3

Business Research Methods 9e

Zikmund
Babin
Carr
Griffin

Theory Building
Chapter 3
Theory Building

2013 Cengage Learning. All Rights

Reserved. May not be scanned, copied or
duplicated, or posted to a publicly
accessible website, in whole or in part.

LEARNIN
G
OUTCOM
ES

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

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
3-2in

Theory and Practice

What if the lights
didnt come on when
you flipped the
switch?
You would seek a
logical explanation.
Past experience would
guide your thoughts.
Attribution theory is
one framework that
helps explain the
world.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
3-3in

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

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34in

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

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35in

Social Network Theory

Researchers have
developed theories
about the links and
structures of social
networks, complete
with constructs and
propositions about
how linkages are
formed and the social
capital they yield.
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3-6in

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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37in

EXHIBIT 3.1

A Ladder of Abstraction for Concepts

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
38in

EXHIBIT 3.2

Concepts are Abstractions of Reality

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
39in

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.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
310in

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.
2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
311in

EXHIBIT 3.3

Hypotheses Are the Empirical Counterparts

of Propositions

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312in

A Basic Theory Explaining Voluntary Job

Turnover

EXHIBIT 3.4

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313in

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.

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
314in

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
knowledge of
phenomenon
2. Formulate concepts and
propositions
3. State hypotheses
4. Design research to test
the hypotheses
5. Acquire empirical data
6. Analyze and evaluate data
7. Propose an explanation of
the phenomenon and
state new problems raised
by the research

2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
315in