Understanding Theory in Research: Definition, Purpose, and Application

1. IS6000 – Seminar 4 Theory

2. Introduction • Theory is a critical element in research • Fundamentally, the purpose of theory is related to making sense of things

3. What is a Theory? • Everyday use: Theory  hunch or guess • It may be specific to a particular context • I have a theory of “how to cross the road safely” – but this theory varies in different contexts • “A plausible or scientifically acceptable general principle or body of principles offered to explain phenomena” • (m-w.com, 2017) • Scientific theories are often much more general and apply across contexts

4. Academic Definitions of Theory • Lynham (2002): the purpose of theory is “to describe and explain how things actually work” • Hambrick (2007): theory helps us “organise our thoughts, generate coherent explanations and improve our predictions” • Sutton & Staw (1995): “references, data, variables, diagrams and hypotheses are not theory” yet are often used instead of theory

5. Theory • Proposed explanations of natural or social phenomena • Explanation and prediction • Logic about connections, story about why • System of constructs and relationships between those constructs that collectively present a logical, systematic, and coherent explanation of the phenomenon of interest

6. Phenomena • Phenomenon • A thing that has definite, individual existence in reality or in the mind • It is observable(even if instrumentation is needed to observe or record it)

7. Concept • Abstract/general idea • Derived from specific instances we perceive (phenomena) • Mental representations

8. Real World Some phenomena Some phenomena Some phenomena Abstraction Concept Concept

9. Concepts: Real vs. Latent Phenomena • Concepts of real phenomena • Dogs • Clouds • Smoking • Pain • Concepts of latent phenomena • Truth • Value • Usefulness • Belief

10. Concepts: Usage • Label we give a phenomenon • Language • Describe general properties or characteristics • Developing and testing theories • Vocabulary to reason about phenomena • Link phenomena via propositions (suggested, tentative)

11. Real World Some phenomena Some phenomena Some phenomena Abstraction Concept Proposition Concept

12. Problem: Imprecise Phenomena • Phenomena we’re interested in are often • Abstract • Not directly observable • Difficult to measure • Propositions relating to such phenomena cannot (easily) be tested

13. Education is related to income

14. Constructs: Operationalized Concepts • Abstract meaning  operationalize it • Make it measurable • Fuzzy, imprecise concepts  Precise terms • Eliminate vagueness and ambiguity • Education: highest degree earned • Income: annual gross (pre-tax) salary

15. Real World Some phenomena Some phenomena Some phenomena Abstraction Concept Proposition Concept Creation Construct Construct Variable Variable Variable Variable Variable Variable Operationalization

16. Constructs: Dimensions • Unidimensional constructs • One underlying dimension • Can be measured using one variable • Variable • Empirical indicator to estimate underlying latent construct • Manifestation in real world • Unidimensional constructs could be things like • Weight, speed, age, gender, time, income, etc • A single measure is sufficient

17. Constructs: Dimensions • Multidimensional constructs • Several underlying dimension • All dimensions relevant for understanding • Need dedicated variables • For example: • Intelligence cannot be measured with a single variable • There are multiple indicators (variables) that we can consider

18. Hypotheses • Empirical formulation of a proposition • Testable relationship between two or more constructs/variables • If X then Y • Association • Causal vs. non-causal • Beware of spurious correlations!

21. Real World Some phenomena Some phenomena Some phenomena Abstraction Concept Proposition Concept Creation Construct Construct Variable Variable Variable Variable Hypothesis Variable Variable Operationalization

22. Weak hypothesis Highest degree earned is related to annual gross salary

23. Strong hypothesis The higher the degree earned, the more annual gross salary will be earned

24. Causal Relationships • Cause: independent variable • Effect: dependent variable • Linear vs. non-linear relationships • Direct (positive) vs. inverse (negative)

25. Causal Relationships • Conditions • Time order (precedence): the cause must exist before the effect • Co-variation: a change in the cause produces a change in the effect • Non-spuriousness: no other (rival) cause for the effect can be found

26. With Your Neighbours • Develop a proposition about two IS-related concepts • Then, derive a testable hypothesis • Specify the operational definitions of your constructs • Specify the nature of the relationship You have 10 minutes Time’s up!

27. Share your Thoughts with Another Team • Examine the propositions, operational definitions, and hypotheses • What could be improved? • How? You have 10 minutes Time’s up! Please come to write on the whiteboard

28. Theory: Building Blocks • What • How • Why • Who, Where, When (boundary conditions)

29. Definitions of Key Terms • Variables (and Constructs) can be • Dependent (DV) • The final outcome in a research model • Actual behavior in a theory that tries to explain what influences behavior • Independent (IV) • Something that precedes or is antecedent to a dependent variable • Attitudes, beliefs, behaviors that contribute to the DV • Mediating (MV) • A variable between independent and dependent • Moderating (ModV) • A variable that influences an IV>MV and/or IV>DV relationship

30. Contribute to Theory: What • Which constructs compose a theory? • New constructs  new theory; new constructs  existing theory • Remove constructs from existing theory

31. Contribute to Theory: How • Describe relationships • New laws of interaction among existing/new constructs • Delete laws of interaction • Re-define laws of interaction in different way • Causality • Associative • Unidirectional • Bidirectional • Conditional • Causal

32. Contribute to Theory: Why • Why is this a credible account • Logic of a theory • E.g., based on fundamental views of human nature, organizational processes, societal behavior • Justificatory mechanisms • Articulate new justificatory mechanisms for constructs/relationships in new/existing theory • Delete justificatory mechanisms, show that assumptions are invalidated

33. Contribute to Theory: Boundary Conditions • Circumstances under which theory holds true • Scope and limitation of a theory • Articulate new conditions • Examine theory in situation that violates conditions to explore if it still holds • For example, does the theory refer to all users or only novice or expert users? • Is the theory bounded geographically? Or is it global?

34. Types of Theories I Explanation What is, how, why, when, and where Provides explanations but does not aim to predict with any precision Analysis Does not extend beyond analysis and description No causal relationships among phenomena are specified No predictions made Prediction Provides predictions Does not have well-developed justificatory causal explanations

35. Types of Theories II • Explanation & Prediction • What is, how, why, when, where, and what will be • Provides predictions • Has both testable propositions and causal explanations • Design and Action • How to do something • Gives explicit prescriptions (e.g., methods, principles of form and function, etc.) for constructing an artefact or achieving an outcome

36. Theory in IS research

37. Theory in IS Research • We tend to borrow theories from other disciplines: • psychology, sociology, economics, even biology • Popular theories used in IS research include • TAM (Technology Acceptance Model) • TPB (Theory of Planned Behavior) • ISSM (IS Success Model)

38. TPB (Theory of Planned Behaviour) • Predictive theory about • Link between attitudes, social norms and individual behavioral control, • and their influence on (1) intention and (2) actual behavior • Attitude toward behavior • an individual's positive or negative evaluation of self-performance of the particular behavior • Subjective norms • an individual's perception of social normative pressures to perform or not perform a behavior • Perceived behavioral control • an individual's perceived ease or difficulty of performing the particular behavior

39. Theory of Planned Behaviour (Ajzen, 1985)

40. TAM (Technology Acceptance Model) • TAM models how users come to accept and use a technology • TAM suggests that ‘usefulness’ and ‘ease of use’ influence one’s attitude towards a technology, one’s intention to use and thus actual use

41. TAM (Davis 1989, Bagozzi & Warshaw 1992)

42. ISSM (IS Success Model) • An IS can be evaluated in terms of the quality of information, system and service • These characteristics affect the subsequent use, or intention to use, and user satisfaction • As a result of using the system, certain benefits will be achieved • The net benefits will (positively or negatively) influence user satisfaction and the further use of the IS

43. ISS Model DeLone & McLean (1992); DeLone & McLean (2002); DeLone & McLean (2003)

44. Theories TheoriesTheories … • Yes, there are hundreds, thousands, covering all aspects of the human experience • https://is.theorizeit.org/wiki/Main_Page - wiki page with a list of over 100 theories encountered in IS research • We’ll look quickly at a few more: • Transactive Memory Theory (TMT) • Adaptive Structuration Theory (AST) • Punctuated Equilibrium Theory (PET)

45. Transactive Memory Theory • You don’t need to remember everything yourself, but you do need to know who are the experts in a particular field • You can rely on other people’s memories • They help to remember things for you, and you remember things for them • If each person is an expert, we can share expertise • People who work in a group can develop a group mind – a memory system that is more complex and effective than that of any single person Wegner, 1986

46. Adaptive Structuration Theory • Technologies are developed for specific purposes • When we adopt them, the structures in the technology may bring changes to society • How has email, wechat, facebook changed society? • We may also change the way we use the technologies – so as to fit new structures • IM is a social chatting tool, but it can be adapted to work contexts and can bring significant value • In different societies, different changes may be experienced or expected DeSanctis and Poole, 1994

47. Punctuated Equilibrium Theory • This is an evolutionary theory, adapted from palaeobiology • PET can help to explain how changes can be caused in organizations • Key terms: • Deep structures • Fundamental work processes and organizational structures • Equilibrium periods • More stable periods when change is slow and incremental • Revolutionary periods • Times of radical change

48. PET • Technology can be a key change agent, i.e. it can precipitate a punctuation to a stable equilibrium, disrupting the current state and so cause radical innovation/change to be initiated (Gersick, 1991)

49. Theory Building vs. Testing

50. Theory Building vs. Testing • Theory building • Based on literature, prior findings, observations • Extend existing or develop new theory • Set of propositions, boundary conditions, etc. • Theory testing • Specify hypotheses about relationships between constructs • Collect data and test