# ACCOUNTING, FINANCE, SPSS

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Developing Theoretical Framework

and Setting the Objectives

PART 2
CHAPTER 4

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LEARNING OUTCOMES
After studying this chapter, you should be able to:
Comprehend the need for a framework in the research process
Understand what the terms variables and constructs mean and differentiate the different types of variables
Describe the theory and theoretical framework and how these two terms relate to each other
Describe the concept and conceptual framework and how these two terms relate to each other

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LEARNING OUTCOMES (cont.)
Know how to develop a theoretical framework
Understand the importance and types of research objectives and research questions
Comprehend what is a hypothesis and how to develop them

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4.1 The Need for a Framework
A research framework is the researcher’s perspective on how the interrelated concepts and variables in a study fit together.

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4.2 Variables
Variables are characteristics or attributes of cases whose behaviour or characteristics we study
Variables could occur in any form
Variables can take on differing or varying values
Variables are things that we measure, control or manipulate in an investigation

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4.2.1 Types of Variables
Dependent Variable (DV) =criterion, exogenous, outcome
Independent Variable (IV) =predictor, endogenous, explanatory
Intervening (IIV)
Moderating (MV)

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Dependent Variable (DV)
A variable which can be predicted and explained. Variation in the dependent variable is what a researcher tries to explain.

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Independent Variable (IV)
The variable that is predicted to be associated with or explains the variation in the dependent variable.

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The relationship between the independent and dependent variables自变量和因变量之间的关系

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Moderating Variable (MV)调节变量（MV）
A moderating variable (MV) or moderator is 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 an independent variable and a dependent variable.

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Moderating Variable (MV)

(cont.)

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Intervening Variable (IIV)
Those factors that theoretically affect the observed phenomenon but cannot be seen, measured or manipulated; its effect must be inferred from the effects of the independent and moderator variables on the observed phenomenon (Tuckman, 1972).

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Intervening Variable (IIV)

(cont.)
Presence of this variable strengthens the link between the independent and dependent variables.
It surfaces between the time the independent variable operates to influence the dependent variable and their impact on the dependent variable.

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The relationship between all of the mentioned variables can be illustrated diagrammatically as follows.

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4.2.2 What is a Construct?
A construct is an attribute or characteristic expressed in an abstract, general way.

Construct Brand equity
Variable Brand awareness

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4.3 Theory and Theoretical Framework
4.3.1 Theory
Functions as explanations, descriptions or predictions about phenomenon particular to a conceptual model
acts as a bridge between or amongst variables

4.3.2 Theoretical Framework
Is a collection of interrelated concepts that can hold or support a theory of a research work and guide a research.

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4.4.1 Concept
An intangible image or symbolic representation of an abstract idea.

4.4.2 Conceptual Framework:
It is the operationalization of the theory showing the relationships of the different constructs in a research study.

4.4 Concepts and Conceptual Framework

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A conceptual framework can be formulated by these four steps:
Cite the conceptual framework or paradigm
Identify the variables
Point out the dependent and intervening variables
Show the direction of the study

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4.5 Developing the Theoretical Framework
Theoretical framework is a logically developed, described and elaborated network of associations among the variables deemed relevant to the problem

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Features of theoretical framework
Specify the theory used
Identify, discuss and label the variables
Discuss and explain directions of the relationships
Uses a schematic diagram to assist the interpretation

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A schematic diagram of a theoretical framework: Modeling Satisfaction and Behavioural Intention

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4.6 Setting Research Objectives
Research Objective
is a clear and concise statement of the purpose and aim of the study which essentially summarises what needs to be achieved by the study
provides an overview or the big picture of what is intended to be achieved

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4.6.1 Research Questions

Derived from the problem statement
Provide the very basic foundation of research work
Specifically states what a researcher will attempt to answer

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4.6.2 Developing Hypothesis

An educated guess or prediction of the relationship between one or more factors (variables/constructs) identified in the study in the manner that it can be tested statistically.

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Hypothesis Construction
If-then statements or proposition

Example: If employees are more healthy, then they will take sick leaves less frequently.
Directional hypotheses

Example: The higher the motivation towards work, the greater is the job performance.

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Non-directional hypotheses

Example: There is a difference between the work ethic values of American and Asian employees.
Null and alternate hypotheses

Example: The null statement is expressed as no (significant) relationship between two variables or no (significant) difference between two groups.
Hypothesis Construction (cont.)

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Alternate hypotheses.

Example: There is a difference in the mean satisfaction level between men and women
(μM ≠μW).
Where,
μM is the mean satisfaction level of men
μW is the mean satisfaction level of women
Hypothesis Construction

(cont.)

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With reference to the theoretical framework as previously shown, these are the hypotheses for the study, which are stated in the directional hypothesis format.
H1: The higher the restaurant service/product dimension (service quality, product quality and atmospherics quality), the higher the satisfaction level.
H2: The higher the marketing dimension (brand image and customer relationship management), the higher the satisfaction level.
H3: The higher the restaurant service/product dimension (service quality, product quality and atmospherics quality), the higher the revisit intention.

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H4: The higher the restaurant marketing dimensions (brand image and customer relationship management), the higher the revisit intention.
H5: The higher the satisfaction level, the higher the revisit intention.
H6: The higher the satisfaction level, the stronger the intention to recommend to others.
H7: The higher the revisit intentions, the stronger the intention to recommend to others.

With reference to the theoretical framework as previously shown, these are the hypotheses for the study, which are stated in the directional hypothesis format.

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