Problem Definition, Theoritical Framework and Hypothetical Formulation

3.1 Theory

A theory is a set of systematically interrelated concepts, definitions, and propositions that are used to explain and predict facts.

In scientific research, theory and research are complementary and inseparable. Interaction of theory and research develops applied science. Research either develops new theory or improves the existing theories.

3.1.1 Types of theories

1. Quantitative, qualitative and descriptive theory
2. Explanatory, predictive and normative theory
3. Grounded theory.

1. QUANTITATIVE QUALITATIVE DESCRIPTIVE

Quantitative theory
Theory that shows the relationship of variables in mathematical terms
Qualitative
Theory that shows the relationship of variables on the basis of their characteristics
Descriptive theory
if a theory explains about the facts challenging to the previous theories

2. Explanatory, predictive and normative theory

Explanatory theory
explains about specific behaviour or performance of work.
Predictive
estimates about situation or results that may take place in future and directs to organization towards new situations and opportunities
Normative
necessary action that is to be taken in specific situation.

3. Grounded theory

new theory is created based on collected data.

3.1.2 Contribution of Research in theory building and practices

1
Develops new theory
2
Helps to modify existing theories
3
Gives impute to develop theory

3.1.3 Deduction and Induction Approaches of Theory Building.

a) Deductive Approach

It is also known as top-down approach, hypothetic deductive method or falsificationism.

It is an approach where previous theories are to be deducted to hypothesis and tested scientifically with objective of developing theories or improving the existing theories.

Theory
Hypothesis
Test
Generating Theory or improving theory

b) Inductive approach.

It is also known as bottom-up approach.

It is a process where the researcher starts with specific observations / descriptions followed by analysis that produces explanation of the observation.

Observation
Pattern
Explanation
Theory Development

3.1.4 Contribution of Research in practice

1. Analyzing situation

2. Developing tools

3. Providing alternative solutions

4. Showing cause and effect relationship

3.2 Variables

A variable is a measurable units, characteristics, traits or attributes that varies over the units.

According to F.N. Kerlinger, "A variable is a symbol to which numerals or values are assigned."

Types of variables

1. Independent variables
2. Dependent variables
3. Moderating variables.
4. Intervening variables.
Variable Meaning
Moderating variables A variable that changes in the degree of relationship between the independent and dependent variables.
Intervening variables A variable whose existence is essential to show the relationship between independent and dependent variables.

3.3 Problem Definition

Research problem is the gap between actual and desired state.

Problem definition refers to:

a) existing business problems where a manager is looking for
b) situation that is not putting any problems at present but manager thinks that things should be improved.
c) areas where some conceptual clarity is needed for better theory building
d) situation for which researchers is trying to answer.
According to Kerlinger, "A good problem is defined as interrogative sentence statement that shows what relationship exist between two or more variables."

3.3.2 Steps / Process in problem formulation

1. Identifying broad problem area
2. Divide the subject area into sub-area
3. Decide about an area
4. Defining problem
5. Decide about the objectives

3.4 Research Question

Research question is a statement designed / developed in the research that identifies the factors to be studied.

Research question helps you to do the work in the trend as you intend. A research should find out the answers to of those stated questions after the completion of research work.

Types of Research Questions

1. Descriptive questions
2. Observational / Relational questions
3. Causal or cause and effect questions
4. Research questions seeking difference

1. Descriptive questions

The questions that are designed to describe what is going on or to assess the existing position of events, objects or issues are known as descriptive question.

2. Observational / Relational questions

The questions that are designed to know the relationship between two or more variables under study.

3. Causal or cause and effect questions

The questions that are designed to determine the effect of one or more causes to one or more outcome.

4. Research questions seeking difference

The questions that are designed to find out the difference between or among the groups.

3.5 Theoretical Framework

A theoretical framework is a conceptual model that shows the relationship among the several factors that have identified as important to the problem.

It is prepared after the literature review, defining the problems and interview with the concerned party.

Several factors
Relationship
Problem

A theoretical framework is a conceptual model that shows the relationship among the several factors that have identified as important to the problem.

Need of theoretical framework in research.

1. clarify the variables
2. Helps to clarify nature of research problem
3. Helps to show relationship
4. Helps to data analysis
5. Helps to test or build theory
6. Helps to interpretation
7. Guides for data collection
8. provide general framework.

3.6 Hypothesis

Hypothesis can be defined as logically estimated relationship between two or more variables expressed in the form of testable statement. It is an educated guess on solution of problem or issue.

Functions of Hypothesis:

1. Shows the area of emphasis
2. Provides guideline for collecting information
3. Informs about area of subjective priority
4. Basis of research
5. Helps to test mathematically.

Formulation of hypothesis:

1. Discussions.

2. Internal data.

3. Literature review

4. Interview

Features/ Criteria of a good hypothesis

1. Simplicity
2. Testability
3. Clarity
4. Specific
5. Relevant to problem
6. Relevant to available technology
7. Consistency and harmony

Types and formats in hypothesis

1. Descriptive hypothesis
2. Relational hypothesis or explanatory hypothesis
3. Directional and non directional hypothesis
4. Null and alternative hypothesis

5. Descriptive hypothesis

presents the existence, size, type and distribution of variables

contains only one variable.

eg: Sixty percent of NABIL Bank stockholders (case) favour to increase company's stock dividend (variable)

6. Relational hypothesis or explanatory hypothesis

Hypothesis that shows relationship between two or more than two variables.

Two groups

1. Correlation hypothesis
2. Explanatory or causal hypothesis

i) Correlation hypothesis

variables occur together in some specified manner without implying that one causes the other

ii) Explanatory/ causal hypothesis

A hypothesis which is formulated based on the assumption that changes in one variable changes in another variable.

3. Directional and non directional hypothesis

Type Meaning
Directional hypothesis A hypothesis which is formulated using the words more and less, likes and dislikes or comparing two variables is known as directional hypothesis.
Non-directional hypothesis If any hypothesis shows the relationship or differences between variables but does not direct relationship such hypothesis are known as non-directional hypothesis.

4. Null and alternative hypothesis.

Null hypothesis

Null hypothesis: a definite or exact relationship between two variables as proportion

Alternative hypothesis

Alternative hypothesis: a statement indicating difference between groups.

H0

Null Hypothesis (H0) =0

(No significance difference between sample and population mean.

H1

Alternative Hypothesis (H1) =0

(There is a significant difference between sample and population mean)

Chapter 3: Problem Definition, Theoretical Framework and Hypothesis Formulation

Theory → Variables → Problem Definition → Research Question → Theoretical Framework → Hypothesis