theory building is an important tool in research comprehension. explaining the concepts, abstracts, inductive and deductive research by finding through the stages in research

1. Advance
Research one
Muhammad Shafiq
THEORY BUILDING

2. An Economist investigation
What produces inflation
If org structure influences leadership style
◦ Both want to able to
Understand predict

3. What is then they want to
say
“If we do such and such
then so and so will happen”
Understand predict

4. What Theories then
“Help to better understand reality”
“General proposition to explain the relationship among the general
phenomena”
Play role in understanding practical res

5. What Theories then
“theories allow generalization
beyond individual fact or
situation”

6. What Theories then
“if facts conflict with a theory,
either the theory must be
changed or the fact”

7. Theories
Theories are nets cast to catch what we call “the world”: to
rationalize, to explain, and to master it. We endeavor to make the mesh
ever finer and finer.
Karl R. Popper

8. Theory
A coherent set of general propositions used as principles of explanation
of the apparent relationships of certain observed phenomena.
Previous studies and finding theories

9. Two Purposes Of Theory
Prediction
Understanding

10. Theory building
Two major stages:
◦ Descriptive
◦ Normative

11. Theory building steps
Three steps
◦ Observation-describe-measure
◦ Categorization-frameworks & typology
◦ Association-Model

12. Theory building steps
Three steps
◦ Observation-describe-measure
◦ Categorization-frameworks & typology
◦ Association-Model

13. Theory building steps
“Observation”
Researcher observe the happening
Carefully describe
Measure Construct is developed
◦ E-g Utility or satisfaction

14. Theory building steps
“categorization”
Researcher categorize the phenomena on the basis of attributes
Frame work is developed
◦ E-g will consumer rely on objective attributes of product or on other factors
in product development

15. Theory building steps
“defining relationship”
Researcher explore the interrelationship in classified attribute
Model is developed
◦ Several statistical techniques are available

16. Example
Consu buy beh
InterrelationshipBuy need, avail of goods, price, motiv
What and how

17. ConceptGeneralized idea about a class of:
◦ Object
◦ Attribute
◦ Occurrences
◦ Processes
You would categorize empirical events or real things into concept
Concept is basic unit of theory development
That has been given a name
GNP, INTEREST RATE etc
Example:
Behavior of teacher

18. Concepts; examples
Concept are building blocks:
◦ E-g leadership, productivity, moral
In finance:
◦ GNP, risk aversion, interest rate, inflation
Accounting:
◦ Assets, liabilities, depreciation
Marketing
◦ Customer satis, market share, cus loyalty
concept Abstract reality

19. 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
“leadership,” “productivity,” and “morale”
“gross national product,” “asset,” and “inflation”

20. Ladder of abstraction for
concept
Asset
Plant machine
Punch press
Reality

21. Researcher operates at
two level
Abstract or proposition level
◦ Knowledge and concepts
Empirical level
◦ We experience reality-that is, we observe, measure or manipulate the
objects or event

22. Sales person
job
performance
Abstract
level
Empirical
level
No. of sales calls
No. of sales
Rs value of sales

23. Latent construct
A concept that is not directly observable or measurable but can be
measure through proxy measure

24. Abstract statements
Older workers prefer different reward than younger worker
Treat employees better, get more loyal employees
Inflation in the increase as corruption increase

25. Research proposition and
hypotheses
Proposition is:
Statement explaining the logical linkage among certain concepts by
asserting a universal connection between concepts
◦ Treat employees better will make them more loyal .

26. Research proposition and
hypotheses
Hypothesis is:
Formal statement that explain the outcome
Empirically testable: Simply a guess
◦ More knowledge of product will bring more sales revenue.
◦ Consumer attitude change will decrease the revenue (examining res hypo
against reality by using data).
Should be written as true or false

27. Treat
employee
better
More loyal
employee
Increase retirement
benefits 10%
Reduce employee
turnover

28. Scientific Business
Researchers Operate at
Two Levels
Abstract level
◦ concepts
◦ propositions
Empirical level
◦ variables
◦ hypotheses

29. Definitions
Abstract level -In theory development, the level of knowledge
expressing a concept that exists only as an idea or a quality apart from
an object.
Empirical level -Level of knowledge reflecting that which is verifiable by
experience or observation.

30. Theory Building A Process Of
Increasing Abstraction
TheoriesTheories
PropositionsPropositions
ConceptsConcepts
Observation of objectsObservation of objects
and events (reality )and events (reality )
Increasinglymoreabstract

31. CONCEPTS
OBSERVATION OF OBJECTS
AND EVENTS (REALITY)
Empirical
Level
Abstract
Level
Concepts are Abstractions
of Reality

32. Scientific Method
The use of a set of prescribed procedures for establishing and
connecting theoretical statements about events and for predicting
events yet unknown.

33. Abstract Level
Concepts abstract reality.
Propositions are statements concerned with the relationships among
concepts.

34. Always makes
four sales calls
a day
Dollar bonus for
sales volume
over quota
Concept B
(Habits)
Hypothesis at Empirical Level
Concept A
(Reinforcement)
Proposition at Abstract Level

35. A hypothesis is a proposition that is empirically testable. It is an
empirical statement concerned with the relationship among variables.
A variable is anything that may assume different numerical values.

36. Theory and Song
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.

37. Deductive Reasoning
The logical process of deriving a conclusion from a known premise or
something known to be true.
◦ We know that all managers are human beings.
◦ If we also know that John Smith is a manager,
◦ then we can deduce that John Smith is a human being.

38. 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.

39. Wonder you may be
Where theories come from
Easy!

40. At abstract , conceptual
level
Theories developed by deductive reasoning
E-g????

41. At empirical level
Inductive reasoning
How?

42. AssessAssess
relevantrelevant
existingexisting
knowledgeknowledge
FormulateFormulate
concepts &concepts &
PropositionsPropositions
StatementStatement
ofof
HypothesesHypotheses
DesignDesign
researchresearch
AcquireAcquire
empiricalempirical
datadata
Analyze &Analyze &
evaluateevaluate
datadata
ProvideProvide
explanation-explanation-
state newstate new
problemproblem
The Scientific Method:
An Overview

43. bye bye…