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Significance of Research – Business Research Methods | Management Notes

Significance of Research

Progress is possible due to increased research. Research develops scientific and inductive thinking as well as logical habits of thinking and organization. In recent years, research in several fields of applied economics, whether related to business or to the economy as a whole, has significantly increased. Business and government have become increasingly complex, which has prompted attention to the use of research to solve operational issues. Both government and business are recognizing the importance of research as an aid to economic policy. Nearly all government policies in our economic system are based on research. Government budgets, for example, are partly determined by the needs and wishes of the people, and partly by the amount of revenue available. Research is needed in this area in order to figure out how to balance the cost of needs with the possibility of revenue. By conducting research, we can design alternative policies and examine each alternative’s consequences.

Research does not involve decision-making, but it certainly facilitates the policy-maker’s decisions. As part of the country’s overall development, the government will have to come up with programmes which will address all aspects of the country’s existence, with most of them linked to economic conditions. It is important to research issues such as cultivator plight, business and industrial problems, labour conditions, trade union activity, distribution problems, even the size and nature of defence services. For this reason, the allocation of resources needs to be based on research.

Collecting information on a nation’s economic and social structure is another area in government where conducting research is needed. In this way, we can get an idea of what the economy is doing and what is changing. A variety of research problems are involved in gathering such statistical information. In these days’ governments, almost all maintain large research staffs of technicians or experts. The three phases of government research functioning as a tool for economic policy are: (i) Investigation of economic structure through a continuous compilation of facts; (ii) Diagnostic of current events and analysis of the forces underlying them; and (iii) Prediction of future developments.

Business and industry look to research to solve various operational and planning challenges. A great deal of importance is placed on operations research and market research along with motivational research, resulting in their results being incredibly helpful when making strategic decisions for businesses. Studying the structure and development of a market is essential to formulating effective policies for purchasing, production, and sales. Research on operations involves applying mathematical, logical, and analytical methods to solve business problems involving minimization of costs and maximizing profits, or what is commonly referred to as optimization problems. Motivational research focuses on determining why people behave in certain ways based on market characteristics.

In other words, it examines the motivations that drive consumer (market) behavior. In business and industry, all of these things are invaluable to people tasked with taking business decisions. Business research regarding demand and market factors is highly beneficial. Knowing future demand makes it relatively easy for firms and industries to adjust their supply schedule within the limits of their projected capacity. Managing companies today involves market studies. Profit and loss accounts are ultimately derived from business budgeting, which mainly relies on sales estimates, which in turn depend on research. By properly forecasting sales, production and investment programs can be formulated around which the financing and buying plans are grouped. Thus, research replaces intuitive business decisions with more logical and scientific ones.

For social scientists, research is equally important for studying social relationships and finding solutions to various social problems. Social scientists find intellectual satisfaction in learning a few things just for the sake of knowing, and also find it useful to learn a few things so that they can perform a task better or more efficiently. In the social sciences, we study both the value of knowledge in itself as well as how the knowledge contributes to practical matters. In this context, it appears especially appropriate to place focus on the contrasting elements. One of its responsibilities as a science is to develop a body of principles that enable us to understand and predict the entire spectrum of human interaction. Due to its social orientation, it is also increasingly looked to for guidance in solving immediate problems of human relations.”

The significance of research can also be understood by keeping in mind the following points:

  • For those who are writing master’s or PhD theses, research may mean a way to advance their careers or achieve a high position in society;
  • For those involved in research methodology, research may be the source of their livelihood;
  • For philosophers and thinkers, research is a way of generating new insights;
  • For literary artists and writers, research often means that they develop new styles of writing;
  • For analysts and intellectuals, research refers to generalizing new theories.

Research is a source of knowledge for the sake of knowledge and an important tool in solving different business, governmental, and social problems. The purpose of formal training is to gain a better understanding of new developments in one’s field.


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