SOSIAL menjadi rujukan
MANAJEMEN teoretiknya yang
disajikan dalam
bentuk hipotesis
PENELITIAN
MANAJEMEN:
PROSES SOSIAL
Peneliti harus dapat
MENDESKRIPSI Mendeskripsikan
PROSES SOSIAL- fenomena dan skenario
SKENARIO manajerial dibalik
MANAJERIAL konstruk teoretisnya
Proses Penelitian Hipotetika-Deskriptif
Pendekatan hipotetika-deskriptif adalah

pendekatan proses penelitian yang
memungkinkan pengembangan dan pengujian
hipotesis nol dengan deskripsi fakta empiris
yang lengkap untuk memberi warna pada
konsepsi teoritis yang menyertainya.
Pendekatan Hipotetika-Deskriptif
PENGEMBANGAN &
PENGUJIAN
PENGUJIAN
HIPOTESIS NOL
HIPOTESIS
DESKRIPSI
HIPOTETIKA
LOGIKA
DESKRIPTIF
FAKTA EMPIRIS
DESKRIPSI
SUBSTANSI KONSEP SKENARIO STRATEGI
MELALUI SEBAGAI SALAH SATU
FAKTA EMPIRIS KESIMPULAN
ATAS MASALAH
PENELITIAN
Hal-hal Penting dalam Pendekatan
Hipotetika-Deskriptif
1. Pengembangan hipotesis
2. Pengembangan instrumen (alat dan tehnik)
pengumpulan data
3. Tehnik pengumpulan data: wawancara terstruktur
4. Tehnik analisis data dan pengujian hipotesis
5. Tehnik menyajikan kesimpulan atas
hipotesis/pertanyaan penelitian dan kesimpulan
atas masalah penelitian.
Instrumen Data
PERTANYAAN
TERTUTUP
DAFTAR
PERTANYAAN
PERTANYAAN
INSTRUMEN TERBUKA
DATA
TEHNIK
PENGUMPULAN WAWANCARA
DATA TERSTRUKTUR
BAB 5
SAMPLING
Beberapa Pengertian
Populasi
Populasi adalah gabungan dari seluruh elemen yang berbentuk
peristiwa, hal atau orang yang memiliki karakteristik yang serupa
yang menjadi pusat perhatian seorang peneliti karena itu
dipandang sebagai sebuah semesta penelitian.
Misalnya perusahaan peneliti ingin memahami perilaku belajar
dari para manajer SDM di Jawa Tengah, maka populasi adalah
semua mereka yang memiliki jabatan manajer SDM di Jawa
Tengah.
Elemen
Elemen populasi adalah setiap anggota dari populasi yang
diamati. Dalam contoh populasi diatas, berarti setiap manajer
SDM adalah elemen populasi.
Beberapa Pengertian
Bingkai populasi
Bingkai populasi adalah sebuah daftar dari semua elemen dalam
populasi, darimana sampel akan ditarik.
Sampel
Sampel adalah subset dari populasi, terdiri dari beberapa anggota
populasi. Subset ini diambil karena dalam banyak kasus tidak
mungkin kita meneliti seluruh anggota populasi, oleh karena itu kita
membentuk sebuah perwakilan populasi yang disebut sampel. Bila
dari populasi 1000 orang manajer pemasaran akan diambil 250
yang mewakili, maka 250 manajer pemasaran itu adalah sampel
kita. Dengan meneliti sampel, seorang peneliti dapat menarik
kesimpulan yang dapat digeneralisasi untuk seluruh populasinya.
Subyek
Subyek adalah setiap anggota dari sampel, sama seperti elemen
merupakan anggota dari setiap populasi.
Proses Desain Sampling
DEFINISIKAN
POPULASI
SASARAN
TENTUKAN
BINGKAI
SAMPEL
TENTUKAN TENTUKAN CARA

JUMLAH PENARIKAN
SAMPEL ANGGOTA SAMPEL
Jenis-jenis Probability Sampel
1. Simple random sampling

2. Systematic sampling
3. Random route sampling
4. Stratified sampling
5. Multi stage cluster sampling
Jenis-jenis Non Probability Samples
1. Purposive sampling
 Judgement sampling
 Quota sampling
2. Convenience sampling
3. Snowball sampling
BAB 6
VARIABEL PENELITIAN DAN

PENGUKURANNYA
Road Map
MASALAH & MENENTUKAN

MASALAH PENELITIAN SCALE &
MEASUREMENT
HIPOTESIS & MODEL

PENELITIAN
DAFTAR
VARIABEL PERTANYAAN UNTUK
PENELITIAN PENGUMPULAN DATA
VARIABEL
PENELITIAN
Bentuk Variabel
Variabel ini dikembangkan dengan

menggunakan indikator tunggal, karena
KINERJA
itu digambar saja dengan bentuk kotak
PENJUALAN persegi. Misalnya kinerja penjualan hanya
dijelaskan dengan data volume penjualan
VOLUME
PENJUALAN
PERTUMBUHAN KINERJA
PENJUALAN PENJUALAN
PERTUMBUHAN
PELANGGAN
Model
DAYA TARIK
PRODUK
MINAT KEPUTUSAN
PEMBELI MEMBELI
INTENSITAS
PROMOSI
Pengelolaan Kesesuaian Variabel
APAKAH SESUAI
UNTUK MENJELASKAN
VARIABEL HIPOTESIS
KESESUAIAN
VARIABEL
APAKAH SESUAI
UNTUK MENGUJI
HIPOTESIS PENGARUH
Variabel Laten dan Variabel Indikator
Variabel
Indikator atau Proksi
Variabel
Variabel VARIABEL
Indikator atau Proksi LATEN
Variabel
Variabel
Pedoman yang digunakan untuk
merumuskan variabel indikator:
1. Variabel indikator harus merupakan indikasi, tanda
atau definisi dari variabel laten yang ingin diketahui
2. Variabel indikator harus tidak boleh memiliki hubungan
kausalitas dengan variabel laten yang ingin dibentuk.
Oleh karena itu bila dapat dibuat kalimat kausalitas
antara variabel indikator dan variabel laten, maka
variabel indikator tersebut tidak dapat diterima sebagai
variabel indikator yang baik.
Indikator Variabel-variabel Hipotesis
Bekerja Berdasarkan
Rencana Yang Keteraturan Atrikulasi Rencana
Tersusun BaikV Keteraturan
Rencana Standardisasi Dan Evaluasi
Rencana
Rayonisasi Durasi Kinerja Penjualan
Pengembangan Kunjungan
Wilayah Salestalk (Penyiapan
Ketrampilan (Call Plan)
ORIENTASI Penjualan Scorecard yang Baik)
Salestalk
SMART-
WORKING
Terampil Mengelola
Emosi Pembeli
Pada Waktu Menjual
Merencanakan Target
Harian Sesuai Program
Kerja harian KUALITAS
STRATEGI KINERJA
DIRECT- PENJUALAN
Upaya Memehami SELLING
Kebutuhan dan Keinginan
Pelanggan
Kontinuitas Upaya Untuk

Mencari Informasi Kebutuhan
Dan Keinginan Pelanggan
ORIENTASI KINERJA
Intensitas Analisis Informasi PELANGGAN PORTOFOLIO
Pelanggan dalam Proses PELANGGAN
Formulasi Rencana Pemasaran
Frekuensi Pemantauan
Keluhan Pelanggan
Jumlah Pelanggan
Kecepatan espons Terhadap Intensitas
Referensial yang Jumlah Jumlah
Keluhan Pelanggan Kunjung-
Dikembangkan Pelanggan Pelanggan lama/
Jajag
Sebagai basis Untuk Baru Pelanggan Loyal
(Prospecting)
Pelanggan Suspect
Indikator Wajah Yang Normal
Mampu Wajah yang

Mengekspresikan Memiliki Dahi
Keanekaragaman
Rasa Wajah dengan
Dua Telinga
Mampu
Mengekspresikan Wajah dengan
WAJAH WAJAH Dua Mata
Keanekaragaman
YANG YANG
Harapan
NORMAL NORMAL Wajah yang
Memiliki Mulut
Mampu
Mengekspresikan Wajah yang
Keanekaragaman Memiliki Dagu
Respons
VARIABEL INDIKATOR REFLEKTIF VARIABEL INDIKATOR FORMATIF

Indikator Kepuasan Konsumen
Ekspresi Puas atas Kinerja

Terpenuhinya Produk Inti
Harapan yang
Diberikan oleh produk
Puas atas Kinerja
Perilaku Tidak Atribut Produk
Komplain Atas Hasil Periferal
Konsumsi Produk
KEPUASAN KEPUASAN
Tindakan Memberi KONSUMEN KONSUMEN Puas atas
Pujian Setelah Manfaat Produk
Mengkonsumsi Produk
Ekspresi senang Puas atas

Setelah
Mutu produk
Mengkonsumsi Produk

Variabel Indikator Kompetensi Managerial
Kompetensi
Kemampuan Dalam Bidang
Mencari tahu
Planning
Sebab
Kompetensi
Dalam Bidang
Organizing
Kemampuan
Mengarahkan KOMPETENSI KOMPETENSI
Kompetensi
MANAJERIAL MANAJERIAL
Dalam Bidang
Actuating
Kemampuan
Melakukan Kompetensi
Perbaikan Dalam Bidang
Controlling

Road Map Untuk Questionnaire
PERTANYAAN PENELITIAN DAFTAR INFORMASI

MASALAH
Atau ATAU DATA YANG
PENELITIAN
HIPOTESIS PENELITIAN DIBUTUHKAN
Untuk memungkinkan
Pertanyaan penelitian
Atau hipotesis dijawab
RANCANGAN
SAJIKAN DALAM SEBUAH KALIMAT
QUESTIONNAIRE
Untuk mendapatkan
Data dan informasi
• pertanyaan
• pernyataan
Measurement
1. Validitas
 Construct validity
 Content validity
 Convergent validity
 Predictive validity
2. Reliabilitas
BAB 7
ANALISIS DATA
Variabel Laten dan Variabel Indikator
STATISTIK
DESKRIPTIF
ANALISIS
DATA
STATISTIK
INFERENSIAL
Statistik Deskriptif
Distribusi frekuensi
Statistik rata-rata
Angka indeks
Statistik Inferensial
Analisis regresi
Analisis regresi moderasi dengan
SPSSanalisis regresi dua tahap dengan
SPSS
Analisis kausalitas dengan SEM AMOS
Analisis jalur-path analysis
Statistik Inferensial Non
Parametrik
Uji Mcnemar
Uji Tanda –Sign Test
Uji Wilcoxon
Uji Cochran
Uji Friedman
Uji Mann-whitney
BAB 8
TEMUAN PENELITIAN:
KESIMPULAN DAN
IMPLIKASI
Konten Penyajian
BAB V
KESIMPULAN DAN IMPLIKASI
5.1. Pendahuluan
5.2. Ringkasan Penelitian
5.3. Kesimpulan Atas Masing-masing Hipotesis
5.4. Kesimpulan Masalah Penelitian
5.5. Implikasi Teoritis
5.6. Implikasi Manajerial
5.7. Keterbatasan Penelitian
5.8. Implikasi Metodologi
5.9. Agenda Penelitian Mendatang
Konten Penyajian
BAB V
PEMBAHASAN TEMUAN PENELITIAN
5.1. Pendahuluan
5.3. Kesimpulan Atas Masing-masing Hipotesis
BAB VI
PENUTUP
6.2. Implikasi Teoritis
6.3. Implikasi Manajerial
6.4. Keterbatasan Penelitian
6.5. Implikasi Metodologi
6.6. Agenda Penelitian Mendatang
Buku:
RESEARCH METHODS
FOR BUSINESS:
A Skill-Building Approach
UMA SEKARAN
CONTENTS
1. INTRODUCTION TO RESEARCH
2. THE RESEARCH PROCESS: STEPS 1 TO 3
3. THE RESEARCH PROCESS: STEPS 4 AND 5
4. THE RESEARCH PROCESS: STEP 6
5. EXPERIMENTAL DESIGNS
6. MEASUREMENT OF VARIABLES
7. DATA-COLLECTION METHODS
8. SAMPLING
9. A REFRESHER ON SOME STATISTICAL TERMS
AND TESTS
10. DATA ANALYSIS AND INTERPRETATION
11. THE RESEARCH REPORT
CHAPTER 1
INTRODUCTION TO
RESEARCH
What is Research?
A systematic and organized effort to
investigate a specific problem that needs a
solution. It is a series of steps designed
and followed, with the goal of finding
answers to the issues that are of concern
to us in the work environment.
Business Research
In business, research is usually primarily
conducted to resolve problematic issues
in, or interrelated among, the areas of
accounting, finance, management, and
marketing.
Types of Research
Applied research
Basic or fundamental research
Managers and Research
Being knowledgeable about research and research
methods helps professional managers to:
1. Identify and solve small problems in the work setting.
2. Know how to discriminate good from bad research.
3. Appreciate and constantly remember the multiple
influences and multiple effects of factors impinging on
a situation.
4. Take calculated risks in decision making, knowing full
well the probabilities attached to the different/possible
outcomes.
5. Prevent possible vested interests from operating in a
situation.
6. Relate to hired researchers and consultants more
effectively.
Scientific Investigation
Scientific research has the focused goal of
problem solving and pursues a step-by-
step logical, organized, and rigorous
method to identify problems, gather data,
analyze the data, and draw valid
conclusions therefrom.
The Hallmarks of Scientific
Research
1. Purposiveness
2. Rigor
3. Testability
4. Replicability
5. Precision and confidence
6. Objectivity
7. Generalizability
8. Parsimony
The Building locks of Science in Research
Identification
Observation
of problem area
Theoretical framework
Refinement of theory or
(pure research) Network of association
or
Implementation
(applied research)
Hypotheses
Interpretation
of data Constructs
Concepts
Operational definition
Analysis
of data
Research
Data
design
Collection
The Hypothetico-Deductive Method
1. Observation
2. Preliminary information gathering
3. Theory formulation
4. Hypothesizing
5. Further scientific data collection
6. Data analysis
7. Deduction
Summary
In this chapter we have examined what research is,
considered the two types of research, tried to understand
scientific investigation, what the hypothetico-deductive
method or research involves, why a manager should
know about research, and the advantages and
disadvantages of hiring internal and external teams of
researchers or consultants.
We examine the research process in the next two
chapters.
CHAPTER 2
STEPS 1 TO 3: THE BROAD
PROBLEM AREA PRELIMINARY
DATA GATHERING PROBLEM
DEFINITION
The Research Process for Basic and
Applied Research
①
OBSERVATION
Broad area
of research
interest
identified
④ ⑦
③ THEORETICAL
PROBLEM FRAMEWORK ⑤ ⑥
DATA
COLLECTION
DEFINITION GENERATION SCIENTIFIC ANALYSIS,
Research OF RESEARCH AND
problem Variables clearly HYPOTHESES DESIGN INTERPRETATION
delineated identified and
labeled
⑧
② DEDUCTION
PRELIMINARY Hypotheses
DATA GATHERING substantiated?
Interviewing Research question
literature survey answered?
Broad Problem Area
The broad problem area refers to the entire situation
where one sees a possible need for research and
problem solving.
The specific issues that need to be researched within
this situation may not be identified at this stage. Such
issues might pertain to:
1. Problems currently existing in an organizational
setting that need to be solved.
2. Areas in the organization that a manager believes
need to be improved.
3. A conceptual or theoretical issue that needs to be
tightened up for the basic researcher to understand
certain phenomena.
4. Some research questions that a basic researcher
wants to answer empirically.
Preliminary Data Collection
Nature of data to be collected
 Background information on the organization
 Information on management philosophy and structural
factors
 Perceptions, attitudes, and behavioral responses
Literature survey
 Reasons for literature survey
 Conducting the literature survey
Identifying the relevant sources
Bibliographical indexes
 Extracting the relevant information
 Writing up the literature review
Problem Definition
A problem does not necessarily mean that
something is seriously wrong with a current
situation, which needs to be rectified
immediately. A “problem” could simply indicate
an interest in an issue where finding the right
answers might help to improve an existing good
situation. Thus, it is fruitful to define a problem
as any situation where gap exists between the
actual and the desired ideal state.
Summary
In this chapter, we learned about the first three steps
in the research process: identification of the broad
problem area to be researched, preliminary data
gathering through interviews and literature survey, and
problem definition. The appendix to this chapter offers
information on on-line databases, bibliographical
indexes, APA format for references, referencing previous
studies and quoting original sources in the literature
review section, and some of the most frequently cited
business journals.
In the next chapter we will examine the next two
steps in the research process: theoretical framework and
hypotheses.
CHAPTER 3
THE RESEARCH PROCESS:

STEPS 4 AND 5: THEORETICAL
FRAMEWORK HYPOTHESIS
DEVELOPMENT
The Research Process for Basic and
Applied Research
①
OBSERVATION
Broad area
of research
interest
identified
④ ⑦
③ THEORETICAL
DATA
COLLECTION
labeled
⑧
② DEDUCTION
The Need for a Theoretical Framework
A theoretical framework is a conceptual model of how
one theorizes the relationships among the several
factors that have been identified as important to the
problem.
The theoretical framework discusses the

interrelationships among the variables that are deemed
to be integral to the dynamics of the situation being
investigated.
Developing such a conceptual framework helps us to

postulate and test certain relationships so as to improve
our understanding of the dynamics of the situation.
Variables
A variable is anything that can take on differing or
varying values. The values can differ at various for the
same object or person, or the values can differ at the
same time for different objects or persons. Examples of
variables are exam scores, absenteeism, and
motivation.
Types of variables:
1. The dependent variable (also known as the
criterion variable).
2. The independent variable (also known as the
predictor variable).
3. The moderating variable.
4. The intervening variable.
Dependent variable
The dependent variable is the variable of
primary interest to the research. The
researcher’s goal is to explain or predict the
variability in the dependent variable.
Independent variable
An independent variable is one that influences the dependent
variable in either a positive or a negative way. That is, when
the independent variable is present, the dependent variable is
also present, and with each unit of increase in the
independent variable, there is an increase or decrease in the
dependent variable also.
New product Stock market

success price
Independent variable Dependent variable
Managerial values Power distance

Moderating variable
The moderating variable is one that has a strong
contingent effect on the independent variable-dependent
variable relationship. That is the presence of a third
variable (the moderating variable) modifies the originally
expected relationship between the independent and the
dependent variables.
Number of books Reading abilities

Number of books Reading abilities
Parents literacy
Moderating variable
Organizational
Workforce diversity
effectiveness
Managerial
expertise
Moderating variable
Intervening variable
An intervening variable is one that surfaces between the time
the independent variables operate to influence the dependent
variable and their impact on the dependent variable. There is
thus a temporal quality or time dimension to the intervening
variable. Willingness to learn
Training programs
Growth needs
Effects for those high in
growth needs
Willingness to learn
Effects for those low in

growth needs
Training programs
Time: t1 t2 t3
Workforce diversity Creative Reading abilities

synergy
Time: t1 t2 t3
Workforce diversity Creative Reading abilities

synergy
Managerial
expertise
Moderating variable
Theoretical Framework
The theoretical framework is the foundation on
which the entire research project is based. It is
logically developed, described, and elaborated
network network of associations among
variables that have been identified through such
processes as interviews, observations, and
literature survey.
The components of the theoretical
framework
1. The variables considered relevant to the study should be
clearly identified and labeled in the discussions.
2. The discussions should state how two or more variables are
related to each other. This should be done for the important
relationships that are the orized to exist among the variables.
3. If the nature and direction of the relationships can be theorized
on the basis of the findings from previous research, then there
should be an indication in the discussions as to whether the
relationships would be positive or negative.
4. There should be a clear explanation of why we would expect
these relationships to exist. The arguments could be drawn
from the previous research findings.
5. A schematic diagram of the theoretical framework should be
given so that the reader can visualize the theorized
relationships.
Communication among
Cockpit members
Communication between
Ground control and cockpit
Air-safety
violations
Decentralization
Training of cockpit crew
Independent variables Dependent variables

Communication among
Cockpit members
Communication between
Ground control and cockpit
Air-safety
violations
Decentralization
Nervousness
Training of cockpit crew
And diffidence
Independent variables Intervening Dependent

variables variables
Communication among
Cockpit members
Communication between Air-safety

Ground control and cockpit violations
Decentralization
Training
Independent variables Moderating variables Dependent variables

Hypotheses Development
Definition of hypothesis
An hypothesis is an educated guess about a problem’s
solution. It can be defined as a logically conjectured
relationship between two or more variables expressed in
the form of testable statements.
Statement of hypotheses: formats

If then statements → To examine whether the
conjectured relationships or differences exist or not,
these hypotheses can be set either as propositions or in
the form of if-then statements.
Null and alternate hypotheses

The null hypothesis is a proposition that state a
definitive, exact relationship between two variables.
Hypotheses Testing with Qualitative
Research: Negative Case Analysis
Hypotheses can also be tested through qualitative data.

For example, let us say that a researcher has developed
the theoretical framework after extensive interviews, that
unethical practices by employees are a function of their
being ignorant of what is right or wrong, or because of a
need for more money, or because of the organization’s
indifference to such practices. To test the hypothesis that
these three factors are the primary ones that influence
unethical practices, the researcher will look for data that
would disconfirm the hypothesis. When even a single
case disconfirms the hypothesis, he will revise the
theory.
Summary
In this chapter we examined the four types of
variables: dependent, independent, moderating, and
intervening. We also discussed how theoretical
frameworks are developed and testable hypotheses are
generated therefrom as they relate to both qualitative
and quantitative research. In the next chapter we will
examine the basic research design issues.
CHAPTER 4
THE RESEARCH PROCESS:

STEPS 6: ELEMENTS OF
RESEARCH DESIGN
The Research Design
The issues pertinent to research design relate to where
the study will be conducted (i.e, the study setting), what
type of a study it would be (type of investigation), the
extent to which the researcher manipulates and controls
the study (extent of researcher interference), the
duration of the study (time horizon), and at what level the
data will be analyzed (unit of analysis), as well as
deciding what the sample would be (sampling design),
how the data would be collected (data collection
methods), how variables will be measured
(measurement), and how they will be analyzed to test
the hypotheses (data analysis).
The Research Process
①
OBSERVATION
Broad area
of research
interest
identified
④ ⑦
③ THEORETICAL
DATA
COLLECTION
labeled
⑧
② DEDUCTION
The Research Design
DETAILS OF STUDY MEASUREMENT DATA
ANALYSIS
Measurement
Purpose of the Types of Extent of researcher and measures
interference Study setting
data investigation
Operational 1.Feel for
Establishing: Minimal: Studying events
definition data
Exploration Causal relationships as they normally occur
Manipulation and/or Contrived Items (measure)
Description Correlations
control and/or Noncontrived Scaling
Hyphothesis Group differences,
ranks, etc. simulation Categorizing
Coding
PROBLEM STATEMENT
2.Goodness
of data
Unit of analysis
Sampling Time Data-collection
(population to
design horison method
be studied)
Individuals Observation
Dyads Probability/ Interviews
Groups nonprobability One-shot Questionnaire 3.Hyphotesis
Organizations (cross-sectional) Physical testing
Machines Sample size (n) measurement
Etc. Unobtrusive
The Purpose of the Study
Exploratory study
Descriptive study
Hypotheses testing
Type of Investigation
Causal
When the researcher wants to delineate the cause of a
problem, then the study is called a causal study.
Noncausal
When the researcher is interested in delineating the
important variables that are associated with the problem,
it is called a correlational study.
Whether a study is a causal or a correlational one thus

depends on the type of research questions asked and
how the problem is defined.
Extent of Researcher Interference
with the Study
The extent of researcher interference has a direct bearing
on whether a causal or correlational study is undertaken.
A correlational study is conducted in the natural

environment of the organization with the researcher
interfering minimally with the normal flow of events.
In causal studies conducted to establish cause → effect

relationships, the researcher tries to manipulate certain
variables so as to study the effects of such manipulation on
the dependent variable of interest. In other words, the
researcher deliberately changes certain variables in the
setting and interferes with the normal flow of events as they
usually occur in the organization.
Study Setting Contrived and
Noncontrived
Research can be done in the natural
environment where events normally occur – that
is, in noncontrived settings – or in artificial,
contrived settings. Correlational studies are
invariably conducted in noncontrived settings,
whereas rigorous causal studies are done in
contrived lab settings.
Unit of Analysis
Individuals
Dyads
Groups
Organizations
Cultures
Time Horizon
Cross-Sectional Studies
A study can be done in which data are gathered just
once, perhaps over a period of days or weeks or months,
in order to answer a research question. Such studies are
called one-shot or cross-sectional studies.
Longitudinal studies
When data are gathered at two different points in time, it
is not a cross-sectional or a one-shot study, but it is a
study carried longitudinally across a period of time.
Summary
In this chapter we examined the basic research
design issues and the choice points available to the
researcher. We also discussed the circumstances in
which each design decision will be appropriate.
In the next chapter we discuss how experimental
designs are set up and the ways in which cause → effect
relationships can be determined.
CHAPTER 5
EXPERIMENTAL DESIGN
Causal Versus Correlational Analysis
A Correlational study is distinguished from and

experimental design in that the former is concerned with
identifying the important correlates that explain the
environment variance in the pendent variable, and the
study is conducted in the environment where event
naturally occur without any artificial constraints being
imposed in the setting.
The Laboratory (Lab) Experiment and
The Field Experiment
The Lab Experiment

As stated earlier, when a cause effect relationship is to
be clearly established between in independent a
dependent variable of interest, then all other variables
that might contaminate or confound the relationship have
to be tightly controlled.
Manipulation of the
Independent Variable
In order to examine the causal effects of

independent variable on dependent variable,
certain manipulations need to be tried.
Manipulation simply means that we create
different levels of the independent variable to
assess the impact on the independent variable.
Controlling The Contaminating or
“Nuisance” Variables
Matching groups
Randomization
Ethical Issues in Research and Lab
Experiments
The following practices are considered unethical:

 Putting pressure on individuals to participate in research (through
coercion, applying social pressure, etc.)
 Asking demeaning questions that diminish their self-respect.
 Deceiving subjects by deliberately misleading them as to the true
purpose of the research.
 Exposing participants to physical or mental stress.
 Not allowing them to withdraw from the research when they want to.
 Using the research results to disadvantage the participants, or for
purposes that the participants would not like.
 Withholding benefits from control groups.
The Field Experiment
A field experiment is an experiment done in the
natural environment in which events normally
occur, with treatments given to one or more
groups.
Factors Affecting Internal Validity
1. History effects
2. Maturation effects
3. Testing effects
4. Instrumentation effects
5. Selection bias effects
6. Statistical regression
7. Mortality
Factors Affecting External Validity
Whereas internal validity raises questions about

whether it is the treatment alone or some
extraneous factor that causes the effects,
external validity raises issues about the
generalizability of the findings to other settings.
When Are Experimental Designs Necessary?
Some questions that need to be addressed are the following:
1. Are causal relationships necessary to be identified, or would
tracing the correlates that account for the variance in the
dependent variable be enough? If the latter would do,
experimental designs are not really needed.
2. If causal relationships are important to be identified, is there a

greater need for internal validity or external validity or both? If
internal validity alone is important, a carefully designed lab
experiment would be the answer; if generalizability is the more
important criterion, then a field experiment would be called for; if
both are equally important, then a lab study be first undertaken,
followed by a field experiment.
3. Is cost an important factor in the study? If cost is a primary

consideration, would a less sophisticated rather than a more
sophisticated experimental design do?
Decision points for embarking on an experimental design
Is tracing causal
affects necessary?
Yes Do not undertaken an

No
and if experimental design study
Internal validity is Generalizability is Both internal validity

more important than more important than and external validity
external validity internal validity are important
Engage in a Engage in a First do a LAB experiment,

lab experiment field experiment then, a FIELD experiment
Are there cost

constraints?
Yes No
Engage in a simpler Engage in a more

experimental experiment sophisticated design
Types of Experimental Designs and
Internal Validity
Pretest and posttest experimental group design

Posttests only with experimental and control group
Pretest and posttest experimental and control group
designs
Solomon four group design
Major Threats to Internal Validity in Different
Experimental Designs When Members Are Randomly
Selected and Assigned
Major Threats to
Types of Experimental Designs
Internal Validity
1. Pretest and posttest with one experimental Testing, history,
group design maturation
2. Posttests only with experimental and one Maturation
control group
3. Pretest and posttest with one experimental Mortality
and one control group designs
4. Solomon four group design Mortality
Simulation
An alternative to lab and field experimentation
currently being used in business research is
simulation. Simulation uses a model-building
technique to determine the effects of changes,
and computer-based simulations are becoming
popular in business research.
Summary
This chapter covered experimental designs, with
particular reference to the lab and field experiments.
Issues of internal and external validity and the seven
factors that could affect internal validity were discussed.
Also, some types of experimental designs that can be
used to test cause → effect relationships and the
usefulness of these in the context of validity versus
practicality were examined.
The next chapter discusses how the variables–
whether in a field survey or in an experimental design–
can be measured.
CHAPTER 6
MEASUREMENT OF
VARIABLES
How Variables Are Measured
Objects that can be physically measured by some
calibrated instruments pose no problem. Data
representing several demographic characteristics of the
office personnel are also easily obtained by asking
employees simple, straight forward questions, foe
example:
– How long have you been working in this
organization?
– How long have you been working on this particular
assignment?
– What is your job title?
– What is your marital status?
Operational Definition
Operationalizing, or operationally defining a
concept so that it becomes measurable, is
achieved by looking at the behavioral
dimensions, facets, or properties denoted by the
concept, and categorizing these into observable
and measurable elements.
Scales and Measurement
Scales
 Nominal scale
 Ordinal scale
 Interval scale
 Ratio scale
Developing Scales
Rating scale
 Graphic rating scale
 Itemized rating scale
Attitude scale
 Likert scale
 Semantic differential
Validity
Content validity
Criterion-related validity
Construct validity
Types of Validity
Validity Description
Content validity Does the measure adequately measure the concept?
Face validity Do “experts” validate that the instrument measures what

is name suggests it measures?
Criterion-related validity Does the measure differentiate in a manner that helps
to predict a criterion variable?
Concurrent validity Does the measure differentiate in a manner that helps
to predict a criterion variable currently?
Predictive validity Does the measure differentiate individuals in a manner
as to help predict a future criterion?
Construct validity Does the instrument tap the concept as theorized?
Convergent validity Do two instruments measuring the concept correlate

highly?
Discriminant validity Does the measure have a low correlation with a variable
that is supposed to be unrelated to this variable?
Reliability
Stability of measures
 Test-retest reliability
 Parallel-form reliability
Internal consistency of measures

 Interitem consistency reliability
 Split-half reliability
 Interrater reliability
 Goodness of measures
Summary
In this chapter, we saw how concepts are
operationally defined and what kinds of scales can be
used in developing instruments. We also discussed how
the goodness of measures can be established in terms
of validity and reliability.
In the next chapter, we will see the different methods
by which data can be collected.
CHAPTER 7
DATA COLLECTION
METHODS
Data Collection Methods, Settings, and
Sources of Data
Data collection methods include face to face interviews,
telephone interviews, computer-assisted interviews;
questionnaires that are either personally administered, sent
through the mail, or electronically administered; observation of
individuals and events with or without videotaping or audio
recording; and a variety of other motivational techniques such as
projective tests.
As for the setting, data can be collected in any one of the

aforementioned ways in the natural environment in which
phenomena occur. Data may also be collected in lab
experimental settings where variables are controlled and
manipulated, or gathered in the homes of the respondents, on
the street, in malls, or in a setting where a LAN (Local Area
Network) system is available.
Data sources can be primary and/or secondary.

Interviewing
Unstructured interviews
Unstructured interviews are also labeled because the
interviewer does not enter the interview setting with a
planned sequence of questions that he will be asking the
respondent.
Structured interviews
Structured interviews are those conducted by the
interviewer when he or she knows exactly what
information is needed and has a predetermined list of
questions that will be posed to the respondent.
Some tips to follow while interviewing
 Establishing credibility and rapport, and motivating
individuals to respond
 The questioning technique
 Funneling
 Unbiased questions
 Clarifying issues
 Helping the respondent to think through issues
 Taking notes
Face to face and telephone interviews

Computer assisted interviewing
Questionnaires
Personally administered questionnaires
Mail questionnaires
Guidelines for Questionnaire Design
Principles of wording
 Content and purpose of the question
 The language and wording of the questionnaire
 Type and form of questions
Open-ended versus closed questions
Positively and negatively worded questions
Double-barreled questions
Ambiguous questions
Recall-dependent questions
Leading questions
Loaded questions
Social desirability
Length of questions
 Sequencing of questions
 Classification data or personal information
Principles of measurement
Just as there are rules or guidelines that have to be
followed to ensure that the wording of the questionnaire
is appropriate to minimize bias, so also are there some
principles of measurement that are to be followed to
ensure that the data collected are appropriate to test our
hypotheses.
These principles of measurement encompass the
scales and scaling techniques used in measuring
concepts, as well as the assessment of reliability and
validity of the measures used.
Electronic Questionnaire Design
and Surveys
On-line questionnaire surveys for respondents

are possible when microcomputers are hooked
up to computer networks. Data disks can also be
mailed to respondents, who can use their own
personal computers for responding to the
questions.
Other Methods of Data Collection
Observational surveys
 Nonparticipant-observer
 Participant-observer
 Structured versus unstructured observational studies
Biases in observational studies

Data observed from the researcher’s point of view are
likely to be prone to observer biases. Moreover, where
several observers are involved, interobserver reliability
has to be established before the data can be accepted.
Observer fatigue could also be a source of bias.
Some Special Data Sources
Focus groups
Static and dynamic panels
Unobtrusive measures
Summary
In this chapter we examined various data-collection
method and different primary sources of data. We
discussed the advantages and disadvantages as well as
the biases embedded in each data-collection method.
We also traced the current level of impact of personal
computers in data collection. Because of the inherent
biases in each of the data-collection methods, obtaining
data from multiple sources and through multiple methods
was recommended. The choices, of course, will be
governed by cost considerations and the extent of rigor
desired for a given research goal.
In the next chapter we will discuss sampling designs
and how data can be collected from samples to make
the results generalizable to the population.
CHAPTER 8
SAMPLING
Population, Element, Population Frame,
Sample, and Subject
Population. Population refers to the entire group of people, events,

or things of interest that the researcher wishes to investigate.
Element. An element is a single member of the population.
Population frame. The population frame is a listing of all the

elements in the population from which the sample is to be drawn.
Sample. A sample is a subset of the population. It comprises some

members selected from the population. In other words, some, but
not all, elements of the population would form the sample.
Subject. A subject is a single member of the sample, just as an

element is a single member of the population.
Sampling
Sampling is the process of selecting a sufficient
number of elements from the population so that
by studying the sample, and understanding the
properties or the characteristics of the sample
subjects, we will be able to generalize the
properties or characteristics to the population
elements.
Normality of Distribution
Many attributes or characteristics in the population are
generally normally distributed. If we are to estimate the
population characteristics reasonably precisely from the
characteristics represented in a sample, the sample has to
be chosen such normal distribution of the characteristics of
interest follows the same type of normal distribution in the
sample as it does in the population.
Low μ High
Probability and Nonprobability Sampling
Probability sampling
– Unrestricted or simple random sampling
– Restricted or complex probability sampling
Systematic sampling
Stratified random sampling
Cluster sampling
Area sampling
Double sampling
Non probability sampling

– Convenience sampling
– Purposive sampling
Judgment sampling
Quota sampling
Probability and Nonprobability sampling Design
Sampling Design Description Advantage/Disadvantage
Probability Sampling
1. Simple random All elements in the population are considered High generalizability of findings.
sampling and each element has an equal chance of Not as efficient as stratified sampling.
being chosen as the subject.
2. Systematic Every nth element in the population is chosen Easy to use if population frame is
sampling starting from a random point in the population available.
frame. Systematic biases are possible.
3. Stratified random Population is first divided into meaningful Most efficient among the probability
sampling (Str. R.S.) segments; thereafter subjects are drawn: designs.
Proportionate in proportion to their original numbers in the Population frame for each stratum is
Str.R.S. population. essential.
Disproportionate based on criteria other their original Would adequately represent strata
Str.R.S. population numbers. with low numbers.
4. Cluster sampling Groups that have heterogeneous members are In geographical clusters, costs of
first identified; then some are chosen at data collection are low.
random; all the members in each of the The least reliable among all the
randomly chosen groups are studied. probability sampling designs
Sampling Design Description Advantage/Disadvantage
5.Area sampling Cluster sampling within a particular area Cost–effective. Useful for
or locality. decisions regarding location.
6.Double sampling The same sample or a subset of the Offers more detailed information
sample is studied twice. on the topic of study.
Original biases, if any will be
carried over.
Nonprobability sampling
7.Convenience sampling The most easily accessible members Quick, convenient, less
are chosen as subjects. expensive.
Not generalizable at all.
8.Judgment sampling Subjects selected on the basis of their Sometimes, the only meaningful
expertise in the subject investigated. way to investigate.
9.Quota sampling Subjects are conveniently chosen from Very useful where minority groups
targeted groups according to some participation in a study is critical.
predetermined number or quota. Not easily generalizable.
Issues of Precision and Confidence in
Determining Sample Size
Precision
Precision refers to how close our estimate is to the true
population characteristics.
Confidence
Whereas precision denotes how close we are in
estimating the population parameter based on the
sample statistic, confidence denotes how certain we are
that our estimates will really hold true for the population.
Efficiency in Sampling
Efficiency in sampling is attained when for a given level of

precision (standard error), the sample size could be
reduced, or for a given sample size, the level of precision
could be increased.
The factors affecting decisions on sample size:

1. The extent of precision desired (the confidence
interval)
2. The amount of risk allowable in predicting that level of
precision (confidence level)
3. The amount of variability in the population itself
4. The cost and time constraints
5. The size of the population itself
Summary
Decisions regarding sampling are important aspects of research design.
Sampling design decision include both the sampling plan to be used and the
sample size that will be needed. Probability sampling plans lend themselves to
generalizability and nonprobability sampling designs do not. Some probability
plans are more efficient than others. Though nonprobability sampling designs
are not readily generalizable, they are often useful for obtaining certain types of
information quickly and relatively inexpensively. The sample size is determined
by the level of precision and accuracy desired in estimating the population
parameters, as well as the variability in the population itself. The
generalizability of the findings from a study of the sample to the population is
dependent on the sophistication of the sampling designs used, which includes
the sample size used in the study. In all research, care should also be taken
not to overgeneralize the results of the study to populations that are not
represented by the sample. This is a common problem in many research
studies. Sample data are used for both estimating population parameters and
hypothesis testing.
In the next two chapters, we will see how the data that are gathered from
a sample of respondents in the population will be analyzed to test the
hypotheses generated and answer the research questions.
CHAPTER 9
A REFRESHER ON SOME
STATISTICAL TERMS
AND TESTS
Descriptive Statistics
Frequencies
Frequencies simply refer to the number of times various
subcategories of a certain phenomenon occur, from
which the percentage and the cumulative percentage of
the occurrence of the subcategories can be easily
calculated.
Measures of central tendencies and dispersion

– Mean
– Median
– Mode
Inferential Statistics
Correlations
Relationship among nominal variables: x2
test
Significant mean differences between two
groups: the t-test
Significant mean differences multiple
groups: ANOVA
Multiple regression
Summary
In this chapter, we briefly revisited some statistical
terms and tests. Now that we have refreshed our
memory with the necessary background materials, in the
next chapter, we will discuss how the data are actually
analyzed. The Supplementary Readings List offered for
this chapter at the end of the book will be useful if more
in-depth understanding of the various statistical tests is
needed.
CHAPTER 10
DATA ANALYSIS AND

INTERPRETATION
Flow Diagram of Data Analysis Process
Data analysis
Interpretation
of
result
DATA COLLECTION
Discussion Research
question
answered?
Getting data ready for Feel for Goodness Hypotheses

analysis data of data testing
Editing data 1. Mean

Handling blank responses 2. Standard Appropriates
deviation Reliability
Coding data statistical
3. Correlations Validity
Categorizing data manipulations
Creating data file 4. Frequency
Programming distribution,
etc.
Getting Data Ready for Analysis
Editing data
Handling blank responses
Coding
Categorization
Keying data
Basic Objective in Data Analysis
Feet for the data
Testing goodness of data
Validity
Factorial validity can be established by
submitting the data for factor analysis. The
results of factor analysis (a multivariate
technique) will confirm whether or not the
theorized dimensions emerge.
Reliability
The reliability of a measure is established by
testing for both consistency and stability.
Consistency indicates how the items measuring
a concept hang well together as a set.
Hypothesis Testing
Once the data are cleaned up (i.e., out-of-
range/missing responses, etc., are taken care
of) and the goodness of the measures is
established, the researcher is ready to test the
hypotheses developed for the study.
Data Analysis and Interpretation
Data analysis and interpretation of results can
be most meaningfully explained by referring to a
business research. After a very brief description
of the background of the company in which the
research was carried out and the sample, we will
discuss the data analysis done for testing each
hypothesis and how the results were interpreted.
Summary
In this chapter we covered the procedure for analyzing data
after they have been collected. By means of an example, we saw
the steps necessary to get the data ready for analysis-editing,
coding, and categorizing. Through the example of the research on
KRIYA Enterprises, we saw various statistical analysis and tests
used to examine the different hypotheses to answer the research
question. We also saw how the computer results are interpreted. We
also described some microcomputer programs and discussed the
SPSS/PC+ Studentware in some detail. Some expert systems for
data analysis and managerial decision making and problem solving
were also mentioned.
In the next chapter we will learn how to write a research report
after the data have been analyzed and the results are interpreted.
CHAPTER 11
THE RESEARCH REPORT

The Written Report
The written report enables the decision maker to
weigh the facts and arguments presented in the
document and implement the final solutions(s),
with a view to closing the gap between the
desired and the present state of affairs in any
given problem area.
Integral Parts of the Report
The title of the research report
Table of contents
The synopsis
The introductory section
– Introduction
– A brief literature survey
– Research question
– Theoretical framework
– Hypotheses
– Study design
Methods section
– Population and sample
– Population and sample for the mechanization study
– Variables and measures used
– Data collection methods
– Data analysis techniques
Result section
Discussion section
Recommendations and implementation
Summary Section
The summary section highlights the research
question and the answers found by doing the
study and also briefly recounts the
recommendations and the implementation. It
should be elaborate than the synopsis.
Acknowledgements
An acknowledgement of the help received from
others is made in the acknowledgements
section. Usually, the people who allowed the
researcher(s) access to the organization are
thanked, as well as those who assisted in the
study by collecting the questionnaires, acting as
liaison persons, helping in data analysis, and so
on.
References
Immediately after the acknowledgements,
starting on afresh page, appears a list of the
references cited in the literature review and at
other places in the report.
Appendix
The appendix, which comes last, is the
appropriate place for the organization chart, for
newspaper clippings or other materials that
substantiate what is said in the text of the report,
for verbatim narration of interviews with
organizational members, and for anything else
that is considered useful for following the text.
Oral Presentation
Deciding on the content
Visual aids
Delivery
Handling questions
Summary
The components of various types of written research
reports were discussed in this chapter. It was
emphasized that the purpose of the report and the
intended audience are critical factors in deciding what
aspects of the study will be stressed the most. Tips
regarding oral presentation were also offered. Three
different styles of report, referred to and discussed in the
text, are provided in the appendix to this chapter.
MULTIVARIATE DATA
ANALYSIS
Oleh:
Prof. Dr. Djumilah Zain, SE
Factors Affecting the Performance of Individual Chain Store Units: An
Empirical Analysis
Richard T. Hise .Myron Gable J. Patrick Kelly lames B. McDonald
Retail chain store executives are constantly faced with the problem of
achieving success through the choice of a combination of decision variables. Although
many executives are increasingly using more sophisticated tools for decision making,
there still appear to be instances of decisions by intuition, hunch, or untested rules of
thumb.
There are a number of variables or factors which can have an impact on the
success of individual chain store units. They include such variables as product offerings;
store location; strength, number, and strategies of competitors; promotional-efforts; store
factors, such as store size, inventory levels, and number of employees; store manager
characteristics, including such factors as the store manager's experience, age, marital
status, and educational level; and market factors, such as disposable income and
population.
While non retailing industries have had large scale studies conducted on the
factors that affect their performance, especially in the area of return on investment
(Schoeffler, Buzzell, and Heany 1974; Buzzell, Gale, and Sultan'1975), few such studies
have been done in the retailing sector. Those that have are relatively small-scale in
nature and are now somewhat dated. One early study in retailing focused upon the
variety of merchandise offered by a store and its impact on sales, cost, and profits
(Baumol and Ide, 1962). This study indicated that inventory level and variety of
merchandise had a positive effect on sales and profits. A later study focused upon how
profit was influenced by a number of internally controllable operating factors, such as
markdowns, rent, publicity, sales volume, stock turnover, and average sale (Dalrymple
1966). In that study, sales volume was found to explain the greatest variance in profit
levels.
None of these prior studies has dealt with the importance.9f relatively
uncontrollable, long-run, and irreversible variables on store performance.
The present study reports the results of an analysis of the impact of 18
independent variables-controllable/uncontrollable, short-run/long-run, and
reversible/irreversible-on three performance factors of 132 retail chain store units. The
study's objectives, all relating to individual retail chain store units, were:
– To determine the aggregate impact of these 18 independent variables on the three
performance measures.
– To identify the effect of four major groups of predictor variables on the three
performance measures.
– To identify those individual independent variables which had the greatest impact
on the three measures of performance.
– To develop some conclusions as to the value of using these independent variables
to predict unit performance.
– To formulate some recommendations regarding a marketing strategy that chain
store executives should consider in efforts to improve the performance of their
retail stores.
Methodology
The 18 independent variables used to predict the chain stores' performance can be
grouped into four major areas. These variables are identified with their mean, minimum,
maximum, and standard deviations in Table 1, The performance factors (or dependent
variables) were sales volume, contribution income (gross margin less direct expenses),
and return on assets. The chain's top management considered return on assets to be the
most important of the three performance variables.
The executives of this large retailing corporation agreed to provide data on
all its units. These data consisted of the three performance measures and three of
the four groups of independent variables: store, competition, and location. The store
manager factors were obtained from a questionnaire administered to each store
manager.
A total of 179 out of 180 units responded the questionnaire. Some of the
secondary data the units contained missing or unusable data. Because of missing
and unusable data, 37 units were dropped from the analysis; the usable sample
was thus 132 units.
The corporation sells non clothing items in stores located In malls throughout the
United States. (Company executives asked the authors not to reveal the name of
the company or the nature of its products.) Although the product is essentially a
shopping good, customers frequently make purchase decisions before visiting the
retail outlet, so the product sold tends to take on some of the characteristics of a
specialty good.
Average annual sales volume for these stores was approximately
$565.000; their average size was slightly over 3,300 feet, and the average number
of employees, including the store manager, was 7.4. The average number of years
the stores had been open was 5.7, and the average mall size in which the stores
operated was 778,100 square feet. Because the product assortment was similar for
each store, and their promotional budgets, copy, and media were also consistent
and basically the same, these factors were not included as independent variables.
The nine store manager variables were included as independent
variables because of previous research on retail employees. While previous
studies did focus on store managers, their results are perhaps indicative of
what might be found if store managers were analyzed. Weaver (1969) found
that older, better-educated, married, or divorced salespersons were more
productive. Cotham (1969) found that retail employees who were old, had prior
retailing experience, and had worked for another retail firm were more
productive. Paul and Bell (1968) identified older, more experienced, and slightly
better educated retail employees as being more productive. They also found
retail employees who "worked harder” were able to generate higher sales.
These results suggest that retail store managers who are older, married, and
have more children might be more serious about their work and therefore more
productive.
While some of the other nine variables have been used in previous
research (Baumol and Ide 1962; Dalrymple 1966), several were used because
of their availability from company records and the intuitive belief that they would
likely be an important determinant of chain store units’ performance. For
example, because the products sold are basically shopping goods, the
presence of secondary, rather than primary, competitive stores should increase
sales and profits. Larger malls with more traffic and larger SMSAs would tend
to suggest high sales volume and possibly better profit results. Stores with
more inventory and more sales help should result in more accept able products
and greater sales rates. Stores that were in business longer would have
overcome the start-up problems that initially would adversely affect sales and
profits in newer locations.
The above factors can be viewed in terms o their reversibility, the
control that management can exert, and their time duration. Store location land
store size, especially in mall locations, are examples of somewhat irreversible
factors whereas, for example, inventory levels and number of employees are
relatively reversible. Although such factors as store manager characteristics
and number of employees are factors over which management can exert a
good deal of control, market dimensions and various actions by competitors are
largely beyond their control.
JOURNAL
The big-five personality model: comparing male
and female entrepreneurs
The key success factors, distinctive capabilities,
and strategic thrusts of top SMEs in Singapore
Market share, profits and business strategy
Strategy and management control systems: a
study of the design and use of management
control systems following takeover
The effect of retail store environment on retailer
performance
THE BIG-FIVE PERSONALITY MODEL:
COMPARING MALE AND FEMALE ENTREPRENEURS
Brooke R. Envick St. Mary's University
Margaret Langford, St. Mary's University
ABSTRACT
This study differentiates female entrepreneurs from male entrepreneurs
using the Big-Five Personality Model. The five factors include
adjustment, sociability, conscientiousness, agreeableness, and
intellectual openness. Adjustment determines confidence versus
instability. Sociability measures extraversion versus introversion.
Conscientiousness determines impulsiveness versus cautiousness.
Agreeableness measures team-orientation versus self-interest.
Intellectual openness involves practicality versus originality. Results
indicate that female entrepreneurs are significantly more open than
male entrepreneurs. They are also more adjusted, social and
agreeable, but not to a significant degree. Male entrepreneurs are
significantly more conscientious than female entrepreneurs.
INTRODUCTION
Today, women are starting businesses at a rate twice that of men (Allen, 1999). The
Small Business Administration estimates that by the end of the year 2000, more
than 40% of all businesses will be owned by women (Bygrave, 1997).
Women-owned businesses employ more than 15 million workers in the United
States and the sales generated amount to approximately $1.4 trillion (Nelton, 1996).
With these demographic trends, interest continues to grow in the personal
characteristics of female entrepreneurs, especially those factors that might explain
their success. Research has predominantly focused upon the similarities and
differences between male and female entrepreneurs demographically as well as
psychologically.
The purpose of this paper is to continue the study of female versus male
entrepreneurs. The Big-Five Personality Model (Goldberg, 1990; Goldberg, 1992;
Goldberg, Sweeney, Merenda, & Hughes, 1998) that has recently emerged from the
field of psychology into business applications is used to analyze both genders. The
paper compares female entrepreneurs to male entrepreneurs on each of the five
factors. First, we describe the Big-Five Personality Model and discuss its recent
applications to business research and gender differences. Next, we review research
regarding similarities among and differences between male and female
entrepreneurs and suggest hypotheses regarding the Big-Five Model. Then, we
describe our research methodology. Finally, we discuss results of the study and
draw conclusions.
LITERATURE REVIEW
With some controversy in the psychological community, the Big-Five

Personality Model emerged in recent years as a "robust model” or "Great
Theory" of personality. While a discussion of the theoretical arguments
pertaining to the Big-Five is beyond the scope of this paper, its proponents
believe that the model is robust in that the personality of every human being,
regardless of his or her culture, can be described utilizing the five dimensions
(see Costa & McCrae, 1995; Digman, 1990; Goldberg, 1990, 1992; Goldberg,
Sweeney, Merenda, & Hughes, 1998, Wideger & Trull, 1997).
Disagreement exists regarding the exact vocabulary of the five factors (or
superfactors); however, conceptually, the factors are these: (1) adjustment (on
a continuum from stable to neurotic), (2) sociability (from extroverted to
introverted), (3) intellectual openness (from imaginative and interested in many
things to practical and narrowly focused), (4) agreeableness (from benevolent
to belligerent), and (5) conscientiousness (from dependable and goal-oriented
to undependable and impulsive). The interest of psychologists is not in
describing a universal "right" personality (there is none), but rather in examining
a person's "score" on each of the five factors in conjunction with other factors
(e.g., education, age, gender, job). Recently, researchers have reported the
Big-Five results contain implications for the workplace.
The Big-Five in the Workplace
In jobs involving personal interactions, one study reported that the factors
of conscientiousness, agreeableness, and adjustment were related to job
performance. Not surprisingly, emotional stability and agreeableness wore found to
be especially important in jobs involving teamwork (Mount Barrick, & Stewart,
1998).
With business franchise owners as subjects, Morrison (1997) examined
the relationships between the Five-Factor Model and other psychological constructs
(e.g., Self-Monitoring, Type A Behavior, Locus of Control, and Subjective
Well-being). Results indicate that franchise owners tend to be Type A persons who
are more sociable and conscientious than not. They are relatively more agreeable
than not, slightly less open to new experiences than average. As a group, franchise
owners tend to have an internal locus of control, which is also strongly associated
with adjustment.
The results of a study by Collins and Gleaves (1998) regarding job
applicants indicated no significant differences in the Big-Five Personality Model
between African American and Caucasian applicants, although both groups tended
to provide socially desirable survey responses regarding the Big-Five dimensions.
Another study reported that applicants who wore more sociable, open to
experience, and relatively conscientious tended to employ more effective job search
strategies and were more successful in obtaining second interviews than those who
did not (Caldwell & Burger, 1998).
Although each factor represents a collection of traits, the link between
personality and behavior becomes clearer when only one trait is the focus
rather than one factor. There are several common personality traits that render
a natural fit into one of the five factors. For example, locus of control is
considered to be a part of the conscientiousness factor as it relates to job
performance behaviors regarding dependability and responsibility (Lefcourt,
1992; Black, 1990). Another example is self-esteem. People with high
self-esteem are more likely to take risks and enter difficult and unconventional
occupations because they believe in their abilities. This is an important part of
the adjustment factor as it relates to stability and confidence (Ellis & Taylor,
1983; Hollenbeck & Brief, 1987).
Other workplace-related studies utilized the Five-Factor Model include
those involving employee absence (Judge, Martocchio, & Thoresen, 1997),
expatriate success (Ones & Viswesvaran, l997), job performance in the
European Community (Salgado, 1997), and teamwork (Neuman, Wagner, &
Chnstianson, 1999). The Big-Five has also been applied in gender studies.
The Big-Five and Gender
Pertinent to the current research, Lippa (1995) found that sociability,
openness, and low levels of adjustment wore the factors most linked to
"masculinity," while agreeableness and conscientiousness were linked to
"femininity" (note: not all males in the study measured as “masculine” and not
all females as "feminine"). In a similar study, Marusic and Bratko (1998) stated
that sociability was highly associated with "masculinity" and agreeableness
with. "femininity”. A low adjustment score was associated with both high
"feminine" and low "masculine" subjects.
Using data collected in an on-going longitudinal research study (over
twenty years), Pulkinnen (1995) reported adult females who had been identified
previously as "conflicted" tended to be less adjusted, more introverted and less
conscientious and open to experience than females identified as “adjusted”.
“Conflicted” males were less adjusted and conscientious than "adjusted”
males. Direct comparisons between females and males were not made. In an
extensive study examining many demographic variables (e.g., age, race)
including gender, Goldberg et al. (1998), reported that men tended to be less
agreeable than women, but found no significant differences in the other four
factors.
Female Venus Male Entrepreneurs
Past research reveals both similarities among and differences
between male and female entrepreneurs. For example, early studies exploring
why females become entrepreneurs found they gave similar responses to their
male counterparts such as need to achieve and independence (Cook, 1982;
Schwartz, 1976). Contemporary research also supports similarities. For
instance, Smith, Smits, and Hoy (1992) report females in traditionally
dominated male-industries gave similar reasons for operating their own
businesses such as the desire for independence. Another study reports that no
differences exist regarding personal goals such as independence,
achievement, and economic necessity (Hisrich, Brush, Good, & De Sotiza,
1996). Fagenson (1993) found that both males and females value self-respect,
freedom, a sense of accomplishment and an exciting life.
Cooper and Artz (1995) discovered both males and females held initial
optimistic expectations regarding their ventures. Sexton and Bowman-Upton
(1990) found that both males and females were low in their need for conformity
with others, need for "succorance" (seeking advice or sympathy), and need for
avoiding harm. Male and female entrepreneurs were both high in "interpersonal
affect" (they displayed compassion, were not aloof, and related well to others),
and "social adroitness" (they were skillful at persuading others, diplomatic but
somewhat manipulative).
On the other hand, several studies contend there are differences between male
and female entrepreneurs. Envick and Langford (1998) found that female
entrepreneurs engage in controlling, internal communication, human resource
management, and work-related task behaviors more often than male
entrepreneurs. The National Foundation for Women Business Owners found
women define success very differently from men. Women see success as
having control over their own destinies, building ongoing relationships with
clients, and doing something fulfilling, while males define success in terms of
achieving goals (Romano, 1994). Smith et al. (1992) found that female
entrepreneurs employ more females than male entrepreneurs in male--
dominated industries and select females with whom they share similar
attitudes. Fagenson (1993) reveals that females value equality and world peace
more than males. A longitudinal study conducted by Gatewood, Shaver, and
Gartner (1994) found female entrepreneurs have higher internal attributions for
starting their ventures than males. However, Brandstatter (1997) found that
male entrepreneurs made internal attributions regarding either failure or
success of a venture and were significantly less likely than women to make
external attributions (e.g., the prevailing economy) for either failure or success.
One study investigated entrepreneurs and family-career conflict (Parasuraman,
Purohit, Godshalk, & Bcutell, 1996) and found that females reduce
family-career conflict by spending less time at work, while males increase their
time at work. Sexton and Bowmen-Upton (1990) found male and female
entrepreneurs to differ significantly in four traits. Males had higher sustainable
energy levels and were more risk-taking than females. Female entrepreneurs
desired autonomy more and were more open to new experiences than males.
HYPOTHESES
The hypotheses are generated based upon empirical findings regarding the Big
Five Model and previous research regarding similarities among and differences
between female and male entrepreneurs. There is one hypothesis for each of
the five factors.
H1: Female entrepreneurs will score higher than male entrepreneurs on the
sociability factor.
Behavioral research reveals that female entrepreneurs engage in
communication activities more often than male entrepreneurs (Envick &
Langford, 1998). Other findings indicate that women are more likely to
encourage participation, share information and have good interpersonal skills
(Rosener, 1990; Eagly, Malchijani, & Klonsky, 1992; Offiermann, & Beil, 1992).
Showing concern and being relationship-oriented are more characteristic of
females than males (Coppolino & Seath, 1997; Porter, Geis, Cooper &
Newman, 1985; Vroom & Jago, 1982). The Big-Five research suggests that
while masculinity is related to extroversion, not all males are considered
'masculine', while not all females are considered 'feminine’ (Lippa, 1995).
H2: There will be no significant difference between male and female entrepreneurs
regarding the adjustment factor.
No previous research regarding the adjustment factor suggests a gender difference.
Lippa (1995) found that a low adjustment score was related to masculinity, while
Marusic and Braiko (1998) found low adjustment relating to 'femininity. Again
however, not all male subjects are considered 'masculine, while not all female
subjects are considered 'feminine'. Therefore, no rationale exists to hypothesize a
significant difference in either direction.
openness factor.
Sexton and Bowman (1990) found that female entrepreneurs desired more
autonomy and were more open to new experiences than male entrepreneurs.
Fagenson (1993) discovered that female entrepreneurs had a much broader vision
involving their desires including total equality and world peace. Therefore, it is
logical to assume that female entrepreneurs will be more open than male
entrepreneurs.
H4: There will be no significant difference between male and female entrepreneurs
regarding the conscientiousness factor.
While conscientiousness is linked to 'femininity' (Lippa, 1995), no rationale exists to
hypothesize a significant difference in either direction. Femininity is used to describe
both males and females. No other findings suggest a difference in gender-related or
business research.
agreeableness factor.
Goldberg (1998) found that, in general, females are more agreeable than
males. Previous research suggests that female entrepreneurs are more
supportive, encourage participation, and adopt a more democratic style than
male entrepreneurs (Tannen, 1991; Offermann, & Beil, 1992; and Rosener,
1990). Smith, Smits, & Hoy (1992) found that female entrepreneurs actively
seek female employees with whom they share similar attitudes. Fagenson
(1993) contends that female entrepreneurs value equality more than their male
counterparts.
METHODOLOGY
The hypotheses are tested using ANOVA to determine if significant differences

exist between entrepreneurs and managers on all five factors. One hundred
and nineteen subjects represent the findings, 86 males and 33 females.
Although these two comparisons are disproportional in number, it is
representative of the entrepreneurs in this geographical area (approximately
one third females, two-thirds male). The Chamber of Commerce in a large
Southwestern city generated a list of entrepreneurs, and 650 were randomly
selected from this list to receive the survey. With a response rate of over 20%,
130 surveys were returned, and 119 were usable.
All subjects received a survey containing background questions
regarding their job role and type of business. The Big-Five Model was tested
using the questionnaire developed by Howard, Medina, and Howard (1996),
which is commonly used by consultants and trainers and published in textbooks
(Hellriegel, Slocum & Woodman, 1998). The survey included twenty-five sets of
descriptive words on opposite ends of a continuum. Respondents were asked
to circle the number on the continuum. that most closely describes their
personality. Each of the five factors is measured by the sum of scores received
on a total of five questions. The highest score possible is a 35, while a 5 is the
lowest score possible.
RESULTS
ANOVA was used to test all five hypotheses in order to compare entrepreneurs
to managers on each personality factor. The first hypothesis tests sociability.
The second tests adjustment. The third hypothesis tests openness. The fourth
one tests conscientiousness. And the fifth hypothesis tests agreeableness.
Table 1 presents the all means, standard deviations, and p-values.
The first hypothesis, regarding sociability, is not supported. However, the
general direction of the hypothesis holds true with females scoring higher
(M--18.061) than males (M--16.977). The second hypothesis is supported. No
significant difference exists between males and females regarding adjustment.
The third hypothesis is supported. Females (M=16.333) are significantly more
open [F(1,118) = 1.950; p<.011 than males (M=14.407). The fourth hypothesis
is not supported. Males (M=19.093) scored significantly higher on the
conscientiousness factor [F(1,118) = 3.262; p<.051 than females (M=17.455).
The fifth hypothesis is not supported. However, the general direction appears to
hold some merit. Females are more agreeable (M=19.667) than males
(M=18.884).
DISCUSSION
This paper makes a contribution by further identifying psychological traits that
illustrate similarities among and differences between female and male
entrepreneurs. While several psychological characteristics have been analyzed in
order to identify the two groups, the Big-Five Model provides another avenue to
further define and describe each group.
Two of the five hypotheses are supported. Neither male nor female
entrepreneurs are more adjusted than the other. Female entrepreneurs are
significantly more open than their male counterparts. While hypotheses one and five
are not supported, the general direction holds true.
Female entrepreneurs are wore sociable and agreeable than male entrepreneurs,
but not to a significant degree. The fourth hypothesis is not supported suggesting
that no differences would be present on the factor of conscientiousness. However,
male entrepreneurs scored significantly higher on this factor, meaning that they
wore more cautious and less impulsive than females. This is a mystery, since the
only explanation in the literature is that both male and female groups that score high
on adjustment also obtain high scores on conscientiousness (Pulkinnen, 1995).
This is not the case in this study. Females actually scored slightly higher on
adjustment. Perhaps, this finding is unique to entrepreneurs.
This study does provide more insight into the psychological profile of male
and female entrepreneurs. While most of the findings are not surprising, an
interesting research question presents itself-why did male entrepreneurs score
significantly higher on the conscientious factor than female entrepreneurs, when
females did obtain the higher adjustment scores. Further research is certainly
needed regarding the Big-Five and entrepreneurs.
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Black, J.S. (1990). Locus of control, social suppo^ stress, and adjustment in international
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Brandstatter, H. (1997). Becoming an entrepreneur: A question of personality structure?
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Bygrave, W. D. (1997). The portable MBA in entrepreneurship. New York: John Wiley &
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Caldwell, D. F. & Burger, J. M. (1998). Personality characteristics of job applicants and
success in screening interviews. Personnel Psychology, 51, 119-136.
Collins, J, M. & Gleaves, D. H. (1998). Race, job applicants, and the Five Factor model of
personality: Implications for black psychology, industriallorganizational psychology, and
the Five-Factor theory. Journal ofApplied Psychology, 83, 531-544.
Cook, J. (1982). Women: Ue best entrepreneurs. Canadian Business, June, 68-73.
Cooper, A. & Artz, K. (1995). Detenninarits of satisfaction for entrepreneurs. Journal
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Costa, P. T., Jr. & McCrae, R. R. (1995). Four ways five factors are basic. Personality and
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Digman, J. M. (1990). Personality structure: Emergence of the five-factor model. Annual
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Eagly, A.H., Makhijani, M.G. & Klonsky, B.G. (1992). Gender evaluation of leaders: A meta-
analysis. Psychological Bulletin, Jan., 3-22.
JOURNALOF BUSINESS RESEARCH
THE KEY SUCCESS FACTORS, DISTINCTIVE CAPABILITIES, AND STRATEGIC THRUSTS OF

TOP SMEs IN SINGAPORE
B.C. Ghosh*, Tan Wee Liang, Tan Teck Mengl, Ben Chan
Abstract
The research tries to determine the strategy dynamics and key success factors (KSFs) for excellence in
performance of the so-called "tiger" SMEs in Singapore. In 1995 and 1996, 50 top privately owned and
successful enterprises in Singapore were identified. They have shown that they can excel, even in the current
highly competitive and high o~on-cost environment. Their performance can he attributed to their dynamism
and a few KSFs that am apparently universal to these successful companies. The strategy dynamics and their
specific components (i.e., the six top SMEs) are found to be: 1) A committed, supportive, and strong
management team. 2) A strong, visionary, and capable leadership. 3) Adopting the correct strategic approach.
4) Ability to identify and focus on market. 5) Ability to develop and sustain capability. 6) A good custouier and
client relationship- Approximately 60*% of the companies surveyed were found to be of Defender type
organizations (Miles and Snow typology). As a majority of the companies are from mwufi~g and servicing
sectors and from OEMs supporting the MNCs, it is not surprising that the Defender type strategy is
predominant. However, such organizations may have to evolve in order to adopt a more superior strategy
such as Prospector and Analyzer when environment changes. The importance placed by organizations
adopting different sb~ types on their strategic posture are different although KSFs and capabilities are
generally universal. Comparing proactive with passive strategy types, the degree of emphasis given various
success factors by proactive type companies was generally found to be higher. Specifically, proactive type
companies placed higher importance on the following factors for excellent performance: (i) Satisfying
customers needs, (ii) Close working relationship between top management and employee, (ifi)
Regionalization, (iv) Leadership, (v) Availability of financial and technology resources; and support Further,
the research also found that the importance attached to the various strategy-rdated sucem factors changes
with the development. As it becomes more established, the ranking of KSFs changes as the organization
faces different challenges when competition becomes tougher. Enterprises need to pay attention to the
following dynamics and strategic thrusts: (a) Strong market orientation and relevant capability; (b) Effective
management; (1) Strong management commitment and support (2) Strong organizational capability and
management cohesiveness; (c) Access to broad base support and resources (i.e., Networking). 0 2000 El~
Science Inc. All rights reserved.
Keywords: Key success factors; Strategic thrust; SMEs

1. Introduction
Businesses have been finding it hard to operate in Singapore owing to the high operating
cost and increasingly intense competition from the region. Coupled with the fact of small local
market size, and relying very much on export market, the business environment has become
even more difficult to operate. However, there are companies that excelled. The ‘Top 50’
privately held enterprises for 1995 and 1996 have shown that they can excel even under these
adverse conditions. The objective of this research is to identify and examine the strategic key
success factors (KSFs) [key success factor is defined for our purpose as factors which are
critical for excellent performance of the company, rather than just survival which is the function
of critical success factors (CSFs)].
The successful privately held companies are potential candidates for public listing if they
need to raise public funds. Some of them have crossed a turnover of S$800 million and others
have yet to cross the S$100 million turnover mark. But they are all on the fast track, growing
rapidly and regionalizing their operations. Some of those that appeared in the 1996 listing were
already publicly listed at the end of that year.
The 'Top 50' enterprises were ranked based on their performance over a 4-year period.
Various quantitative factors were used such as gross turnover, profits, return per employee,
return on assets, and percentage of business from overseas operations. The evaluation team,
from Andersen Consulting, The Business Times, and The Economic Development Board,
developed and applied a balanced scorecard of these performance indicators for companies
across a wide mix of industries. A key consideration in the scorecard is giving a balanced
weight to both absolute financial performance and growth. The aim is to capture how fast the
company is growing, not just how much it makes. So, aside from turnover and profit levels, the
team looked at growth in turnover and profits. However this information is privy to the group
and were not available to the researchers.
In the study conducted here, companies are defined successful if they appeared in the
1995 or 1996 'Top 50' Enterprises list compiled by Andersen Consulting, The Business Times,
and The Economic Development Board of Singapore, a statutory board within Singapore. They
form our base group whose strategies we study.
1. 1. Objectives of the study

The focus of this article is to isolate the top KSFs (not CSFs) that are commonly
practiced by these successful privately held companies, so that they may be adopted by any
enterprise (even start-ups). The study also examines what are the most commonly adopted
strategy types by these successful companies and to determine if the KSFs correlate well with
the strategy type adopted- We will also argue that these factors will be positivist and universal
in nature. This will be one hypothesis. A second hypothesis at this stage is to identify a
discriminating model that will be able to predict the strategy type from its KSFs and distinctive
capabilities, such that such a model can be used for a firm's future strategic direction
1.2. Significance of research

Privately held enterprises play an important role in the growth of the Singapore
economy. There are already 80,000 SMEs in Singapore employing about 40% of the workforce
and contributing around 30% of the total value added in the economy. Their continual survival
and success is therefore critical, especially with increasing competition from the region and
uncertainties associated with multinationals. By identifying the KSFs of top successful local
enterprises, and many of them are SMEs, one will gain insight and understand better how they
remain competitive and even excel in the harsh operating environment in Singapore. The
findings of the research are likely to be more relevant and applicable to local companies,
though there are other generalizable aspects.
2. Some discussion of the relevant literature
There were studies done on the local SM[Es to identify CSFs for business
success; a significant contribution comes from Ghosh and Kwan (1996) who
covered Singapore, Malaysia, Australia, and New Zealand, a cross-national study.
This study found that factors that contributed to the successful SMEs were (among
others): having a good customer relationship, effective management and marketing.
Constraints to success were found mainly m the high cost of doing business and
competition. Similar research has been undertaken elsewhere. DeHayes and
Haeberle (1990) found that the most frequent reason for success among
businesses was their ability to identify and focus on one or a few market niches.
Further, they identified that most business plateau at US$10 million and that
business is difficult to expand without change in management style and building up
human resources in terms of quantity and quality. The finding is supported by Evans
and Evans (1986) who asserted that a firm's success in competing in a hostile
environment was directly related to human resources development, besides top
management's involvement with all phases of the operation. DeHayes and Haeberle
(1990) further identified the following CSFs: the ability to develop and sustain
technological advantage, the ability to identify and focus on one or several market
niches, having strong leadership on top, having significant ,people bonding'
mechanism in the system, strong management team, strategic alliance with
customers and strategic use of information technology. Huck and McEwen (1991)
found technical knowledge and customer relations to be the competencies most
important for the success of small business.
Duncan (1991) found the ability to identify a market ruche and develop a standing m
that niche market as a CS17. The findings of Prescott (1986) and Steiner and
Solem (1988) were similar to those of DelHayes and Haeberle (1990) and Duncan
(1991). Campbell (1991) identified 12 keys for a successful business, among which
were a clear mission statement and a corporate value system, a customer-oriented
policy, a competitive strategy, and a personal commitment from the top
management. Gaskill and Hyland (1989) identified six keys to a successful
business, which included people power, a business plan, a study of the competition,
performance measurement, and avoiding complacence. Mraz (1989) found that
thorough planning was vital to start a successful business while Schilit (1986) found
that critical success included: having a formal business plan, continual monitoring of
the business environment, retaining a market orientation, developing a common
value system, ensuring adequate capitalization, and encouraging entrepreneurial
thinking through all levels of the company. Foley (1987) reported that, a written
business plan, new product development, a strong sales and marketing team were
among the prerequisites for a successful business. Barkham (1989) and Pollock
(1989) identified skill, attitudes, and the gathering of the marketing information as
factors contributing to the success of an enterprise.
Market share, profits and business strategy
Keyin J. Laverty
University of Washington, Bothell, Washington, USA
Keywords
Market share Strategy,Competitive advantage
Abstract
Reward into the Correlation between market share and profitability has led to
debate over whether the observed association is direct or spurious. The
fundamental question remains whether the pursuit of market share is an
appropriate strategy. This paper reports the results of a structural equations
model which provides the clearest test to data of the competing viewpoints. The
direct association between market share. and profitability depends upon
restrictive statistical assumptions. When these assumptions are relaxed, the
resuIts show that there is no direct association between market share and
profitability.
Understanding the causes of profitability is a central issue in disciplines

which study business firms. Business policy's distinctive approach is to focus
on goals and strategies designed to achieve superior performance (Chandler,
1962; Andrews, 1971), resulting in greater profit.
The relationship between market share and profitability is perhaps the
most-studied single phenomenon in business policy. The correlation between
these measures[i] is undeniable. Although it has been more than two decades
since the first published studies reporting a positive market share-profitability
association (Gale, 1972; Shepherd, 1972), the nature of this relationship
continues to receive a great deal of attention (Buzzell and Gale, 1967;
Jacobson, 1988a; Cool at al., 1989; Boulding and Staelin, 1990; Venkatraman
and Prescott, 1990; Schwalbach 1991; Montgomery and Wernerfelt, 1991;
Szyimanski et al., 1993; Fraering and Minor, 1994). While we observe that
many practitioners hold the view that higher market shareleads to higher
profits, research findings indicate that the market share-profitability association
is dependent upon strategic and competitive settings, and spurious effects
account for at least a. sizable. component of the measured association.
The purpose of this paper is to seek an answer to the most
fundamental question: is the pursuit of market share an appropriate strategy?
Despite studies indicating that low share businesses can be quite profitable
(Woo, 1982; Schwalbach, 1991), the "dominant" finding of prior research is a
significant positive relationship between market share and profitability[2].
It has become evident, however, that there are "competing theories"
(Jacobson, 1988a); Rumelt and Wensley (1981), Jacobson and Aaker (1985)
and others have argued that the observed market share-profitability association
is spurious[3]. However, little attention has been paid to reconciling conflicting
results. In fact, there has been essentially no acknowledgment of the different
assumptions imbedded in the work that has produced these results.
This paper offers the following contributions to the literature on the
market share-prolitability relationship:
– a clarification of the different starting points from which the conflicting
research results have arisen;
– an approach to testing the competing theories, using a structural equations
model with latent varilables; and
– results which indicate that the dominant view of market share and
profitability is misleading; that market share increases are not associated
with improvements in profitability.
Prior research in market share and profitability
Origins in industrial organization economics

Although the share relationship has become a central concern of business
policy, much of the early research was actually a reaction to the then-dominant
"concentration-profit”[4] (Bain, 1951) doctrine in industrial organization
economics (l/O). For many years, a "pillar" of I/0 was the notion that more
concentrated industries displayed higher profits because of "oligopolistic
coordination”.
Business policy was enthusiastic about the association between market
share and profitability originally reported by Gale (1972) and Shepherd (1972)
because an explanation for superior performance based upon market share
was free of the "collusion' that tainted the concentration-profitability doctrine.
Firms could legally pursue market share (within limits), whereas they could not
collude. The classic Harvard Business Review article by Buzzell et al. (1975)
launched policy's treatment of the market share-profitability association.
The direct effects viewpoint
The study by Buzzell et al. (1975) and a subsequent stream of work
represent the direct effects viewpoint. Buzzell and Gale (1987) argued that
higher market share leads to greater profits because of market power and
lower costs resulting from scale effects and learning effects. Phillips et al.
(1983) found that market share affects return directly, and also has an indirect
effect through the reduction of costs. Prescott et al. (1986) considered different
environments (e.g. mature, declining, emerging) and a series of "conduct
variables" (e.g. capacity utilization, relative price, relative quality) hypothesized
to be associated with both market share and profitability.
Although they argue both that the market share-profitability relationship is
contingent on the environment and that significant spurious effects are present,
they found significant direct effects. A subsequent study (Venkatraman and
Prescott, 1990) examined a different time period with distinct economic
conditions, and confirmed the direct effects reported by Prescott et al. (1986),
although the size of the direct effects changed in several environments.
The spurious effects viewpoint
Rumelt and Wensley (1981) hypothesized that random "shocks" (e.g. luck
in uncertain ventures) will increase both market share and profit and found that
change in market share is not a significant predictor of change in return.
Jacobson and Aaker (1985) argued that the "dominant" explanation of the
market share-return relationship ignores factors (such as management skill,
firm culture, access to scarce resources, and luck) which may Influence both
variables. They found a strong association between current year return and
return from the prior year, and that the market share-return relationship is
largely the result of not controlling for factors which influence both variables.
Contrasting the two viewpoints

The most striking contrast between the direct effects viewpoints is the
strength of the market share-profitability association. Buzzell and Gale (1987)
and Buzzell et al. (1975) estimated that a 1 per cent change in market share is
associated with a 0.50 per cent change in return on investment. Buzzell and
Gale (1987), allowing for the existence of spurious effects, still found that at 1
per cent change in market share is associated with a 0.34 per cent change in
return on investment.
In contrast, Jacobson and Aaker (1985) estimated that a 1 per cent change in
market share is associated with a 0.1 per cent change in return on investment,
and Jacobson (1988a) reported that a 1 per cent change in market share is
associated with a 0.03 per cent change in return on investment.
The two viewpoints have not only sharply differing conclusions, but
also disagreement as to the proper approach for studying the observed market
share-profitability association. Figure 1 depicts the approaches implicit in the
viewpoints discussed above[5].
Figure 1(a) represents the direct effects viewpoint (Buzzell et al. 1975; Buzzell
and Gale, 1987); market share has a direct causal effect upon profitability.
Figures 1(b). and 1(c) depict two distinct versions of the primarily spurious
effects viewpoint Figure 1(b) represents the relationships investigated by
Rumelt and Wensley (1981). It indicates that the association between change
in market share and change in profitability[6] becomes insignificant when both
are affected by a variable representing a “shock". The models used by
Jacobson and Aaker (1985) and Jacobson (1988a) are displayed in Figure 1(c).
Here, when profitability from a prior period is included in the model (to control
for unobserved variables), the relationship between market share and
profitability becomes extremely weak.
Each study reviewed has tested different relationships, and none has
tried to replicate directly the findings of the others. Therefore, it is, unclear
which of the viewpoints provides the best explanation for the observed market
share-profitability association. Without a test of the competing viewpoints, it Is
not clear whether the pursuit of market share is an appropriate strategy.
Hypotheses
The hypotheses seek to test the relationships between variables
represented in Figure 1. In addition to testing the following hypotheses, the
study will attempt to determine if any of the viewpoints discussed offers a
preferred way to understand the market share-profitability association.
H1. A larger market share is associated with a higher profitability.
H2. A larger growth in market share is associated with a larger growth in
profitability.
H3. Market share and growth in market share will not be predictors of
profitability and growth in profitability, respectively, in a mode, which
allows for the existence of “shocks" which affect both market share
and profitability.
Model, data and methods
A model which incorporates all of the variables displayed in Figure 1 and
allows for the testing of the competing viewpoints was developed as follows.
Return on investment is a common measure of profitability and has been the
dependent variable in most of the cited studies. Market share, growth in market
share and return on investment from a prior year, as well as a method for
representing the possibility of "shocks", will be tested as predictors of return on
investment for comparison with earlier studies.
In establishing a, broader context for the share-return relationship, we
realize that market share is well accepted as a measure of successful
performance and as a "springboard" for future success, even among those who
dispute the "dominant paradigm" (e.g. Rumelt and Wensley, 1981). If we use a
measure of market share from a prior period (following Rumelt and Wensley,
1981; Jacobson, 1988a), then this "prior" market share and return on
investment from prior years are all indicators of prior performance. Similarly,
growth in market share is one indicator of short-term firm growth[7].
The influence of industry-wide factors on a firm's profit is a centerpiece
of industrial organization economics, and has become a main tenet of business
policy (Porter, 1980).
The notion that a firm's growth and profitability are related to its industry has
been called "shared asset" theory (Porter, 1979) and suggests that a measure
of industry growth is appropriate as a predictor of firm growth and
profitability[81. Similar logic suggests that a final influence on firm growth and
performance is general economic activity. Cubbin and Geroski (1987), for
example, model the relationships among firm-specific, industry-specific, and
economy-wide average returns.
Figure 2 represents the context of the share-return relationship that is
hypothesized. Two independent factors, general economic activity and industry
growth, influence return. These two factors each also influence two other
factors, prior firm performance and short-term firm growth, which in turn also
influence return. Finally, prior firm performance influences short-term firm
growth. 'Recall from the above discussion that prior firm performance
incorporates the market share previously achieved by a firm; short-term firm
growth incorporates the change in market share.)
Figure 3 summarizes the key relationships. Each of the is represented
here.
The data used for the 3tudy are drawn directly from the sample
generated by Rumelt and Wensley (1981). That studied 976 business units
selected from the profit impact of market strategies (PIMS) data base oi the
Strategic Planning Institute[10]. This is a multi-year data base which includes a
wide variety of information on the firms participating in the PIMS project.
The measure of profitability/return chosen for this study was return on
investment (RGI). This measure and the other variables used in the study are
displayed and defined where necessary in Tabie 1.
Structural equations model

The structural equations program EQS[11] was chosen for the
analysis because of its ability to model the system of equations suggested by
the relationships shown in Figure 3. It is felt that the use of such an approach
allows for testing the adequacy of the competing hypotheses that have been
established based upon earlier work. Second, EQS will allow us to model the
share-return relationship to be included in a broader context that includes
industry growth and general economic activity.
The correlation between the "epsilons" (residuals) represents the "shock"
modeled by Rumelt and Wensley (1981)[9] and allows for the existence of
unobserved effects (Jacobson, 1988b). (This technique is discussed in more
detail in subsequent sections.)
Latent factors
The EQS program allows for the estimation of latent (i.e. unmeasured)
factors which underlie measured (i.e. observable) variables[12]. The latent
factors for the data shown in Table II are postulated based upon the use of an
exploratory factor analysis model.
Estimation
The procedure chosen was to first run OLS regressions to replicate
the results of other researchers. The next step was to estimate a structural
equations model based upon the relationships displayed in Figure 2 and the
variables and latent factors identified above. Then, consistent with the
hypothesis concerning the effects of allowing for "shocks", the residuals of
market share and return on investment were allowed to be correlated. Finally,
the "best fitting" model was determined.
Strategy and management control systems:
A study of the design and use of management
control systems following takeover
Fredrik NiIsson
Deloitte Consulting and Linkoping University and Institute of Technology, Sweden
Abstract
This paper describes and analyses the approach taken by four well-known
Swedish companies to management control following takeover. The findings
suggest two factors which can explain how the management control systems
were designed and used after an acquisition: the corporate strategy of the
acquirer and the business strategy of the acquired company. The case studies
show how these forces could impose mutually inconsistent requirement's on
the management control system of the acquired firm, and also how these
inconsistencies were resolved.
Key words: Acquisitions; Business strategy; Corporate strategy; Contingency

theory; Management control systems
1. Introduction
Management control systems have been recognised as important in
the formulation and implementation of strategies (Dent, 1990; Bromwich and
Bhimani, 1994). The orientation of corporate and business strategy should,
therefore, be reflected in the design and use of the management control
systems (MCSs) at the respective organisational levels (Shank and
Govindarajan, 1993; Langfield-Smith, 1997). Particularly after takeovers, when
a clear strategic profile is important for the enlarged company (Jemison and
Sitkin, 1986), it is essential that the systems of control be designed and used in
accordance with the chosen strategies (Goold and Campbell, 1987). One
explanation for the high proportion of failed acquisitions is the difficulty of
establishing a Management control system (MCS) that will suit both the
acquiring and acquired companies (Jones, 1983; Harrison et al., 1988). This
study examines the implications for the design and use of MCSs after takeover.
While there are many components that make up a MCS, we focus on the
following key elements: the strategic planning and budgeting system, the
performance measurement system, including budget variance information and
other financial and non-financial data (i.e. RO1, level of orders, quality
statistics, stock levels, lead time), capital expenditure procedures and transfer
pricing systems.
The study has three purposes. First, we examine how the MCSs of acquiring
firms are designed and used for the purpose of implementing the chosen
corporate strategy. Acquiring companies tend to impose their own MCS oil the
acquired company (Jones, 1985a, 1985b). It is argued that this is necessary to
achieve conformity in administrative practices, and to ensure effective
monitoring and control of the acquisition (Caulkin, 1975). It is also possible that
the acquiring company's control system is used for the purpose of exploiting
synergies and implementing the chosen corporate strategy. While there has
been limited research attention examining this rationale, a study by Goold and
Campbell (1987), suggests that implementation of corporate strategy is
facilitated in cases where the corporate strategic planning system is consistent
with the system implemented at the business-unit level. If this is the case, it is
likely that corporate strategy will be ail important driving force influencing the
way in which MCSs are designed and used following takeover. The second
purpose of the study is to explore the problems created in the acquired
company when the requirement of conformity is imposed. One of the more
obvious problems is the danger of declining morale if the acquired company
must abandon a control system that is well-suited to its needs. The acquired
company, in effect, becomes a business unit of the larger entity. However, it
faces its own environment, technological and strategic imperatives and will have
designed its MCS to suit these conditions (Jones, 1983).
While the literature has recognised the importance of these conditions on the
design of MCSs at the business unit level, there is no empirical research, of which
the author is aware, that has examined the role of the acquired firm's control system
following the takeover. We explore how the business strategy of the acquired firm
influences the design and use of the MCS after takeover.
In sum, we are interested in examining the corporate strategy of the acquirer and
the business strategy of the acquired company as the two major driving forces
influencing the design and use of the MCSs. Prior research has concentrated on
studying these two driving forces separately (Gupta and Govindarajan, 1991;
Bruggeman and Van der Stede, 1993; Langfield-Smith, 1997). There is no empirical
research examining when these two driving forces should lead to the same
requirements in regard to the acquired company's control systems, and when they
should lead to different requirements. The third purpose elf this paper is to examine
the combination of corporate and business strategy that leads to a "fit" between the
control systems of the acquirer and the acquired firms, and what combinations
create a "misfit". We also use our data to provide some guidance for the
management of a potential misfit in control system design. The remainder of the
paper is structured as follows: Section 2 presents the theoretical framework for the
study. Section 3 is devoted to the method and research design. Section 4 discusses
the empirical aspects of the study, beginning with a description of the case-study
companies and their strategies. Finally, Section 5 presents some general
conclusions.
2. Theoretical starting points
2.1 The role management control systems in implementing corporate strategy

Based on the concepts of synergy potential and the need for integration,
Porter (1987) identified two corporate strategies2 that may be considered
diametrically opposed: portfolio management and activity sharing. With a
portfolio-management strategy there is a high degree of diversification since the
corporation is involved in unrelated industries. Given the limited synergy potential,
there is little need for co-ordination, and the business units can operate virtually as
independent companies. On the other hand, a strategy of activity sharing is
characterised by limited diversification and closely related business units. In this
case there should be a potential for exploiting synergies by sharing activities in
areas such as manufacturing and sales.
In view of the above, the corporate strategy of the acquirer is clearly a
major factor in determining how far to go in co-ordinating and integrating the
business of the acquired company (Jones, 1983; Lorange et.al., 1987).
Management control systems fulfil an important function in this regard, since they
provide corporate management with information for overall planning and
coordination (Chandler, 1977; Goold et.al, 1994). They also play an important role
at lower levels in an organisation as they can facilitate synergies among financing,
production and marketing (Galbraith, 1973). An acquirer company with a
portfolio-management strategy is expected to let the acquired company operate on
a more autonomous basis (Porter, 1987).
Since the synergies are primarily financial in nature, the need for co-ordination
is limited, and the control system of the acquirer will be directed at optimising
the profit of each business unit (Espeland and Hirsch, 1990; Hitt et al., 1996).
The strategic. planning and budgeting procedures can, therefore, be expected
to be less extensive and to have a strong monetary focus. Goold and Canipbell
(1987) have shown that when the acquired company is given substantial
freedom to prepare its business plan and budget, this is usually combined with
financially-focused reporting procedures. The emphasis on short-term financial
performance also means that the use of monetary information is strongly
emphasised in the capital-expenditure control procedures of the acquiring
company and in the key ratios used. Since the acquired company continues to
operate as a largely autonomous business unit, no formalised guidelines for
product transfers and transfer pricing are necessary (Anthony et al., 1992).
With this kind of relatively uncomplicated corporate-wide co-ordination, there is
no need for far-reaching conformity between the MCSs of the acquiring and
acquired companies (Jones, 1986).
In contrast, with an activity-sharing strategy, there is a substantial
need for co-ordination and integration of the acquired company, and thus a
greater need for conformity (Jones, 1986). Transfer-pricing systems will be
designed to encourage internal transfers between business units within the
corporation (Anthony et al., 1992).
Further, it is likely that the management of the acquiring company will
participate in the preparation of the acquired company's strategic plan and
budget in order to ensure co-ordination occurs with major projects (Haspeslagh
and Jemison, 1994).
With this kind of active management, it is likely that the emphasis will shift from
financial information to non-monetary information for monitoring, controlling and
co-ordinating activities (e.g. ratios based on quantitative, but non-financial
information) (Goold et al., 1994). Other information will .relate to key
performance targets and strategic milestones that are difficult to quantify.
Non-monetary information will also play a major role. in the evaluation of capital
expenditure proposals submitted by the acquired company. For example,
assessment of new capital acquisitions will consider the benefits associated
with increased activity sharing across the business units. Moreover,
de-emphasis of financial performance is considered typical of control systems
in corporations where business units are mutually dependent and operations
are viewed frorn a long-term perspective (Espeland and Hirsch, 1990; Hitt et
al., 1996).
2.2 The role of management control systems in implementing business
strategy
According to Porter (1980, 1985), a company has a choice of two
business strategies for building a sustainable competitive advantage in its
industry: a differentiation strategy and a cost-leadership strategy. With a
differentiation strategy, the company endeavours to establish a strong market
position by product offerings that are perceived throughout the industry as
being unique. With a cost-leadership strategy, the company seeks to achieve
the lowest costs in its industry by standardising products and manufacturing
them in long production runs. A cost-leadership strategy, however, does not
mean that quality, product image, and bases for differentiation can be ignored.
Similarly, a differentiation strategy must be founded on effective cost
control - even though the latter is not the primary strategic objective.
It has been well established in the literature that the choice of
business strategy impacts on the level of uncertainty faced by managers
(Hambrick, 1983, Dess and Davis, 1984; Prigogine and Stengers, 1984; Shank
and Govindarajan, 1993), Uncertainty, in turn, directly influences the design
and use of MCSs (Thompson, 1967; Galbralth, 1973). With a differentiation
strategy, and the combination of many newly launched products and rapid
changes in customer preferences, future revenues and expenses are difficult to
estimate (Kald et al., 2000), thus reducing the importance of the budget, capital
expenditure calculations based on discounted cash flows, and other formalised
procedures for planning and control (Govindarajan, 1988). Instead, non-monetary
information is likely to be more appropriate for evaluating and monitoring strategic plans,
capital expenditure proposals, and operations of the acquired company (Shank and
Govindarajan, 1993). Furthermore, it is expected that a turbulent environment will lead to
greater use of small-scale, flexible production technology to permit rapid response to
changes in the business environment (Vollmann et al., 1992). Smaller scale operations
reduce the need for formal co-ordination mechanisms and the implementation of
formalised procedures (Bruns and Waterhouse, 1975; Anthony et al., 1992).
A cost-leadership strategy, with a stable business environment and a low
degree of uncertainty, calls for a very different kind of MCS. Since revenues and
expenses can be estimated without great difficulty, the use of budgeting for monitoring
performance of the acquired company is likely to be effective (Kald et al., 2000).
Capital-expenditure calculations based on discounted cash flows are also likely to be
appropriate when the business faces a low degree of uncertainty (Shank and
Govindarajan, 1993). A stable environment and the focus on low. costs, encourages the
use of large-scale manufacturing technology (Vollmann et al., 1992). This will in turn
require comprehensive operational co-ordination of the acquired company's activities. In
this situation, budgeting can serve a useful role for planning, coordinating and integrating
different functions in the acquired company (Alaluusua, 1982; (Govindarajan, 1988). In
addition, key financial ratios are likely to be used extensively in monitoring cost
effectiveness at the business, functional, and activity levels (Hambrick and Schecter,
1983; Robbins and Pearce, 1991). It is also likely that the firm, will implement a formal
transfer pricing system to encourage internal transfers and to guide the pricing decisions
of the acquired company (Anthony et al, 1992).
The Effect of Retail Store Environment on Retailer Performance
V. Kumar
UNIVERSITY OF HOUSTON
Kiran Karande
OLD DOMINION UNIVERSITY
Retail stores are segmented using socioeconomic characteristics of the trade area,
and it is shown that the effects of store environment on store performance vary
across segments. Store performance is measured by a market-based
measure-sales and a productivity-based measure-sales per square feet. The internal
store environment includes the number of checkout counters per square foot of
selling area, the number of nongrocery products sold (extent of scrambled
merchandising), whether the store at least doubles manufacturers coupons, whether
there is a banking facility, and whether the store is open for 24 hours. The external
store environment includes the type of neighborhood it is located in. A methodoIogy
for predicting store performance or existing and new stores) based on the type of
environment and store location by using aggregate secondary data is demonstrated.
The proposed models are estimated and validated using Market Metrics
geodemographic data for 646 grocery stores provided by A.C Nielsen. It is shown
how the findings of this retail environment study can be used to of guidelines to
retailers for attaining desired levels of sales and sales per square feet by using
readily available data.
Retailing atmospherics have been used to create differences across stores in
order to exploit consumer characteristics and the competitive environment
(Kotler, 1973; Hoch, Byung-Do, Montgomery, and Rossi, 1995). In the past,
marketers' ability to test the variations in retail atmospherics was constrained
because of nonavailability of data covering a wide range of variables across a
cross-section of retailers. However, with the advent of technology, marketers
now have access to such data on a wide range of variables (for example, the
Market Metrics data in the United States), In this study, we use a broad
definition of retail atmospherics, which represents the retail environment. We
use a unique data set covering a wide range of variables related to retail
environmental variables both within and outside the store. The internal retail
environmental variables include retailers' micro-marketing strategies and the
external retail environment that pertains to the neighborhood location and trade
area demographics. The effect of the influence of retail environment on retail
performance is studied using data for 646 grocery stores across the United
States. A.C. Nielsen provided this Market Metrics data. We add to the past
literature on retail atmospherics and retail performance (see Ghosh and
McLafferty 119871; Wrigley 119901, and Rogers [19921 for excellent reviews)
by showing how such information can be used by retailers to improve store
performance.
Past research has shown that store performance' is influenced by
variables such as trade area demographics including population and
socioeconomic characteristics (Craig, Ghosh, and McLafferty, 1984), level of
competition (Ghosh, 1984), retail atmospherics including location on
intersection, sales area, credit card service, number of checkout counters,
number of aisles Jain and Mahajan. 1979), and promotions (Walters and Rinne,
1986; WaIters and MacKenzie, 1988). In recent years, the grocery store
industry has become increasingly competitive, and therefore additional
variables, particularly those related to the effects of actions taken by the
retailer, need to be studied. For example, retailers are looking at ways to
differentiate themselves from competition by increasing the level of service at
checkout and adding services, such as keeping the store open for 24 hours.
They are using promotions such as double or triple couponing selling a variety
nongrocery products (scrambled merchandising), and locating stores in smaller
markets with an intent to improve store performance. To the best of our
knowledge, no past study has researched the effect of internal retail
environment including level of service, double couponing extended store hours.'
the extent of scrambled merchandising, and external retail environment, such
as store neighborhood characteristics on grocery store performance.
An interesting question to address is whether the effect of retail
environment on retail store performance is similar across all neighborhoods.
Past research has studied the effects of different variables on store
performance without attempting to segment stores to assess the differential
impact of variables across stores, Researchers studying store choice have
acknowledged (Ghosh. 1984) and shown the effect of factors, such as income,
occupation, and ethnicity on the relative importance given to variables by
shoppers (Craig, Ghosh, and McLafferty, 1984). However, such modeling
requires the collection of primary data. Our study deals with store level
secondary data that is cross-sectional in nature. As a result, segmenting stores
by using this data offers useful insights into the determinants of grocery store
performance.
We add to the knowledge generated by past research by integrating a
wide range of variables to model grocery store performance. Specifically, we
develop two models explaining the effect of a store's internal and external
environment on the variation in (1) a market-based measure of
performance-sales, and (2) a productivity-based measure of performance sales
per square foot. Furthermore, we segment the stores on the basis of their
socioeconomic characteristics and empirically demonstrate the differential
impact of a store's internal and external environment on store performance
across segments. The proposed models` are estimated and the consistency of
results assessed using the Market Metrics data.
Our findings should provide useful insights into issues that retailers
regularly encounter within a store, such as the impact of the number of
checkout counters, the kind of merchandise sold, double couponing, keeping
the store open for 24 hours, and neighborhood characteristics on sales and
sales per square foot. in addition, it should help them understand whether the
socioeconomic characteristics of the trade area influence the effect of a store's
internal and external environment on sales and sales per square foot. These
insights should enable managers to plan for desired levels of performance by
using readily available secondary data.
To summarize, this study contributes to the literature in several ways.
This study focuses on empirically demonstrating the effect of a stores internal
and external environment on store performance. It is, also, one of the first
studies to empirically show that using the same retail environment strategies
across all stores might not be an appropriate strategy. Strategies should in fact,
depend upon the socioeconomic characteristics of the trade area. Most studies
in the past have focused on forecasting market-based performance measures,
such as sales (Ingene and Lusch, 1980; Kumar and Leone, 1988) or market
share (Durvasula, Sharma, and Andrews, 1992). Here, in a single study, we
address two dimensions of performance-market-based and productivity-based
performance. In other words, our study integrates a broad spectrum of
variables in modeling the effect of store atmospherics on store performance.
In this study, we show that socioeconomic characteristics of the trade
area moderate the effect of retail atmospherics on store performance. We
demonstrate a methodology for predicting store performance (for existing and
new stores) based on the internal and external environment of grocery stores
by using aggregate secondary data. Specifically, the findings are used to offer
guidelines to retailers for attaining desired levels of sales and sales per square
foot by using readily available data.
This research is organized as follows: first, past research is reviewed
in light of the current study. Hypotheses are presented next. Then, data,
methodology, and results are discussed. Implications of the results to grocery
store managers are drawn. Finally, limitations of this study and suggestions for
future research are discussed.
Literature Review and Hypotheses

We position this research in two ways. First, we discuss the literature on why
retail atmospherics is critical for a store's performance. Next, we discuss our
study in the light of past research on measuring store performance and then
other relevant studies. In doing so, we provide a brief review of the literature on
methods used for assessing/forecasting sales performance in retail outlets.
This is important since our framework also enables retailers to generate an
estimate of performance measures.
Retail Atmospherics
Atmospherics are often designed to create a buying environment that produces
specific emotional effects that will enhance a consumer's likelihood of
purchase. Both the functional attributes in the store (e.g., merchandise type)
and the emotional attributes (e.g., pleasantness) that a consumer elicits in his/
her mind determine a store's personality. Darden and Babin (1994) indicated
that the emotional and functional aspects are strongly correlated with each
other. Therefore, this study focuses on the retailing personality as measured by
the functional aspects of a store's environment. In fact, Titus and Everett (1995)
argued that the design of the shopping environment is an important element in
the consumer retail search process.
According to Ward, Bitner, and Barnes (1992),
The physical environment that a retail store presents to potential customers
can be divided into two parts: the external environment, that part of the
store visible prior to entry into the retail sales or service area (parking lot,
facade, entrance, etc.), and the internal environment, that part visible from
the retail selling space. Although no research that we know of addresses
the issue, it is reasonable to suppose that the relative importance of the
external versus the internal environment in determining a store's
categorization may differ across retailers.
Darley and Gilbert (1985) and Holahan (1.986) suggested that the
built environment has many significant influences on human psychology and
behavior.
Donovan and Rossiter (1982) and Gardner and Siornkos (1986) have
suggested the importance of physical environment in retailing. Based on the
literature on typicality and attitude (Loken and Ward, 1990), it is proposed that a
consumer's attitude be positively related to the internal and external
environment of the retail setting. Recently K-Mart has created three different
types of stores-K-Mart, Big K, and Super K. Similarly, Kroger has developed a
new concept called the Signature store (in addition to the regular store). The
differences across these types of stores being the assortment of merchandise
sold as well as various services including in store bakery, banking facilities,
open for 24 hours, etc. More quality services are offered in larger stores, which
are located in many neighborhoods. In other words, the store's environment
should be attractive enough (in case of grocery stores, it could be the
advertising of the availability of banking services, travel agency. restaurant,
open for 24 hours, offering of double or triple couponing, etc.) for a consumer to
enter. In order to complete a sale, the other environmental variables, such as
assortment of merchandise and in-store bakery. should be acceptable to the
consumer. Thus, retail atmospherics play a critical role in consumer shopping
behavior.
Store Performance
An aggregate measure of the effect of consumer shopping behavior is store
performance. Ghosh and McLafferty (1987), Wrigley (1990), and Rogers (1992)
provide excellent reviews on forecasting retail performance. Table 1
summarizes the literature on forecasting retail performance along four dimen-
sions-the method used, the type of' performance measure used (sales. market
share), the type of explanatory variables used (for example, managerial
judgements. distance, etc.), and type of data collection required (individual level
vs. aggregate). Our study uses linear models and requires aggregate level
secondary data. It adds to the knowledge generated by past research by
proposing a method for forecasting weekly dollar sales (a measure of
market-based performance) and sales per square foot (a measure of
productivity-based performance). While earlier research has predominantly
explained market based performance (sales, market share) by using variables
including distance, size of the store, and trade area demo graphics. this study
focuses on the effect of a store's internal and external environment on sales
and sales per square foot. In addition, the moderating effects of the
socioeconomic characteristics of the trade area also are demonstrated.
Other related research on retail store choice has dealt with helping
managers select neighborboods under different circumstances. These studies
include selecting store locations by using managerial judgement (Durvasula.
Sharma, and Andrews, 1992), under a changing environment (Ghosh and
McLafferty, 1982), selecting multiple store locations (Achabal, Gorr, and
Mahajan, 1982), and a portfolio of stores (Mahajan, Sharma, and Srinivas.
1985). Like forecasting performance studies, these studies primarily focus on
achieving desirable levels of sales or market share by using external
environment characteristics.
It is also important to compare this study with other relevant studies.
Walters and Mackenzie (1988) and Walters and Rinne (1986) developed
hypotheses on the effects of loss leaders, in-store price specials, and double
coupon promotions on overall store sales, profits, and traffic. Thus, in addition
to market-based factors (sales and traffic), they also explained profitability
based performance (profits). Their study primarily focused on studying the
impact of promotional policies on store performance. Like Walters and
Mackenzie's (Wal ters and Mackenzie, 1988) and Walters and Rinne's (Walters
and Rinne, 1986) study, the dependent measure of interest is store
performance. However, our study differs from theirs in scope. While they
considered only promotional policies, we include a number of a store's internal
and external environment variables including promotional policy variables, such
as double couponing. Also, we explain market-based performance (dollar
sales) and productivity -based performance (sales per square foot).
Hoch et al.'s (Hoch, Byung-Do, Montgomery, and Rossi, 1995) study
used geodemographic data to predict store level price elasticities. Their study,
too, was conducted with promo tional policy as the focus (the sales impact of a
reduction in price due to retail price promotion). They use Becker's (Becker,
1965) theory of allocation of time to develop the hypotheses, which also forms
the theoretical basis for our hypotheses. Our study differs from Hoch et al.'s
(Hoch, Byung-Do, Montgomery, and Rossi, 1995) study in focus. They focused
on promotional policy, and their analysis was done at the product category
level. We include a wide range of environmental variables, and our analysis is
done at the store level. Further more, in addition to explaining dollar sales, we
also explain sales per square foot.
Ghosh (1984) focused on the nonstationarity of parameter estimates.
He proposed that parameter nonstationarity arises due to two factors-the
socioeconomic characteristics of the shopper and the spatial characteristics of
the alternative considered (competition) by the individuals. His study tested
nonstationarity of parameters in a "gravity" model due to spatial characteristics
of competition. Like Ghosh (1984), we propose that the effects of
environmental variables vary depending on socioeconomic characteristics of
the trade area. While Ghosh's (Ghosh, 1984) study focused on testing of
nonstationarity, our study focuses on explaining store performance. Also, while
his study was done at the individual level (involving primary data collection), our
study uses aggregate secondary data (which is readily available).
Cottrell's (Cottrell 1973) and Davics's (Davics, 1973) studies also addressed
store performance. However, they were carried out at a time when
geodemographic data were difficult to obtain. Therefore, they are not discussed
in detail. Thus, the present study builds up on these past studies and attempts
to provide an integrated view for the retailer to improve their performance
based on the store's internal and external environment.

Augusty and Uma Sekaran1

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RISET BISNIS

STRATA 1 FENOMENA MANAJEMEN

STRATA 2 RESEARCH GAP

STRATA 3 FENOMENA MANAJEMEN

Karakteristik Jasa dan

BASIC COMPARATIVE HYPOTHESIS

APPLIED CAUSAL HYPOTHESIS HYPOTHESIS

APPLIED COMPARATIVE HYPOTHESIS HYPOTHESIS

THE HALLMARKS REPLICABILITY

REPLICABILITY TETAPI KARENA

The Way/The How

Adalah kurang benar kalau

Temuan Deskriptif; Ringkasan

Temuan Inferensial; Ringkasan statistik

Implikasi Teoritis dan Implikasi Manajerial

Keterbatasan Penelitian dan Berbagai

Sumber: Perry, 1998

Bidang yang luas

Makin lama makin menyempit

Telaah pustaka, termasuk parent discipline

Daerah “research problem (disajikan pada

Batas “research problem, misalnya hanya di

Bagian bagian “research problem” yang

Research questions atau hypotheses yang belum terjawab

Sumber: Perry, 1998

Mulailah sebuah penelitian dengan membuat observasi awal.

Research problem adalah the what of research. Sebuah

Kalimat masalah penelitian adalah kalimat yang diturunkan

Telaah pustaka adalah sebuah proses ilmiah yang

Sebuah kerangka kerja teoritis adalah sebuah model

Hipotesis adalah “a testable statement” yang

Rancangan penelitian adalah sebuah rencana

Disini dilakukan pengumpulan data, editing, coding

Setelah data diolah dan disajikan, data harus

Bagian ini adalah bagian yang terpenting dari sebuah penelitian,

Sebuah laporan tertulis biasanya secara formal diminta

HASIL PENELITIAN YANG

LEVEL BUKU PELAJARAN

LEVEL LAPORAN PENELITIAN YANG

LEVEL NASKAH REFERAL JOURNAL

TELAAH PUSTAKA DAN

Konsep adalah abstraksi dari realitas

Observasi Obyek atau Peristiwa

Sumber: Zikmund, 2003, Hal 43

TANGGA ABSTRAKSI KONSEP

MAKIN KEATAS MAKIN ABSTRAK

Sumber: Zikmund, 2003, Hal 42

KONSEP ADALAH ABSTRAKSI DARI REALITAS

Sumber: Zikmund, 2003, Hal 42

HIPOTESIS SEBAGAI PADANAN DARI PROPOSISI

Level KONSEP A KONSEP B

Level Jumlah Jumlah

Sumber: Zikmund, 2003, Hal 42

Level Jumlah Jumlah

Sumber: Zikmund, 2003, Hal 42

Untuk menemukan apa yang selayaknya diteliti.

Deskripsikan berbagai pro dan kontra mengenai

Hubungkan hasil telaah dua atau beberapa

Gabungan dari berbagai hipotesis yang

Vertical Firm Size

Analisis Regresi Moderasi

Peneliti harus dapat

Pendekatan hipotetika-deskriptif adalah

TENTUKAN TENTUKAN CARA