The art of persuasion: Theorizing as argumentation

In a marketplace of ideas where theories can act as substitutes, theorists seek to persuade peers to engage with their theories. Given this critical role of persuasion, how do theorists do so? To address this question, the current study adopts a pragmatist perspective and employs the Toulmin model of arguments to examine how Oliver Williamson persuaded his peers to engage with transaction cost economics. The study unpacks how Williamson structured his arguments, introduced new constructs and language, and employed analogies and metaphors to foster a consensus, giving rise to an epistemic community. The study highlights that not only do values influence how arguments are crafted and evaluated, but also appealing to them plays a key role in persuasion. In doing so, the study considers both the rational and non-rational aspects of theorizing and persuasion. Finally, the study discusses the significance of argumentation in the context of AI and theorizing in strategic management.