Chapter - 2

Theory Building

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Theory Building

What is Theory?
A Theory is a coherent set of general propositions, used as principles of explanation of the apparent relationships of certain observed phenomena. Prediction and understanding are two purposes of theory.

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Theory Building

Building blocks of Theory

Concept - is a generalized idea about a class of objects, attributes, occurrences or processes that has been given a name. Propositions are statements concerned with the relationships among concepts. Scientific Method is a set of techniques or procedures used to analyze empirical evidence in an attempt to confirm or disprove prior conceptions. Hypothesis is an unproven proposition or supposition that tentatively explains certain facts or phenomena; a proposition that is empirically testable.
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Verifying Theory
In most scientific situations there are alternative theories to explain certain phenomena. To determine which is the better theory, researchers gather empirical data or make observations to verify the theories.

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Theory Building

How are theories generated?

Deductive Reasoning is 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 is the logical process of establishing a general proposition on the basis of observation of particular facts.

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Theory Building

Overview of the Scientific Method

Assessment of relevant existing knowledge of a phenomenon Formulation of concepts and propositions Statement of hypotheses Design of research to test the hypotheses Acquisition of meaningful empirical data Analysis and evaluation of data Proposal of an explanation of the phenomenon and statement of new problems raised by the research
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Practical Value of Theories

They allow us to generalize beyond individual facts or isolated situations. Theories provide a framework that can guide managerial strategy by providing insights into general rules of behavior. When different incidents may be theoretically comparable in some way, the scientific knowledge gained from theory development may have practical value.
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Summary Slide
Building blocks of Theory Verifying Theory How are theories generated? Overview of the Scientific Method Practical Value of Theories

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Theory Building