The question about what a model and theory is seems perhaps a bit over-generalized at this point, but the following three sub chapters will explain that this question is not as easy to answer as it originally seems. Robert Merton explained the issue with the following statement: Chapter III.1 What is a model framework? Chapter I.2 Market niche model in strategic management Scientific objectives A. Provide a basic definition of what a model and theory is and what is not B. Lay down the framework for model construction C. Provide a short overview of model and theory in management studies Scientific objectives A. Creation of a market niche model framework B. Show the limitations and the reach of the market niche model framework C. Show the implications of the model for the creation of a market niche theory in strategic management III.1.1 Basic theoretical concepts and definitions III.1.2 Basic premises for model and theory construction III.1.3 Model and theory in management sciences III.2.1 Descriptive and explanatory elements of the market niche model III.2.3 Limitations and reach of the market niche model III. 2.3 Implications of the niche model Part III: Market niche model framework for strategic management 133 “Like so many words that are bandied about, the word “theory” threatens to become meaningless. Because its referents are so diverse—including everything from minor working hypotheses, through comprehensive but vague and unordered speculations, to axiomatic systems of thought—use of the word often obscures rather than creates understanding.” (Merton (1967), p. 39) What Merton was implying was that there is little agreement in the scientific community on what is actually understood when referring to theory. Disagreements arise on topics such as theory falsifiability, typologies and theory versus method among others.387 It is therefore of vital essence to identify formal methods and techniques that are vital for the formulation of effective theories. 388 This is why it is important to have a clear understanding of several key factors that have to be considered in order to meet the scientific requirements when dealing with model and theory construction. These factors and their application will be key in the second chapter of the third part, where the market niche model will be formulated. The structure of the chapter will be divided into three parts: the first part (III.1.1 Basic theoretical concepts and definitions) will explain and provide the basic definitions as well as a critical reflection of these definitions and their application. The second part (III.1.2 Basic premises for model and theory construction in management sciences) will focus on the framework and method that will be used for the construction of the model and the starting point for a comprehensive market niche theory in strategic management. The last part (III.1.3 Model and theory in management sciences) will show a critical assessment of model and theory in management sciences and its special features.