Grounded theory is a systematic qualitative research methodology that uses inductive reasoning to generate new theories about a phenomenon. Rather than starting with a hypothesis, grounded theory involves collecting data through methods like interviews and observations, then coding and analyzing the data to discover concepts and relationships that help explain the process or interaction being studied. The theory is "grounded" in the data. Grounded theory was developed in the 1960s by sociologists Glaser and Strauss and involves open, selective, and theoretical coding to iteratively build theories directly supported by the data. It is useful for exploring new domains and leveraging human tendencies to interpret and theorize.