In the process of doing business research, you will invariably be confronted with the choice of using the right approach of reasoning. There are two such approaches: Deductive and Inductive. In this blog post let me explain the deductive approach of reasoning.
Deductive Approach
Deductive approach begins from general perspective and ends in specifics. In deductive approach a business researcher uses formal logic where he states the problem along with possible causes. Afterwards he searches for rules, norms, principles, parameters that function as theoretical premises in guiding him toward his findings. He then turns to the observations he has made and/or phenomena that he has seen while considering the problem. After analysing these he finally seeks whether there is a connection between his findings and the chosen theory. At this moment he can opt for either of two models:
1. If… Then Model: This model is selected where the business researcher can state confidently that if a particular problem occurs in a manner then it is due to a particular premise. For example, if there is employee absenteeism then there is breakdown of motivation. The underlying theme in this model is that if we accept the premises are true, the observations/phenomena are objectively recorded and the argument led is sound then deductive reasoning enables us to conform the theoretical premises
2. Yes or No Model: In this model the theory and expected consequences are matched. Theory remains sacrosanct and expected consequences can vary. At a given moment if the observations and expected outputs are one and the same it proves the theory. On the other hand, if observations are dissimilar to the expected outputs it does not prove the theory forcing the business researcher to begin his enquiry afresh.
Ostensibly deductive approach of reasoning prods the business researcher to travel in a matrix of theory - hypothesis – observation – conformation as if he is stepping out from top to down or falling from cliff to valley. Perhaps due to this form of southerly movement analysts describe deductive reasoning as “Top Down “or Water Fall” approach.
Choice
Professor Gunapala Nanayakkara, a management guru, educator and researcher states that deductive approach of reasoning is applicable to phenomena that are sufficiently documented and a substantial amount of knowledge already exists. In his opinion deductive approach may start from known realities about which facts exist.
Therefore deductive approach can be effectively employed in most if not all cases of business research. Nevertheless, in the business world of risk and uncertainty it may be a good thing to look into merits and demerits of the alternative approach of inductive reasoning as well. Let me come back on this matter in another blog post.
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