Abstract Based on the qualitative data of classical books, theoretical system and papers from western management field, the current paper investigates the construction, diffusion and disappearing rule of management theory by employing the coding method from grounded theory. The result shows that, the construction of management theory is a series of process, including orientation of management problem, writing books or publishing papers, diffusion through academic community, and later research. Analysis shows that, the construction, succession and development rule of management theory contains five processes: theory initiating, theory climbing, theory pondering, theory flourishing and theory declining. Theory initiates by denying and criticizing existing perspectives, and then goes on climbing to a higher level with the help of novelty and first-round audience. Based on this, theory is legitimized by fighting with alternative ideas, contextual adaptation and basic human assumption. With these, the theory flourishes to its top because of its concern for fundamental problems and human beings. Lastly, the theory dies away from the constraint of inherent limitation, change of human nature and social culture.
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