Organizational Theories: Some Criteria for Evaluation
Bacharach (1989)
The purpose of theoretical statements in general is both to organize and communicate. Many
current theories in organizational behavior fail to accomplish this purpose. The aim of this study is to
provide an specific examination for the rules of the units (constructs and variables) of theoretical
statements, applied to organizational studies.
What theory is not: data, typologies and metaphors
While descriptions could be the source for a theory, a description itself isn’t a theory (only answers
what). There are three different modes of descriptions (which aren’t theories!):
Categorization of raw data ! Qualitative or quantitative, often useful for theory building (what are
the phenomena?).
Typologies ! Abstract constructs but answers ‘what’ rather than ‘how’, ‘why’ and ‘when’ (what is
the most important aspect of the phenomenon?).
Metaphors ! Statements that maintain that two phenomena have certain properties in common
(how is the phenomenon similar to another, often unrelated, phenomenon?).
In case of a metaphor, what must be evaluated is not the imagery (metaphor), but the propositions
and hypotheses derived from that imagery (theory).
What theory is
Theory: (1) a statement of relationships between units observed (variables) or approximated
(constructs, not observable) in the empirical world OR (2) a statement of relations among concepts
within a set of boundary assumptions and constraints.
Primary goal of theory ! Answer the questions of ‘how’, ‘why’ and ‘when’?
More detailed definition: a system of constructs and variables in which the constructs are related to
each other by propositions and the variables are related to each other by hypotheses.
Boundaries of theory
! Theories cannot be compared on the basis of their underlying values. To properly use a theory,
assumptions used for building the theory must be understood ! two orientations of culture in
organizations have different values on the construction of theories about organizations.
! Theories can be limited in time (not applicable to different historical periods) and space (not
applicable to specific types of organizations). The less a theory is bounded by space or time, the more
abstract and generalizable a theory is.
! Spatial boundaries restrict the use of theory to specific units of analysis (e.g. types or
organizations). Temporal boundaries specify the historical applicability of a theoretical system.
Together they restrict the empirical generalizability of a theory (the level of bounded can vary, e.g.
bounded by space, but not by time = applicable to some organizations, but over different time
periods).
, Variables, constructs and relationships
Propositions state the relations among constructs (abstract level), and hypotheses specify the
relations among variables (concrete level). Constructs and variables are different!!!
! Constructs – Variables:
performance – sales or ROI
cohesion – rate of interaction or member voting patterns
leader consideration – member perceptions of supervisory behaviour
Generation of criteria for the evaluation of theories
Falsifiability and utility are the two primarily criteria on which theories can be evaluated.
Falsifiability
! Determines whether a theory is constructed such that empirical refutation is possible.
(Organizational) studies must try to construct theories that are coherent enough to be refuted.
Utility
! The usefulness of theoretical systems. Theories are useful if it can both explain (meaning of
constructs, variables, and linkages) and predict (test the substantive meaning by comparing it to
empirical evidence).
The falsifiability of Variables, Constructs and Relationships
Theorist must first evaluate the constructs and variables of their theory before analyzing them.
The Falsifiability of Variables: Measurement Issues
! Variables must be defined in terms of its measurement to be operationally specific.
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