The debate surrounding the theory–practice gap has become an intriguing matter for discussions within business studies and management education. Across universities, colleges, and higher secondary schools (Grades 11–12) in Nepal, students of business studies and management sciences have the same resounding question: What is the purpose of learning truckloads of fundamental knowledge, principles, procedures, protocols, and abstract theories? At the same time, faculties of business, finance, accounting, economics, human resource management, and organizational management would argue that theory provides the intellectual foundation for awareness, analysis, critical thinking, observations, applications, recommendations, and effective evidence-based decision-making.
However, bridging the theory gap is not just about organizing seminars, workshops, conferences, presentations, internships, project work, field visits, guest lectures, case studies, simulation labs, and labor market-driven curricula. It requires a shift in pedagogical orientations, conceptual clarity, logic, and thinking among both faculty members and students.
Student concerns with over-theorization
Indeed, our students, from higher secondary to postgraduate levels, are concerned with applications of theories in the realities of enterprises, industries, markets, practices, organizations, and entrepreneurship because of the decontextualized use of theories in management courses. We also have a problem with the pedagogical orientation of faculty members that presents theories as universal truths without sufficient attention to the situational analysis, context divergences, and application possibilities. Hence, when we ask students to learn definitions, models, procedures, and protocols for examinations without providing them with sufficient circumstantial analysis on how these theories function in the Nepalese context, students feel that the theories are detached from the realities of local businesses and organizations.
The preference among students for practice-oriented learning has resulted in a perception that higher education in Nepal, from the Plus Two level to postgraduate studies, is excessively focused on theories, concepts, procedures, and protocols. This perception has also fueled the trend among students for pursuing higher education abroad or enrolling in Nepalese colleges affiliated with foreign universities with flexible curricula and fewer examination requirements, together with curricular emphasis on experiential learning through industry engagement, projects, workshops, seminars, internships, and real-world applications. However, prioritizing practice over theory creates its own set of challenges in business education.
Theories provide a framework for practice.
The fundamental purpose of theories is to provide foundations for practice. This relationship follows in a logical sequence: theory shapes concepts; concepts build understanding; understanding enhances situational awareness; and situational awareness enables effective application. As a result, without sufficient theoretical and conceptual knowledge, what will our students apply when they encounter complex organizational problems? Practical experience alone cannot explain why certain business decisions succeed while others fail.
For example, a study can presume Herzberg's Two-Factor Theory as just another abstract theory of motivation when enrolled in a human resources management course. But if that same student becomes an HR manager, responsible for raising employee satisfaction levels, Herzberg's distinction between motivators and hygiene factors provides a crucial conceptual framework for him to identify issues at work associated with a drop in job satisfaction. After all, based on the conceptual framework of two-factor theory, various research on employees in Nepalese commercial banks has shown that performance-based incentives have a significant impact on job satisfaction levels of employees as compared to compensation alone. Theories are necessary for a nuanced analytical understanding of contextual realities. Hence, the issue may not be that our students grumble that we teach too much theory, but the challenge remains: are we teaching theories that are outdated, poorly contextualized, or disconnected from contemporary business and managerial realities?
Here, students need to realize that theories are designed to provide general explanations that extend beyond individual situations. Philosopher Thomas Nagel described theory as "the view from nowhere"—an abstract perspective that seeks universal understanding. Hence, applying theories in practice requires positioning them “somewhere” within a particular organization, industry, culture, or community.
Application of Theory in Management Decision Making
Management theories cannot be applied mechanically; they require interpretation and adaptation to the realities of a specific context. For example, domestic beverage and energy drink companies have effectively applied the AIDA model—Attention, Interest, Desire, and Action—to build effective marketing campaigns and expand consumer awareness. Although marketing and sales managers of these companies don’t consciously cite the AIDA model in their advertisement modalities, no doubt the underlying principles of this model influence their marketing strategies.
A theory does not immediately dictate managerial choices in a given situation, but it does assist managers in formulating better questions, conceptualizing, framing the issue, comprehending its underlying causes, analyzing, evaluating, interpreting data from many hypotheses, and making effective decisions. For example, students can quickly discern between the presumptions of Theory X and Theory Y in a management classroom. However, managers in Nepalese corporate business organizations will find it difficult to understand the differences between Theory X and Theory Y in organizational situations due to cultural leadership styles, network pressures, and contextual issues. What if the organization's self-driven workers need close supervision instead of encouraging environments?
Science and Art of Management
The responsibility for developing practical competence in students cannot be placed entirely upon our universities and colleges. Management is both a science and an art. While science provides theories, evidence, and analytical models, the art of management depends on individual judgment, creativity, emotional intelligence, networking ability, ethical reasoning, problem-solving skills, and contextual awareness.
Achievements, success, effectiveness, efficiency and expansion in both business and managerial positions are influenced by more than theoretical models, such as situational awareness, family support, socio-economic conditions, professional relationships, personality types, networking skills, resilience, business competition, strategic awareness, and market opportunities. Hence, the art of management, supported and strengthened by individual cognition, contextual awareness, conceptual understanding, relevant experiences, and practical wisdom, will be essential for translating theoretical learning into effective practice.
