Deductive approach: Hypotheses are drawn from a predefined theory and tested against quantitative observation and empirical findings (positivism) Deductive Research Cycle: Theory → Hypothesis and operationalization → Data collection and analysis → Findings and interpretation → Hypothesis confirmed or rejected → Revision of theory → Theory Moves from general to specific / testing hypothesis emerging from theories Example: influence of different leadership styles (I know much about leadership, I can come up with the theory, and then I do the survey) Inductive approach: Systematic (qualitiative) observations and empirical findings are used to infer hypotheses and theories Difference: Theory comes before observation (Deductive) vs Observation leads to a Theory (Inductive) Moves from specific to general Example: I want to explore, I talk to employees, I see a pattern, I can come up with a theory because of the interviews