Theory must change in order for it to be accurate. In the business world, with its rapidly changing environment theory must likewise change to keep pace. Outdated theory means that the country is working off of a model that is obsolete. These obsolete models can affect the future viability of America’s business environment.
Theories can apply to nearly any concept that we can imagine. These theories can apply to ethics, money, economics, trade, relations, or anything else. The process of how these theories develop and become know as theories is relatively the same. These steps are not mutually exclusive and actually act more fluid than one would think.
There are steps to the changing of a theory that many people might not be aware of. One of the most important components of changing theory is laced within the experimentation phase where findings are repeated and questioned by their peers (Ji-Hong, 2007). This process of skepticism helps to show that the theory has some grounds for widespread adoption.
Likewise before a theory can even be developed there must be a need and the explanation to this need should be a vision. By visualizing the explanation and putting into concrete steps on a paper the researcher is well on his or her way to developing a theory (Hatchet, 2003). This theory is then passed around the scientific and business community to be further adjusted, criticized and hopefully approved.
The Need: There must always be a need before a new theory is developed. For example in business or in ethics there is a need for the theory because something isn’t explained and is a continually problem. This need raises the awareness of the researchers or industry so that they spend their energy solving the problem.
Literature: Before a new theory can develop or an old one adjusted there must be some understanding of the theories before hand. This can come from business experience or formal literary reviews. The research studies the problem so that he or she has a clear understanding.
Analyze: Once there is a clear understanding of the problem then this problem will make its way into a formal structure. Some level of analysis and understanding must happen of the components before the ideas can be tested.
Experiment: Now that the researcher has a clear understanding of the components of the problem he or she can go ahead and manipulate these components so that they the experimenter can understand them. The community may continue to experiment as well bringing additional understanding of how the components work together.
Develop or Adjust Theory: The original theory is either adjusted or a new theory is developed. A component or new understanding of a theory may develop and this is added to the literature or the differences are so profound that a new theory must be offered.
Acceptance of Theory: The community of business leaders, ethicists or researchers must accept the theory as valid. In order for them to do this they would have to find it useful for explaining modern problems.