Specifically, research is necessary in the following areas:
- It facilitates effective business decisions: Management in all spheres of life make decisions almost on daily basis. Some of the decisions are strategic while others are operational. Whichever is the case, workable decisions are predicated on the quality of information available to the decision maker. It highlights the spectrum of the available alternatives and provides the data base for weighting and considering the options. In all the functional areas of business, the use of structured information gathering process has led to the advancement of the branches concerned with knowledge acquisition. For instance, Operation Research in business management as a field that uses mathematical, logical and analytical techniques models to help managers solve operational problems has grown in use and appreciation; the same for Marketing Research and/or Research in Marketing. The latter facilitates the provision of data for the identification of customer products preferences, buying behaviourand the nature and type of market competition. Management and Financial information system has been growing in methodology and use across various organizations.
- Basis for sound policy formulation: It has become common knowledge that the bane of most developing economies is inadequate policies and/or unrealistic policies. The latter stems from making policies that are not backed by data and evidence. Such decisions will be difficult to implement. So research will provide a sound evidence basis for making feasible and realistic socio-economic and political decisions.
- It facilitates innovation and help to move nations at the cutting edge of global competition: Akey fallout of globalization is the heightening of competition. This is because the world is shrunk into a global village and as a result, widened the horizon of business transactions. The implication is that those who will be at the fore front of market and industrial leadership are those who are able to break the frontiers of product line to add something new or find a better way of doing old things. To achieve this entails investment in research and development. Leading fortune 500 organizations are known to invest so much in research and development activities. Customer tastes, needs and preferences keep changing and as such research must be used to identify with and keep pace with the trend.
- It satiates man’s quest for knowledge: Man by nature is inquisitive. He keeps trying to explore nature to discover why things are the way they are. This the trigger process for the emergence of existing theories and paradigms. Research is one scientific basis for satisfying this longing for knowledge. In its documented form, it helps other researchers not to bother wasting time and resources on what has been done before; rather it provides a pedestal to improve on the existing knowledge.