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Many times students ask questions like –
- Why to study a theory that has become obsolete?
- What is the use of a theory, if it can not solve a problem?
- Theories make simple things complex, so why study them?
I am sure there are similar questions that keep occupying space in our mind and at times instead of making things simple they make them complex. These questions and my several interactions with students of different level of their education (Masters, MBAs, Ph D scholars) are the basis of this small piece to simplify concerning issues and to bring some clarity. The focus shall be from the perspective of management, organizational behaviour, commerce, and strategic management, the broader field that most of my students water and nurture or are investing in.
Theories in general explain a phenomenon, helping in predicting or estimating the future. They help us understand cause and effect relationship, providing a base or reason. They help us sense or understand the world with proper justification. We the academics attempt to dig little deeper into them to have better sense or understanding. In this process new vistas are discovered, new threads are found to knit a yarn of systematic knowledge.
In whatever way things happen, individuals/people behave, groups interact, organizations operate, and the world moves, incites interest among scholars to explore the reason and provide or suggest a reason. Nothing happens without reason. Theories help us understand that reason in an organized way. The whole process and learning lead to creation of knowledge or adding to the existing pool of knowledge.
Theories are based on commonly observed patterns that create new knowledge to justify, defend, and/or connect with realities. Theories help build concepts for linking existing patterns, creating new knowledge, and estimating future trends and practices.
Theory, Research, Knowledge, and Practice enjoy an interesting relationship of overlapping, togetherness, continuity, evolution, and growth. Their existence can not be visualised in isolation of each other. And without effective cognitive faculties, it is rather difficult to rationalise their relationship. Observation and thinking, experimenting and experiencing, inquisitiveness and eye-for-detail, are all part and parcel of the whole process of developing a theory through research culminating into knowledge that is applied through practice. Theory building is a process that continues through observation, thinking, validation, and testing. There are two stages/approaches – inductive and deductive.
The personal knowledge, observation, experience, and expertise lead to inductive approach however scientific enquiry through test, evidence, and analysis head towards deductive approach. Both the approaches are used in research to build a theory that could be tested across timelines and regions.
At times, research leads to theory-making and the creation of knowledge. However, it is also true that, at times, practices drive theory, creating new knowledge. Researches are conducted to test theories and explore their application across sectors or geographies, industries or units. Researches help us understand the reality of time through the prism of a theory (or many theories) and its application.
Theories are validated or countered through reasoning across different timeframes. Theories are also influenced by individual biases, based on one’s belief, observation, defended by narratives and analysis. They provide insight into the phenomenon.
The theory of business enterprise was given by Thorstein Veblen in 1904, some 120 years before who countered the idea of capitalism as advocated by Adam Smith. Yet when we look at that theory from the point of view of present times we could still have certain components of that theory applicable today (profit over production). However there are issues concerning sustainablity, social responsiblity, dominance of technological advancements, and many others that could not be visualised at that time or could have been ignored. This is how theories evolve and mature and keep providing base for future research.
When we try answering a question – Why do people work, we first find the root in the hierarchy of needs (perhaps first need theory in academic literature) given by Maslow some 80 years ago yet as time changed there have been several works countering the order, priorities, and preferences. However, the underpinnings and lessons learned throughout the last 8 decades have revived and revised the order. The theory per se might be irrelevant, yet in the field of the study it is always better to have known this theory.
Jim Collins advocated for Level 5 Leadership Theory through his work (book – Good to Great, 2001) based on the data (from Univ of Chicago Center for Research in Security Prices – first cut of 1435 companies) of Fortune ranked American corporations and their practices (11 companies). It is an example of practice driving theory and creating new knowledge through the process of empirical research.
The researchers continuously explore existing theories through various tests, often leading to their modification or the creation of new ones. The process of exploring, learning, experiencing through time, techniques, and tools are part of evolution of knowledge. Theories help us understand the realities better of the given time and space and that is the reason why chronology becomes important to understand the evolution and build appropriate base. This historical perspective helps build a solid foundation for further advancements and a better grasp of contemporary issue.
New-age technology enthusiasts have the capability to document, mine, and algorithise theories, information, and data to enhance the predictability of future outcomes. These advancements can help address existing problems effectively. However, new challenges will inevitably emerge, requiring innovative solutions. Despite this, established theories remain relevant and continue to guide the future. Theories play a crucial role by answering the ‘why’ behind an occurrence, problem, or phenomenon—an essential step in understanding and solving complex issues.
So my dear students, as you work towards mastering your subject (M Com or MBA), it is essential that you develop a solid theoretical understanding of contemporary issues. This knowledge will enable you to analyze problems effectively, identify their root causes, and apply your insights to craft appropriate solutions. To achieve this, it is crucial to embrace learning through theories and cultivate a genuine interest in understanding them. Doing so will ensure that you excel as a master of your discipline and confidently meet the expectations of your field.
I hope it is now clear why studying a theory, even one that might seem outdated, is essential for understanding problems and their solutions. While theories may sometimes appear complex or challenging, navigating through them is crucial to mastering your subject. Without this effort, you risk remaining a novice in your field rather than achieving true expertise.
Also Read –
- Knowledge is power
- Future is here
- Future of now
- Organizational Realities
- Why to work hard
- Human efforts and respect
- Education as an event or as an experience
- PPTisation of Education
- Why and Why not Hierarchical Structure
- How hope is related with optimism
- Failure is part of Success
- Winning Trust
- 4Cs Model
- Education, Students, and Motivation
