Grounded Theory: Description, Divergences and Application

In this paper, we describe grounded theory methodology, its purpose and its application in addressing research problems. We highlight the divergences and debates on how to apply the methodology. We examine the application of the methodology in prior accounting research. We conclude the paper by identifying quality criteria for the conduct of grounded-theory research. Our paper contributes to prior research by assembling a wide body of prior literature on grounded-theory methods and by summarising that literature in a clear and accessible manner for future researchers. In addition, the research design presented reflects current thinking in the literature on improving the application of grounded theory methodology in future research.