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Action Research

Action research is a collaborative and participatory research approach in the process of business transactions aimed at solving real-world problems through practical solutions. It involves a cyclical process of planning, action, observation and reflection, often applied in organisational settings. Analysts work together to identify the critical issues in a business, develop possible interventions and assess their impact, with the cycle continuing until the problem is effectively solved. Key components include collaboration, participation of stakeholders and ongoing reflection. In the context of a business transaction, capital event or turnaround, the purposes of action research vary. They might include improving organisational processes, fostering innovation or addressing environmental issues. Three examples of companies applying action research are Toyota when it aimed to create a culture of enhanced manufacturing through continuous improvement; Procter & Gamble by innovating product development via external collaboration; and IBM by solving complex issues through the Smarter Planet initiative, showcasing the effectiveness of action research in improving processes, fostering innovation and driving positive change.