Introduction
Research is an integral part of business and can influence the success or failure of an organization. Business research is conducted to increase knowledge about a specific observation or provide solutions to an identified problem. This essay analyzes how business research contributes to success, the different types of research, the role of performance-monitoring research in analyzing strategic performance, and the factors that influence whether or not business research should be conducted.
How Business Research Contributes to Success
Business research is essential to an organization’s success because it can help increase sales and improve product quality. For instance, when an organization conducts a market study to learn customer needs and preferences, it can use this data to perform market segmentation (Burns, 2019). This allows the business to customize its promotional efforts and, therefore, increase its sales. Additionally, research can help a company improve the quality of its products. Seeking customer feedback is an example of business research that would enhance product quality. Business research also contributes to business success by helping to identify an organization’s competition and how best to beat it. A business may conduct a competitive analysis of its resources to identify those which can be used to give it an edge over its rivals. Optionally, the enterprise could perform an analysis of its strength and weakness. Consequently, these findings could be used to improve performance, leading to greater success. Overall, businesses derive many advantages from conducting research and should do so to increase their success.
Basic Versus Applied Research
Business research can broadly be categorized as either basic or applied research. Basic, pure, or fundamental research is conducted to advance knowledge rather than solve a specific problem (Abeysekera, 2019). For instance, a researcher may be interested in finding out how alcohol consumption affects customer purchases. They could conduct this study by designing causal research to examine whether there is an association between people consuming alcohol and making impulse purchases. They could then publish the findings in scholarly journals for other scholars who are interested in the subject to read. The study described is an example of basic research because it seeks to grow the body of knowledge on the link between consuming alcohol and making purchases.
Applied or action research seeks to find solutions to specific business problems. It is primarily concerned with identifying a challenge, drafting a research design suitable for studying the issue, conducting the study, and proposing resolutions to reduce or eliminate identified problems (Pradeep, 2018). For example, after identifying the problem of high employee turnover, a researcher could study how to reduce attrition. The researcher could conduct this study by distributing questionnaires for participants to fill out. They would then analyze this data and propose solutions. For instance, their research may find that employees leave their workplace due to unfair labor practices. Thus, the proposed solution would entail businesses adopting employee-friendly labor policies. This is an example of applied research because it is being used to provide solutions to a real-life problem.
The Scientific Method in Business Research
The scientific method is a procedure that is considered the backbone of science. The basic process entails the formulation of a hypothesis concerning a given phenomenon (Kovačić-Popović, 2021). Next, the theory is tested, usually through experimentation. Ultimately, the aim is to provide rational explanations for observations while minimizing bias in research. Business research uses the scientific method to ensure that the findings of studies are credible and objective. Failing to use the scientific method can lead researchers to draw biased conclusions (Kovačić-Popović, 2021). Skewed research findings do not help solve business challenges or increase the body of knowledge about a particular topic. Thus, the scientific method is integral to business research, and business scholars must apply it to increase the likelihood of their findings being accurate.
Business researchers apply the scientific method by first making an observation that will be studied. An example of such an observation is that traffic of customers reduces once a restaurant increases its social media presence. The next step in the scientific method entails the formulation of a hypothesis, which is an educated guess about an observation (Kovačić-Popović, 2021). The researcher could hypothesize that customers prefer restaurants that are off the internet because they relate this to authenticity. Next, the researcher conducts an experiment, which can be done by working with an offline restaurant and creating a social media presence for it. The researcher then tests their hypothesis by tracking customer traffic before and after the hotel adopts social media usage. Lastly, the researcher analyzes the results and makes a conclusion based on these findings.
Strategic Performance
Strategic performance refers to how well a business is meeting its organizational objectives. An enterprise sets its mission, vision, and objectives and devises strategies to meet these goals (Sarigül & Coşkun, 2021). A company can analyze strategic performance using a balanced scorecard (BSC). A BSC is a management tool used to convert strategic goals into metrics that can be monitored, measured, and modified if necessary (Camilleri, 2021). For instance, a BSC could be used to show whether the customer ratings of a business have improved, given that the firm had set an objective to enhance customer experience. Thus, a BSC is a valuable tool for analyzing strategic performance.
The use of performance-monitoring research can also enhance the analysis of the strategic performance of a business. This is a study that aims to provide information that will help compare how well a policy or program is being employed against what is actually expected. An example of performance-monitoring research is a study conducted to assess the effectiveness of a marketing plan. For instance, a business researcher would carry out a survey to find how much of the sales made by a company can be attributed to a given marketing strategy, such as the use of Twitter ads. In this case, the research monitors the performance of the marketing plan implemented. In general, a performance-monitoring study can be used to analyze whether an organization is achieving its goals using its current strategies.
Factors that Influence Business Research
There are several factors that influence whether or not business research is needed. The first determinant is the business performance in a given time period. Poor performance indicates that research is necessary to understand why a business is failing. Another factor that influences the relevance of business research is the goal of a business. Analysis may or may not be helpful, depending on the objectives of a business. For instance, business research could be necessary for a company that wants to expand its market but useless for a monopoly that already serves 100% of the market. An organization should only conduct research if it has a specific goal that will be enhanced through research. Third, an organization’s budget influences whether or not business research is necessary. Usually, business enterprises allocate money for research and development after they have met other expenses that are more urgent, such as administration costs. Thus, a small facility with a narrow capital base may not need research because it does not have the financial capacity to have one.
Conclusion
In summary, business research provides information that is pivotal to the success of enterprises. Basic research aims to increase the existing knowledge about a particular topic or issue, while applied research is used to find solutions to existing problems. Business researchers should utilize the scientific method to reduce bias in their studies. Ultimately, research can be used to ensure that the current strategies being used by a business are assisting in meeting its objectives.
References
Abeysekera, A. (2019). Basic research and applied research. Journal of the National Science Foundation of Sri Lanka, 47(3). Web.
Burns, R. (2021). How to use quality research to impact business decisions. Forbes. Web.
Camilleri, M. A. (2021). Using the balanced scorecard as a performance management tool in higher education. Management in Education, 35(1), 10-21. Web.
Kovačić-Popović, A. (2021). Scientific method as the foundation of scientific research. International Review, (1-2), 13-17. Web.
Pradeep, M. D. (2018). Philosophical review on the basic & action research methods-a critical analysis. International Journal of Management, Technology, and Social Sciences, 3(2), 120-129. Web.
Sarigül, S. S., & Coşkun, A. (2021). Balanced scorecard (bsc) as a strategic performance management tool: Application in a multinational bank. R&S-Research Studies Anatolia Journal, 4(2), 115-129. Web.