Research Approach

Research approach can be divided into three types:

1. Deductive research approach

2. Inductive research approach
3. Abductive research approach
The relevance of hypotheses to the study is the main distinctive point between
deductive and inductive approaches. Deductive approach tests the validity of
assumptions (or theories/hypotheses) in hand, whereas inductive approach
contributes to the emergence of new theories and generalizations. Abductive
research, on the other hand, starts with ‘surprising facts’ or ‘puzzles’ and the
research process is devoted their explanation.[1]
The following table illustrates the major differences between deductive,
inductive and abductive research approaches in terms of logic,
generalizability, use of data and theory.[2]
Deduction Induction Abduction

In an inductive
In a deductive inference, In an abductive
inference, known premises inference, known
when the premises are used premises are used
are to generate to generate
true, the conclusion untested testable
Logic must also be true conclusions conclusions

Generalising
from the
interactions
Generalising from Generalising between the
Generalizabilit the general to the from the specific specific and the
y specific to the general general

Use of data Data collection is Data collection is Data collection is

used to used to used to explore a
evaluate explore a phenomenon,
propositions or phenomenon, identify themes
hypotheses related identify themes and patterns,
to an existing and locate these in a
theory patterns and conceptual
create a framework
conceptual and test this
framework through
 subsequent data
collection and so
forth

Theory
generation or
modification;
incorporating
existing theory
where
appropriate, to
Theory build new theory
Theory falsification generation and or modify existing
Theory or verification building theory
Differences between deductive, inductive and abductive
approaches
Discussion of research approach is a vital part of any scientific study
regardless of the research area. Within the methodology chapter of your
dissertation to you need to explain the main differences between inductive,
deductive and abductive approaches. Also, you need to specify the approach
you have adopted for your research by breaking down your arguments into
several points.
Let’s illustrate the application of each research approach for a following study:
Effects of labour migration within the EU on the formation of multicultural
teams in UK organizations

Deductive Research Approach

If you have formulated a set of hypotheses for your dissertation that need to be
confirmed or rejected during the research process you would be following a
deductive approach. In deductive approach, the effects of labour migration
within the EU are assessed by developing hypotheses that are tested during
the research process.
Dissertations with deductive approach follow the following path:
 Deductive process in research approach
The following hypotheses can be developed in order to assess the effects of
labour migration within the EU on the formation of multicultural teams in UK 
organizations using a deductive approach:
Hypothesis: Labour migration within the EU contributes to the formation of
multicultural teams in UK

Inductive Research Approach

Alternatively, inductive approach does not involve formulation of hypotheses.
It starts with research questions and aims and objectives that need to be
achieved during the research process.
Inductive studies follow the route below:

Inductive process in research approach

Referring to the example above, the effects of labour migration within the EU
on the formation of multicultural teams in UK organizations can be accessed
through finding answers to the following research questions:
Research question: How does labour migration within the EU effect the
formation of multicultural teams in UK?
Abductive Research Approach
In abductive approach, the research process is devoted to explanation of
‘incomplete observations’, ‘surprising facts’ or ‘puzzles’ specified at the
beginning of the study. Referring to the research topic of the effects of labour
migration on the formation of multicultural teams in the UK discussed above,
you may observe that labour migration within the EU was actually
decreasing the extent of cross-cultural differences within teams in the UK.
Then, your study can be devoted to the explanation of this phenomenon by
using qualitative and/or quantitative methods of data collection and data
analysis in an integrated manner

Inductive Approach (Inductive Reasoning)

Inductive approach, also known in inductive reasoning, starts with the
observations and theories are proposed towards the end of the research
process as a result of observations[1].  Inductive research “involves the search
for pattern from observation and the development of explanations – theories –
for those patterns through series of hypotheses”[2]. No theories or hypotheses
would apply in inductive studies at the beginning of the research and the
researcher is free in terms of altering the direction for the study after the
research process had commenced.
It is important to stress that inductive approach does not imply disregarding
theories when formulating research questions and objectives. This approach
aims to generate meanings from the data set collected in order to identify
patterns and relationships to build a theory; however, inductive approach does
not prevent the researcher from using existing theory to formulate the
research question to be explored.[3] Inductive reasoning is based on learning
from experience. Patterns, resemblances and regularities in experience
(premises) are observed in order to reach conclusions (or to generate theory).

Application of Inductive Approach (Inductive

Reasoning) in Business Research
Inductive reasoning begins with detailed observations of the world, which
moves towards more abstract generalisations and ideas[4]. When following an
inductive approach, beginning with a topic, a researcher tends to develop
empirical generalisations and identify preliminary relationships as he
progresses through his research. No hypotheses can be found at the initial
stages of the research and the researcher is not sure about the type and nature
of the research findings until the study is completed.
As it is illustrated in figure below, “inductive reasoning is often referred to as a
“bottom-up” approach to knowing, in which the researcher uses observations
to build an abstraction or to describe a picture of the phenomenon that is
being studied”[5]

Here is an example:
My nephew borrowed $100 last June but he did not pay back until
September as he had promised (PREMISE). Then he assured me that he will
pay back until Christmas but he didn’t (PREMISE). He also failed in to keep
his promise to pay back in March (PREMISE). I reckon I have to face the
facts. My nephew is never going to pay me back (CONCLUSION).
Generally, the application of inductive approach is associated with qualitative
methods of data collection and data analysis, whereas deductive approach is
perceived to be related to quantitative methods. The following table illustrates
such a classification from a broad perspective:
Concepts associated with Concepts associated with
  quantitative methods qualitative methods

Deduction Induction
Objectivity Subjectivity
Causation Meaning
Type of reasoning

Pre-specified Open-ended
Outcome-oriented Process-oriented
Type of question

Numerical estimation Narrative description

Statistical inference Constant comparison
Type of analysis
However, the statement above is not absolute, and in some instances inductive
approach can be adopted to conduct a quantitative research as well. The
following table illustrates patterns of data analysis according to type of
research and research approach.
  Qualitative Quantitative
 Inductive Grounded theory Exploratory data analysis

Deductive Qualitative comparative analysis Structural equation modeling

When writing a dissertation in business studies it is compulsory to specify the
approach of are adopting. It is good to include a table comparing inductive and
deductive approaches similar to one below[6] and discuss the impacts of your
choice of inductive approach on selection of primary data collection methods
and research process.
Attribute Deductive Inductive

Direction “Top-Down” “Bottom-Up”

Prediction changes,
validating  theoretical Understanding
construct, focus in “mean” dynamics, robustness,
behaviour, testing emergence, resilience,
assumptions and focus on individual
hypotheses, constructing behaviour, constructing
Focus most likely future alterative futures

Single Multiple
(one landscape, one (multiple landscape, one
resolution) resolution)
Spatial scales

Multiple Multiple
(deterministic) (stochastic)
Temporal scales

Multiple
Single (heterogeneous
(homogenous preferences) preferences)
Cognitive scales

Single or multiple
Single (one or more
(core aggregation scale) aggregation scales)
Aggregation scales

High – Low Low-High

Predictive vs.
(one likely future) (many likely futures)
Stochastic accuracy

High
Low (individual or group
(group or partial attributes) attributes)
Data intensity
 Deductive Approach (Deductive Reasoning)
A deductive approach is concerned with “developing a hypothesis (or
hypotheses) based on existing theory, and then designing a research strategy
to test the hypothesis”[1]
It has been stated that “deductive means reasoning from the particular to the
general. If a causal relationship or link seems to be implied by a particular
theory or case example, it might be true in many cases. A deductive design
might test to see if this relationship or link did obtain on more general
circumstances”[2].
Deductive approach can be explained by the means of hypotheses, which can
be derived from the propositions of the theory. In other words, deductive
approach is concerned with deducting conclusions from premises or
propositions.
Deduction begins with an expected pattern “that is tested against
observations, whereas induction begins with observations and seeks to find a
pattern within them”[3].

Advantages of Deductive Approach

Deductive approach offers the following advantages:

1. Possibility to explain causal relationships between concepts and

variables
2. Possibility to measure concepts quantitatively
3. Possibility to generalize research findings to a certain extent
Alternative to deductive approach is inductive approach. The table below
guides the choice of specific approach depending on circumstances:
Deductive approach Inductive approach
  preferred preferred

Wealth of
literature Abundance of sources Scarcity of sources

Short time available to There is no shortage of time

Time availability complete the study to compete the study

Risk is accepted, no theory

Risk To avoid risk may emerge at all
Choice between deductive and inductive approaches
Deductive research approach explores a known theory or phenomenon and
tests if that theory is valid in given circumstances. It has been noted that “the
deductive approach follows the path of logic most closely. The reasoning starts
with a theory and leads to a new hypothesis. This hypothesis is put to the test
 by confronting it with observations that either lead to a confirmation or a
rejection of the hypothesis”[4].
Moreover, deductive reasoning can be explained as “reasoning from the
general to the particular”[5], whereas inductive reasoning is the opposite. In
other words, deductive approach involves formulation of hypotheses and their
subjection to testing during the research process, while inductive studies do
not deal with hypotheses in any ways.
Application of Deductive Approach (Deductive
Reasoning) in Business Research
In studies with deductive approach, the researcher formulates a set of
hypotheses at the start of the research. Then, relevant research methods are
chosen and applied to test the hypotheses to prove them right or wrong.

Generally, studies using deductive approach follow the following stages:

1. Deducing hypothesis from theory.

2. Formulating hypothesis in operational terms and proposing
relationships between two specific variables
3. Testing hypothesis with the application of relevant method(s). These
are quantitative methods such as regression and correlation analysis, mean,
mode and median and others.
4. Examining the outcome of the test, and thus confirming or rejecting
the theory. When analysing the outcome of tests, it is important to compare
research findings with the literature review findings.
5. Modifying theory in instances when hypothesis is not confirmed.
Abductive reasoning (abductive approach)
Abductive reasoning, also referred to as abductive approach is set to address
weaknesses associated with deductive and inductive approaches. Specifically,
deductive reasoning is criticized for the lack of clarity in terms of how to select
theory to be tested via formulating hypotheses. Inductive reasoning, on other
hand, criticized because “no amount of empirical data will necessarily enable
theory-building”[1]. Abductive reasoning, as a third alternative, overcomes
these weaknesses via adopting a pragmatist perspective.
The figure below illustrates the main differences between abductive, deductive
and inductive reasoning:

At the same time, it has to be clarified that abductive reasoning is similar to

deductive and inductive approaches in a way that it is applied to make logical
inferences and construct theories.
In abductive approach, the research process starts with ‘surprising facts’ or
‘puzzles’ and the research process is devoted their explanation[2]. ‘Surprising
facts’ or ‘puzzles’ may emerge when a researchers encounters with an
empirical phenomena that cannot be explained by the existing range of
theories.
When following an abductive approach, researcher seeks to choose the ‘best’
explanation among many alternative in order to explain ‘surprising facts’ or
‘puzzles’ identified at the start of the research process. In the course of
explaining ‘surprising facts’ or ‘puzzles’, the researcher can combine both,
numerical and cognitive reasoning.
Despite its increasing popularity in business studies, application of abductive
reasoning in practice is challenging and you are advised to stick with
traditional deductive or inductive approaches when writing your dissertation if
it is the first time you are writing a dissertation…