In management research, theory testing confronts a paradox described by Meehl in which designing studies with greater methodological rigor puts theories at less risk of falsification. This paradox exists because most management theories make predictions that are merely directional, such as stating that two variables will be positively or negatively related. As methodological rigor increases, the probability that an estimated effect will differ from zero likewise increases, and the likelihood of finding support for a directional prediction boils down to a coin toss. This paradox can be resolved by developing theories with greater precision, such that their propositions predict something more meaningful than deviations from zero. This article evaluates the precision of theories in management research, offers guidelines for making theories more precise, and discusses ways to overcome barriers to the pursuit of theoretical precision.
Keywords philosophy of science, quantitative research, theory developmentTheory testing in management research faces a paradox that confronts many social sciences. This paradox was articulated by Meehl (1967Meehl ( , 1978, who noted that in the hard sciences, such as physics and chemistry, improvements in research design lead to stronger tests of theories, subjecting them to increased risk of falsification. This phenomenon occurs because theories in the hard sciences can produce hypotheses that translate into predictions expressed as point values. As research designs become stronger (e.g., sample sizes are larger, measures have less error), estimates of point values have tighter confidence intervals, which increases the likelihood that hypotheses will be rejected. Hypotheses that survive these increasingly stringent conditions provide stronger corroboration of theories.In the soft sciences, such as management, stronger research designs yield weaker tests of theories. This paradox arises because theories in the soft sciences usually express predictions not as point values, but as directional statements, such as a positive or negative relationship between two variables. These predictions are tested by constructing a confidence interval not around some value predicted by the theory but instead around a null value indicating no effect. As research designs become stronger, confidence intervals around the null value become smaller, and the likelihood of concluding that the estimated effect falls on the predicted side of the null value approaches .50. To illustrate, suppose a theory predicts a positive relationship between two variables, and this prediction is tested with a sample of 380 cases and a p value of .05. Using a conventional two-tailed test, any correlation greater than .10 would be taken as support for the hypothesis. If a one-tailed test were used, taking into account the direction of the hypotheses, only 270 cases would be required to declare a correlation greater than .10 significant at p < .05. Hypotheses that accommodate such a broad range of values confront low hurdle...