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A Grounded Theory, it is claimed, is a theory which is inductively derived from the phenomenon it represents and meets four central criteria: fit, understanding, generality and control (Strauss and Corbin 1990). Fit entails that the theory fits the substantive data. Understanding entails that the theory be comprehensible to all involved in the area of study. Generality entails that the theory is applicable in a variety of contexts. Control implies that the theory should provide control with regard to action toward the phenomenon.
Grounded theory provides a systematic method involving several stages which is used to ‘ground’ the theory, or relate it to the reality of the phenomenon under consideration (Scott 1996). A Grounded Theory is derived from the phenomenon under study. This contrasts with the hypothetico-deductive method, where theories are generated from cyclical testing and refining of a previously constructed hypothesis. In Grounded Theory studies, theory emerges from the systematic examination of the phenomenon.
An important feature of Grounded Theory is theoretical sensitivity, which refers to a personal quality of the researcher and relates to understanding the meaning and subtlety of data. Theoretical sensitivity has been described by Glaser (1978) as the process of developing the insight with which a researcher comes to the research situation. Such insight should be conceptual rather than concrete. It is often referred to as a creative aspect of Grounded Theory and involves the researcher working in the area to obtain experience and expertise. By gaining theoretical sensitivity the researcher will be able to recognise important data and formulate conceptually dense theory.