Definition of Theory
Definition of Theory
CONSTITUTES A THEORY.
Stewart and Klein (2016) state that the word ‘theory’ is derived from ancient Greek ‘theoria’,
meaning ‘looking at’ or ‘being aware of’. There are many modern definitions such as, ‘…an
facts; a statement of one or more laws or principles which are generally held as describing an
Wacker opens up the discourse on theory by stating that theory has different opinions and
definitions given by researchers. Various schools of thoughts have defined theory within the
ambits of their work and perspective. Some schools see theory as an abstract endeavor which has
no need for “testing or application to be viewed as good theory” (Wacker 1998 p362 on
Lindblom 1987). This means that theory is an endeavor arrived at through “lay investigation
Churchman (1961) put forward a view that in the absence of a “measurement system” a theory
cannot be deemed valid. Contrary to this assertion is Boer, Holweg, Kilduff, Pagell, Schmenner,
and Voss (2015) who reiterate that “discovery and observation are equally important and often
neglected avenues contributing to theory”. They explain that there is no one right way to making
what matters. The authors further argue that the choice of theory is critical, as a common mistake
Therefore the proper definition of theory and what instructs good theory must be clearly stated.
He follows the academic definition of theory to be made up of four components which are
definitions of terms or variables, a domain where the theory applies, a set of relationships of
variables and specific predictions factual claims.(Hunt, 1991; Bunge, 1967; Reynolds, 1971.)
It is most important according to Waker (1998) that researchers view theory as extremely
Where there are differences of opinion especially in management sciences, theory provides a
structure around which researchers can work. Sometimes academicians find it difficult to
determine what inputs or factors or elements to employ when defining terms. Theory is a
Theory lays the foundation for expansion of field work. Consistent methodologies according to
Wacker (1998) are required to build a body of knowledge efficiently. Theory is relevant and may
be applied to practical situations with the empirical support to back its employment. ‘‘Good
A theory’s exactness and constraints are established in the definitions of terms, the domain of the
theory, the explanation of relationships, and the specific conjectures. Authors usually agree that
the goal of ‘good’ theory is a clear explanation of how and why certain relationships lead to
certain events. Consequently, these explanations of relationships are crucial for ‘good’ theory-
Wacker (1998) explained that theoretical definitions cannot be directly observed. Assertions are
made to their properties and existence in order to account for what is observable. Theoretical
definitions are conceptual in nature. These conceptual foundations extend more than their
measurement.
The domain of the theory is the exact setting or circumstances where the theory can be applied.
Reeves, Albert, Kuper & Hodges (2008) defined theory “as an organised, understandable, and
structured formulation of a set of issues that are conveyed as a meaningful whole. Theories are
usually generated deductively, from an empirically informed act of creativity, then empirically
verified. This means that theories evolve from an ongoing process of deduction and induction.
Reeves et al(2008) postulate that theories are usually used to create a research question, guide
the choice of appropriate data, interpret the data, and bring forward reasons of the underlying
causes or influences of observed phenomena. In the natural sciences theories are used to generate
predictions about the connectivity between two or more different elements in order to generate
universal laws. In contrast, social scientists assume that social reality is too complex to consider
variables in isolation in order to test their causal relationship. In addition, social scientists view
universal laws as being unable to explain the complex interrelated functions of societies, thus
making it impossible to draw on evidence for prediction. For social scientists, a theory is
Whilst the above schools of thought are predisposed to viewing theory as an empirical exercise
which makes use of scientific enquiry and measurement techniques to establish precepts and
concepts, Lindblom (1987) viewed theory as not necessarily needing application. Theory
according to Lindblom (1987 p 517) states that what constitutes” knowledge today is based on
lay work rather than professional investigation. To have a good theory it is not necessary to have
alternatives, costs and benefits, requires extensive information, in depth computation, and
pervasive value consensus to make people convinced as a prototype of how decisions are
Boer et al (2015) expound that “theories explain facts and provide stories as to how phenomena
work the way that they do. Theories are invented; they are not built. Our understanding can be
built up from hypotheses and their tests, but the theories that explain what the hypotheses have
shown are inventions that often come years after the facts have been settled.
Even with these assertions, most scholars view theory as being made up of four different
concepts
Definition of variables. In this stage what concepts are required are included in the
formulation and by necessity what is not required is excluded. Therefore the exercise here
is to bring in relevant factors and remove what we do not require. We follow the virtue of
Limiting the domain. Observations are made in this stage as to what constitutes
antecedent events as well as subsequent events. Waker (1998) states that” it is the stage
where generalizability comes into play” and the timing and location of events are
captured.
ascertained.
Theory predictions and empirical support. Scientific and empirical verification for the
theory is ascertained. The conditions for predictions are laid out and the criteria for
testing created models are established. In this stage the virtues of a good theory defined
Boer, H., Holweg, M., Kilduff, M., Pagell, M., Schmenner, R., & Voss, C. (2015). Making a
Bunge, M., 1967. Scientific Research 1: The Search For System. Springer-Verlag, New York
Churchman, C.W. 1961. Prediction and Optimal Decisions. Prentice-Hall, Englewood Cliffs, NJ
Hunt, S.D., 1991. Modern Marketing Theory: Critical Issues in the Philosophy of Marketing
Reeves, S., Albert, M., Kuper, A., & Hodges, B. D. (2008). Why use theories in qualitative
IN.
Stewart, D., & Klein, S. (2016). The use of theory in research. International Journal of Clinical
Wacker, J. G. (1998). A definition of theory: research guidelines for different theory building
385.