
34 STRATEGIC MANAGEMENT
1.8
SOME THEORIES USED IN STRATEGIC
MANAGEMENT
Theories can be defined as an explanation or as an answer to the ques-
tion of why (Sutton and Staw, 1995; Whetten, 1989). Theories broadly
fall into following two categories:
1. Paradigmatic theories are constructed as broad theoretical
perspective and they are typically used to explain a particular
phenomenon; for example, Agency Theory (Eisenhardt, 1989)
and Equity Theory (Mowday, 1991).
2. Propositional theories are constituted as one or more
propositional arguments involving the use of one concept
to explain another concept; for example, environmental
uncertainty ...