To this end, both theoretical analyses and empirical investigations are necessary. Theories employ abstract
deductive reasoning by which conclusions are drawn from sets of assumptions, whereas purely empirical
studies are inductive in nature. As theories provide guides for empirical studies and empirical studies
provide tests of the assumptions and conclusions of theories, they are complementary (Henderson and
Quandt 1958). Nevertheless, it is a theoretical argument that drives us to launch further quest for truth and
that is why all areas of science evolve around theories.