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Theory Building in
Research
RAJESH TIMANE
Contents
I. Meaning and Nature of Theory
II. Nature of Proposition
III. Scientific Method
IV. Verifying Theory
V. Inductive and Deductive Reasoning
I. Meaning and Nature of
Theory
I. Meaning and Nature of Theory
 The purpose of science concerns
 Expansion of knowledge
 Discovery of truth
 Theory building is the means by which the researcher hope to achieve this
purpose
 Theories allow generalization beyond facts or situations
I. Meaning and Nature of Theory
 Science
 Science means knowledge
 Research
 Research is acquisition of knowledge
 Research is a part of any systematic knowledge
 Research is search of knowledge
 Research is done in order to answer questions posed by theoretical
consideration
prediction and
understanding are
the two purpose of
theory
the scientific
method is a series
of stages utilized to
develop and refine
theory
I. Meaning and Nature of Theory
Abstract Reality
Animal  Pet  Puppy
I. Meaning and Nature of Theory
Abstract Empirical
Level Level
Theoretical Studies Empirical Studies
Abstract Reality
Concept Variable
Proposition Hypothesis
Deductive Inductive
Knowledge of some instance Observation of facts
GENERALIZATION TO INFERENCE OBSERVATION TO GENERALIZATION
Theory
 Definition
“A coherent set of general propositions used to explain the apparent relationship among
certain observed phenomenon.
Coherent – clear or logical
Proposition – intention or suggestion
Apparent – seemingly
Phenomenon – occurrence
A logical set of general suggestions used to explain the seeming relationship among
certain observed occurrences.
II. Nature of Proposition
II. Nature of Proposition
 Concept is a generally accepted collection of meaning or
characteristic associated with certain event, object,
conditions, situations and behaviors.
 Construct is an abstract idea or image specifically invented
for research or theory-building purpose.
 Proposition is a statement about concept that may be
judged true or false. When proposition is formulated for
empirical testing, it is called as hypothesis.
Concepts are basic units
of theory development.
Theories require
understanding of
relationship among
concepts.
Propositions are
statements concerned
with the relationship
among concepts.
Theories are networks
of propositions.
II. Nature of Proposition
 Example
 A student gets degree when he/she fulfills both the criteria i.e.
 Internal Assessment
 External Evaluation
 Notes
 When reality is abstracted into concepts, the scientist is interested in the
relationship among various concepts.
 Investigating propositions require that we increase level of our abstract thinking.
 In theory, we are at highest level of abstraction as we are investigating the
relationship between the propositions.
II. Nature of Proposition
Networks
Construct
Statements
Relationships
Propositions
Theories
Concepts
Propositions are
statements concerned
with the relationship
among concepts.
III. Scientific Method
Scientific
Method
III. Scientific Method
VARIABLES
In practice the term variable is
used as a synonym for
construct (or the property
being studied).
Independent: predictor
variable, cause, manipulated
Dependent: criteria variable,
effect, outcome
Dichotomous: 0/1; male/female
Continuous: age, marks, $, °c
1) Protocol or Procedure
 Analyzing empirical evidence
 predict the yet unknown
2) Empirical Testability
 Verifiability: Observation, Experiment & Experience
3) Variables
 Anything that assume different numeric value
 Dependent & Independent
4) Hypothesis
 It is a proposition which is empirically testable
III. Scientific Method
 Concept
 Propositions
 Variables
 Hypothesis
Elements of theory at abstract level
III. Scientific Method
Elements of theory at empirical level
 The scientific method is a series of stages utilized to develop and refine
theory
Hypothesis
 It is the assumption in the mind of the researcher.
 A strong hypothesis has following features:
 adequacy of purpose
 testability
 better than rivals
 Types
 Descriptive
 Relational
 Correlational – significant increase in price with
increase in demand
 Causal – increase in family income leads to %
increase in income saved
Hypothesis is
a proposition
formulated
for empirical
testing.
III. Scientific Method
IV. Verifying Theory
IV. Verifying Theory
Fact vs.
Theory
Empirical
Testability
Alternative
Theories
Critically
Verifying
Propositions
Scientific
Statement
IV. Verifying TheoryFacts vs. Theory (1)
Empirical Testability (2)
Generating Alternate Theories (3)
Critical Verification of Propositions (4)
Ideal Scientific Statement (5)
FACTS THEORY
Worlds data
Structure of ideas explaining
facts
Always exists the same
It may change with clarity on
facts / new facts
IV. Verifying TheoryFacts vs. Theory (1)
Empirical Testability (2)
Generating Alternate Theories (3)
Critical Verification of Propositions (4)
Ideal Scientific Statement (5)
Empirical testability verifies theory.
“
IV. Verifying TheoryFacts vs. Theory (1)
Empirical Testability (2)
Generating Alternate Theories (3)
Critical Verification of Propositions (4)
Ideal Scientific Statement (5)
The empirically verified theories give alternative
theories.
“
IV. Verifying TheoryFacts vs. Theory (1)
Empirical Testability (2)
Generating Alternate Theories (3)
Critical Verification of Propositions (4)
Ideal Scientific Statement (5)
It must be possible to demonstrate that given proposition or theory is FALSE,
for,
 there may be untested theories
 there may exist other results more consistent with the data
 there may exist other competing explanations
 and these explanations may possible be factual sometimes
“
IV. Verifying TheoryFacts vs. Theory (1)
Empirical Testability (2)
Generating Alternate Theories (3)
Critical Verification of Propositions (4)
Ideal Scientific Statement (5)

I have a theory which I have objectively
tested with data. The data are consistent
with my theory.
V. Inductive & Deductive
Reasoning
V. Inductive and Deductive Reasoning
Abstract Empirical
Level Level
Deductive Inductive
Theory Theory
V. Inductive and Deductive Reasoning
DEDUCTION INDUCTION
Deduction is making inference from
generalization
Induction is arriving at generalizations by
reasoning
GENERALIZATION  INFERENCE OBSERVATION  GENERALIZATION
Example
All men are mortal. Shan is a man. Shan is
mortal.
Example
Price is inversely proportional to supply of
goods.
V. Inductive and Deductive Reasoning
DEDUCTIVE REASONING INDUCTIVE REASONING
1
At abstract or conceptual level ,
deductive theory is generated
1
At empirical level, inductive theory is
generated
2 Impractical 2 Pragmatic
3 Unobserved 3 Observational
4 Theoretical 4 Experimental
5 Knowledge based 5 Fact based
6
Definition: The logical process of
deriving a conclusion about a
specific instance, based on,
something known to be true.
6
Definition: The logical process of
establishing a general proposition
on the basis of observation of
particular facts.
check your
progress
Meaning and nature of theory
1. Abstract
2. Reality
3. Purpose of science or research
4. Theory building
Nature of proposition
1. Concept and construct
2. Statements and relationships
3. Proposition –relationship between concepts
4. Theory – the network of proposition
Scientific method
1. Protocol / Procedure
2. Empirical testability: observation, experience and
experiment
3. Hypothesis
4. Variable
Verifying theory
1. Fact vs. theory
2. Empirical testability
3. Alternative theories
4. Critically verifying propositions
5. Scientists statement
Inductive and deductive reasoning
DEDUCTIVE REASONING INDUCTIVE REASONING
At abstract level At empirical level
Impractical Pragmatic
Unobserved Observational
Theoretical Experimental
Knowledge based Fact based
Generalization into inference Observation into generalization
References
References
NOTE: THIS PRESENTATION IS HEAVILY DRAWN FROM CHAPTER THREE OF WILLIAM
ZIKMUND’S BUSINESS RESEARCH METHODS.
 Bryman, A., & Bell, E. (2003). business research methods. NOIDA: OXFORD University
Press.
 Cooper, D. R., Schindler, P. S., & Sharma, J. K. (2015). Business Research Methods (11
ed.). New Delhi: McGraw Hill Education.
 Kothari, C. R., & Garg, G. (2016). Research Methodology: Methods & Techniques. New
Delhi: New Age Publishers.
 Panneerselvam, R. (2005). Researh Methodology. New Delhi: Prentice Hall .
 Sachdeva, J. K. (2010). Business Research Methodology. Mumbai: HImalaya Publishing
House.
 Zikmund, W. G. (2003). Business Research Methods (7 ed.). Delhi, INDIA: CENGAGE
Learning.
Teaser
FILL IN THE APPROPRIATE BLANKS
1. The purpose of science is to acquire __________ and __________.
2. The purpose of theory is to __________ and __________.
3. Propositions are the __________ between concepts.
4. Scientific methods follow __________.
5. Theories are network of __________.
6. Inductive and deductive theories are based on __________ and __________ respectively.
7. Anything that may assume different numerical or categorical value is a __________.
8. The __________ variable is the cause, stimulus, predictor variable, and is manipulated.
ANSWER KEYS
a) relationships b) set of protocols c) evidences and concepts d) knowledge and truth e) predict
and understand f) independent g) propositions h) variable i) dependent
ANS: D, E, A, B, G, C, H, F
Thank you !
Rajesh Timane
PhD, Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur, INDIA
WhatsApp : +91 98609 31040
E-Mail : timane.rajesh@gmail.com
Twitter : @timane

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Theory Building in Business Research

  • 2. Contents I. Meaning and Nature of Theory II. Nature of Proposition III. Scientific Method IV. Verifying Theory V. Inductive and Deductive Reasoning
  • 3. I. Meaning and Nature of Theory
  • 4. I. Meaning and Nature of Theory  The purpose of science concerns  Expansion of knowledge  Discovery of truth  Theory building is the means by which the researcher hope to achieve this purpose  Theories allow generalization beyond facts or situations
  • 5. I. Meaning and Nature of Theory  Science  Science means knowledge  Research  Research is acquisition of knowledge  Research is a part of any systematic knowledge  Research is search of knowledge  Research is done in order to answer questions posed by theoretical consideration prediction and understanding are the two purpose of theory the scientific method is a series of stages utilized to develop and refine theory
  • 6. I. Meaning and Nature of Theory Abstract Reality Animal  Pet  Puppy
  • 7. I. Meaning and Nature of Theory Abstract Empirical Level Level Theoretical Studies Empirical Studies Abstract Reality Concept Variable Proposition Hypothesis Deductive Inductive Knowledge of some instance Observation of facts GENERALIZATION TO INFERENCE OBSERVATION TO GENERALIZATION
  • 8. Theory  Definition “A coherent set of general propositions used to explain the apparent relationship among certain observed phenomenon. Coherent – clear or logical Proposition – intention or suggestion Apparent – seemingly Phenomenon – occurrence A logical set of general suggestions used to explain the seeming relationship among certain observed occurrences.
  • 9. II. Nature of Proposition
  • 10. II. Nature of Proposition  Concept is a generally accepted collection of meaning or characteristic associated with certain event, object, conditions, situations and behaviors.  Construct is an abstract idea or image specifically invented for research or theory-building purpose.  Proposition is a statement about concept that may be judged true or false. When proposition is formulated for empirical testing, it is called as hypothesis. Concepts are basic units of theory development. Theories require understanding of relationship among concepts. Propositions are statements concerned with the relationship among concepts. Theories are networks of propositions.
  • 11. II. Nature of Proposition  Example  A student gets degree when he/she fulfills both the criteria i.e.  Internal Assessment  External Evaluation  Notes  When reality is abstracted into concepts, the scientist is interested in the relationship among various concepts.  Investigating propositions require that we increase level of our abstract thinking.  In theory, we are at highest level of abstraction as we are investigating the relationship between the propositions.
  • 12. II. Nature of Proposition Networks Construct Statements Relationships Propositions Theories Concepts Propositions are statements concerned with the relationship among concepts.
  • 14. Scientific Method III. Scientific Method VARIABLES In practice the term variable is used as a synonym for construct (or the property being studied). Independent: predictor variable, cause, manipulated Dependent: criteria variable, effect, outcome Dichotomous: 0/1; male/female Continuous: age, marks, $, °c
  • 15. 1) Protocol or Procedure  Analyzing empirical evidence  predict the yet unknown 2) Empirical Testability  Verifiability: Observation, Experiment & Experience 3) Variables  Anything that assume different numeric value  Dependent & Independent 4) Hypothesis  It is a proposition which is empirically testable III. Scientific Method
  • 16.  Concept  Propositions  Variables  Hypothesis Elements of theory at abstract level III. Scientific Method Elements of theory at empirical level  The scientific method is a series of stages utilized to develop and refine theory
  • 17. Hypothesis  It is the assumption in the mind of the researcher.  A strong hypothesis has following features:  adequacy of purpose  testability  better than rivals  Types  Descriptive  Relational  Correlational – significant increase in price with increase in demand  Causal – increase in family income leads to % increase in income saved Hypothesis is a proposition formulated for empirical testing. III. Scientific Method
  • 19. IV. Verifying Theory Fact vs. Theory Empirical Testability Alternative Theories Critically Verifying Propositions Scientific Statement
  • 20. IV. Verifying TheoryFacts vs. Theory (1) Empirical Testability (2) Generating Alternate Theories (3) Critical Verification of Propositions (4) Ideal Scientific Statement (5) FACTS THEORY Worlds data Structure of ideas explaining facts Always exists the same It may change with clarity on facts / new facts
  • 21. IV. Verifying TheoryFacts vs. Theory (1) Empirical Testability (2) Generating Alternate Theories (3) Critical Verification of Propositions (4) Ideal Scientific Statement (5) Empirical testability verifies theory. “
  • 22. IV. Verifying TheoryFacts vs. Theory (1) Empirical Testability (2) Generating Alternate Theories (3) Critical Verification of Propositions (4) Ideal Scientific Statement (5) The empirically verified theories give alternative theories. “
  • 23. IV. Verifying TheoryFacts vs. Theory (1) Empirical Testability (2) Generating Alternate Theories (3) Critical Verification of Propositions (4) Ideal Scientific Statement (5) It must be possible to demonstrate that given proposition or theory is FALSE, for,  there may be untested theories  there may exist other results more consistent with the data  there may exist other competing explanations  and these explanations may possible be factual sometimes “
  • 24. IV. Verifying TheoryFacts vs. Theory (1) Empirical Testability (2) Generating Alternate Theories (3) Critical Verification of Propositions (4) Ideal Scientific Statement (5)  I have a theory which I have objectively tested with data. The data are consistent with my theory.
  • 25. V. Inductive & Deductive Reasoning
  • 26. V. Inductive and Deductive Reasoning Abstract Empirical Level Level Deductive Inductive Theory Theory
  • 27. V. Inductive and Deductive Reasoning DEDUCTION INDUCTION Deduction is making inference from generalization Induction is arriving at generalizations by reasoning GENERALIZATION  INFERENCE OBSERVATION  GENERALIZATION Example All men are mortal. Shan is a man. Shan is mortal. Example Price is inversely proportional to supply of goods.
  • 28. V. Inductive and Deductive Reasoning DEDUCTIVE REASONING INDUCTIVE REASONING 1 At abstract or conceptual level , deductive theory is generated 1 At empirical level, inductive theory is generated 2 Impractical 2 Pragmatic 3 Unobserved 3 Observational 4 Theoretical 4 Experimental 5 Knowledge based 5 Fact based 6 Definition: The logical process of deriving a conclusion about a specific instance, based on, something known to be true. 6 Definition: The logical process of establishing a general proposition on the basis of observation of particular facts.
  • 30. Meaning and nature of theory 1. Abstract 2. Reality 3. Purpose of science or research 4. Theory building
  • 31. Nature of proposition 1. Concept and construct 2. Statements and relationships 3. Proposition –relationship between concepts 4. Theory – the network of proposition
  • 32. Scientific method 1. Protocol / Procedure 2. Empirical testability: observation, experience and experiment 3. Hypothesis 4. Variable
  • 33. Verifying theory 1. Fact vs. theory 2. Empirical testability 3. Alternative theories 4. Critically verifying propositions 5. Scientists statement
  • 34. Inductive and deductive reasoning DEDUCTIVE REASONING INDUCTIVE REASONING At abstract level At empirical level Impractical Pragmatic Unobserved Observational Theoretical Experimental Knowledge based Fact based Generalization into inference Observation into generalization
  • 36. References NOTE: THIS PRESENTATION IS HEAVILY DRAWN FROM CHAPTER THREE OF WILLIAM ZIKMUND’S BUSINESS RESEARCH METHODS.  Bryman, A., & Bell, E. (2003). business research methods. NOIDA: OXFORD University Press.  Cooper, D. R., Schindler, P. S., & Sharma, J. K. (2015). Business Research Methods (11 ed.). New Delhi: McGraw Hill Education.  Kothari, C. R., & Garg, G. (2016). Research Methodology: Methods & Techniques. New Delhi: New Age Publishers.  Panneerselvam, R. (2005). Researh Methodology. New Delhi: Prentice Hall .  Sachdeva, J. K. (2010). Business Research Methodology. Mumbai: HImalaya Publishing House.  Zikmund, W. G. (2003). Business Research Methods (7 ed.). Delhi, INDIA: CENGAGE Learning.
  • 37. Teaser FILL IN THE APPROPRIATE BLANKS 1. The purpose of science is to acquire __________ and __________. 2. The purpose of theory is to __________ and __________. 3. Propositions are the __________ between concepts. 4. Scientific methods follow __________. 5. Theories are network of __________. 6. Inductive and deductive theories are based on __________ and __________ respectively. 7. Anything that may assume different numerical or categorical value is a __________. 8. The __________ variable is the cause, stimulus, predictor variable, and is manipulated. ANSWER KEYS a) relationships b) set of protocols c) evidences and concepts d) knowledge and truth e) predict and understand f) independent g) propositions h) variable i) dependent ANS: D, E, A, B, G, C, H, F
  • 38. Thank you ! Rajesh Timane PhD, Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur, INDIA WhatsApp : +91 98609 31040 E-Mail : timane.rajesh@gmail.com Twitter : @timane