The Process of Building Theory

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    GSM 6190

    Theory in Management

    Title : The Process of building Theory

    Authors : Clayton M Christensen and

    !a"id M Sundhal# $ar"ard %usiness School&'001(

    %y : Megat Shari)udin b *ul+i,i &GM

    0-9./( Mohamad aif b $a2i Abdul

    Mubin &GM 0-9.6(

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    Pur3ose

    Help defne the types o good topics orquestions to address in a productiveresearch agenda

    Oer guidance in designing researchprogrammes to improve

    understanding in management theory

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    A theory of theory building 4

    5terati"e 3rocess

    1stphase

    Observe phenomena and describeproblems that we are acing

    Careul description o the phenomena

    in words and numbers Classiy the phenomena into

    categories o similar thing

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    2ndPhase

    uilding theories to e!plain thebehavior o the phenomena"

    # statement o what causes what$

    and why$ and under whatcircumstances

    Contingent e!planation o causality$

    to understand why things turn outthe way they do

    e able to predict with confdence

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    The 3rocess of building better theory

    %iscover new thing that a theory did not leadthem to e!pect i"e" parado! or anomaly

    &espond'

    (ore accurately describing what the phenomena areand are not

    %efning a revised classifcation scheme$ orspeciying ways to measure more accurate attributes

    #rticulating new statement o what causes what$and why$ and under what circumstances

    )he cycle repeated again when new researcheround other anomalies

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    Observe$ describe * measurephenomena

    Classifcation

    )heory

    paradigm

    #nomaly

    Confrm

    )heory is a statement o

    what causes what$ and why$and under whatcircumstances

    Predictiv

    e

    +nductive

    process

    +nductiv

    e

    proc

    ess

    igure 1: The Process by 7hichtheory is built

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    Cycles o theory building

    Pre,paradigmatic

    -inding anomalies on the conceptual

    defnition o categories

    Post,paradigmatic

    -iguring out how to measure thephenomena and predict

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    ole of anomaly in theory4building

    %iscover things where prior theory

    cannot account . alsifable o theory

    /enerate more accurate theory"#ssert what causes what$ and why$and under what circumstances

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    Anomaly see+ing research 8 threemechanisms:

    1"0oo at phenomena through the lenses oother academic disciplines

    2"0oo at the phenomena within thephenomena

    "0oo at a broader variety o phenomena3than previous researcher were able toe!amine4

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    1 lenses of other academicdisci3lines

    (echanism that leads researchers toloo or dierent things than scholars

    within the e!isting dominant disciplineintuitively loo or

    5nables researchers to attach meaningand signifcance to phenomena which$when not viewed through new lenses$might appear inconsequential

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    2" 3henomena 7ithin the 3henomena

    6ested research design 37in$ 189:4 , ;tudyhow individuals act and interact withingroups

    How interaction amongst groups andcompanies eect the actions o individuals

    #nomalies will only surace while studyingsecond,order interactions within a nesteddesign

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    " %roader "ariety of 3henomena

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    The im3ortance of categoriation

    ;hort,circuit the process o building a theory by leaping

    rom phenomena to theory would lead to less value touture researchers and practitioners . the =theory> doesnot have contingent e!planatory power"

    )wo stages o categori?ation' ;ubstantive classifcation

    )he classifcation schemes tend to be defned by the attributes o thephenomena

    Prerequisite to the emergence o theory grounded in ormal calssifcation

    ut %i@cult to conclude that one scheme is superior to another becausethere are so many dimensions o the phenomena

    -ormal classifcation -ormal categories tends to be defned in terms o circumstances in which

    practitioners might fnd themselves rather than attributes o phenomena

    (ap into the theory stage o theory building 3fgure 14

    )he emergence o ormal categories$ to assert how causal chain 3whatcauses what$ and why4 might yield dierent outcomes in dierent situations

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    Classication and 3roducti"e researchuestions

    )o improve a theory$ researchers couldas ever,deeper categori?ation questions

    about the wor o prior writers

    Classifcations questions can be a reliablemechanism by which anomalies are

    uncovered$ enabling researchers to addvalue

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    A"oidance of classication

    Categori?ation is the bedroc o meaningul theory"

    &esearchers oten see categori?ation asoperationali?ing constructs$ that only allow them tostate =under this specifc circumstance these actionscause these results>" ;till useul i subsequentscholars can use those fndings to predict what areliely to see when they observed more phenomenawithin specifc circumstance"

    ut$ i researchers defne hypothetical categories inorder to mae the mathematics o their analysistractable$ then subsequent scholars cannot use theirwor to build theory

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    Classication and the e;ternal "alidityof research

    5!ternal validity arises when a reader as =A howcan we be sure these lessons can be applied tothis other situationB> 3e!ternal validity4

    5!ternal validity is established throughclassifcation

    Classifcation that is mutually e!clusive andcollectively e!haustive could e!plain what causeswhat$ and why$ and under what circumstances

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    Classication and nested research designs

    ;olid theory asserts what causes what and why

    /rounded in a robust categori?ation scheme that candefne or specifc managers in specifc situationswhich courses o action would lead to the best results

    6ested research . loo at phenomena withinphenomena . case studies o specifc situationswithin the population that are une!plained outliers3anomalies4

    Help defne categories and can articulate a theorywith better e!ternal validity

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    Conclusion 8 the incongruity of actionsand 7ords

    #cademicians> ob maret . emphasi?ed ondeep training in using tools o measurement

    and analysis 0ittle emphasi?e about how to defne good

    research questions

    +nherent problem , lac o understanding3among the academicians4 on the problemo anomaly,discovery ' constitute theoundation o research wor"