RIC-Unit-1-chapt-3
RIC-Unit-1-chapt-3
RM
Unit-1-Cahpt-4
Theory Building
What Is a Theory?
• A theory consists of a coherent set of general propositions that
offer an explanation of some phenomena by describing the way
other things correspond to this phenomena.
• A theory is a formal, testable explanation of some events that
includes explanations of how things relate to one another.
• A theory can be built through a process of reviewing previous
findings of similar studies, simple logical deduction, and/or
knowledge of applicable theoretical areas.
• For example, if a Web designer is trying to decide what color
background is most effective in increasing online sales, he may first
consult previous studies examining the effects of color on package
design and retail store design.
• He may also find theories that deal with the wavelength of different
colors, affective response to colors, or those that explain retail
atmospherics.
What Are the Goals of Theory?
• Suppose a researcher investigating business phenomena
wants to know what caused the financial crisis. Another
person wants to know if organizational structure influences
leadership style.
• Both of these individuals want to gain a better
understanding of the environment and be able to predict
behavior; to be able to say that if we take a particular
course of action we can expect a specific outcome to occur.
• These two issues—understanding and predicting—are the
two purposes of theory.
• Accomplishing the first goal allows the theorist to gain an
understanding of the relationship among various
phenomena.
Research Concepts and Constructs
• Concept (or construct) is a generalized idea
about a class of objects that has been given a
name; an abstraction of reality that is the basic
unit for theory development.
• Ladder of abstraction- Organization of concepts
in sequence from the most concrete and
individual to the most general.
• Abstract level- In theory development, the level
of knowledge expressing a concept that exists
only as an idea or a quality apart from an object.
• Empirical level- Level of knowledge that is
verifiable by experience or observation.
Research Propositions and
Hypotheses
• Propositions are statements concerned with the
relationships among concepts. A proposition explains the
logical linkage among certain concepts by asserting a
universal connection between concepts.
• For example, we might propose that treating our
employees better will make them more loyal employees.
This is certainly a logical link between managerial actions
and employee reactions, but is quite general and not really
testable in its current form.
• A hypothesis is a formal statement explaining some
outcome. In its simplest form, a hypothesis is a guess. A
sales manager may hypothesize that the salespeople who
are highest in product knowledge will be the most
productive.
• Empirical testing means that something has been
examined against reality using data.
• The abstract proposition “Treating our employees
better will make them more loyal employees”
may be tested empirically with a hypothesis.
• Variables-Anything that may assume different
numerical values; the empirical assessment of a
concept.
• Operationalizing- The process of identifying the
actual measurement scales to assess the
variables of interest.
Hypotheses Are
the Empirical Counterparts
of Propositions
Understanding Theory
Theory Building
• Deductive reasoning -The logical process of
deriving a conclusion about a specific instance
based on a known general premise or
something known to be true.
• Inductive reasoning -The logical process of
establishing a general proposition on the basis
of observation of particular facts.
The Scientific Method
• The scientific method is a set of prescribed procedures for
establishing and connecting theoretical statements about events,
for analyzing empirical evidence, and for predicting events yet
unknown.
• It is useful to look at the analytic process of scientific theory
building as a series of stages.
• While there is not complete consensus concerning exact procedures
for the scientific method, we suggest seven operations may be
viewed as the steps involved in the application of the scientific
method:
• 1. Assessment of relevant existing knowledge of a phenomenon
• 2. Formulation of concepts and propositions
• 3. Statement of hypotheses
• 4. Design of research to test the hypotheses
• 5. Acquisition of meaningful empirical data
• 6. Analysis and evaluation of data
• 7. Proposal of an explanation of the phenomenon and statement of
new problems raised by the research
Thank You