This article argues that theory building in the social sciences, management and psychology included, should be inductive. It begins by critiquing contemporary philosophy of science, for example, Popper's falsifiability theory, his stress on deduction, and the hypothetico—deductive method. Next, the author presents some history on the concept of induction in philosophy and of inductive theory building in the hard sciences (e.g., Aristotle, Bacon, Newton). This is followed by three examples of successful theory building by induction in psychology and management (Beck's theory, Bandura's social—cognitive theory, goal setting theory). The article concludes with some suggested guidelines for successful theory building through induction and some new policies that journal editors might encourage.
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