Business research is conducted by both businesspeople, who have informational needs, and scholars, whose field of study is business. Though some of the specifics as to how research is conducted differs between scholarly research and applied research, the general process they follow is the same. Business research is conducted in five stages. The first stage is problem formation where the objectives of the research are established. The second stage is research design. In this stage, the researcher identifies the variables of interest and possible relationships among those variables, decides on the appropriate data source and measurement approach, and plans the sampling methodology. It is also within the research design stage that the role that time will play in the study is determined. The third stage is data collection. Researchers must decide whether to outsource the data collection process or collect the data themselves. Also, data quality issues must be addressed in the collection of the data. The fourth stage is data analysis. The data must be prepared and cleaned. Statistical packages or programs such as SAS, SPSS, STATA, and R are used to analyze quantitative data. In the cases of qualitative data, coding, artificial intelligence, and/or interpretive analysis is employed. The fifth stage is the presentation of results. In applied business research, the results are typically limited in their distribution and they must be addressed to the immediate problem at hand. In scholarly business research, the results are intended to be widely distributed through journals, books, and conferences. As a means of quality control, scholarly research usually goes through a double-blind review process before it is published.
James A. Muncy and Alice M. Muncy
Intersectionality is a critical framework that provides us with the mindset and language for examining interconnections and interdependencies between social categories and systems. Intersectionality is relevant for researchers and for practitioners because it enhances analytical sophistication and offers theoretical explanations of the ways in which heterogeneous members of specific groups (such as women) might experience the workplace differently depending on their ethnicity, sexual orientation, and/or class and other social locations. Sensitivity to such differences enhances insight into issues of social justice and inequality in organizations and other institutions, thus maximizing the chance of social change. The concept of intersectional locations emerged from the racialized experiences of minority ethnic women in the United States. Intersectional thinking has gained increased prominence in business and management studies, particularly in critical organization studies. A predominant focus in this field is on individual subjectivities at intersectional locations (such as examining the occupational identities of minority ethnic women). This emphasis on individuals’ experiences and within-group differences has been described variously as “content specialization” or an “intracategorical approach.” An alternate focus in business and management studies is on highlighting systematic dynamics of power. This encompasses a focus on “systemic intersectionality” and an “intercategorical approach.” Here, scholars examine multiple between-group differences, charting shifting configurations of inequality along various dimensions. As a critical theory, intersectionality conceptualizes knowledge as situated, contextual, relational, and reflective of political and economic power. Intersectionality tends to be associated with qualitative research methods due to the central role of giving voice, elicited through focus groups, narrative interviews, action research, and observations. Intersectionality is also utilized as a methodological tool for conducting qualitative research, such as by researchers adopting an intersectional reflexivity mindset. Intersectionality is also increasingly associated with quantitative and statistical methods, which contribute to intersectionality by helping us understand and interpret the individual, combined (additive or multiplicative) effects of various categories (privileged and disadvantaged) in a given context. Future considerations for intersectionality theory and practice include managing its broad applicability while attending to its sociopolitical and emancipatory aims, and theoretically advancing understanding of the simultaneous forces of privilege and penalty in the workplace.
Eric Volmar and Kathleen M. Eisenhardt
Theory building from case studies is a research strategy that combines grounded theory building with case studies. Its purpose is to develop novel, accurate, parsimonious, and robust theory that emerges from and is grounded in data. Case research is well-suited to address “big picture” theoretical gaps and dilemmas, particularly when existing theory is inadequate. Further, this research strategy is particularly useful for answering questions of “how” through its deep and longitudinal immersion in a focal phenomenon. The process of conducting case study research includes a thorough literature review to identify an appropriate and compelling research question, a rigorous study design that involves artful theoretical sampling, rich and complete data collection from multiple sources, and a creative yet systematic grounded theory building process to analyze the cases and build emergent theory about significant phenomena. Rigorous theory building case research is fundamentally centered on strong emergent theory with precise theoretical logic and robust grounding in empirical data. Not surprisingly then, theory building case research is disproportionately represented among the most highly cited and award-winning research.
Ann Peng, Rebecca Mitchell, and John M. Schaubroeck
In recent years scholars of abusive supervision have expanded the scope of outcomes examined and have advanced new psychological and social processes to account for these and other outcomes. Besides the commonly used relational theories such as justice theory and social exchange theory, recent studies have more frequently drawn from theories about emotion to describe how abusive supervision influences the behavior, attitudes, and well-being of both the victims and the perpetrators. In addition, an increasing number of studies have examined the antecedents of abusive supervision. The studied antecedents include personality, behavioral, and situational characteristics of the supervisors and/or the subordinates. Studies have reported how characteristics of the supervisor and that of the focal victim interact to determining abuse frequency. Formerly postulated outcomes of abusive supervision (e.g., subordinate performance) have also been identified as antecedents of abusive supervision. This points to a need to model dynamic and mutually reciprocal processes between leader abusive behavior and follower responses with longitudinal data. Moreover, extending prior research that has exclusively focused on the victim’s perspective, scholars have started to take the supervisor’s perspective and the lens of third-parties, such as victims’ coworkers, to understand the broad impact of abusive supervision. Finally, a small number of studies have started to model abusive supervision as a multilevel phenomenon. These studies have examined a group aggregated measure of abusive supervision, examining its influence as an antecedent of individual level outcomes and as a moderator of relationships between individuals’ experiences of abusive supervision and personal outcomes. More research could be devoted to establishing the causal effects of abusive supervision and to developing organizational interventions to reduce abusive supervision.
Cristina Chaminade and Bengt-Åke Lundvall
Scientific advance and innovation are major sources of economic growth and are crucial for making development socially and environmentally sustainable. A critical question is: Will private enterprises invest sufficiently in research technological development and innovation and, if not, to what degree and how should governments engage in the support of science, technology, and innovation? While neoclassical economists point to market failure as the main rationale for innovation policy, evolutionary economists point to the role of government in building stronger innovation systems and creating wider opportunities for innovation. Research shows that the transmission mechanisms between scientific advance and innovation are complex and indirect. There are other equally important sources of innovation including experience-based learning. Innovation is increasingly seen as a systemic process, where the feedback from users needs to be taken into account when designing public policy. Science and innovation policy may aim at accelerating knowledge production along well-established trajectories, or it may aim at giving new direction to the production and use of knowledge. It may be focused exclusively on economic growth, or it may give attention to impact on social inclusion and the natural environment. An emerging topic is to what extent national perspectives continue to be relevant in a globalizing learning economy facing multiple global complex challenges, including the issue of climate change. Scholars point to a movement toward transformative innovation policy and global knowledge sharing as a response to current challenges.
Critical thinking is more than just fault-finding—it involves a range of thinking processes, including interpreting, analyzing, evaluating, inferencing, explaining, and self-regulating. The concept of critical thinking emerged from the field of education; however, it can, and should, be applied to other areas, particularly to research. Like most skills, critical thinking can be developed. However, critical thinking is also a mindset or a disposition that enables the consistent use and application of critical thought. Critical thinking is vital in business research, because researchers are expected to demonstrate a systematic approach and cogency in the way they undertake and present their studies, especially if they are to be taken seriously and for prospective research users to be persuaded by their findings. Critical thinking can be used in the key stages of many typical business research projects, specifically: the literature review; the use of inductive, deductive, and abductive reasoning and the relevant research design and methodology that follows; and contribution to knowledge. Research is about understanding and explaining phenomena, which is usually the starting point to solve a problem or to take advantage of an opportunity. However, to gain new insights (or to claim to), one needs to know what is already known, which is why many research projects start with a literature review. A literature review is a systematic way of searching and categorizing literature that helps to build the researchers’ confidence that they have identified and recognized prevailing (explicit) knowledge relevant to the development of their research questions. In a literature review, it is the job of the researcher to examine ideas presented through critical thinking and to scrutinize the arguments of the authors. Critical thinking is also clearly crucial for effective reasoning. Reasoning is the way people rationalize and explain. However, in the context of research, the three generally accepted distinct forms of reasoning (inductive, deductive, and abductive) are more analogous to specific approaches to shape how the literature, research questions, methods, and findings all come together. Inductive reasoning is making an inference based on evidence that researchers have in possession and extrapolating what may happen based on the evidence, and why. Deductive reasoning is a form of syllogism, which is an argument based on accepted premises and involves choosing the most appropriate alternative hypotheses. Finally, abductive reasoning is starting with an outcome and working backward to understand how and why, and by collecting data that can subsequently be decoded for significance (i.e., Is the identified factor directly related to the outcome?) and clarified for meaning (i.e., How did it contribute to the outcome?). Also, critical thinking is crucial in the design of the research method, because it justifies the researchers’ plan and action in collecting data that are credible, valid, and reliable. Finally, critical thinking also plays a role when researchers make arguments based on their research findings to ensure that claims are grounded in the evidence and the procedures.
Steven A. Stewart and Allen C. Amason
Since the earliest days of strategic management research, scholars have sought to measure and model the effects of top managers on organizational performance. A watershed moment in this effort came with the 1984 introduction of Hambrick and Mason’s upper echelon view and their contention that firms are a reflection of their top management teams (TMT). An explosion of research followed and hundreds, if not thousands, of manuscripts have since been published on the subject. While a number of excellent reviews of this extensive literature exist, a relative few have asked questions about the overall state and future of the field. We undertook this assessment in an effort to answer some key questions. Are we still making progress on the big questions that gave rise to the upper echelon view, or have we reached a point of diminishing returns with this stream of research? If we are at an inflection point, what are the issues that should drive future inquiry about top management teams?
Robert P. Gephart and Rohny Saylors
Qualitative research designs provide future-oriented plans for undertaking research. Designs should describe how to effectively address and answer a specific research question using qualitative data and qualitative analysis techniques. Designs connect research objectives to observations, data, methods, interpretations, and research outcomes. Qualitative research designs focus initially on collecting data to provide a naturalistic view of social phenomena and understand the meaning the social world holds from the point of view of social actors in real settings. The outcomes of qualitative research designs are situated narratives of peoples’ activities in real settings, reasoned explanations of behavior, discoveries of new phenomena, and creating and testing of theories. A three-level framework can be used to describe the layers of qualitative research design and conceptualize its multifaceted nature. Note, however, that qualitative research is a flexible and not fixed process, unlike conventional positivist research designs that are unchanged after data collection commences. Flexibility provides qualitative research with the capacity to alter foci during the research process and make new and emerging discoveries. The first or methods layer of the research design process uses social science methods to rigorously describe organizational phenomena and provide evidence that is useful for explaining phenomena and developing theory. Description is done using empirical research methods for data collection including case studies, interviews, participant observation, ethnography, and collection of texts, records, and documents. The second or methodological layer of research design offers three formal logical strategies to analyze data and address research questions: (a) induction to answer descriptive “what” questions; (b) deduction and hypothesis testing to address theory oriented “why” questions; and (c) abduction to understand questions about what, how, and why phenomena occur. The third or social science paradigm layer of research design is formed by broad social science traditions and approaches that reflect distinct theoretical epistemologies—theories of knowledge—and diverse empirical research practices. These perspectives include positivism, interpretive induction, and interpretive abduction (interpretive science). There are also scholarly research perspectives that reflect on and challenge or seek to change management thinking and practice, rather than producing rigorous empirical research or evidence based findings. These perspectives include critical research, postmodern research, and organization development. Three additional issues are important to future qualitative research designs. First, there is renewed interest in the value of covert research undertaken without the informed consent of participants. Second, there is an ongoing discussion of the best style to use for reporting qualitative research. Third, there are new ways to integrate qualitative and quantitative data. These are needed to better address the interplay of qualitative and quantitative phenomena that are both found in everyday discourse, a phenomenon that has been overlooked.
Paulina Junni and Satu Teerikangas
There are many types of mergers and acquisitions (M&A), be they a minority acquisition to explore a potential high growth emerging market, a takeover of a financially distressed firm with the aim of turning it around, or a private equity firm seeking short- to medium-term returns. The terms “merger” and “acquisition” are often used interchangeably, even though they have distinct denotations: In an acquisition, the acquirer purchases the majority of the shares (over 50%) of another company (the “target”) or parts of it (e.g., a business unit or a division). In a merger, a new company is formed in which the merging parties share broadly equal ownership. The term “merger” is often used strategically by acquirers to alleviate fears and send out a message of friendly combination to employees. In terms of transaction numbers, the majority of M&A transactions are acquisitions, whereas mega-merger deals gain media attention owing to transaction size. While M&A motives, acquirer types, and dynamics differ, most M&A share the aim of generating value from the transaction in some form. Yet a prevalent dilemma in the M&A practice and literature is that M&A often fail to deliver the envisioned benefits. Reasons for negative acquirer performance stem from overestimating potential synergies and paying high premiums for targets pre-deal. Another problem lies in securing post-deal value creation. Post-deal challenges relate to optimal integration speed, the degree of integration, change, or integration management, communication, resource and knowledge sharing, employee motivation and turnover, and cultural integration. Researchers are calling for more research on how pre-deal processes such as target evaluation and negotiations influence M&A performance. A closer look at this literature, though, highlights several controversies. First, the literature often lacks precision when it comes to defining M&A. We call for future research to be explicit concerning the type of merger or acquisition transaction, and the organizational contexts of the acquiring and target firms. Second, we are still lacking robust and unified frameworks that explain M&A occurrence and performance. One of the reasons for this is that the literature on M&A has developed in different disciplines, focusing on either pre- or post-deal aspects. This has resulted in a “silo” effect with a limited understanding about the combined effects of financial, strategic, organizational, and cultural factors in the pre- and post-deal phases on M&A performance. Third, M&A studies have failed to critically scrutinize the M&A phenomenon, including aspects such as power, politics, and managerial drivers. Fourth, scholars have tended to focus on single, isolated M&A. We call for future research on M&A programs and M&A as part of broader corporate strategies. Finally, the study of M&A has suffered from a managerial bias, with insufficient attention paid to the rank and file, such as engineers, or marketing or administrative employees. We therefore call for future research that takes a broader view on actors involved in M&A, placing a greater emphasis on individuals’ roles and practices.
Alexander Bolinger and Mark Bolinger
There is currently great enthusiasm for entrepreneurship education and the economic benefits that entrepreneurial activity can generate for individuals, organizations, and communities. Beyond economic outcomes, however, there is a variety of social and emotional costs and benefits of engaging in entrepreneurship that may not be evident to students nor emphasized in entrepreneurship courses. The socioemotional costs of entrepreneurship are consequential: on the one hand, entrepreneurs who pour their time and energy into new ventures can incur costs (e.g., ruptured personal and professional relationships, decreased life satisfaction and well-being, or strong negative reactions such as grief) that can often be as or more personally disruptive and enduring than economic costs. On the other hand, the social and emotional benefits of an entrepreneurial lifestyle are often cited as intrinsically satisfying and as primary motivations for initiating and sustaining entrepreneurial activity. The socioemotional aspects of entrepreneurship are often poorly understood by students, but highlighting these hidden dimensions of entrepreneurial activity can inform their understanding and actions as prospective entrepreneurs. For instance, entrepreneurial passion, the experience of positive emotions as a function of engaging in activities that fulfill one’s entrepreneurial identity, and social capital, whereby entrepreneurs build meaningful relationships with co-owners, customers, suppliers, and other stakeholders, are two specific socioemotional benefits of entrepreneurship. There are also several potential socioemotional costs of entrepreneurial activity. For instance, entrepreneurship can involve negative emotional responses such as grief and lost identity from failure. Even when an entrepreneur does not fail, the stress of entrepreneurial activity can lead to sleep deprivation and disruptions to both personal and professional connections. Then, entrepreneurs can identify so closely and feel so invested that they experience counterproductive forms of obsessive passion that consume their identities and impair their well-being.