Big Data, Proxies, Algorithmic Decision-Making and the Future of Management Theory

Dirk Lindebaum*, Christine Moser, Gazi Islam

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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Abstract

The future of theory in the age of big data and algorithms is a frequent topic in management research. However, with corporate ownership of big data and data processing capabilities designed for profit generation increasing rapidly, we witness a shift from scientific to ‘corporate empiricism’. Building on this debate, our ‘Point’ essay argues that theorizing in management research is at risk now. Unlike the ‘Counterpoint’ article, which portrays a bright future for management theory given available technological opportunities, we are concerned about management researchers increasingly ‘borrowing’ data from the corporate realm (e.g., Google et al.) to build or test theory. Our objection is that this data borrowing can harm scientific theorizing due to how scaling effects, proxy measures and algorithmic decision-making performatively combine to undermine the scientific validity of theories. This undermining occurs through reducing scientific explanations, while technology shapes theory and reality in a profit-predicting rather than in a truth-seeking manner. Our essay has meta-theoretical implications for management theory per se, as well as for political debates concerning the jurisdiction and legitimacy of knowledge claims in management research. Practically, these implications connect to debates on scientific responsibilities of researchers.

Original languageEnglish
Pages (from-to)2724-2747
Number of pages24
JournalJournal of Management Studies
Volume61
Issue number6
Early online date20 Dec 2023
DOIs
Publication statusPublished - Sept 2024

Bibliographical note

Funding Information:
We herewith certify that this essay represents original and independent scholarship. That is, generative AI was not used in the idea‐generating phase of this essay, nor was it used to assist the writing or editing of this essay. Dirk Lindebaum gratefully recognizes the support from the Alberta Business Family Institute at the University of Alberta School of Business as part of his visiting professorship. We also appreciate the very pertinent comments from colleagues when we presented this point‐counterpoint exchange at a research seminar at the Alberta School of Business in October 2022. Roy Suddaby too deserves credit for providing incisive comments on an earlier version of our essay. Thank you all again for these probing questions and comments. Finally, Caroline Gatrell provided excellent editorial guidance throughout this revision process.

Publisher Copyright:
© 2023 Society for the Advancement of Management Studies and John Wiley & Sons Ltd.

Funding

We herewith certify that this essay represents original and independent scholarship. That is, generative AI was not used in the idea\u2010generating phase of this essay, nor was it used to assist the writing or editing of this essay. Dirk Lindebaum gratefully recognizes the support from the Alberta Business Family Institute at the University of Alberta School of Business as part of his visiting professorship. We also appreciate the very pertinent comments from colleagues when we presented this point\u2010counterpoint exchange at a research seminar at the Alberta School of Business in October 2022. Roy Suddaby too deserves credit for providing incisive comments on an earlier version of our essay. Thank you all again for these probing questions and comments. Finally, Caroline Gatrell provided excellent editorial guidance throughout this revision process.

Keywords

  • algorithms
  • big data
  • corporate empiricism
  • performativity
  • proxies
  • scaling
  • technology
  • theory

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