1.01k likes | 1.17k Views
Theory Development as Observational puzzle-solving. Donald C. Hambrick. Outline. Outline. De-Mystifying Theory • Q and A. Outline. De-Mystifying Theory • Q and A Theory Development as Observational Puzzle-Solving: Some Personal Experiences • Q and A. Outline.
E N D
Theory Development as Observational puzzle-solving Donald C. Hambrick
Outline • De-Mystifying Theory • Q and A
Outline • De-Mystifying Theory • Q and A • Theory Development as Observational Puzzle-Solving: Some Personal Experiences • Q and A
Outline • De-Mystifying Theory • Q and A • Theory Development as Observational Puzzle-Solving: Some Personal Experiences • Q and A • Theory Development From Rich Qualitative Data • Q and A
Outline • De-Mystifying Theory • Q and A • Theory Development as Observational Puzzle-Solving: Some Personal Experiences • Q and A • Theory Development From Rich Qualitative Data • Q and A • Open Discussion
De-Mystifying Theory What is “theory”?
De-Mystifying Theory What is “theory”? • The scientist’s job: to search for and explain patterns
De-Mystifying Theory What is “theory”? • The scientist’s job: to search for and explain patterns • Let’s adopt Dubin’s classic perspective X Y
De-Mystifying Theory What is “theory”? • The scientist’s job: to search for and explain patterns • Let’s adopt Dubin’s classic perspective Why? X Y
De-Mystifying Theory What is “theory”? • The scientist’s job: to search for and explain patterns • Let’s adopt Dubin’s classic perspective theory! Why? X Y
De-Mystifying Theory What is “theory”? • The scientist’s job: to search for and explain patterns • Let’s adopt Dubin’s classic perspective • Or, as Kaplan said, “Theory explains why empirical patterns were observed or are expected to be observed. theory! Why X Y
De-Mystifying Theory A couple examples:
De-Mystifying Theory A couple examples: Equity Theory
De-Mystifying Theory A couple examples: Equity Theory One’s Perception of Being Overpaid (or Underpaid) Relative to One’s Contribution Increased (or Decreased) Effort
De-Mystifying Theory A couple examples: Equity Theory One’s Perception of Being Overpaid (or Underpaid) Relative to One’s Contribution Increased (or Decreased) Effort Why?• Sense of “debt”
De-Mystifying Theory A couple examples: Equity Theory Agency Theory (as applied to corporate governance) One’s Perception of Being Overpaid (or Underpaid) Relative to One’s Contribution Increased (or Decreased) Effort Why?• Sense of “debt”
De-Mystifying Theory A couple examples: Equity Theory Agency Theory (as applied to corporate governance) One’s Perception of Being Overpaid (or Underpaid) Relative to One’s Contribution Increased (or Decreased) Effort Why?• Sense of “debt” When owners hire others to manage their firms… Badoutcomesfor theowners
De-Mystifying Theory A couple examples: Equity Theory Agency Theory (as applied to corporate governance) One’s Perception of Being Overpaid (or Underpaid) Relative to One’s Contribution Increased (or Decreased) Effort Why?• Sense of “debt” When owners hire others to manage their firms… Badoutcomesfor theowners Why?• Hired managers… • shirk • steal • pursue their own objectives
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”?
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”? Agency Theory Why?• Hired managers… • shirk • steal • pursue their own objectives When owners hire others to manage their firms… Badoutcomesfor theowner
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”? • develop a brand-new theory Agency Theory Why?• Hired managers… • shirk • steal • pursue their own objectives When owners hire others to manage their firms… Badoutcomesfor theowner
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”? • develop a brand-new theory • add to an existing theory • clarify the operative mechanisms (mediators) • introduce moderators • add new concepts Agency Theory Why?• Hired managers… • shirk • steal • pursue their own objectives When owners hire others to manage their firms… Badoutcomesfor theowner
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”? • develop a brand-new theory • add to an existing theory • clarify the operative mechanisms (mediators) • introduce moderators • add new concepts • identify or elaborate on the implications of the theory Agency Theory Why?• Hired managers… • shirk • steal • pursue their own objectives When owners hire others to manage their firms… Badoutcomesfor theowner
De-Mystifying Theory So, what does it mean to make a “theoretical contribution”? • develop a brand-new theory • add to an existing theory • clarify the operative mechanisms (mediators) • introduce moderators • add new concepts • identify or elaborate on the implications of the theory • “subtract from” the theory • identify important boundary conditions • logically argue or demonstrate that the theory is weak/wrong Agency Theory Why?• Hired managers… • shirk • steal • pursue their own objectives When owners hire others to manage their firms… Badoutcomesfor theowner
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution?
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm • simplicity
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm • simplicity • accuracy
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm • simplicity • accuracy • surprise
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm • simplicity • accuracy • surprise When Sutton and Staw refer to “strong theory,” what do they mean?
De-Mystifying Theory How do we assess the “quality” of a theoretical contribution? • generality • including the scope of its implications • a very encompassing theory qualifies as a paradigm • simplicity • accuracy • surprise When Sutton and Staw refer to “strong theory,” what do they mean? • clarity of argumentation • logical consistency
De-Mystifying Theory Questions?
Theory Development: Some Personal Experiences Where do theoretical ideas not come from?
Theory Development: Some Personal Experiences Where do theoretical ideas not come from? • reading in isolation
Theory Development: Some Personal Experiences Where do theoretical ideas not come from? • reading in isolation • thinking in isolation
Theory Development: Some Personal Experiences Where do theoretical ideas not come from? • reading in isolation • thinking in isolation • intentions to theorize
Theory Development: Some Personal Experiences Where do theoretical ideas not come from? • reading in isolation • thinking in isolation • intentions to theorize Instead, theoretical ideas “emerge” from observational puzzle-solving: “Why is it…?” “Have you ever noticed…?”
Theory Development: Some Personal Experiences Where do theoretical ideas not come from? • reading in isolation • thinking in isolation • intentions to theorize Instead, theoretical ideas “emerge” from observational puzzle-solving: “Why is it…?” “Have you ever noticed…?” Namely, to develop theory, you need data! • aggregate, large-N data • fine, rich, small-N data • accumulation of data – via experience
Theory Development: Some Personal Experiences Let me illustrate with three of my successes in theory/concept development: • Upper echelons theory • Managerial discretion • Behavioral integration (within top management teams, or TMTs)
Theory Development: Some Personal Experiences Upper echelons theory: ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Upper echelons theory: (more accurately a “framework”) ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Upper echelons theory: (more accurately a “framework”) Originally (in 1975) a term paper for a PhD seminar ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Upper echelons theory: (more accurately a “framework”) Originally (in 1975) a term paper for a PhD seminar The data that puzzled me: Why does Fortune magazine devote space to reporting the detailed demographic backgrounds of 500 CEOs every year? ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Upper echelons theory: (more accurately a “framework”) Originally (in 1975) a term paper for a PhD seminar The data that puzzled me: Why does Fortune magazine devote space to reporting the detailed demographic backgrounds of 500 CEOs every year? Later, (in 1983), a discussion with my PhD student Phyllis Mason The data that puzzled me: I wonder if I’m having any effect on my MBA students? ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Upper echelons theory: (more accurately a “framework”) Originally (in 1975) a term paper for a PhD seminar The data that puzzled me: Why does Fortune magazine devote space to reporting the detailed demographic backgrounds of 500 CEOs every year? Later, (in 1983), a discussion with my PhD student Phyllis Mason The data that puzzled me: I wonder if I’m having any effect on my MBA students? I wonder if executives who have MBAs are any different from those without MBAs? ExecutiveCharacteristics StrategicChoice
Theory Development: Some Personal Experiences Hambrick & Mason (AMR, 1984) was a happy confluence of three things a fun discussion with Phyllis Mason in 1983 recollection of the 1975 paper insights from my 1979 dissertation on environmental scanning
Theory Development: Some Personal Experiences The eventual Upper Echelons model:
Theory Development: Some Personal Experiences Managerial Discretion (a concept, not a theory)