This document discusses theory building and testing. It defines a theory as a system of constructs and propositions that provide a logical explanation of a phenomenon. The process of theory building involves observation, description, categorization, analyzing patterns, generating hypotheses, and testing for validity. Theories frame research by directing questions and helping make sense of data. Theory building requires synthesizing literature to explain a phenomenon from a new perspective, while theory testing assesses if a chosen theory plausibly explains a phenomenon. Approaches to theory building include grounded theory, bottom-up conceptual analysis, extending or modifying existing theories, and applying theories to new contexts.