Question

CASE 4‐4 Research Methodology

Various research methodologies are available with which to study the development of accounting theory.

Required:

Discuss the deductive, inductive, and pragmatic research methods. Include in your discussion examples of accounting research that used each method

Answer 1

1] Deductive Research Method -

Deductive approach is also called Deductive Reasoning. It is concerned with developing a hypothesis based on existing theory and then designing a research strategy to test the hypothesis. It has been states that "deductive means reasoning from the particular to the general. If a casual relationship or risk 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 test did obtain on more general circumstances"

2] Inductive Research Method -

Inductive approach also known as Inductive Reasoning. It starts with the observation and theories are proposed towards the end of research process as a result of observation. Inductive research "involves the search for pattern from observation and development of explanations, theories from those pattern through series of hypotheses. No theories and hypotheses would apply in Inductive studies at the beginning of the research and researcher is free in terms of altering the direction for the study after the research process had commenced. Inductive approach is generally referred to as a "bottom-up" approach to knowing, in which researcher uses observations build an abstraction or to describe picture of phenomenon that is being studied.

3] Pragmatic Research Method -

Pragmatism Research philosophy accepts the concepts to be relevant only if they support action. Pragmatics "recognise that there are many different ways of interpreting the word and undertaking research that no single point of view can ever give the entire picture and that there may be multiple realities. According to the Pragmatism Research Philosophy, question is most important determinant of research philosophy. Pragmatic Research Method can combine both positivist and interpritivism positions within the scope of a single research according to the nature of research question.