Comparison Tests in the Research

Researchers in management often find they want to test hypotheses. For example, a researcher may want to test the hypothesis that the introduction of formalized strategic planning improves the financial performance of banks (Robinson and Pearce, 1983). Comparison tests are powerful tools for testing such a research hypothesis.

Statistical tests generally fall into one of two categories: parametric tests and non-parametric tests. Aside from a number of differences, which we will look at later in this chapter, parametric and non-parametric tests essentially share the same basic logic. This common logic is presented in the first section of this chapter. The second and third sections then describe how these two types of statistical tests can be applied as part of the research process. Both of these sections are organized according to questions that commonly arise during the research process, along with appropriate statistical tests. So that readers can use this chapter to go directly to the test corresponding to their research question, I have systematically repeated information about the conditions under which each test should be applied, together with the rules to follow when deciding upon a test. The conclusion to the chapter presents an effective strategy with which to approach statistical testing.

Source: Thietart Raymond-Alain et al. (2001), Doing Management Research: A Comprehensive Guide, SAGE Publications Ltd; 1 edition.