6/8/2022

Theories

Theories are nets cast to catch

Theory Building what we call “the world”: to
rationalize, to explain, and to
master it. We endeavor to make
the mesh ever finer and finer.
by - Karl R. Popper
Dr. Anoop Kumar Gupta
MAIT
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Use of Theory
Two Purposes Of Theory
 Theory is used in research to provide
• Prediction foundation on which the research project
• Understanding stands.
 It provides the necessary framework that
enables the researcher to identify the
underlying variables and their possible
relationships.

Use of Theory
 A medical doctor uses theory to diagnose the
disease that bothers his patient.
 The patient comes complaining about the
symptoms of some underlying medical condition,
which is not apparent on the surface.
 The doctor uses theory to explain the symptoms
bothering the patient, and identifying underlying
cause of the symptoms.
 For example, a patient might approach his doctor
with complaint of stomach ache, nausea, and fever.
The doctor, on the basis of his theoretical
knowledge knows that this might be a case of
stomach infection. Thus, he might prescribe some
antibiotics to cure the patient.
What makes a good theory?
• Validity: It fits the facts
• Generalization: Makes predictions about
future or other events
• Replication: It can be repeated with similar
findings
Theories must be: Objective, Verifiable (i.e. within the
accepted margins of error), Falsifiable / disprovable
Good theories must understand, explain and predict
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Theory
• A coherent set of general propositions used as
principles of explanation of the apparent
relationships of certain observed phenomena.
• A theory is a formal, testable explanation of
some events that includes explanations of how
things relate to one another.
• Consider theory a model of reality, a
simplification that helps us better understand
the logic and relationships among different
factors.
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 …..
• Concepts are building blocks of theory
• In management we often use concepts or
constructs as variables
• Examples: Leadership, Productivity, Morale, Gross
National Product, Asset, Inflation, Social
Responsibility, GNP, Agency, Honesty, Efficiency
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Example of a Theory: Voluntary

Concepts are Abstractions Job Turnover
of Reality Labour market conditions, number of organizations, personal characteristics,
And other partial determinants of ease of movement

Abstract CONCEPTS Perceived ease of movement (e.g.

Level Expectation of finding alternatives,
unsolicited opportunities)

Perceived desirability of movement

(e.g. job satisfaction)
Empirical
Level Equity of pay, job complexity, participation in
decision-making, and other partial determinants
OBSERVATION OF OBJECTS AND EVENTS (REALITY)
of desirability of movement

A Ladder Of Abstraction
Abstraction
For Concepts
• Concepts abstract reality

Increasingly more abstract

– Concepts are expressed in words that refer to Vegetation
various events or objects
– Concepts vary in degree of abstraction Fruit
• Ladder of abstraction
• Research operates at abstract and empirical Banana
level linking concepts together as we begin
the journey to construct theory. Reality
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Scientific Business Researchers

Operate at Two Levels Definitions
• Abstract level • Abstract level - In theory development,
– concepts the level of knowledge expressing a
concept that exists only as an idea or a
– propositions
quality apart from an object.
• Empirical level • Empirical level - Level of knowledge
– variables reflecting that which is verifiable by
– hypotheses experience or observation.

Theory Building A Process Of

Propositions
Increasing Abstraction
• Concepts are the basic building blocks
• Propositions propose the linkages between
Increasingly more abstract

Theories
these concepts

Level of abstraction
Propositions theory

propositions
Concepts
concepts
Observation of objects
and events (reality )
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From proposition to hypothesis

Scientific Method Proposition at Abstract Level
Concept A: Concept B:
The use of a set of prescribed Punishment Or Attendance Or
procedures for establishing and Proposition Reinforcement Habits
Abstract
Level
connecting theoretical statements
Hypothesis at Empirical Level
about events and for predicting
events yet unknown. Yelling at students Increases
Hypoth- Or attendance by Empirical
esis 50% Or Level
Dollar bonus for
Always makes
sales volume
four sales calls
over quota
a day

The Origin of the Hypothesis

• A hypothesis is a proposition that is
empirically testable. It is an empirical
statement concerned with the relationship • Is said to date from the time of
among variables. Plato (428-347BC), a Greek
• A variable is anything that may assume philosopher.
different numerical values i.e. that varies
• Plato believed one should develop a
• Make sure that you define, or
belief and then test it by
operationalize all your variables… an
observation.
operational definition
• Null hypothesis
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The earth is flat! What makes a good hypothesis?

• The medieval church depicted the earth as
flat. • precise
• This was linked to religious and other beliefs
in a limited world. They used deductive • specifies variables to measure
reasoning based not on fact but on their own
beliefs.
• specifies relationships between
• Copernicus, Galileo and others helped prove
the earth was anything other than flat.
variables
• The faulty hypothesis did not fit the facts, but
it held sway over generations till it was shown
to be false.

A poor hypothesis Theory and Song

• Students spend too much money on fast food.
A better hypothesis
Students with incomes of less than 10,000 per year
spend a higher proportion of their income in fast
food restaurants than the established mean for the
general population.
A fact without a theory
Is like a ship without a sail,
Is like a boat without a rudder,
Is like a kite without a tail.
A fact without a figure is a tragic final act,
But one thing worse in this universe
Is a theory without a fact.
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Theory Formulation
Research questions
• Are often used when you are not sure of
a specific hypothesis, you need to
Deductive
generalise vs
• Helps focus on the problem and Inductive Reasoning
identifies what can be measured
• Whereas there is normally a single
hypothesis, there are normally
multiple research questions

Deductive
Reasoning
Deductive Reasoning
Theory
• The logical process of deriving a Using deductive reasoning one
starts with a given theory as the
conclusion from a known premise or basis for which we develop
something known to be true. Hypotheses
hypotheses and then confirm
– We know that all managers are human these with specific data acquired
using observation or
beings. Observation experimentation
– If we also know that John Smith is a
(Is our theory valid or not?)
manager,
Confirmation
– then we can deduce that John Smith is
a human being.

Inductive Reasoning
• The logical process of establishing a
general proposition on the basis of
observation of particular facts.
– All managers that have ever been
seen are human beings;
– therefore all managers are human
beings.
Double Movement of
reflexive thought
• Induction occurs when we observe a fact and
ask “why” … Ramesh is laughing (why)
• To answer this we develop a tentative hypothesis
as the explanation … Ramesh laughed because
he read a funny message (answer)
• Deduction is the process whereby we test the
hypothesis … (if funny message is read one will
laugh … send a message to one and get the
result .. Interpret result .. conclude)
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Inductive
Reasoning
Observation
Using inductive reasoning, one
Pattern starts with a specific observation
as the basis for which we develop
a general pattern and tentative
Tentative Hypothesis hypothesis as the foundation
of a theory
Theory
The Scientific Method
The “scientific method” is basically an overarching
perspective on how scientific investigations should be
undertaken. It can, in effect, be considered as a
complete set of principles and methods that help
researchers in all scientific disciplines obtain valid
results for their research studies, and which includes
the provision of clear and universally accepted
guidelines for acquiring, evaluating and communicating
information in the context of a research study
The goals of scientific research are, broadly
speaking, to understand, explain and predict
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The Scientific Method: An Elements of the

Scientific Method
Overview

Assess Formulate Statement of  Empirical Approach

relevant
existing
concepts & Hypotheses
 Observation
Propositions
knowledge  Questions
 Hypotheses
 Experiments
Provide
explanation- Analyze & Acquire  Analysis
empirical Design
state new
problem
evaluate
data data research  Conclusion
 Replication

Elements of the Scientific Elements of the Scientific Method

Method (Empirical
Approach)
Evidence-based approach. The guiding principle
behind all research conducted in accordance
with the scientific method
Data derived from direct, systematic and careful
observation and experimentation (as opposed
to speculation, intuition, opinions, hunches, gut
feeling)
What is consistency?
(Observation)
Awareness of the real / physical / social world
in which we exist. This, in turn, gives rise to
questions as the basis for research studies or
investigations
Operational Definitions – Ensures consistency
when researchers talk about or are interested
in undertaking or replicating research on the
same phenomenon. Example: What is
“exercise”?
35

Elements of the Scientific Method
(Questions)
 Making an answerable question out of a research
idea. The question must be answered using
available and established scientific research
techniques and procedures. Scientific Analysis
should not be attempted on questions which
cannot be answered
 Example of an answerable question: Can regular
exercising reduce an individual’s cholesterol
level?
 Example of a (currently) unanswerable question: Is
time travel possible?
Elements of the Scientific Method
(Experiments)
Experiments are basically about measuring
phenomena and collecting accurate and
reliable data which are used for analysis and
evaluation
Accuracy – Correctness of the
Measurement Reliability –
Consistency of the Measurement
What is (i) validity (ii) reliability?
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Elements of the Scientific Method
(Hypotheses)
Hypotheses attempt to explain phenomena of interest.
A hypothesis is a proposition which is empirically
testable (proposition ?). It usually seeks to explain
relationships between variables, and predict, and must
be falsifiable
Typical hypotheses structures:
Conditional - If Condition X is fulfilled, then Outcome
Y will result Correlational - The value of Variable B is
observed to be related with
changes in the value of Variable A
Causal – The value of Variable Z determines the value of
Variable Q
what is variable?
Elements of the Scientific Method
(Analysis)
Analysis is about the use of qualitative or quantitative
tools and techniques to process data
Quantitative tools and techniques are considered
more desirable (objective) than qualitative tools
and techniques … (remember there are
experts who will strongly object to this)
Statistical analysis is typically used to
quantitatively analyze data acquired in research
studies
What is (i) procedure (ii) method (iii) methodology
(iv) technique
(v) tool (vi) farmula
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Elements of the Scientific Method Elements of the Scientific Method

(Conclusions) (Replication)

Based on the results of the analysis The purpose of replication is to ensure that if the
same research study is conducted with different
conducted, and used to support or refute a
participants (i.e. researchers, research
hypothesis
subjects), then the same results are achieved
When undertaking research, conclusions should
only be based on the available data and not
Replication establishes the reliability of a
broadened to include statements which are not
research study’s conclusions
supported by the data
Example: If the research analysis shows that
Conclusions are often based on the results of one
two variables are correlated (related), do not
research study (aberration effect … oddness,
assert also that a causal relationship exists peculiarity) which may not be accurate
between them

Falsificationist
• You cannot prove the theory that it is
correct, but you can disprove it.