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What is a theory?

The word ‘’theory’’ has been used in many different ways:

• Broadly: almost all descriptive statements about class of

phenomenon.

• Narrowly: to exclude everything but series of terms and their

relationships that satisfies certain logical requirements.

Theory What are the goals of theory?

• Is a formal testable explanation of some event that includes
explanations of how things relate to one another. There are two goals of theory:

• We can built theory through a process of reviewing previous • Understanding: allow researcher to gain understanding of the
finding of similar studies. relationship among different phenomena.

• Logical explanation helps the researcher know what variables • Enable us to predict the behavior or characteristics of one
need to be included and how may relate to each other. phenomenon from the knowledge of another phenomenon.

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Research concepts, constructs, proposition, variables • Empirical level: ‘’experience’’, observe, measure objects or
and hypotheses. events.” hypotheses “

• Abstract level: In theory development, the level of knowledge

• Concepts or construct: is a generalized idea about a class of objects
expressing a concept that exists only as an idea or a quality apart
that has been given a name.
from an object.” Propositions”
• Concepts are the building blocks of theory.
• Latent construct: concept that is not directly observable or
• Ladder of abstraction: organization of concept in sequence from
measurable, but can be estimated through proxy measurements,
the most concrete to the most general.
like job performance.

Propositions
Statement explains the logical linkage among certain concept by
asserting unversal connection between concepts.

Hypothesis
• Formal statement of unproven proposition that is empirically
testable.
• Explaining some outcome.
• Is a guess
• can be supported or shown to be wrong through an empirical test.

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Empirical testing: means that something has been examined against
reality data.
When data consistent with hypothesis, we say hypothesis is
supported, if not, then we say hypothesis is not supported.
Variables: anything that may assume different numerical value, the
empirical assessment of a concept.
Operationalizing: The process of identifying the actual measurement
scales to assess the variables of interest.
Theory Building
Where do theories come from?
1. Deductive reasoning: is the logical process of deriving a conclusion
about a specific instance based on known general premise or
something known to be true. ‘’ abstract level’’ .
2. Inductive reasoning: the logical process of establishing a general
proposition based on observation of particular fact. ‘’empirical level’’.
• Theory construction is often the result of combination of deductive
and inductive reasoning.
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Understanding theory
Verifying Theory
• There are alternative theories to explain certain phenomenon.
• To determine better theory , researchers make observations or
gather empirical data to verify the theories.
• Theories are made to be tested.
The scientific method
A set of 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.
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Seven steps for scientific method

Practical value of theories
1. Assessment of relevant existing knowledge of phenomenon.
2. Formulation of concepts and propositions.
• Theories allow us to generalize beyond77 individual or isolated
situation.
3. Statement of hypotheses.
4. Design of research. • Theories provide a framework that can guide managerial
5. Acquisition of meaningful empirical data. strategy by providing insights into general rules of behavior.
6. Analysis and evaluation of data.
7. Proposal of an explanation of the phenomenon and statement of new
problems raised by the research.