MMB064 - Introduction to Research in Contemporary Business Report

This report provides an introduction to research in contemporary business, exploring various aspects of business research through three case studies: Airbnb, NPD, and IKEA. The report begins with an overview of the importance of theoretical perspectives and reflection in business research. It then delves into the first case study, Airbnb, examining its disruptive innovation relative to hotels, reviewing relevant literature on disruptive innovation theory, and analyzing the methodology used, which is based on positivism and a deductive research approach utilizing quantitative methods. The second case study focuses on NPD (New Product Development), investigating resourceful sensemaking to overcome barriers between marketing and design teams. This section reviews literature on sensemaking and explores the methodology, which is rooted in interpretivism and an inductive approach utilizing qualitative methods. The third case study, IKEA, is also examined, although the full content is not present in the provided text. The report emphasizes the interconnectedness of research objectives, theories, philosophies, approaches, and methodologies, highlighting how these elements influence each other in business research.

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INTRODUCTION TO RESEARCH IN CONTEMPORARY
BUSINESS
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INSTITUTION

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Table of Contents
Introduction..........................................................................................................................................3
Reflection.............................................................................................................................................4
Paper 1: Airbnb.....................................................................................................................................4
Brief overview of paper...................................................................................................................4
Literature review..............................................................................................................................4
Methodology....................................................................................................................................5
Paper 2: NPD........................................................................................................................................6
Brief overview of paper...................................................................................................................6
Literature review..............................................................................................................................6
Methodology....................................................................................................................................7
Paper 3: IKEA......................................................................................................................................8
Brief overview of paper...................................................................................................................8
Literature review..............................................................................................................................8
Methodology....................................................................................................................................9
Conclusion............................................................................................................................................9
References..........................................................................................................................................13

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Introduction
In conducting business and/ or social research, researchers usually need to collect data or gather
information and this can be achieved using different methods, depending on the present knowledge
on the topic and the concepts of objectivity and subjectivity. As such, researchers can explore
issues, connect ideas in order to better understand their relationships, or describe whatever is
happening (Lapan, Quartaroli and Riemer, 2012). Towards this, researchers must develop and
justify the theoretical perspectives they employ in undertaking their business research and this has a
significant impact on how the research is designed and the methodologies used to conduct the
research. A theory is a framework or model for making observations consisting of a system of
interconnected ideas or abstractions that organize or condense knowledge and predict relationships
between variables in the world (Anfara, 2015; Collins and Stockton, 2018). The purpose of this
paper is to critically examine how researchers develop theoretical perspectives when performing
business research and how this impacts the design of their research and the methods chosen. This
paper is also a reflection of the authors’ lessons for the unit and the benefit of undertaking the
course unit.
According to Brookfield (2017), reflection refers to a purposeful activity where one evaluates
experiences and own skills or practices with a view to making improvements and consolidating
what has been learned. In this context, this paper views reflection as an activity undertaken before
the experience, during an experience, and after an experience. Williams, Woolliams and Spiro
(2012) assert that just having an experience is not sufficient for adequate learning; the experience
must be reflected upon in order to reinforce it, otherwise it is forgotten quickly and the learning
potential possibly lost. For academic purposes, reflection must be done critically as alluded to by
(Sutherland, 2013; Boud, Keogh and Walker, 2013) as this gives a learner the opportunity to
evaluate and examine their opinions, beliefs, and values. Critical reflection entails making
observations, asking questions, putting together ideas, facts, and experiences to derive new
meanings . critical reflection is a process of reasoning to add meanings to experiences ; it is
analytical, descriptive, and critical and is articulated in various ways including in written, oral, or
artistic forms of expressions (Bassot, 2015).

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Reflection
Paper 1: Airbnb
Assessing Airbnb as a disruptive innovation relative to hotels: Substitution and comparative
performance expectations
Authors: Daniel A. Guttentag and Stephen L.J. Smith
Brief overview of paper
The authors confirm that Airbnb has been used by millions of guests, demonstrating bhow its has
presently affected and altered the hospitality industry and its possible future impacts. Indeed,
Airbnb is among a new wave of disruptive business models that have upset traditional business
models and the authors sought to investigate the impacts of Airbnb in the general hospitality
industry and business in general using empirical methods. Using an online survey involving some
800 participants that had used Airbnb in the past 12 months, the authors found that about two thirds
of tourists used Airbnb as a substitute to traditional hotels and they expected Airbnb to outerform
hotels in traditional attributes for hotels such as comfort and cleanliness. However, the authors also
found that AIrbnb is not a purely disruptive innovation in its classical sense relative to budget hotels
as its users perceive it to be superior even when key hotel performance attributes are considered
(Guttentag and Smith, 2017).
Literature review
According to King (2017), disruptive technology/ innovation refers to an innovation that helps in
the creation of new value networks and markets and eventually goes on to cause disruptions to an
existing value network and market. In the process, the established market leaders are displaced;
outsiders such as startups and entrepreneurs and not existing market leaders, tend to produce these
disruptive technologies. Market leaders by their very own nature operate in an environment that
does not allow them to seek disruptive innovations when such innovations first arise since they are
likely less profitable and developing them can gobble up scarce resources. Disruptive innovations
can take much longer to develop compared to the traditional incremental approaches and have
higher associated risks. The theory of disruptive innovation as put forth by Clayton Christensen has
greatly influenced the business world; this theory posits that businesses are always aware of such
innovations but are constrained by their business models from pursuing such innovations when they
first arise. However, the essential validity of the theory and its generalizability have seldom been

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rigorously tested in academia. Further, most of the examples used in the theory does not fit all the
predictions and conditions predicted by the theory. The theory gives warnings of what may happen,
but they do not replace the need for in depth thoughtful analysis, according to King and
Baatartogtokh (2015). Using the disruptive innovation theory lens, Guttentag (2013) examines the
rapid growth and rise of Airbnb and finds that despite its success based around the Internet and its
distinct appeal based on cost savings, potential for authentic experiences, and household amenities,
many rentals under Airbnb are still illegal because of short term stay restrictions and tax issues. The
research also establishes that Airbnb retains the potential to further disrupt the traditional hospitality
industry significantly. Through a review of the available literature, Corsi and Di Minin (2013)
discuss reverse innovation subsets within the wider disruptive innovation theory. They conclude that
the two theories combined offer a useful framework of looking at emerging economies as a source
of technological solutions and new products that also possess a geographical dimension.
Methodology
The research philosophy underlying the research on AIrbnb by Guttentag and Smith (2017) is
premised on the theory of positivism. Positivism is a research philosophy that exclusively relies on
scientific evidence, for instance statistics, experiments, or empirical data in studying the society or
phenomena. It posits that scientific knowledge is arrived at through accumulation of facts that have
been verified and so it reflects and expresses empirical research (Saunders, Lewis and Thornhill,
2009). In the article, the researchers seek to establish the performance expectations of Airbnb as a
disruptive innovation and how well it is seen by customers as a viable substitute for the traditional
hotel. The authors achieve this through using the deductive research approach; this approach to
research explores a known phenomenon or theory and then tests the validity of the theory under the
given circumstances. The deductive research approach closely mimics the path of logic where
reasoning commences with a theory and eventually leads to new hypotheses being developed. In the
article by Guttentag and Smith (2017), the authors test the disruptive innovative theory and using
empirical methods, they develop a new hypothesis that Airbnb is not strictly a disruptive innovation
based on people’s expectations of its superiority meaning it is not completely consistent with the
theory of disruptive innovation. This is proven by the use of a quantitative research method (online
survey). The philosophy, approach, and the method used by the authors are informed by the field
and circumstances in which the researchers undertake their work. The nature of the existing theory
that informs the need to use a deductive approach in testing the theory, underlined by the need to
establish facts using evidence that has informed the choice of the positivist philosophy. These two
(the philosophy and research approach) are best attained using a quantitative research methodology

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involving surveys. From this analysis, the author establishes a hierarchical dependency pattern
where the objective and goals of research, the nature of the research, and existing relevant theories
determine the philosophy researchers select, which in turn informs the choice of approach to be
used, and this in turn informs the methodology used.
Paper 2: NPD
Resourceful Sensemaking: Overcoming Barriers between Marketing and Design in NPD
Authors: Michael B. Beverland, Pietro Micheli, and Francis J. Farrelly
Brief overview of paper
In the paper, the authors (Beverland, Micheli and Farrelly, 2016) seek to find ways in which barriers
to New PRoduct Development (NPD) can be overcome among organizations, especially between
product designers and product marketers. The authors acknowledge that the success of NPD, based
on past studies, depends largely on the design and marketing teams working together. However, this
is not always the case because the two teams have different ‘thought worlds’ and understanding
about products. Beverland, Micheli and Farrelly (2016) further allude to the fact that the solution to
this problem, based on empirical findings, is not in the reduction of the psychological distance
between these two functions, but in sensemaking practices used by both teams. This approach will
expand the understanding of each other (of the two functions) of potential NPD solutions, an
approach termed resourceful sensemaking which is the capacity of practitioners to transform
knowledge with the goal of expanding the horizons of each other. This ensures better outcomes for
teams. To meet their research objective, the authors undertook interviews with 71 participants
drawn from New Zealand and Australia and examined how each function (design and marketing)
deploys the others’ knowledge in to improve the outcomes of NPD. the authors, using existing
literature as well as their research findings, establish that effective NPD requires the inputs of both
designers and marketers. They can as well create common meanings framework using three
sensemaking practices namely co-opting, exposing, and repurposing. These practices enable
designers and marketers to expand their range of inputs and considerations into NPD leading them
to identify consumer needs that are unmet and the result is more innovative products.
Literature review
According to Maitlis and Christianson (2014), sensemaking refers to the process by which people
work so that they understand events or issues that are confusing, ambiguous, novel, or that violate

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expectations in some other way. Sensemaking, as an activity is central to organizing and remains a
subject of considerable research in the past decade. In their study, the authors, through an extensive
review of literature, establish that sensemaking is accomplished through cooperative and interactive
events that create inter subjective meaning that inspire positive action. Further, sensemaking
enables other key organizational processes to be accomplished; such processes include creativity,
learning, organizational change, and innovation. Sensemaking is a process in which people notice
and interpret events that are equivocal, and coordinate responses that clarify the meanings of such
events. It provides a unique perspective to organization members on how they can attain a better
understanding of their environments via embodies and verbal behaviors. These understandings
constrain and enable their subsequent behavior, changing their environment in a manner that
necessitates new understandings (Bendl, Hainzl and Mensi-Klarbach, 2019). Akgün et al. (2012)
address an area of sensemaking that is seldom addressed; its role in NPD project teams within the
innovation and technology management literature. Through an investigation of 92 project teams,
Akgün et al. (2012) established that the capability of teams for sensemaking positively impacts
speed-to-market and information implementation. These in turn mediate the relationship between
the capability for sensemaking in teams and success of new products. The capability of
sensemaking in teams in turn mediate team information implementation and team processes while
mediating the relationship between speed to market and team processes. The sensemaking
capability of teams was also established to be influenced positively by interpersonal trust in team
members, autonomy and team members open mindedness. According to Beverland, Micheli and
Farrelly (2016), the success of NPD depends on the capability of different functions to collaborate
effectively and helps designers and marketers to understand each other better and overcome
barriers, further enhancing innovation and customer satisfaction.
Methodology
The researchers sought to show that resourceful sensemaking and not reducing the psychological
distance between marketing and design teams results in NPD success. This they achieved using an
interpretivist philosophy where researchers interpret study elements in a way that emphasizes the
use of qualitative analysis rather than quantitative analysis (Bachman and Schutt, 2010). The
authors sought to find deeper meanings and establish thematic patterns and this informed the use of
the interpretivist philosophy. The nature of the research and their objective also informed the use of
this philosophy. Using the interpretivist philosophy means that the research methodology must be
consistent as well with the objectives and nature of the study to find thematic patterns in the
responses from the participants and hence the choice of using the inductive approach (Bryman, Bell

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and Harley, 2007). This research approach begins with theories and patterns are then established at
the end of the research. This is attained by using an equally relevant research method which is
qualitative research; an exploratory research method aimed at establishing underlying reasons and
motivations (Lapan, Quartaroli and Riemer, 2012); this was the objective of the authors and which
justifies the use of this methodology.
Paper 3: IKEA
A transnational perspective on knowledge sharing: lessons learned from IKEA's entry into Russia,
China and Japan
Author: Anna Jonsson
Brief overview of paper
For multinational corporations (MNCs), the subsidiaries are strategic partners when it is viewed
from the lens of a transnational corporation and knowledge for such MNCs can also originate from
the subsidiaries. Using a qualitative case study, the author investigates the lessons learned with
regard to knowledge flows in MNCs using IKEA and is forays into China, Russia, and Japan. The
author, after evaluating information flows in a reverse, forward, and lateral manner stresses the need
for using a transactional approach as the best way of understanding multiple flows in knowledge
within MNC’s as way of ensuing differentiation and integration, especially when a company moves
into new markets with different cultures, norms, and business practices as was the case with IKEA
Literature review
According to Liu et al. (2017), the amount of credible knowledge transfer is a significant
competitive advantage for vertical relationships especially in emerging economies as they improve
credibility and hence improve knowledge management within organizations. Knowledge sharing in
transactional organizations, the mechanism for governance, and the capabilities for innovation do
co-evolve with time. The knowledge sharing level determines the governance mechanism and
structures; however, this must be balanced with trade-offs between governance mechanisms and
knowledge sharing (Yang, 2010). In virtual transactional communities the satisfaction of
contributors is greatly increased through knowledge sharing, based on the theory of goal attainment
(Sun, Fang and Lim, 2014). Transactional knowledge sharing is premised on short term
relationships that are transactional among organizations, for instance licensing from the parent

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company, or data and material transfer. This network enables only the sharing of codified
knowledge and with time, this evolves so that knowledge is decentralized (Balle et al., 2019).
Methodology
The author sought to understand how knowledge flows within an MNC occurs using a transactional
perspective; this has been achieved using an interpretivist philosophy that entails integrating human
elements into a study where access to reality is believed to be achievable only via social constructs
such as shared meanings, language, instruments, and consciousness. It focuses on meaning and this
is one thing the author set out to find (Bachman and Schutt, 2010). This research required making
observations to search for patterns devoid of any theories at the beginning although theories and
hypotheses gradually develop towards the end; this is best achieved through an inductive research
approach which commences with detailed observations that then move towards abstract
generalisations (Bryman, Bell and Harley, 2007). Such an approach works best with a qualitative
research approach such as a case study where several options and issues are identified and the best
solution that meets the research objectives are identified. This methodology is suited to the research
objectives and aligns well with the qualitative approach of using inductive research within the
philosophical framework of interpretivism.
Conclusion
As stated earlier, reflection is an important activity that reinforces learning and experiences and
provides opportunities for making further improvements. This exercise involved evaluating various
articles, analyzing them as part of the research methodology course. The experience has been great,
albeit challenging and a proper reflection requires clear and concise statement of points based on
the main themes identified. Asking oneself-questions is also useful in getting more details, such as
‘what have I learned’? ‘What is still not clear to me’? Based on these, brief sentences and
statements are then used to put the learning experience on paper using a journal and evaluated at
suitable stages as per Zubizaretta (2009).
In undertaking this course, I have come to gain new and useful insights in how to conduct proper
research. I had previously taken research methodologies for granted, assuming it to be just another
activity involving collecting information or data and interpreting it. However, I have come to realize
the importance of using the right tools to achieve the goals and objectives of specific research. The
type of research to be undertaken, the field of study, such as business study, the specific research
objectives and what the researcher intends to achieve are important factors in determining how a

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research should be undertaken. Selecting the right research philosophy to guide research, using the
right design, and the suitable method of data collection, I have learned, are prerequisites for
competent and scientific research. Further, I have come to understand and appreciate the fact that a
given research methodology must be aligned with the selected research design and approach, which
in turn must be aligned to the selected or suitable research philosophy. At this point, the various
research philosophies, methodologies, and approaches are no longer just technical jargon or terms,
but concepts I have internalized. I now understand clearly the importance of reflection within the
Kolbs experiential learning cycle (see Fig 1) and that reflection also involves personal feelings and
perceptions. Further, I have learned that reflection is not an isolated or static event, but a continuous
cycle (see Fig 2). In the future, I will employ the lessons from this course in my other academic,
professional, and even personal undertakings to evaluate my progress and experiences and identify
opportunities for improvements. Reflection, I have come to understand, is greatly beneficial in
helping reinforce and critical evaluate experiences, including learning experiences in order to
acquire and store knowledge, otherwise, experiences are quickly forgotten, negating the purpose of
learning experiences.
Fig 1

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Fig 2

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