MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1

RESEARCH METHODOLOGY

(Business Research Methods)

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 2

Secondary Data

Secondary (or historical) data is data which has

been acquired through a research or any other

effort in the past and for another purpose

Depending on the secondary data needed, there

may be numerous sources for acquiring this

secondary data

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 3

Advantages of Secondary Data

• Pool of already existing data

• Cost-effective vis-à-vis primary data

• Quick availability

• No need for designing and undertaking a research study

• Collecting primary data may not be feasible (privacy issues)

• Many different sources are available

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 4

Disadvantages of Secondary Data

• Relevance for researcher• Does data apply to target population?• Time-frame consistent with researchers

requirement? (outdatedness)• Variation in terms of definition of terms• Different units of measurement (data

conversion)• Verification of data’s accuracy (inherent biases

due to vested interests)• Reputation of the data-collecting organization

and research design used may not be good

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 5

Evaluating Secondary Data

Do the data help answer questionsset out in the problem definition?

Do the data help answer questionsset out in the problem definition?

Do the data apply to the time period of interest?

Do the data apply to the time period of interest?

Do the data apply to the populationof interest?

Do the data apply to the populationof interest?

Do other terms and variableclassifications presented apply

to the project?

Do other terms and variableclassifications presented apply

to the project?

Are the units of measurement compatible?Are the units of measurement compatible?

Can databe re-

worked?

If yes,continue

Ap

plic

ab

ility

to C

urr

ent P

roje

ct

No!

Yes

Yes

Yes

Yes

No!

No!

No!

No! (Next Slide!)

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 6

Evaluating Secondary Data

Are the units of measurement compatible?Are the units of measurement compatible?

If possible, go to the original data sourceIf possible, go to the original data source

Is the cost of data acquisition worth it?Is the cost of data acquisition worth it?

Is there a possibility of bias?Is there a possibility of bias?

Can accuracy of data collection be verified?Can accuracy of data collection be verified?

Use DataUse Data

No!

Yes!

No!

Inaccurate or unsure)

Yes

Yes

Yes

Yes (accurate)

NoIs using

data worththe risk?

NoYes

No

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 7

Fact Finding

Fact finding is about collecting secondary (or descriptive) data with a view to obtaining insights which can assist in decision-making

Some examples:

(1) Macroeconomic Data of Pakistan

(2) Global Oil price trends

(3) FDI in China over the period 2000-2005

(4) Indo-Pakistan trade statistics

(5) Salary structure across ten selected industries

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 8

Model Building

Model building is about specifying relationships between two or more variables

Models can range from very simple ones, involving only two interrelated variables to complex ones involving several interrelated variables (multivariate statistical forecasting models)

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 9

Classification of Secondary Data: Internal Sources

Internal Sources (data already existing within an organization, for example, data collected and stored by various departments such as accounting and finance, marketing)

Sometimes one unit in an organization is unaware that other units may be maintaining data which may be relevant for it and undertakes unnecessary and costly data collection

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 10

Classification of Secondary Data: External Sources

External Sources (data generated or provided by individuals and entities other than the researcher or his/her organization)

There are many types of external sources of secondary data:

Books and Professional Journals Federal Government sources Regional / Provincial Publications Electronic and Print Media Sources Commercial Sources Internet, CDs

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 11

Secondary Data in the International Context

As economies and business becomes increasingly global in outlook, so does the need for secondary data from other regions and countries

Potential Problems:

Unavailability of data in some countries Accuracy of data may be questionable Definitions and measurements of data may vary Comparability of data may be difficult

MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 12

On-Line Sources of Secondary (Business) Data in Pakistan: Selected Examples

Business Recorder www.brecorder.com

Forex Pakistan www.forexpk.com

Karachi Stock Exchange www.kse.com.pk

The Economist www.economist.com/countries/pakistan

State Bank of Pakistan www.sbp.org.pk

National Bank of Pakistan www.nbp.com.pk

Federal Ministry of Finance www.finance.gov.pk

Pakistan Federal Government www.pakistan.gov.pk