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Theories are formulated to explain, predict, and understand phenomena and, in many cases, to challenge and extend existing knowledge within the limits of critical bounding assumptions. TheoryHub features reviews of theories, acting as a starting point for theory exploration.
ISBN: 978-1-7396044-0-0

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Academic Theories

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Theory Review

Social Exchange Theory

Social exchange theory explains the social behaviour in dyadic and collective relations by applying a principle of a cost-benefit analysis of relations.

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Theory Review

Upper Echelons Theory

The Upper Echelons Theory postulates that the idiosyncratic characteristics (e.g., cognitive base and values) of a firm’s top-level managers play a key role in explaining and/or predicting strategic decisions and organisational performance. Top-level managers’ cognitive base and values exert influence on how they interpret strategic situations, shaping their decisions and resulting in market and financial performance outcomes.

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Theory Review

Equity Theory

Equity Theory explains the individual's perception of fairness in social exchange relationships, based on the perception of one’s input into relations and the output of those relations compared against the ratio of the input and output of other people

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