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Theory Building Essentials

This chapter discusses theory building and the scientific method. It defines a theory as a formal explanation of how things relate or events occur, including predictions. The goals of theory are understanding and predicting. Concepts are generalized ideas given names, like leadership or customer satisfaction. Propositions state connections between concepts, while hypotheses are testable propositions. The scientific method involves assessing knowledge, formulating concepts and propositions, testing hypotheses empirically, and proposing explanations.

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Amanda Samaras
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550 views13 pages

Theory Building Essentials

This chapter discusses theory building and the scientific method. It defines a theory as a formal explanation of how things relate or events occur, including predictions. The goals of theory are understanding and predicting. Concepts are generalized ideas given names, like leadership or customer satisfaction. Propositions state connections between concepts, while hypotheses are testable propositions. The scientific method involves assessing knowledge, formulating concepts and propositions, testing hypotheses empirically, and proposing explanations.

Uploaded by

Amanda Samaras
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 3

THEORY BUILDING

32

LEARNING OUTCOMES
After studying this chapter, you should
1. Define the meaning of theory 2. Understand the goals of theory 3. Understand the terms concepts, propositions,

variables, and hypotheses


4. Discuss how theories are developed 5. Understand the scientific method

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What is a Theory?
Theory A formal, logical explanation of some events that includes predictions or how things relate to one another. Goals of Theory Understanding Predicting

34

Research Concepts
Concept (or construct) A generalized idea about a class of objects, attributes, occurrences or process that has been given a name.
Examples: leadership morale gross domestic product assets customer satisfaction market share

35

Ladder of Abstraction
Ladder of Abstraction Organization of concepts in sequence from the most concrete and individual to the most general. Abstract Level The level of knowledge expressing a concept that exists only as an idea or a quality apart from an object. Empirical Level The level of knowledge that is verifiable by experience or observation.

Latent Construct A concept that is not directly observable or measurable, but can be estimated through proxy measures.

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EXHIBIT 3.1

A Ladder of Abstraction for Concepts

37
EXHIBIT 3.2

Concepts are Abstractions of Reality

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Research Propositions and Hypotheses


Propositions Statements explaining the logical linkage among certain concepts by asserting a universal connection between concepts.
Example: Treating employees better will make them more loyal

employees.

Hypothesis Formal statement of an unproven proposition that is empirically testable.


Example: Giving employees one Friday off each month will result in

lower employee turnover.

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Empirical Testing
Empirical Testing Examining a research hypothesis against reality using data. Variables Anything that may assume different numerical values. The empirical assessment of a concept.

Operationalizing The process of identifying the actual measurement scales to asses the variables of interest.

310
EXHIBIT 3.3

Hypotheses Are the Empirical Counterparts of Propositions

311
EXHIBIT 3.4

A Basic Theory Explaining Voluntary Job Turnover

312

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.

313

The Scientific Method


Scientific Method A set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown. Techniques or procedures used to analyze empirical evidence in an attempt to confirm or disprove prior conceptions.

Suggested steps:
1. Assess relevant existing
2. 3. 4. 5. 6.

7.

knowledge of phenomenon Formulate concepts and propositions State hypotheses Design research to test the hypotheses Acquire empirical data Analyze and evaluate data Propose an explanation of the phenomenon and state new problems raised by the research

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