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BRM Chap 2

This document discusses theory building in business research methods. It defines a theory as a set of general explanations for observed phenomena or how things relate. The goals of theory are understanding and prediction. Theories progress from abstract concepts and propositions to empirical variables and hypotheses that can be tested. Concepts abstract reality, while variables represent empirical assessment of concepts. The scientific method involves deductive and inductive reasoning to analyze evidence and predict unknown events.

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103 views16 pages

BRM Chap 2

This document discusses theory building in business research methods. It defines a theory as a set of general explanations for observed phenomena or how things relate. The goals of theory are understanding and prediction. Theories progress from abstract concepts and propositions to empirical variables and hypotheses that can be tested. Concepts abstract reality, while variables represent empirical assessment of concepts. The scientific method involves deductive and inductive reasoning to analyze evidence and predict unknown events.

Uploaded by

S- Ajmeri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Business

Research Methods

Chapter :

Theory Building
Learning Outcomes
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
What is a Theory?
Theory
A coherent set of general propositions used as principles of explanation of
the apparent relationships of certain observed phenomena.
OR
A formal, logical explanation of some events that includes predictions or how
things relate to one another.

Goals of Theory
•Understanding
•Predicting
Levels of Reality
• Abstract level (concepts & propositions):
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 (variables & hypotheses):


Level of knowledge reflecting that which is verifiable
by experience or observation.
Concept (or Construct)
• A generalized idea about a class of objects, attributes, occurrences, or
processes that has been given a name
• Building blocks that abstract reality
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and “inflation”
Concepts are Abstractions of Reality

Abstract CONCEPTS
Level

Empirical OBSERVATION OF OBJECTS


Level AND EVENTS (REALITY)
Concepts are abstraction of reality
A Ladder Of Abstraction
For Concepts

Increasingly more abstract


Vegetation

Fruit

Banana

Reality
Theory Building: A Process Of Increasing
Abstraction

Increasingly more abstract


Theories

Propositions

Concepts

Observation of objects
and events (reality )
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.
Hypotheses are the empirical counterparts of
propositions
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.
A Basic Theory Explaining Voluntary Job Turnover
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

•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.
The Scientific Method:
An Overview of steps

Assess Formulate Statement


Design
relevant concepts & of
research
existing Propositions Hypotheses
knowledge

Acquire Analyze & Provide


empirical evaluate explanation-
data data state new
problem

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