Theory building lecture-3
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Transcript of Theory building lecture-3
AdvanceResearch one
Muhammad Shafiq
THEORY BUILDING
An Economist investigation
What produces inflation
If org structure influences leadership style◦ Both want to able to
Understand predict
What is then they want to say
“If we do such and such then so and so will happen”
Understand predict
What Theories then “Help to better understand reality”
“General proposition to explain the relationship among the general phenomena”
Play role in understanding practical res
What Theories then
“theories allow generalization beyond individual fact or
situation”
What Theories then
“if facts conflict with a theory, either the theory must be
changed or the fact”
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
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
Two Purposes Of Theory
Prediction
Understanding
Theory building
Two major stages:◦ Descriptive ◦ Normative
Theory building steps Three steps
◦ Observation-describe-measure◦ Categorization-frameworks & typology◦ Association-Model
Theory building steps Three steps
◦ Observation-describe-measure◦ Categorization-frameworks & typology◦ Association-Model
Theory building steps “Observation”
Researcher observe the happening
Carefully describe
Measure Construct is developed◦ E-g Utility or satisfaction
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
Theory building steps “defining relationship”
Researcher explore the interrelationship in classified attribute
Model is developed◦ Several statistical techniques are available
Example
Consu buy beh
Interrelationship Buy need, avail of goods, price, motiv
What and how
Concept Generalized 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 nameGNP, INTEREST RATE etc
Example:Behavior of teacher
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
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”
Ladder of abstraction for concept
Asset
Plant machine
Punch press
Reality
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
Sales person
job performance
Abstract level
Empirical level
No. of sales callsNo. of salesRs value of sales
Latent construct A concept that is not directly observable or measurable but can be measure through proxy measure
Abstract statements Older workers prefer different reward than younger worker
Treat employees better, get more loyal employees
Inflation in the increase as corruption increase
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 .
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
Treat employee better
More loyal employee
Increase retirement benefits 10%
Reduce employee turnover
Scientific Business Researchers Operate at Two Levels
Abstract level ◦ concepts ◦ propositions
Empirical level◦ variables◦ hypotheses
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.
Theory Building A Process Of Increasing Abstraction
Theories Theories
Propositions Propositions
Concepts Concepts
Observation of objectsObservation of objectsand events (reality ) and events (reality ) In
crea
sing
ly m
ore
abst
ract
CONCEPTS
OBSERVATION OF OBJECTS AND EVENTS (REALITY)
EmpiricalLevel
AbstractLevel
Concepts are Abstractions of Reality
Scientific Method The use of a set of prescribed procedures for establishing and connecting theoretical statements about events and for predicting events yet unknown.
Abstract Level Concepts abstract reality.
Propositions are statements concerned with the relationships among concepts.
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
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.
Theory and SongA 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.
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.
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.
Wonder you may be Where theories come from
Easy!
At abstract , conceptual level
Theories developed by deductive reasoning
E-g????
At empirical level Inductive reasoning
How?
AssessAssessrelevant relevant existingexistingknowledgeknowledge
FormulateFormulateconcepts &concepts &PropositionsPropositions
StatementStatementof of HypothesesHypotheses
Design Design researchresearch
Acquire Acquire empiricalempiricaldatadata
Analyze &Analyze &evaluate evaluate datadata
Provide Provide explanation-explanation-state newstate newproblemproblem
The Scientific Method: An Overview
bye bye…