MGT 646

QUANTITATIVE RESEARCH
METHODS

Chapter 2 :
Problem Identification

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TOPICS DISCUSSED
Introduction to broad problem area

Preliminary information gathering

Defining the problem statement

Research objectives and questions

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 THE BROAD PROBLEM AREA
Business research is a systematic and organized effort to investigate a specific problem
encountered in the work setting.
• Research typically begins with a problem.
• It also indicate an interest in an issue where finding the right answers might help to
improve existing situations.
• A problem is defined as any situation where a gap exists between the actual and the
desired ideal states.
Once we have identified the management problem, it needs to be narrowed down to a
researchable topic for study.
• To translate the broad problem into a feasible research topic.
• A feasible topic for research is specific and focused.
• For instance, “The introduction of flexible work hours has created more problems
than it has solved” provides a nice starting point for research project, but it lacks
the specificity and focus needed to investigate it.
• We need to transform the broad problem into a feasible topic for research by
making it more specific and precise, by choosing a well-defined subject to study, by
setting clear boundaries.
• “Long and frequent delays lead to much frustration among airline passengers.
These feelings may eventually lead to switching behavior, negative word-of-mouth
communication, and customer complaints.”
(Sekaran & Bougie, 2013)
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EXAMPLES OF PROBLEMS (BOX 3.1 PAGE 34):

1. Long and frequent delays lead to much frustration among airline passengers.
These feelings may eventually lead to switching behavior, negative word-of-
mouth communication, and customer complaints.
• 2. Staff turnover is higher than anticipated.
• 3.The current instrument for the assessment of potential employees for
management positions is imperfect.
• 4. Minority group members in organizations are not advancing in their careers.
• 5. The newly installed information system is not being used by the managers
for whom it was primarily designed.
• 6. The introduction of flexible work hours has created more problems than it
has solved.
• 7. Young workers in the organization show low levels of commitment to the
organization.
• 8. Training programs are perhaps not as effective as anticipated.
• 9. The sales volume of a product is not picking up.
• (Sekaran & Bougie, 2013)

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 Preliminary information gathering

• Once we have identified the broad problem area, it needs to be

narrowed down to a specific problem statement (a feasible
topic for research) through the preliminary information gathered.
• The information can be gathered from interviews and literature
research. Therefore it is important to understand the nature of
information to be gathered.

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PRELIMINARY INFORMATION GATHERING
Nature of information to be gathered
• Preliminary information gathering (primary and secondary source of information) via
introspection, unstructured interviews, structured interviews, and/or a review through
existing sources of information, such as new articles, textbooks, conference proceedings,
and the Internet, will help us to narrow the broad problem area and to define a specific
problem statement.
• It may be broadly classified under two context:
• a) Background information on the organization and its environment – the contextual
factors
• b) Literature – the body of knowledge available to you (prevailing knowledge on the
topic).
• The information can be obtain from:
• a) Primary data
• Data that were previously unknown and which have been obtained directly by the
researcher for a particular research project.
• Data that the researcher gathers first hand through instruments such as surveys,
interviews, focus groups, or observation.
• Such as observing events, people, object and questionnaires.
• b) Secondary data
• Data that already exist and do not have to be collected by the researcher.
• Data gathered through existing resources.
• Such as published records, company’s website, archives, Datastream, Bloomberg,
World bank, government report, etc.
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• (Sekaran & Bougie, 2013)
a) Background information on the organization
• Research should be familiar with the background of the company or
organization studied.
• Such background information might include, among other things, the contextual
factors listed below, which may be obtained from various published sources.
• The origin and history of the company (rate of growth, ownership and
control, business it is in, etc).
• Size in term of employees, assets, or both.
• Charter (purpose and ideology)
• Location (regional, national, or other)
• Resources (human and others)
• Interdependence relationship with other institutions and the external
environment.
• Financial position (relevant financial data-five to ten years)
• Information on structural factors (position in organization, number of
employees, or other)
• Information on the management philosophy.
• Information gathered in relevant contextual factors will be useful in talking
knowledge with managers and other employees in the company and raising
appropriate issues related to the problem.
• (Sekaran & Bougie, 2013)
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b) Literature - the body of knowledge available to you

• The literature may help you to think about and/or

better understand the problem.
• A careful review of textbooks, journals, conference
proceedings, and other published and unpublished
materials ensures that you have a thorough awareness
and understanding of current work and viewpoints on
the subject area. This helps you to
• structure your research on work already done / build
on the foundation of existing knowledge;
• develop the problem statement with precision and
clarity.
• (Sekaran & Bougie, 2013)

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 Background
information on the
Primary data
organization
Preliminary
Broad
Information Problem
Problem Area
Gathering Statement
Secondary
data
Prevailing
knowledge on the
topic

Nature of the information gathered

Figure 1: Preliminary Information Gathering Process

Source :Karia (2017)

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DEFINING THE PROBLEM STATEMENT
After the preliminary information gathering, it is vital to narrow
down the problem form its original broad based and define the
issues of concern more clearly.
It is critical that problem statement is unambiguous, specific, and
focused, and that the problem is addressed from a specific
academic perspective.
Unclear problem statement will not promise a good research.
Three key criteria to assess the quality of the problem statement,
that are:
 Relevant
 Feasible
 Interesting.

 (Sekaran & Bougie, 2013)

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1. Relevant
A problem statement is relevant if it is meaningful from a
managerial perspective, and academic perspective, or both.
Managerial perspective
Research is relevant if it relates to
(a) a problem that are exists in organizational setting.
(b) an area that manager believes needs to be improved in the organization.
Academic perspective
Research is relevant if
(a) nothing is known about a topic.
(b) much is known about a topic, but scattered and non integrated.
(c)’ much research on the topic is available but the results are contradictory.
(d) establish relationships do not hold in certain situations.

(Sekaran & Bougie, 2013)

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2. Feasible
A problem statement is feasible if you able to answer the research questions
within the restrictions of the research project.

These restrictions are possibly related to time and money, but also to the
availability of respondents, the expertise of the research, and the like.

A frequent problem in terms of feasibility is that the problem statement is TOO

BROAD in scope.

Indeed, it is important that you develop a narrowly defined research question

that can be investigated within a reasonable amount of time, and with a
reasonable amount of money and effort.

3. Interesting
Research is a time-consuming process and you will go through many ups and
downs before you present the final version of your research report.
It is therefore vital that you are genuinely interesting for you to stay motivated.
(Sekaran & Bougie, 2013)

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RESEARCH OBJECTIVES AND QUESTIONS
A problem statement addresses both the WHY (the specific aim or
purpose of the study) and the WHAT (the central research question or
a set of research questions) of the research.

A good problem statement includes both a statement of the research

objective(s) and the research question(s).

Research objective: why of the research

Research objective applied research:
 to solve a specific problem in a work setting;
 to change something.
The statement of the research objective(s) should be brief, but
nonetheless communicate clearly the focus of the project.

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Examples of research objectives:

•To determine factors that increase employee commitment to the

organization;
• Since an increase in employee commitment may translate into lower
staff turnover, less absenteeism, and increased performance levels,
all of which will benefit the organization.

• The purpose of this study is twofold:

a) to identify the factors that influence the passenger’s
waiting experience and
b) to investigate the possible impact of waiting on customer
satisfaction and service evaluations.

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Example of research objectives: (Page 39)
 To find out what motivates consumers to buy a product
online.
 To study the effect of leadership style on employees’ job
satisfaction.
 To investigate the relationship between capital structure
and profitability of the firm.
 To establish success factors regarding the adoption and
use of information systems.
 To determine the optimal price for a product.
 To investigate the influence of the in-store shopping
environment on impulse buying.
 To establish the determinants of employee involvement.
 To understand the causes of employee absence.
(Sekaran & Bougie, 2013)

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Research questions:
 What of the research (what do you want to learn?)
 Translates problem into a specific need for information

Research questions:
 Are related to the objective
 If objective is unclear we will not be able to formulate research
questions

Example:
 What are the factors that affect the perceived waiting experience of
airline passengers and to what extent do these factors affect the
perception of waiting times?
 What are the affective consequences of waiting and how does affect
mediate the relationship between waiting and service evaluations?
 How do situational variables (such as filled time) influence customer
reactions to the waiting experience?
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Example of research questions (Page 41):
 To what extent do the structure of the organization and type of
information systems installed account for the variance in the
perceived effectiveness of managerial decision making?
 How has the new packaging affected the sales of the product?
 How do price and quality rate on consumers’ evaluation of
product?
 Does better automation lead to greater asset investment per dollar
of output?
 Does expansion of international operations result in an enhancement
of the firm’s image and value?
 What are the effects of downsizing on the long-range growth
patterns of companies?

 (Sekaran & Bougie, 2013)

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BOX 3.4: BUSINESS PROBLEM TRANSLATE INTO PROBLEM STATEMENT

Problem
• Long and frequent delays may translate into much frustration among airline passengers,
to switching behavior, and to negative word-of-mouth communication. These feelings
eventually have negative effects on the performance and the probability of the firm.

Problem statement
• Research objective
• The purpose of this study is twofold:
• to identify the factors that influence the passenger’s waiting experience and
• to investigate the possible impact of waiting on customer satisfaction and service
evaluations.
• Research questions
• What are the factors that affect the perceived waiting experience of airline passengers
and to what extent do these factors affect the perception of waiting times?
• What are the affective consequences of waiting and how does affect mediate the
relationship between waiting and service evaluations?
• How do situational variables (such as filled time) influence customer reactions to the
waiting experience?
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STEPS IN FORMULATING A RESEARCH PROBLEM
(PAGES 20-21)
Step 1 • Discovering issues

Step 2 • Profiling main issues into sub-areas

Step 3 • Specify what interest you the most

Step 4 • Develop research questions

Step 5 • Formulate objectives

Step 6 • Researchability of your objective

(Mohd Yusoff et al., 2022)

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 EXAMPLES PF PROBLEM STATEMENT (PAGES
31-33)

1 Factors affecting the CPO price in Malaysia

2 Determinants of capital structure: Evidence from Shariah

compliance and non-compliance firms

6 The study on factors that influence banks’ non-performing

loans in Malaysia

3 Trust, commitment, customer intimacy and customer loyalty

in Islamic banking relationships

4 The performance of housing developers in Peninsular

Malaysia in terms of financial and non-financial measures

5 Financial crisis on oil shock and trade in Asia

(Mohd Yusoff et al., 2022)

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BIBLIOGRPAHY
Mohd Yusoff, Z. Z., Bahrudin, N. Z., Ismail, I., Bujang, I., Che
Yahya, N., & Kaliani Sundram, V. P. (2022). Quantitative
Research Methods (3nd ed.). MLSCA Asian Academy.
Karia, A.A. (2017). Quantitative Research Methods :
Introduction to Research MGT 646 [Powerpoint slides].
Retrieved from http://i-learn.uitm.edu.my/v2
Saunders, M., Lewis, P. and Thornhill, A. (2007), Research
Methods for Business Students, Fourth Edition, Pearson
Education Limited.
Sekaran, U., and Bougie, R. (2013). Research Methods for
Business –A Skill-Building Approach, Sixth Edition, John
Wiley & Sons.
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