This document discusses grounded theory, a qualitative research method where theory is developed from data. It describes the history and evolution of grounded theory since its inception by Glaser and Strauss in 1967. Specifically, it outlines Glaser's inductive approach of allowing categories to emerge from data versus Strauss and Corbin's abductive approach incorporating verification. The fundamental tenets of grounded theory are also summarized, including constant comparison, theoretical coding, theoretical sampling, saturation and sensitivity. An example study exploring customer-company relationships is provided to illustrate grounded theory methods. Finally, common pitfalls in grounded theory research are identified.