The document discusses business research methods focused on theory building, which involves creating a coherent set of propositions to explain relationships among observations. It outlines the role of concepts as abstract representations of reality and explains both deductive and inductive reasoning in forming hypotheses. Additionally, it emphasizes the scientific method as a structured approach for establishing theoretical statements and predicting unknown events.

1. Business
Research Methods
Theory Building

2. Theory
A coherent or logical set of general
propositions/plans used as principles of
explanation of the apparent relationships of
certain observed phenomena.

3. Concept (or Construct)
• A generalized idea about a class of objects,
attribute, occurrences, or processes that has
been given a name
• Building blocks that abstract reality
• “leadership,” “productivity,” and “morale”
• “gross national product,” “asset,” and
“inflation”

4. Vegetation / Plants
Fruit
Banana
Reality
Increasinglymoreabstract
A Ladder/steps Of Abstraction
For Concepts

5. Theory Building A Process Of
Increasing Abstraction
Theories
Propositions
Concepts
Observation of objects
and events (reality )
Increasinglymoreabstract

6. Scientific Method
The use of a set of prescribed procedures for
establishing and connecting theoretical
statements about events and for predicting
events yet unknown.

7. Abstract Level
• Concepts abstract reality.
• Propositions are statements concerned with
the relationships among concepts.

8. Deductive Reasoning/Logic
• The logical process of deriving a conclusion
from a known premise or something known to
be true.
– We know that all managers are human beings.
– If we also know that John Smith is a manager,
– then we can deduce that John Smith is a human
being.

9. Inductive Reasoning
• The logical process of establishing a general
proposition on the basis of observation of
particular facts.
– All managers that have ever been seen are
human beings;
– therefore all managers are human beings.

10. Assess
relevant
existing
knowledge
Formulate
concepts &
Propositions
Statement
of
Hypotheses
Design
research
Acquire/get
empirical
data
Analyze &
evaluate
data
Provide
explanation-
state new
problem
The Scientific Method:
An Overview