A definition of theory: Research guidelines for different theory-building research methods in operations management

Abstract

This study examines the definition of theory and the implications it has for the theory-building research. By definition, theory must have four basic criteria: conceptual definitions, domain limitations, relationship-building, and predictions. Theory-building is important because it provides a framework for analysis, facilitates the efficient development of the field, and is needed for the applicability to practical real world problems. To be good theory, a theory must follow the virtues (criteria) for 'good' theory, including uniqueness, parsimony, conservation, generalizability, fecundity, internal consistency, empirical riskiness, and abstraction, which apply to all research methods. Theory-building research seeks to find similarities across many different domains to increase its abstraction level and its importance. The procedure for good theory-building research follows the definition of theory: it defines the variables, specifies the domain, builds internally consistent relationships, and makes specific predictions. If operations management theory is to become integrative, the procedure for good theory-building research should have similar research procedures, regardless of the research methodology used. The empirical results from a study of operations management over the last 5 years (1991-1995) indicate imbalances in research methodologies for theory-building. The analytical mathematical research methodology is by far the most popular methodology and appears to be over-researched. On the other hand, the integrative research areas of analytical statistical and the establishment of causal relationships are under-researched. This leads to the conclusion that theory-building in operations management is not developing evenly across all methodologies. Last, this study offers specific guidelines for theory-builders to increase the theory's level of abstraction and the theory's significance for operations managers. © 1998 Elsevier Science B.V. All rights reserved.