Logistics 354
Chapter 1
Business Research Strategies
,Theory and Research
1. What type of theory?
The term ’theory’; common meaning is as a way of explaining observed
regularities (phenomena).
A concept is the basic building block of a theory
o A concept is a vehicle of thought to describe our perceptions of the
world/things we can observe (e.g. "a chair").
A construct serves the same function as a concept, but it is more abstract /
not so easy to observe (e.g. "source credibility").
Concept and construct have typical variables associated with them.
We try to find correlation between the variables
or indicate similarities/differences.
Also theory at different levels; a distinction is made between :
o "low-level" theories (explanatory, descriptive or empirical theory)
o theories of the "middle range" (imposes meaning on events and issues)
o "Grand theories" (which operate at a more abstract and general level).
,2. Deductive and Inductive Theory
Deductive research is a study in which a conceptual and theoretical structure
is developed and then tested by empirical observation; thus, particular
instances are deduced from general inferences
o For this reason, the deductive method is referred to as moving from the
general to the particular.
o For example, you may have read about theories of motivation and wish
to test them in your own workplace.
This will involve collecting specific data of the variables that the
theories have identified as being important.
Inductive research is a study in which theory is developed from the
observation of empirical reality; thus, general inferences are induced from
particular instances, which is the reverse of the deductive method
o Since it involves moving from individual observation to statements of
general patterns or laws, it is referred to as moving from the specific to
the general
o For example, you may have observed from factory records in your
company that production levels go down after two hours of the shift and
you conclude that production levels vary with length of time worked
The process of deduction:
, Mantere and Ketokivi (2013) distinguish between three types of reasoning in
organizational research:
o Theory-testing research
o Inductive case research
o Interpretive research
Abduction is proposed as a way of overcoming the limitations associated with
deductive and inductive positions.
Some more terms:
o Ontology - What is reality?
o Epistemology - How do you know something?
o Methodology - How do you go about finding it out?
Chapter 1
Business Research Strategies
,Theory and Research
1. What type of theory?
The term ’theory’; common meaning is as a way of explaining observed
regularities (phenomena).
A concept is the basic building block of a theory
o A concept is a vehicle of thought to describe our perceptions of the
world/things we can observe (e.g. "a chair").
A construct serves the same function as a concept, but it is more abstract /
not so easy to observe (e.g. "source credibility").
Concept and construct have typical variables associated with them.
We try to find correlation between the variables
or indicate similarities/differences.
Also theory at different levels; a distinction is made between :
o "low-level" theories (explanatory, descriptive or empirical theory)
o theories of the "middle range" (imposes meaning on events and issues)
o "Grand theories" (which operate at a more abstract and general level).
,2. Deductive and Inductive Theory
Deductive research is a study in which a conceptual and theoretical structure
is developed and then tested by empirical observation; thus, particular
instances are deduced from general inferences
o For this reason, the deductive method is referred to as moving from the
general to the particular.
o For example, you may have read about theories of motivation and wish
to test them in your own workplace.
This will involve collecting specific data of the variables that the
theories have identified as being important.
Inductive research is a study in which theory is developed from the
observation of empirical reality; thus, general inferences are induced from
particular instances, which is the reverse of the deductive method
o Since it involves moving from individual observation to statements of
general patterns or laws, it is referred to as moving from the specific to
the general
o For example, you may have observed from factory records in your
company that production levels go down after two hours of the shift and
you conclude that production levels vary with length of time worked
The process of deduction:
, Mantere and Ketokivi (2013) distinguish between three types of reasoning in
organizational research:
o Theory-testing research
o Inductive case research
o Interpretive research
Abduction is proposed as a way of overcoming the limitations associated with
deductive and inductive positions.
Some more terms:
o Ontology - What is reality?
o Epistemology - How do you know something?
o Methodology - How do you go about finding it out?
