The Use of Grounded Theory Methodology in Theory Building

Abstract

The chapter discusses the qualitative analysis method of the grounded theory (GT) and its application in the generation or building theory. The emphasis in the GT approach is on building theory rather than validating the existing theories. The GT methodology has been a topic of interest to management researchers and is intellectually challenging. In order to enhance understanding and skills for continuous professional development and to improve conditions, theory building should be considered a vital activity. In new circumstances where social systems cannot provide a certain predictive power, the need for new theories is felt. The topics discussed in this chapter revolve around theory and theory building; inductive, deductive, and abductive approaches to constructing theory; levels, functions, components, and evaluation of theories; research methods used in theory development; and in particular, the GT method and its application in theoretical coding and the reliability of this approach in serving these purposes.