In this post, we’ll take a more practical look at the conceptual framework, which is also sometimes called a conceptual model. After finishing this article, you will have a solid understanding of the fundamentals of an extremely efficient method for analysing and finding solutions to problems.
“Conceptual framework” – what is it?
When used in finance, the term “conceptual framework” refers to a diagram that shows the connection between various variables. Research models are another name for conceptual models. Writing a research question incorporates several variables and their presumed connections to capture the intended meanings. Before doing any kind of research, this framework might serve as a helpful guide. Consequently, a conceptual framework might be considered an analytical instrument. The differences and connections between thoughts may be conceptualised with its help. One must first have a solid conceptual framework to work from to achieve one’s goals.
Developing the Conceptual Framework
Accounting’s financial reporting is the cradle of the conceptual framework. Typically, this is how one would do an objective test of a practical issue. So, questions such as, “What helpful characteristics do accounting need?” or “which basic components are we coping with (resources, obligations, equities, etc.)?” or “what variables are required for the compilation of the financial statements?” are all addressed in a conceptual framework for finance.
Conceptual framework: Purpose and Significance
Conceptual models have well-defined connections between the various elements. In most cases, the model is completed ahead of time before any empirical study is conducted. As an added note, a conceptual framework’s wisdom and usefulness depend on the study’s specifics. It is common practice in testing research to use a conceptual framework. It is possible to demonstrate a theory using assumptions as a starting point. The fundamental goal of an experimental study is to provide evidence of a causal link mirrored in the overall framework designed to guide the research.
For experimental research, it is helpful to have preconceived notions about the causal linkages between variables, as shown in the model’s schematic form. In any case, the model may also be used for exploratory studies. Rather than using well-defined variables, this makes use of more generalised ideas. These studies have quantifiable, easily defined variables, and the connections between them are determined after the fact.
Variables of the Conceptual Framework
First, chart the expectations inside the conceptual framework, then separate the cause-effect connection into variables. Variables are cause-and-effect connection features. A fashion chain wants to increase online sales. The conceptual model includes 20 per cent greater online sales, weekly Facebook promotions, a 10 per cent discount on purchases made within 24 hours of a visit, and an upgraded online store look that shows clothing from different perspectives.
In the cause-effect connection, we have independent factors (Facebook marketing, 10% discount, and enhanced appearance) and dependent variables (20% more revenue). Independent variables determine the dependent variable (outcome) (causes). The qualities impact and are connected. Suppose the online store’s presentation is enhanced. In that case, visitors will spend more time shopping for clothing and will spot the offer of 10% off today. Facebook will help drive people to the online shop. Only the unit used to quantify variables may be debated. Conceptual issues like “what is Facebook marketing” emerge. Making explicit agreements in advance may help.
How Does it Look?
The conceptual framework, in actuality, is a picture of a problem statement. It seems to be rather easy as well. After settling on which factors will be studied and which will serve as controls, a conceptual framework may be developed:
- The dependent and independent variables are conceptualised in frameworks.
- Causal relationships are shown by arrows, which show how one idea may affect another.
- A line represents the missing link between two variables when a relationship (correlation) is assumed.
Benefits of Conceptual Frameworks
Incorporating a conceptual model into your work process may provide several benefits. To begin with, the user is essentially “forced” to offer thoughtful, detailed explanations of the variables. And the rules help you get there in the end. To ensure that everyone having access to the variables is aware of what is anticipated, the standards will be predetermined and compatible with this framework.
