Chapter 4 Modified-mediation

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    Chapter 4

    The research process: theoretical

    framework hypothesis development

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    In the previous chapter the focus was onlearning how to narrow down and clearlydefine the research problem.

    Chapter 4 focuses on Step 4 that relatesto evolving a theoretical framework andstep 5 that deals with deriving testable

    hypotheses.

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    The need for a theoreticalframework

    The importance of the theoreticalframework

    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 thehypotheses.

    It aims to understand what a variable meansand what the different types of variables are.

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    It represents the researcher's beliefs onhowcertain phenomena (or variables orconcepts) are related to each other (amodel) and an explanation ofwhyhebelieve that these variables are associatedwith each other (a theory).

    It used to examine the theory that he

    based on is valid or not. It used to identify the network ofrelationships among research variables.

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    The process of building a theoretical

    framework includes

    1) Introducing definitions of theconcepts or variables in your model.

    2) Developing a conceptual model that

    provides a descriptive representationof your theory.

    3) Coming up with a theory that

    provides an explanation forrelationships between the variablesin your model.

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    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; itdepends on how the researches

    operationalized the variables.

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    Example

    Product ion uni ts :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 samemember 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 avariable.

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    Types of variables

    1) The dependent variable or criterion variable. It refers to one or more than one dependent

    variable that should be investigated throughunderstanding, describing and explaining itsvariability as a result of external influences(independent variables); It refers to whatvariable influence it.

    It is based on numerical measurement (thevariability of sales can be measured, for

    instance (by low, medium, or high sales orcontinuous scale).

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    ExerciseAn applied researcher wants to increase

    the performance of bank employees in aparticular branch. What is the dependent

    variable in this case? (Employeesperformance is the dependent variable).

    The performance of employees mayinvolve: increase the production units,

    decrease the defects items, increasing thesales volume, and decrease theabsenteeism rateetc.

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    Exercise

    A marketing manager believes that limiting

    the availability of a product increases

    product desirability.

    What is the dependent variable here? Theproduct desirability.

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    2) Independent variable

    It is refers to the variable (s) (predictorvariables) that have negative or positiveinfluence (s) on the dependent variables. Theindependent variable helps to explain the

    variance in the dependent variable. The following conditions should be met to

    say that a change in the independent variablecauses a change in the dependent variable:

    1) The independent and the dependent variableshould covary: a change in the dependentvariable should be associated with a changein the independent variable.

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    2) In experimental research, the independentvariable (the presumed causal factor) shouldprecede the dependent variable. In otherwords, there must be a time sequence inwhich 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 theeffects of other variables.

    4) A logical explanation (a theory) is neededabout why the independent variable affectsthe dependent variable.

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    Exercises

    List the variables in these two exercisesindividually, and label them as dependent orindependent, explaining why they are solabeled. Create diagrams to illustrate therelationships.

    (1) A manager believes that good supervisionand training will increase the productionlevel of the workers.

    (2) A marketing manager believes that

    selecting physically attractivespokespersons and models to endorse theirproducts increases the persuasiveness of amessage.

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    3) Moderating variable

    The moderating variable is one that has astrongcont ingenteffect on the independentvariable-dependent variable relationship.

    Moderation occurs when the relationshipbetween two variable depends on a thirdvariable; the third variable is referred to asthe moderate variable or simply themoderator.

    It modifies the original relationship betweenthe independent and the dependentvariables.

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    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.

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    Example A prevalent theory indicates that the

    diversity of the workforce (comprisingpeople of different ethnic origins, races, andnationalities) contributes more toorganizational effectiveness because each

    group brings its own special expertise andskills to the workplace. This notion can beutilized by the manger. To harness thepotential, managers must know how to

    encourage and coordinate the talents of thevarious groups to make things work. Thismanagerial expertise then becomes themoderating variable.

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    Diagram of the relationship among the three variables: workforce

    diversity, organizational effectiveness, and managerial expertise.

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    4) Mediating variable A mediating variable (or intervening variable)

    is one that surfaces between the time theindependent variables start operating toinfluence the dependent variable and thetime their impact is felt on it. It used tounderstand the researchs model process.

    The mediating variable surfaces as afunction of the independent variable (s)

    operating in any situation, and helps toconceptualize and explain the influence ofthe independent variable (s) on thedependent variable.

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    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 relationshipbetween 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.

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    With regard to figure 1, the full mediationoccurred when there is an indirect effectbut no direct effect while the partial

    mediation is occurred when there are bothindirect and direct effects (Baron andKenny, 1986).

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    The distinction between an independent

    variable, moderating variable, and mediating

    variable

    The independent variable helps toexp lain

    the variance in the dependent variable.

    the moderating variable has an interaction

    effect with the independent variable inexplaining the variance of dependent

    variables; it influences the strength of the

    relationship between two variables

    negatively or positively.

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    A mediator variable is one that explains therelationship between the two other

    variables. It seeks to identify andexplicate the mechanism or process thatunderlies an observed relationshipbetween an IV and DV via the inclusionof a third explanatory variable. Itcontains partial and full mediation. Inmoderation, there is no partial or fullmediation.

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    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 thedynamics 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.

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    As an example, let's consider the relation

    between social class (SES) and frequency ofbreast self-exams (BSE). Age might be amoderator variable, in that the relationbetween SES and BSE could be stronger for

    older women and less strong or nonexistentfor younger women. Education might be amediator variable in that it explains whythere is a relation between SES and BSE.

    When you remove the effect of education, therelation between SES and BSE disappears

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    Exercises

    List and label the variables in these two exercisesand explain and illustrate by means of diagramsthe relationships among the variables.

    (1) A manager finds that off-the-job classroomtraining has a great impact on the productivity ofthe employees in her department. However, she

    also observes that employees over 60 years of agedo not seem to derive much benefit and do notimprove with such training.

    The independent variable (off-the-job classroom

    training), The dependent variable (productivity of the

    employees),

    Moderating variables (age).

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    (2) A manager finds that the intensity of e-

    Business adoption is positively associatedwith sales performance. What's more, whenmarket uncertainty (the rate of change in thecomposition of customers and theirpreferences) is high, this positive effect isstrengthened.

    The independent variable (the intensity of e-Business adoption),

    The dependent variable (sales performance),

    Moderating variables (the rate of change inthe composition of customers and theirpreferences/market fluctuations)

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    Theoretical framework

    The theoretical framework is the foundation

    on which the entire research project is basedon 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 underlyingthese relations, and describes the nature and

    direction of the relationships.

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    The components of the theoretical

    framework

    A good theoretical framework identifies anddefines the important variables in thesituation that are relevant to the problem(The relationships among the independent

    variable (s), the dependent variable (s), and,if applicable, the moderating and mediatingvariables are elaborated).

    A good theoretical framework is notnecessarily a complex framework.

    There are three basic features that should beincorporated in any theoretical framework:

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    1. The variables considered relevant to the

    study should be clearly defined.

    2. A conceptual model that describes the

    relationships between the variables in

    the model should be given.

    3. There should be a clear explanation of

    why we expect these relationships toexist.

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    A conceptual model

    Aconceptual modelhelps you to structure yourdiscussion of the literature. It describes how theconcepts in your model are related to each other.

    It should be based on a sound theory.

    A schematic diagram of the conceptual model helpsthe reader to visualize the theorized relationships.The relationships between variables can also beadequately expressed in words.

    Both a schematic diagram of the conceptual model

    and a description of the relationships between thevariables in words should be given, so that thereader can see and easily comprehend the theorizedrelationships.

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    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 theorizedto exist among the variables.

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    Hypothesis development

    Hypothesis development is based onidentifying the important variables inresearch model and established therelationships among them through logicalreasoning obtained from the theoreticalframework.

    A hypothesis can be defined as logicallyconjectured relationships between two ormore variables expressed in the form oftestable statements. It based on yourconceptual model.

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    Example: If the pilots are given adequate

    training to handle mid-air crowdedsituations, air safety violations will bereduced.

    Statement o f hypo theses1) formats If-then statements: Employees

    who are more healthy will take sick leaveless frequently. Ifemployees are morehealthy,thenthey will take sick leave lessfrequently.

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    2) Directional and nondirectional hypotheses

    Directional hypotheses; comparing twogroups by using terms such as positive,

    negative, more than, less than.The greater

    the stress exper ienced in the job , the lower

    the job sat isfact ion o f employ ees. Wom en

    are more motivated than men.

    Nondirectional hypotheses are those that do

    postulate a relationship or difference, butoffer no indication of the direction of these

    relationships or differences.

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    There is a relationship between age and jobsatisfaction. There is a difference between thework ethic values of American and Asianemployees.

    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 showthem to be false. A null hypothesis (H0) is ahypothesis set up to be rejected in order tosupport an alternate hypothesis labeledHa.

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    The null hypothesis is presumed true untilstatistical 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 thedifference in the means of two groups in the

    population is equal to zero (or some other definitenumber). The null hypothesis in respect of groupdifferences stated in the following example:Women are more motivated than men would be.

    The null statement is expressed in terms of therebeing no (significant) relationship between twovariables or no (significant) difference betweentwo groups.

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    The steps to be followed in hypothesistesting 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).

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    The alternate hypothesis, which is theopposite of the null, is a statementexpressing a relationship between twovariables or indicating differences between

    groups. The null hypothesis is thus formulated so

    that it can be tested for possible rejection. Ifwe reject the null hypothesis, then all

    permissible alternate hypotheses relating tothe particular relationship tested could besupported.

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    hypothesis generation and testing can bedone both through deduction andinduction. In deduction, the theoretical

    model is first developed, testablehypotheses are then formulated, datacollected, and then the hypotheses aretested. In the inductive process, new

    hypotheses are formulated based on whatis known from the data already collected,which are then tested.

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    New hypotheses not originally thought of, or

    which have been previously untested, mightbe developed after data are collected.Creative insights might compel researchersto test a new hypothesis from existing data,

    which, if substantiated, would add newknowledge and help theory building.Through the broadening of ourunderstanding of the dynamics operating in

    different situations using deductive andinductive processes, we add to the total bodyof knowledge in the area.

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    EXERCISE

    A production manager is concerned about

    the low output levels of his employees. Thearticles that he has read on job performancefrequently mention four variables as beingimportant to job performance: skill requiredfor the job, rewards, motivation, and

    satisfaction. In several of the articles it wasalso indicated that only if the rewards wereattractive 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.