![]() In contrast, explanations require causations, or understanding of cause-effect relationships. For instance, market analysts predict fluctuations in the stock market based on market announcements, earnings reports of major companies, and new data from the Federal Reserve and other agencies, based on previously observed correlations. Note that it is possible to predict events or behaviors using a set of predictors, without necessarily explaining why such events are taking place. Theories should explain why things happen, rather than just describe or predict. ![]() More formally, a scientific theory is a system of constructs (concepts) and propositions (relationships between those constructs) that collectively presents a logical, systematic, and coherent explanation of a phenomenon of interest within some assumptions and boundary conditions (Bacharach 1989). Theories are explanations of a natural or social behavior, event, or phenomenon. In this chapter, we will examine what is a theory, why do we need theories in research, what are the building blocks of a theory, how to evaluate theories, how can we apply theories in research, and also presents illustrative examples of five theories frequently used in social science research. ![]() ![]() As we know from previous chapters, science is knowledge represented as a collection of “theories” derived using the scientific method. ![]()
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