Problem formulation for theorizing at the frontier: An Oliver Williamson inspired approach

Ostensibly, the evolving science of strategic management is geared towards addressing vexing
managerial problems. In practice, however, scholars in the field have a marked tendency to formulate problems to fit existing theoretical and methodological frameworks, even at the expense of committing type III errors. While the tendency to do so is often attributed to institutional pressures and the like, we submit that an equally or more compelling reason is the absence of guidance on how to engage in problem-driven inquiry and formulate problems to explore theoretical frontiers. In the strategic management field’s problem-solving spirit, we provide an approach for problem formulation and
theorizing inspired by Oliver Williamson and two of his accomplished advisees. We abduce five principles and six dialectic conversations. We synthesize these principles and dialectics into five protocols to enable canonical problem formulation directed at exploring theoretical frontiers, that is, a “white space.” Using a recently rejected manuscript, we show how our Williamson inspired approach can be useful in formulating problems that are both managerially relevant and theoretically fruitful.