Question

Given the following limitations of observational studies, why are they still used in business research?

Researcher bias can bias the design of a study.

Researcher bias can enter into data collection.

Sources or subjects may not all be equally credible.

Some subjects may be previously influenced and affect the outcome of the study.

Background information may be missing.

Study group may not be representative of the larger population.

Analysis of observations can be biased.

Answer 1

Considering all the limitations of observational studies, here is why they are still used in business research -

1. It provides access to real world situations and doesn't rely much on hypothetic assumptions.

2. It helps in studying the actions of subject under various real settings

3. Observation can improve the quality of a research by conforming based on true observation or experience rather than estimates based on past data.

4. Validity of an outcome can be confirmed through observation.

5. It doesn't involve error or unknown part that is usually expected in expertimental or other data intensive studies.