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The aim of the paper is to provide a historical review of theory's role in management research. The literature has a plethora of definitions about theory, emphasizing the diversified nature of theory, the meaning and the usefulness of a theory across various disciplines. A theory could be used as a framework explain a particular phenomena and the relationship among studies variables. Theories could be inductive or deductive in nature. In order to be able to explain the conceptual relationship between variable a good theory must have four important properties: a) definition, B) domain, C) relationship and D) predictions. This alters the contemporary relationship between the theory and research. The complementary relationship alters theory as a guideline force for the deployment of a research and theory development depends on research for ratification and validation. Hence, a research-worthy problem is the cornerstone in the relationship among theory and research. A research-worthy problem sets the pathway in testifying or developing a theory through empirical research. The theoretical contribution concerned theory's originality and utility, representing the contribution in incremental insight to the body of knowledge and the way a theory practically solves problems respectively. The dynamic theory of organizational knowledge creation was used in examining the role of theory in management research. The analysis led to two defects concerning the unclear notion of tacit knowledge within an organization context and the empirical validity of the SECI model in Western countries.

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