Chapter 4

The research process: theoretical

framework hypothesis development

In the previous chapter the focus was on

learning how to narrow down and clearly
define the research problem.
Chapter 4 focuses on Step 4 that relates
to evolving a theoretical framework and
step 5 that deals with deriving testable
hypotheses.

The need for a theoretical

framework
The importance of the theoretical
framework
The theoretical framework is related to
deductive research.
It follows the completion of a literature
review and defining the problem.
It represents the basis of developing the
hypotheses.
It aims to understand what a variable means
and what the different types of variables are.

It represents the researcher's beliefs on

how certain phenomena (or variables or
concepts) are related to each other (a
model) and an explanation of why he
believe that these variables are associated
with each other (a theory).
It used to examine the theory that he
based on is valid or not.

It used to identify the network of

relationships among research variables.

The process of building a theoretical

framework includes
1)
2)

3)

Introducing definitions of the

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

Variables
A variable is anything that can take on
differing or varying values.
The values can differ at various times for
the same object or person, or at the same
time for different objects or persons; it
depends on how the researches
operationalized the variables.

Example

Production units: One worker in the

manufacturing department may produce one
toy per minute, a second might produce two
per minute, a third might produce five per
minute. It is also possible that the same
member might produce one toy the first
minute and five the next minute. In both
cases, the number of toys produced has
taken on different values, and is therefore a
variable.

Types of variables
1) The dependent variable or criterion variable.
It refers to one or more than one dependent
variable that should be investigated through
understanding, describing and explaining its
variability as a result of external influences
(independent variables); It refers to what
variable influence it.
It is based on numerical measurement (the
variability of sales can be measured, for
instance (by low, medium, or high sales or
continuous scale).

Exercise
An applied researcher wants to increase
the performance of bank employees in a
particular branch. What is the dependent
variable in this case? (Employees
performance is the dependent variable).
The performance of employees may
involve: increase the production units,
decrease the defects items, increasing the
sales volume, and decrease the
absenteeism rateetc.

Exercise
A marketing manager believes that limiting
the availability of a product increases
product desirability.
What is the dependent variable here? The
product desirability.

2) Independent variable
It is refers to the variable (s) (predictor
variables) that have negative or positive
influence (s) on the dependent variables. The
independent variable helps to explain the
variance in the dependent variable.
The following conditions should be met to
say that a change in the independent variable
causes a change in the dependent variable:
1) The independent and the dependent variable
should covary: a change in the dependent
variable should be associated with a change
in the independent variable.

2) In experimental research, the independent

variable (the presumed causal factor) should
precede the dependent variable. In other
words, there must be a time sequence in
which the two occur: the cause must occur
before the effect.
3) No other factor should be a possible cause
of the change in the dependent variable.
Hence, the researcher should control for the
effects of other variables.
4) A logical explanation (a theory) is needed
about why the independent variable affects
the dependent variable.

Exercises
List the variables in these two exercises
individually, and label them as dependent or
independent, explaining why they are so
labeled. Create diagrams to illustrate the
relationships.
(1) A manager believes that good supervision
and training will increase the production
level of the workers.
(2) A marketing manager believes that
selecting physically attractive
spokespersons and models to endorse their
products increases the persuasiveness of a
message.

3) Moderating variable
The moderating variable is one that has a
strong contingent effect on the independent
variable-dependent variable relationship.
Moderation occurs when the relationship
between two variable depends on a third
variable; the third variable is referred to as
the moderate variable or simply the
moderator.
It modifies the original relationship between
the independent and the dependent
variables.

The effect of a moderating variable is

characterized statistically as an
interaction: a qualitative (e.g., sex, race,
class) or quantitative (e.g., level of reward)
variable that affects the direction and/or
strength of the relation between
dependent and independent variables.

Example

A prevalent theory indicates that the

diversity of the workforce (comprising
people of different ethnic origins, races, and
nationalities) contributes more to
organizational effectiveness because each
group brings its own special expertise and
skills to the workplace. This notion can be
utilized by the manger. To harness the
potential, managers must know how to
encourage and coordinate the talents of the
various groups to make things work. This
managerial expertise then becomes the
moderating variable.

Diagram of the relationship among the three variables: workforce

diversity, organizational effectiveness, and managerial expertise.

4) Mediating variable
A mediating variable (or intervening variable)
is one that surfaces between the time the
independent variables start operating to
influence the dependent variable and the
time their impact is felt on it. It used to
understand the researchs model process.
The mediating variable surfaces as a
function of the independent variable (s)
operating in any situation, and helps to
conceptualize and explain the influence of
the independent variable (s) on the
dependent variable.

The general test for mediation is to examine: a)

the relationship between the predictor and the
criterion variables, b) the relation between the
predictor and the mediator variables, and c) the
relation between the mediator and criterion
variables. In the full mediation, the relationship
between predictor and criterion should be
reduced to zero in the case of full mediation).
That is, the direct influence between the IV and
DV is not significant at P 0.05.

With regard to figure 1, the full mediation

occurred when there is an indirect effect
but no direct effect while the partial
mediation is occurred when there are both
indirect and direct effects (Baron and
Kenny, 1986).

The distinction between an independent

variable, moderating variable, and mediating
variable

The independent variable helps to explain

the variance in the dependent variable.
the moderating variable has an interaction
effect with the independent variable in
explaining the variance of dependent
variables; it influences the strength of the
relationship between two variables
negatively or positively.

A mediator variable is one that explains the

relationship between the two other
variables. It seeks to identify and
explicate the mechanism or process that
underlies an observed relationship
between an IV and DV via the inclusion
of a third explanatory variable. It
contains partial and full mediation. In
moderation, there is no partial or full
mediation.

Whether a variable is an independent

variable, a dependent variable, a mediating
variable, or a moderating variable should be
determined by a careful reading of the
dynamics operating in any given situation.
For instance, a variable such as motivation
to work could be a dependent variable, an
independent variable, a mediating variable,
or a moderating variable, depending on the
theoretical model that is being advanced.

As an example, let's consider the relation

between social class (SES) and frequency of
breast self-exams (BSE). Age might be a
moderator variable, in that the relation
between SES and BSE could be stronger for
older women and less strong or nonexistent
for younger women. Education might be a
mediator variable in that it explains why
there is a relation between SES and BSE.
When you remove the effect of education, the
relation between SES and BSE disappears

Exercises

List and label the variables in these two exercises

and explain and illustrate by means of diagrams
the relationships among the variables.
(1) A manager finds that off-the-job classroom
training has a great impact on the productivity of
the employees in her department. However, she
also observes that employees over 60 years of age
do not seem to derive much benefit and do not
improve with such training.
The independent variable (off-the-job classroom
training),
The dependent variable (productivity of the
employees),
Moderating variables (age).

(2) A manager finds that the intensity of eBusiness adoption is positively associated
with sales performance. What's more, when
market uncertainty (the rate of change in the
composition of customers and their
preferences) is high, this positive effect is
strengthened.
The independent variable (the intensity of eBusiness adoption),
The dependent variable (sales performance),
Moderating variables (the rate of change in
the composition of customers and their
preferences/market fluctuations)

Theoretical framework

The theoretical framework is the foundation

on which the entire research project is based
on to solve the problem.
The literature review identifies the variables
that might be important, as determined by
previous research findings.
The theoretical framework represents and
elaborates the relationships among the
variables, explains the theory underlying
these relations, and describes the nature and
direction of the relationships.

The components of the theoretical

framework

A good theoretical framework identifies and

defines the important variables in the
situation that are relevant to the problem
(The relationships among the independent
variable (s), the dependent variable (s), and,
if applicable, the moderating and mediating
variables are elaborated).
A good theoretical framework is not
necessarily a complex framework.
There are three basic features that should be
incorporated in any theoretical framework:

1.
2.

3.

The variables considered relevant to the

study should be clearly defined.
A conceptual model that describes the
relationships between the variables in
the model should be given.
There should be a clear explanation of
why we expect these relationships to
exist.

A conceptual model
A conceptual model helps you to structure your
discussion of the literature. It describes how the
concepts in your model are related to each other.
It should be based on a sound theory.
A schematic diagram of the conceptual model helps
the reader to visualize the theorized relationships.
The relationships between variables can also be
adequately expressed in words.
Both a schematic diagram of the conceptual model
and a description of the relationships between the
variables in words should be given, so that the
reader can see and easily comprehend the theorized
relationships.

A theory or a clear explanation for the

relationships in your model is the last
component of the theoretical framework.
A theory attempts to explain relationships
between the variables in your model: An
explanation should be provided for all the
important relationships that are theorized
to exist among the variables.

Hypothesis development
Hypothesis development is based on
identifying the important variables in
research model and established the
relationships among them through logical
reasoning obtained from the theoretical
framework.
A hypothesis can be defined as logically
conjectured relationships between two or
more variables expressed in the form of
testable statements. It based on your
conceptual model.

Example: If the pilots are given adequate

training to handle mid-air crowded
situations, air safety violations will be
reduced.
Statement of hypotheses
1) formats If-then statements: Employees
who are more healthy will take sick leave
less frequently. If employees are more
healthy, then they will take sick leave less
frequently.

2) Directional and nondirectional hypotheses

Directional hypotheses; comparing two
groups by using terms such as positive,
negative, more than, less than. The greater
the stress experienced in the job, the lower
the job satisfaction of employees. Women
are more motivated than men.
Nondirectional hypotheses are those that do
postulate a relationship or difference, but
offer no indication of the direction of these
relationships or differences.

There is a relationship between age and job

satisfaction. There is a difference between the
work ethic values of American and Asian
employees.
3) Null and alternate hypotheses
The hypothetico-deductive method requires that
hypotheses are falsifiable. It should be written
in such a way that other researchers can show
them to be false. A null hypothesis (H0) is a
hypothesis set up to be rejected in order to
support an alternate hypothesis labeled Ha.

The null hypothesis is presumed true until

statistical evidence, in the form of a hypothesis
test, indicates otherwise.
The null hypothesis may state that the correlation
between two variables is equal to zero or that the
difference in the means of two groups in the
population is equal to zero (or some other definite
number). The null hypothesis in respect of group
differences stated in the following example:
Women are more motivated than men would be.
The null statement is expressed in terms of there
being no (significant) relationship between two
variables or no (significant) difference between
two groups.

The steps to be followed in hypothesis

testing are:
State the null and the alternate
hypotheses.
Choose the appropriate statistical test
depending on whether the data collected
are parametric or nonparametric.
Determine the level of significance desired
(p = 0.05, or more, or less).

The alternate hypothesis, which is the

opposite of the null, is a statement
expressing a relationship between two
variables or indicating differences between
groups.
The null hypothesis is thus formulated so
that it can be tested for possible rejection. If
we reject the null hypothesis, then all
permissible alternate hypotheses relating to
the particular relationship tested could be
supported.

hypothesis generation and testing can be

done both through deduction and
induction. In deduction, the theoretical
model is first developed, testable
hypotheses are then formulated, data
collected, and then the hypotheses are
tested. In the inductive process, new
hypotheses are formulated based on what
is known from the data already collected,
which are then tested.

New hypotheses not originally thought of, or

which have been previously untested, might
be developed after data are collected.
Creative insights might compel researchers
to test a new hypothesis from existing data,
which, if substantiated, would add new
knowledge and help theory building.
Through the broadening of our
understanding of the dynamics operating in
different situations using deductive and
inductive processes, we add to the total body
of knowledge in the area.

EXERCISE

A production manager is concerned about

the low output levels of his employees. The
articles that he has read on job performance
frequently mention four variables as being
important to job performance: skill required
for the job, rewards, motivation, and
satisfaction. In several of the articles it was
also indicated that only if the rewards were
attractive to the recipients did motivation,
satisfaction, and job performance increase,
not otherwise. Given this situation:
Define the problem.
Evolve a theoretical framework.
Develop at least six hypotheses.