What is the primary purpose of a literature review in business research?

The primary purpose of a literature review in business research is to summarize existing research and identify gaps in the current knowledge. This process involves an in-depth examination of previous studies, theories, and findings relevant to a specific topic or research question. By synthesizing this information, researchers can highlight what is already known and where there are areas that require further exploration.

Identifying these gaps is crucial because it helps in formulating a research question that contributes to the field, ensuring that the new study addresses an area that has not yet been fully explored or understood. This proactive approach not only strengthens the foundation of the new research but also enhances its potential significance within the field of business.

In contrast, establishing a business model, collecting primary data, and developing statistical tests serve different functions in the research process and do not encapsulate the fundamental aim of a literature review. A literature review primarily sets the stage for research rather than directly engaging in practical applications like creating models or collecting data.