Theory, theoretical framework and conceptual framework
Students often confuse these terms, and examiners notice. A theory is an established explanation of how or why something happens. A theoretical framework is the theory (or theories) you adopt to guide your study. A conceptual framework is your own model of the concepts in the study and the relationships you expect among them, usually drawn from theory and the literature.
| Term | Source | Example |
|---|---|---|
| Theory | Published scholarly work | Social exchange theory: relationships are based on reciprocal exchange of benefits |
| Theoretical framework | Chosen from existing theory to guide the study | Using social exchange theory and organizational support theory to study retention |
| Conceptual framework | Your model of the variables and links | Supervisor support and onboarding quality lead to commitment, which leads to intention to stay |
Choose a theory that fits the question
Start with the problem and the phenomenon you are explaining. Then ask which theories explain similar phenomena. Read how others have used the theory, because the strongest framework is one that has been applied before but not in your context, which is where your contribution lies.
| Theory | Core idea | Typical use in business research |
|---|---|---|
| Resource-based view | Valuable, rare, inimitable resources give lasting advantage | Capabilities and performance |
| Institutional theory | Firms conform to rules, norms and expectations to gain legitimacy | Adoption of practices, regulation, ESG |
| Agency theory | Owners and managers have conflicting interests that need controls | Governance, executive pay |
| Transaction cost economics | Firms choose structures that minimize cost of exchange | Outsourcing, vertical integration |
| Social exchange theory | Relationships rest on reciprocity of benefits | Employee commitment, trust |
| Technology acceptance model | Perceived usefulness and ease of use predict adoption | IT adoption, digital services |
| Theory of planned behavior | Attitudes, norms and perceived control predict intentions | Consumer and employee behavior |
| Stakeholder theory | Firms must balance the interests of all stakeholders | CSR, ethics, strategy |
- Fit the question Does the theory explain the phenomenon you study?
- Check the assumptions Do they hold in your context?
- Use no more than two or three theories More becomes a list and weakens the argument.
- Explain limits Say what the theory does not explain and how your study extends it.
Build the conceptual model and hypotheses
Turn the literature into a diagram and a set of propositions or hypotheses. Each arrow in the model should have a reason, drawn from theory and previous studies, and each hypothesis should correspond to an arrow.
From model to hypotheses (hypothetical)
Model: Supervisor support (independent) and onboarding quality (independent) predict intention to stay (dependent); organizational commitment mediates both; employee tenure is a control.
| Hypothesis | Rationale |
|---|---|
| H1: Supervisor support is positively related to intention to stay | Social exchange: support creates obligation to reciprocate |
| H2: Onboarding quality is positively related to intention to stay | Early experience shapes attachment to the firm |
| H3: Organizational commitment mediates the effect of supervisor support on intention to stay | Support builds commitment, which drives the decision to remain |
| H4: The effect of onboarding quality is stronger for employees with less than one year of tenure | Early experience matters most when expectations are forming |
Draw the diagram with variables in boxes and arrows for the direction of influence. Label each arrow with the hypothesis number and keep the layout simple enough to understand in a glance.
Variable roles: mediators, moderators and controls
| Role | Meaning | Question it answers | Example |
|---|---|---|---|
| Independent variable | The presumed cause or predictor | What influences the outcome? | Supervisor support |
| Dependent variable | The outcome | What are we explaining? | Intention to stay |
| Mediator | Carries the effect from the predictor to the outcome | How or why does it work? | Organizational commitment |
| Moderator | Changes the strength or direction of a relationship | When or for whom does it work? | Tenure |
| Control | Held constant to avoid confounding | What else could explain the result? | Age, department |
The distinction between mediator and moderator is frequently confused. A mediator is on the causal path (support leads to commitment, which leads to staying). A moderator sits outside the path and changes how strong it is (the effect is stronger for newer employees).
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Get an instant quoteWhat mediation means in numbers
If commitment mediates the effect of supervisor support on intention to stay, there are two paths: support increases commitment (path a), and commitment increases intention to stay (path b). The indirect effect is a x b.
Indirect effect (hypothetical standardized values)
Path a: support to commitment = 0.50. Path b: commitment to intention to stay = 0.40. Indirect effect = 0.50 x 0.40 = 0.20.
If the total effect of support on intention to stay is 0.42, then the direct effect remaining after accounting for commitment is 0.42 - 0.20 = 0.22. About half of the effect (0.20 of 0.42, or 48 percent) travels through commitment.
State the hypothesis in these terms, and plan to test the indirect effect formally, for example with bootstrapped confidence intervals, rather than by a rule of thumb alone.
From construct to measure
| Construct | Definition used | Measure | Source |
|---|---|---|---|
| Supervisor support | Degree to which employees feel their supervisor values their contribution and cares about their wellbeing | Multi-item agreement scale | Validated scale from the literature |
| Onboarding quality | Perceived helpfulness of early information, training and introductions | Multi-item scale | Adapted scale; piloted |
| Commitment | Emotional attachment to the organization | Multi-item scale | Validated scale |
| Intention to stay | Stated likelihood of remaining for the next 12 months | Short scale | Validated scale |
Every box in the model needs a row like this. If you cannot say how a construct will be measured or explored, it is not ready to go in the model.
Checking that the framework fits the study
- Does each arrow have a reason? A theory or study that supports it.
- Does each hypothesis match an arrow? And each arrow a hypothesis?
- Can the data test it? Design, sample and measures must fit the model.
- Is it as simple as it can be? Remove variables that do not serve the question.
- Will the discussion return to it? Findings should update the framework.
A smaller model that you can test well is better than a large one that you can only describe. If a model has more than about six constructs, ask whether the study is trying to do two projects at once.
Link the framework to the rest of the dissertation
The framework should connect each chapter: the literature review builds it, the methodology measures its parts, the analysis tests its links and the discussion returns to it to say what the results mean for the theory. Use the same terms for each construct throughout. For the review that leads to it, see our guide to the literature review.
- Name the theory and define its core claims In two or three sentences with citations.
- Explain why it fits Link the theory to your context and question.
- Show the model A clear diagram with hypotheses or propositions.
- Operationalize each construct State how it will be measured or explored.
- Return to it in the discussion Say how findings support, extend or challenge the theory.
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