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1.1.3.1 Inductive Approach

The concept of inductive reasoning could be compared with
the blowing of a balloon. A new theory is developed from a small
thought similar to how a person starts blowing a balloon from a
small hole. Inductive reasoning starts with specific observations
related to a particular area and develops these observations to
make generalisations in that particular area. Hence it can also be
called the ‘Bottom-up’ approach. This approach can be used to
◆ Bottom-up approach
draw new theories in those areas where existing literature is not
available.

Figure 1.1.1 Inductive approach

The theory developed using this approach cannot be tested
due to lack of existing literature, which is the key limitation of
this approach. Therefore, the only way to increase the reliability
◆ Particular to general
of theories developed through this approach is to collect the
maximum possible amount of data.

1.1.3.2 Deductive Approach
The concept of deductive reasoning can be compared to that
of a funnel. A funnel has a broad top which gets narrowed down
to a small hole at the bottom. Deductive reasoning approach
◆ Top-down approach tests the existing literature and theories by framing hypotheses
to draw conclusions. Usually the steps involved in this approach
are Theory, Hypothesis, Observation and Confirmation. Hence it
can also be called the ‘Top-down’ approach. This approach can be
used in areas where existing literature and theories are available.

8 SGOU - SLM -MCom Research Methodology