Theory development in a globalized world: Bridging “Doing as the Romans Do” with “Understanding Why the Romans Do It”

Abstract The dialectic between micro and macro theoretical perspectives remains a cornerstone in the study of business and social science. As globalization intensifies, these perspectives offer unique but sometimes conflicting views, with macro theories providing panoramic insights and micro theories zooming into nuanced contexts. The dominance of Western‐centric etic theories, though beneficial historically, faces challenges in the evolving tapestry of our interconnected world. Firms today grapple with intricate landscapes influenced by varied cultural, political, and social factors, necessitating more context‐sensitive tools. This article delves into the merits and limitations of both perspectives, advocating for the symbiotic use of micro and macro theories to navigate the complexities of today's globalized business environment. By nurturing both theoretical paradigms, we pave the way for a richer, more holistic understanding of modern‐day challenges and opportunities.