Grounded Theory Approach

The grounded theory approach is a qualitative research methodology originated by sociologists Glaser and Strauss in 1967. Its core principle is to generate theory from data, rather than testing preconceived hypotheses. While not a tool specified by ISO standards, its application strongly supports the requirements of ISO 22301:2019 for business continuity. For instance, in conducting a Business Impact Analysis (BIA) under Clause 8.2, quantitative data alone may miss hidden risks like interpersonal trust in supply chains or the impact of employee morale on recovery. Grounded theory provides a rigorous process (open, axial, and selective coding) to systematically analyze qualitative data from interviews and observations. This uncovers critical qualitative risk factors, creating more realistic impact scenarios compared to methods relying solely on surveys or financial data.

In ERM, the grounded theory approach transforms tacit organizational knowledge into actionable insights. A typical implementation involves three steps: 1. Scoping and Theoretical Sampling: Define a core risk issue, such as cascading effects of a key supplier failure. Instead of random sampling, purposefully select interviewees (e.g., senior procurement managers) who can provide rich insights as the theory emerges. 2. Concurrent Data Collection and Analysis: Conduct in-depth interviews, immediately transcribing and coding them to identify key concepts (open coding) and then linking these concepts to build a preliminary causal model (axial coding). 3. Theory Building and Saturation: Develop a central theoretical framework around a core category that explains the phenomenon. Continue sampling and analysis until no new insights emerge. A multinational electronics firm used this to analyze supply chain resilience, discovering that 'relationship trust' was a more critical recovery factor than contractual terms, leading to a 15% reduction in annual disruption events.

Taiwanese enterprises face three main challenges. First, a 'quantitative bias,' where managers prefer hard KPIs over narrative-based theoretical frameworks from qualitative research. The solution is to link qualitative findings to quantitative metrics, e.g., connecting 'communication barriers' identified in interviews to 'project delay rates.' Second, high resource and time investment for in-depth interviews and analysis. Mitigation involves using AI-powered tools for transcription and initial text analysis, and piloting the approach in a single high-risk business unit. Third, a lack of in-house expertise in qualitative research methods. The strategy is to initially partner with external consultants or academic institutions for training and project facilitation, aiming to build internal capabilities within 6-12 months through workshops and hands-on projects.

Winners Consulting specializes in grounded theory approach for Taiwan enterprises, delivering compliant management systems within 90 days. Free consultation: https://winners.com.tw/contact