Research Paper (postgraduate) from the year 2014 in the subject Business economics - General, Northcentral University (School of Business and Technology Management), language: English, abstract: Why theory is important for scientific investigators and business professionals? Could theorists generate theory from trial and error approach, or a good theory must follow and go beyond specific virtues? Does theory necessarily require application? Eventually, do business professionals practice real business problems without theory? Theory's precise nature involves a vigorous debate among social scientists, academics, and business professionals. The theme of the debate is embedded in different types of theory and in the scholarly views of what constitutes a good theory. In this paper, we present three views on the nature and types of theory, focus on the relationship between theory and research, and identify theoretical directions through which research can contribute to theory.