Theory Principles of theory-oriented research

The object of study is the stable characteristic in the theory. The object of study can be very different things, such as activities, processes, events, persons, groups, organizations. If, for example, a theory is developed about “critical success factors of innovation projects”, then innovation projects is the object of study. This object of study is the characteristic of the theory that is “stable” – other characteristics are not stable: the values of the concepts vary hence “variables” when operationalized in a specific study, and the expected relations between concepts, and the domain to which they apply, can change over time because of new insights. The concepts of the theory are the variable characteristics of the object of study. The aspect described by a concept can be absent or present, more or less existing, etc. For instance, if the research topic is “critical success factors of innovation projects” the factors that presumably con- tribute to success are variable characteristics. In each instance of the object of study, these factors can be present or absent or present to a certain extent. Also, success is a variable characteristic of the object of study that can be present or absent or present to a certain extent in an instance of the object of study i.e. in one specific innovation project. Concepts need to be defined precisely to allow for the measurement of their value in instances of the object of study. When we measure the value of a concept in such instances, we call it a variable. For instance, if we deal with a theory of critical success factors of innovation projects, the concept “success” needs to be defined such that it is clear what counts as “success” and what does not. Also, the different “factors” need to be defined so that we can measure the extent to which each factor is present. Most often, defining concepts involves making assumptions about their meaning. For example, when defining the “success” of innovation projects, it must be decided whether this is an aspect that “belongs” to the innovation project itself, or that it is an evaluation attributed to it by stakeholders and, thus, “belonging” to them. Such a decision deter- mines how “success” could be measured in actual instances, e.g. as a return on investment which could be calculated from financial data or as a personal or institutional judgement. Appendix 1 “Measurement” contains a more detailed discussion on measurement. The propositions of a theory formulate causal relations between the variable characteristics concepts of the object of study. A causal rela- tion is a relation between two variable characteristics A and B of an object of study in which a value of A or its change permits or results in a value of B or in its change. A proposition does not only state that there is a causal relation between two concepts but also what type of causal relation is meant. For instance, a success factor could be “neces- sary” for success, or it could be “sufficient” for success, or the relation could be probabilistic, meaning that a higher level or extent of that fac- tor results in a higher chance of success, etc. see Chapter 4: “Theory- testing research”. The domain of a theory is a specification of the universe of the instances of the object of study for which the propositions of the theory are believed to be true. The boundaries of the domain should be speci- fied clearly. For instance, if a researcher develops a theory of critical suc- cess factors of innovation projects, it must be clearly stated whether it is claimed that the theory is or, eventually, will be proven to be true for all innovation projects, or only for innovation projects of specific types, or in specific economic sectors, or in specific regions or countries, or in specific time periods, etc. Hence the domain might be very generic e.g. all innovation projects in all economic sectors in the whole world or quite specific e.g. limited to innovation projects in a specific eco- nomic sector, in a specific geographical area, or of a specific type. The propositions of a theory can be visualized by means of a concep- tual model , i.e. a visual representation of how the concepts of the theory are related to each other. Usually such a model has inputs independent concepts on the left hand side and outputs depend- ent concepts ” on the right hand side, linked to each other by uni- directional pathways, which are represented by arrows that point to the dependent concepts. The arrows are indications of the direction of the relations between the concepts. The nature of these arrows needs to be defined more precisely in the wording of the proposition. Figure 3.1 illustrates this. It represents the basic idea of a conceptual model by depicting its most simple building block: a relation between two con- cepts. In this figure we only illustrate that concept A “the independ- ent concept” has an effect on concept B the “dependent concept”. In this book we consider the independent concept A as the cause of the dependent concept B, which is the effect; so we presume that there is information or an expectation about the direction between A and B, indicated by the direction of the arrow in the conceptual model. The arrow represents the assumption that causes precede the effect, which Figure 3.1 Simplest form of a conceptual model Independent concept Dependent concept Concept A Concept B “depends” on these causes, hence the term “dependent concept”. Causes are assumed to be “independent” from their effects, hence the term “independent concept”. Note that the object of study e.g. “innovation project” is not depicted in a conceptual model because the model represents only the variable characteristics concepts that are linked in the theory, and not the invariable object of study that the theory is about. Nor is the domain depicted in a conceptual model. More complicated models might depict relations of the concepts A and B with other concepts C, D, E, etc. For instance, in a conceptual model of the “critical success factors of innovation projects”, the model would depict a number of different factors A, B, C, D, E, etc. on the left hand side, “success” on the right hand side, and an arrow originat- ing from each factor pointing to “success”. Examples of more complex conceptual models are discussed in Box 10 “More complex conceptual models” in Chapter 4. Box 2 What is a theory, and when is it “true”? In this book we have a broad view of what counts as a “theory”, but a strict view on when a theory is considered to be “true”. First corresponding to what most people associate with the word “theory”, a theory can be a set of propositions that together are known as a theory with a specific name, such as “Porter’s theory” or “transaction cost theory”, and with which a list of publications can be associated. Secondly, a theory could also be a new combination of parts of extant theory and empirical knowledge published in the scientific literature that is constructed by the researcher in the preparation of a study. Thirdly, a theory could be a well-formulated new theoretical notion, without any refer- ence to theoretical notions published in the literature, constructed by an individual researcher after exploration of existing knowledge and ideas from the literature as well as experts. In our view, a theory is a theory if it can be expressed explicitly in terms of these four characteristics: ■ object of study; ■ concepts; ■ relations between concepts propositions; ■ the domain to which the propositions apply. A theory cannot be “proven” to be correct, but the degree of confidence that it is cor- rect for a specified domain or its generalizability can be enhanced by repeated tests of its propositions in different parts of its domain until eventually a situation occurs in which researchers do not consider further testing useful. A single “one-shot” study cannot be conclusive.

3.2.2 Theory-oriented research: contribution to theory development

The goal of theory-oriented research is to contribute to the develop- ment of theory. As discussed above, a theory is a system of propositions relations between concepts regarding an object of study in a speci- fied domain. “Theory development” consists of two main activities: a the formulation of propositions and b testing whether they can be supported. If the research objective is theory-oriented, it does not matter whether the propositions have any practical implication and, generally speaking, it is even not commendable to assume that any proposition has practical relevance before it is tested thoroughly in a series of replicated tests. We distinguish three types of activity contributing to theory development: 1. Exploration: Exploration for theory development is collecting and evaluating relevant information about theory and prac- tice in order to assess how exactly research could best con- tribute to the development of theory. 2. Theory-building research: Theory-building research is research with the objective of formulating new propositions based on the evidence drawn from observation of instances of the object of study. 3. Theory-testing research: Theory-testing research is research with the objective of testing propositions. Figure 3.2 is a representation of these three types of activity that contribute to theory development. Together they constitute the empirical cycle. We use the term exploration for creatively combining information from different practical and theoretical sources in order to reformu- late propositions. This information might come from any source that is in contact with the object of study insights from experts, practitioners, stakeholders, existing research, the researcher’s experiences, and imagination, etc.. Exploration is not research. With theory-building research we mean research that is explicitly designed to gather empirical evidence for the formulation of propositions. Theory-testing research is aimed at the testing of formulated prop- ositions. After the test has been conducted the results of theory-testing research can be used for reformulating propositions, particularly if a proposition is not supported by the test. We propose that any theory-oriented research starts with an explor- ation of theory and practice to find out whether or not a proposition regarding the research topic of interest is available, and, if so, if it has yet been tested in one or more tests. This exploration helps to decide whether theory-building research, initial theory-testing research, or replication theory-testing research is needed. Flowchart 2 presents a flow diagram with the order of activities that are needed for deciding about the type of theory-oriented research that should be conducted: theory-building, initial theory- testing, or replication. Theory-oriented research starts with explo- ration of theory in order to find propositions on the research topic. If one or more relevant propositions are available, practice is explored in order to find support for the relevance of the proposition or to select one or more propositions for testing from a larger number of candidate propositions. If no such propositions are found in theory, then the practical exploration may yield ideas for relevant propositions. Based on the exploration of theory and practice, the researcher will be able to formulate a proposition for testing. If exploration has not been suc- cessful in this regard, theory-building research is needed to formulate propositions. If a proposition has been identified for testing, theory- testing research is asked for. This type of research can be initial theory- testing if the proposition has never been tested before or replication if the proposition was tested before. A series of replications is needed in order to enhance a proposition’s generalizability. If the proposition is not supported in a number of tests, the researcher may want to conduct an exploration again in order to identify other propositions for testing. Propositions Object of study Theory-testing research Theory-building research Exploration Figure 3.2 The empirical cycle for developing theory by formulating and testing propositions about an object of study