Grounded theory: an inductive method for supply chain research

Purpose – Development of theory remains an essential step in the evolution of supply chain management as an integrative business discipline. Supply chain research often involves phenomena possessing complex behavioral dimensions at both the individual and organizational levels. Such complexity can require the utilization of holistic and inductive approaches in order to more fully understand the behaviors associated with the phenomena. This paper aims to provide a step‐by‐step guide intended to increase researchers' understanding of the use of grounded theory (GT) methodology in supply chain contexts. Design/methodology/approach – The paper argues for GT as an appropriate method for studying emerging supply chain phenomena using an inductive, holistic approach. Findings – GT is positioned in a holistic framework of research methodologies. Next a step‐by‐step explanation of the grounded theory process is offered, illustrated by examples from the authors' own research. Originality/value – This paper links the complex “system of systems” nature characteristic of supply chains to the need for a holistic research approach such as grounded theory. It also provides a guide for researchers, reviewers, and editors to judge sound GT. Moreover, from a practical perspective, the in‐vivo nature of GT provides recognizable solutions to managerial problems.