The Research Methodologies Used In Businesses Commerce Essay

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This chapter will discussed the methodology engaged in this research study on how the information was gathered and the method is used in examine them to answer the research questions. In order to complete this study, this purpose of this study is to examine potential relationship between the dependent and the independent variables. The first part of this chapter is to discuss about the research design. After that is follow by the research framework of the thesis is presented. The main purpose of the research framework is to get a clear view on the study and provide a comprehensive framework to analyze the social networking sites (SNSs) that are believed to affect private sectors Company in Kuala Lumpur, Malaysia.

From the observation, this study found some of the independent variables on social networking sites (SNSs) that might increase business value are the network of customer relationship, product marketing, collaboration, recruiting expert and promote brand name. These are the factors to influencing the business performance and it will be analyzed in order to find out whether there is any significance relationship exists between these independent variable and dependent variables. Next, it is followed by a discussion on the development of hypotheses for this research study, and also the sampling plan and the methods of data collection. Lastly, the data analysis part is discussed follow by the analyzing the outcomes of the questionnaires. Thus, this chapter ends with this brief summary.

The types of analysis that will be used to analyze data collected are listed down to obtain the data needed of the research, a survey method that is has been done by designing a set of questionnaire that will distributed to the questionnaire that will distributed to the private sectors companies in Kuala Lumpur. The outcome will be analyzed using refined tool which is Statistical Package for Social Science (SPSS).

3.2 Research Theoretical Framework

Research framework is use to provide a better understanding of this research study. The four independent variables for this study have been identified, which are network of promote brand name, product marketing, customer relationship, collaboration, and recruiting new employees. As this research aims to examine the influences social networking sites (SNSs) towards the business value, so this study focused on the relationship between business value and all the variables.

Independent Variable Dependant Variable

Product Marketing


Promote brand name

Social Networking Sites (SNSs)

Business Value

Customer relationship

Recruiting suitable employee


The proclamation of hypotheses are stated and described in this section. It is derived from the theoretical framework mentioned above. Based on the study done, the network of customer relationship, product marketing, collaboration, recruiting expert and promote brand name brought by social networking sites (SNSs) poses good impact in business value. Therefore, the hypotheses will be:

Hypothesis 1

H 1 - There is a significant relationship between promote brand name on social networking sites (SNSs) and business value

A recent prospect Search Marketer Social Networking Survey revealed that 48% of search marketers proactively place content on popular social networking sites to drive traffic and create brand awareness. (Redbridge, 2008)

Hypothesis 2

H 2 - There is a significant relationship between product marketing on social networking sites (SNSs) and business value.

Hypothesis 3

H 3 - There is a significant relationship between collaboration on social networking sites (SNSs) and business value.

In the Wavecrest computing, Dennis McCabe as the vice president of business development has stated that social networking sites can enhance the ability of the businesses and their employees to communicate and collaborate with their either internal or external associates.

Hypothesis 4

H 4 - There is a significant relationship between customer relationship on social networking sites (SNSs) and business value

Social networking sites is one of the tools that help an organization to humanize their operation by allowing customer to establish relationships and participate from a community sense." said Mike Gotta, principal analyst - Burton Group (2008).

Hypothesis 5

H 5 - There is a significant relationship between recruiting suitable employees on social networking sites (SNSs) and business value

Recruitment and human resources professionals are turning to business networks and recommendations from online contacts to find interviewees. This can be a more efficient way to fill posts than media advertising"(IBM , 2008).


This sampling plan will be describe the base of the study. This is to ensure that relevant raw data is collected and have a good representative of the defined target population and the plan will include the steps taken before and after it have been done.

The research area of this study on the social networking sites in private sectors was directed to companies located in Kuala Lumpur, Malaysia. The target population will be the companies located in Kuala Lumpur. The respondents can be both small and big companies' all executive level and above because they are the one who know better on the company operation and outcome unlike the normal worker and also they are responsible to developing marketing campaigns that promote a product, service or idea includes planning, advertising, public relations, organizing events, product development, distribution, sponsorship, research and human resource relevant. I believe that these respondents can bring me more accurate information of my research.

For the population and sample size, the population is refers to entire group of people, the event or things on researcher interest to investigate. The population frame is the Malaysian companies and sampling will be used because it would be costly to perform census and there is sufficient information in a sample to allow it to represents the population.

The actual sample size for the research study is 200 samples (n=200). 15 Questionnaires will be given out randomly selected groups of respondent in the main areas. The sample population wills companies in different industry, such as service, manufacturing, car, and food and multinational companies.


The art of the questionnaire is rather than a science words. Along the research study, at the time of questionnaire development which there is many rebukes of things to avoid or avoid ambiguous questions. From the starting point in the development of questionnaire process, it will be specifying what information will be required and from which industry in order to determine what relationships will be investigated. After that, it turned to specify which how it will gather all the result to be measured.

Generally, the questionnaire will consist of two main sections. The first section will designed to collect demographic and general question of the respondents. This will include the question asking them do their company own social networking site. The second section is the Likert Scale in order to measure the four parts of independent variables customer relationship, product marketing, collaboration, recruiting suitable employee and promote brand name.


In order to accomplish the study, two sources of data are used, which one is primary and another one is secondary data. The primary data will be obtained from the organizations through the use of the surveyed questionnaire. Meanwhile, the secondary data is collecting from the journals, books, electronic sources and other similar researches and reviews et cetera. Once the data is collected, several steps will be taken to analyze the data given. The raw data were organized systematically and coded into the computer by using Statistical Package for Social Sciences (SPSS 17) as well used this software to evaluate the data since it is offered a easy and considerable range of tools to be employed in a flexible way.

Primary data

The primary data has been used to collect first handed information and generate the current information. In this study, a set of questionnaire will be use as the collection of the primary data. These sets of questionnaire will be distributed to some company as to collect the current information. For the purpose of this research, 50 questionnaires have been distributed and administered by the researcher to the respondents. The selected respondents for the survey are those who are big companies and SME Company.

Secondary data

Secondary data is to be used as data collected for some purpose except the problem at hand. These data can be obtained from both internal data and external data. The secondary data are important for this research. External data were collected from online journals in Emerald, Science Direct and search engines (Yahoo, Google, and Msn). Besides, data were also extracted from several newspaper (such as New Straits Times and the Star) and magazines.


The data collected through the questionnaires will be analyzed by using Statistical Package for Social Science System (SPSS) software. Demography question are converted in to nominal scale uses 1 for male and 2 for female. Likert scale is used for questions related to the factors influencing the adoption of life insurance. The label such as 1 for strongly agree, 2 for agree, 3 for neither agree nor disagree, 4 for disagree, 5 for strongly disagree. This makes the data entry process faster and easier. In this study, there are three analysis used to analyzed the response of the survey. The analyses are Frequencies test, descriptive analysis, correlation test and multiple regression tests.

The research framework and methodology of this research have been measured in this chapter; the results of data collected and further explanations on the results will be mentioned and shown in the next chapter.


Descriptive analysis such as maximum, minimum, means, standard deviations, and variance were obtained for the interval-scaled independent and dependent variables. (Uma Sekaran, 2006) The percentages and frequency are used to measure central tendency of nominal data such as respondent background to review the differences of respondents.

Different levels of measurement are used for the data analysis in this study. The nominal scale measurement is employed to measure one of demographic factors; gender. Respondents are uniquely identified as male and female. It is to determine the number of male and female respondent in the sample. The nominal scale is also used to measure two more demographic factor and age.

Interval scale is used to measure the dependent variable which is business value. The Likert scale is employed to measure independent variables. A six scale range will be used.


Hypothesis testing is to measure if the hypothesis for characteristic is said to be true or observed difference due to sampling error or the hypothesis is false and the true value is some other value. Correlation method is used to determine the relationship between the independent variable and dependent variable. Through multiple regressions is also used to understand the relationship between dependent and independent variables.

3.91Correlation Test

Correlation test is kind of statistical analysis that we commonly used to defines the variation in one variable by the variation in another, without using a cause-and-effect relationship. In the correlation test, the coefficient of correlation is type of measurement to measure the strength of the relationship between the variables; which from the result of this test we can see how well changes in one variable can be predicted by changes in another variable. (Barron's Educational Series, 2000) Therefore, this study uses correlation test to measure the relationship between the dependent variables used in this study.

3.93 Multiple Regression Test

Multiple regressions are a statistical tools that we can use it to forseen the score on dependant on the basis and compare to the score of accompanier independent variable. Through multiple regressions, it is also used to understand the relationship between dependent and independent variables.