The Problems With Theory and New Challenges in Theorizing

Abstract

The Academy of Management Perspectives is unique within the community of management journals in that it focuses on critically making sense of existing theory and evidence, rather than on ab initio contributions to theory or summaries of existing states of the literature. This mission reflects a particularly pressing challenge to our field of research. While empirical management journals have steadily increased the analytical sophistication and quality of the data in the research they publish, the same cannot be said for contributions to theory. In this paper, we explore some of the common weaknesses in the way some theories are deployed, and consider the questions emanating from building and using theory. We recognize that there is a vast literature on the problems of theorizing ([ 1]; [28]; [48]). We also acknowledge the many excellent publications on writing theory (e.g., [ 2]; [ 9]). Hence, our purpose is not so much to revisit these themes but to motivate a conversation that will lead to more meaningful theory and, ultimately, have an impact on practice. Kurt Lewin observed long ago that there is nothing so practical as a good theory ([30]). We proceed by providing some evidence for the routine misapplication of theory. We then illustrate what we mean by contrasting the applications of institutional theory, agency theory, and the resource-based view and some of the confusion we see that the application of these theories has created. Finally, we suggest some solutions for this problem and the questions that scholars might ask themselves before deploying a theory.