IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 23, Issue 4. Ser. II (April 2021), PP 23-35 www.iosrjournals.org DOI: 10.9790/487X-2304022335 www.iosrjournals.org 23 | Page Developing a Research Methodology with the Application of Explorative Factor Analysis and Regression Dr Priyabrata Panda 1 , Sovan Mishra 2 , Dr Bhagabat Behera 3 Abstract Developing a methodology for an article or thesis has immense importance. Jharotia & Singh (2015) said that methodology eases the work plan of a thesis. Patel & Patel (2019) added that research methodology is the mean to resolve research issues scientifically. The principal purpose of this research work is to develop a methodology when factors are generated after applying explorative factor analysis and regression is to be applied to such factors. This current work also enlightened data screening process and normality assumption. It will help the researchers who are conducting perception studies, behavioural studies etc. with categorical data. Keywords: Explorative Factor Analysis, Regression, Methodology, Data Screening, Normality --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 22-03-2021 Date of Acceptance: 06-04-2021 --------------------------------------------------------------------------------------------------------------------------------------- I. Introduction The methodology segment of a thesis or article has immense importance as it helps to proceed for further analysis. Jharotia & Singh (2015) emphasised that methodology defines work plan for completion of research. Patel & Patel (2019) added that research methodology is the way to solve research problem scientifically. This part of a research work includes a series of activities in sequence like formulation of statement of the problem, comprehensive design of a research includes its scope, required data, sampling design etc. Crafting a research methodology chapter largely depends on the type and nature of research. This chapter for time series data is different from panel data. This work is specifically designed for a research work which applied linear regression after generating factors from explorative factor analysis with the help of principal component analysis. The research methodology chapter of an ongoing Ph D thesis of Mishra (2021) has been taken as a background for this research work. II. Objective of the Study The main purpose of the study is to develop a methodology of a research work which applies regression on factors extracted from principal component analysis under explorative factor analysis. Data screening and assumption testing are also highlighted. III. Research Design Research design answers what, why, where and how (Kothari, 2004). It narrates about the data, type of research, variables, sample etc. which are enumerated below. Type of Research Empirical research differs from exploratory research. Researcher has to mention about the type of research here. Nature of Data Primary data and or secondary data are applied for hypothesis testing. Moreover, objective of a research specifies the type of data which are to be used. The researcher should theoretically justify the requirement of data in accordance with objectives. Source of Data The sources of data must be reliable. Government sources are said to be authentic. CMIE database is widely used by different researchers. Primary data must be collected from targeted population with comprehensive scheduled questionnaire. 1 Assistant Professor of Commerce, Gangadhar Meher University, Amruta Vihar, Sambalpur, Odisha, India, 7978123683, pandapriyabrata@rocketmail.com 2 Research Scholar, Ravenshaw University, Cuttack, India 3 Assistant Professor of Commerce, Ravenshaw University, Cuttack, India