Enhancing Theory and Strengthening Knowledge
Development
David W. Stewart
Presented to the Academy of Marketing Science Review
Theory Forum
Indianapolis, IN
May 20, 2014
Outline of the Presentation
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The Concept of Theory
A Little Philosophy of Science
Some Practical Observations
Some Thoughts About Method
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The Concept of “Theory”
• A Working Set of Hypotheses Used to Explain a
Phenomenon
• Every Theory Rests on a Set of Assumptions and
“Facts”
- The theory of the theory is called meta-theory
- Different theories may rest on different
assumptions including different meta-theoretical
assumptions
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What Theory Is and Is Not
• Strong theory resonates; it shows patterns of interconnectedness; it provides details about causal
mechanisms; and it provides answers as to the question
why (Kaplan 1964). Strong theory captures and
succinctly summarizes knowledge that is generalizable.
- It builds on empirical generalizations but is not empirical
• Sutton and Staw (1995) have persuasively argued that
theory is not references, data, variables, diagrams or
hypotheses.
- Not literature review
- Not meta-analysis
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Good Theory Does More Than Describe
• It identities causal structures that provide the basis for
forward prediction (not just good fits of historical data)
and control (at least in some circumstances).
• It provides explanations of marketing phenomena—e.g.,
why customers behave as they do, why different markets
evolve in particular ways over time, and why specific
institutions and practices emerge. With the addition of
situational (e.g., industry knowledge), marketing
theories may also provide for predictions (Secord 1983).
• Strong theories are simple and elegant; they provide
rich descriptions; and they provide the basis for testable
predictions in controlled circumstances.
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Characteristics of a Good Theory
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Empirically Accurate
General
Parsimonious
Deductively Fertile
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Empirically Accurate
• Underlying Data Are:
Factual (Objective)
Verifiable data
Reproducible
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General: Range of Convenience
• What is the Range of the Phenomena it can Address?
• What is the Breadth of the Data it Explains?
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Parsimonious
• Simpler is Better
- Fewest number of assumptions, axioms, or principles
• Occam’s Razor
- There is a negative correlation between the complexity of a
theory and the probability it represents objective reality
• The Longer a Theory Exists, the More Complicated it
tends to become.
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Deductively Fertile
• Good Theories Are Predictive
- How many predictions (deductions) can be made from
the theory?
• Hypotheses
- How many empirical studies are suggested by the
theory
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A Nod to Objective Reality
"Understanding Objective Reality” Is Not A Decisive Criterion
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Reality Should Be Verifiable
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Something Does Not Necessarily Exist Just
Because It Has Not Been Proven
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Epistemology: How We Know
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EMPIRICISM suggests that we know the world through our
experience. Literally, we observe “see” the world through our
senses and then know it.
RATIONALISM (or mentalism) argues that knowledge is
derived from the (logical) power of the mind. Human
reasoning is the primary source of knowledge.
CONSTRUCTIVISM is a pragmatic perspective, based on the
belief that people create knowledge to fill a practical need. We
see phenomena in terms of the perceptions and needs we
possess. This recognizes that theories have a practical use.
Use of all three represents a good approach.
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Some Practical Considerations
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Observations of An Editor
• Two Marketing Journals Most Receptive to Theoretical and
Conceptual Papers
Journal of Marketing and Journal of the Academy of Marketing Science
• Problems with Theory in Papers Submitted (and published)
“Theory” as Thin Veneer for Empirical Work
• Empirical Bias?
Borrowed Theory with Effort to Show Its Application to Marketing
Phenomenon
• What’s New?
Focus On Supporting a Theory (or part of a theory) Rather than Comparing
Competing Theories
• The Null Hypothesis as Default Theory?
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Observations of a Former Department Chair & Dean
• P&T Process Is Biased Toward Empirical Work
Data Easy to Acquire or Generate
Bias Toward Numbers/Counting
Bias Against Books/Monographs
Short Tenure Horizons
Impact More Difficult to Assess and Reward
• Conceptual and Theoretical Work
Often Has Greater Synergy with Teaching Mission
Often Is More Meaningful/Relevant to Practitioner Constituencies
Impacts Long Term Reputation
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Some Recommendations
• Identify Unique Phenomenon to Be Addressed
• For Example, in Marketing
Decision Making in Markets
• Buyer Behavior
Management of Market Exchanges
• Value Chain
Regulation of Market Activities
• Social Welfare
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Purpose of Research
• To develop insights into areas of hospitality and the
discipline of hospitality
• To underpin the content and direction of academic
courses
• To encourage the development of best practice
techniques in industry
• To stimulate further research by dissemination and
experimentation
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A Word About Method
• We have to remember that what we observe is not nature in
itself but nature exposed to our method of questioning.
(Werner Heisenberg)
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Method Matters
Theory Often Includes Assumptions About Method
“Facts” and “Truths” Are Often Bound by Method
Multiple Methods Create Robust “Facts” and “Truths”
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Discovery!
• The most exciting phrase to hear in science, the one that
heralds new discoveries, is not 'Eureka!' (I found it!) but
'That's funny ...’
Isaac Asimov (1920)
• Observation and Qualitative Methods Are Important
- “That’s funny” often is the spark of the most important research
contribution
- They help identify boundaries, limitations, and complexities
- They should inform most research
• But, Eureka is Still Very Important
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Don’t Obsess Over Method
In science as in love, too much concentration on
technique can often lead to impotence.
P. L. Berger
• Focus on the substantive contribution(s).
- Avoid losing the substantive contribution in the eloquence of
methodology.
- What do we know as a result of the research that we did not
know or reasonably infer before.
- How consistent are the results with theory.
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Communication Matters
In science the credit goes to the man who convinces the world, not
the man to whom the idea first occurs.
Sir Francis Darwin
• Use each method appropriately.
- Is the method consistent with theoretical assumptions?
- Poor methodology is not compensated for by multiple
methods.
• When using multiple methods explain what each
method uniquely contributes.
- Replication of a result with a second method is not
interesting unless there is reason not to expect replication.
- What unique insights are provided by each method?
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Creativity Matters
The important thing in science is not so much to obtain new facts as to
discover new ways of thinking about them.
Sir William Bragg (1862 - 1942)
• What Do Findings Mean?—Link to Theory
• What Is the Relationship to Prior Research and to
Theory?
• Is Method a Factor in the Outcomes of the Empirical
Research?
• What Does the Method of Research Imply about the
Findings?
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See the Big Picture
Science is facts; just as houses are made of stones, so is science made of facts; but a
pile of stones is not a house and a collection of facts is not necessarily science.
Henri Poincare (1854 - 1912)
• How is the House Described?
Theory is the house
• How would the methods “stone” be described?
• What does the methods “stone” contribute?
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Testing Theory
The great tragedy of Science - the slaying of a beautiful
hypothesis by an ugly fact.
Thomas H. Huxley (1825 - 1895)
• Hypotheses Are Important and Should Be Suggested by Theory
• Comparison of Hypotheses to the Null is Far Less Interesting
than A Competition Among Competing Hypotheses Suggested by
the Literature
• Consider the Relationship of Method to Hypothesis
Tests of hypotheses are often method bound
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Be Comfortable with Uncertainty
As an adolescent I aspired to lasting fame, I craved factual certainty, and I thirsted
for a meaningful vision of human life - so I became a scientist. This is like
becoming an archbishop so you can meet girls.
(M. Cartmill - 1992)
• Embrace Ambiguity.
• Use Method to Resolve Ambiguity.
• Acknowledge, with Honesty, the Limitations Imposed by
Method.
• Recognize the Limits of Theory
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And Remember
We must not forget that when radium was discovered no one knew
that it would prove useful in hospitals. The work was one of pure
science. And this is a proof that scientific work must not be
considered from the point of view of the direct usefulness of it. It
must be done for itself, for the beauty of science, and then there is
always the chance that a scientific discovery may become like the
radium a benefit for humanity.
Marie Curie (1867 – 1934)
Lecture at Vassar College, May 14, 1921
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Questions and Answers/
General Discussion
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