Abstract: Within the past 2 or 3 decades or so, a universal pattern of modernity is emerging from the wide diversity of traditional values and institutions and peoples of all nations are confronted with the challenge of defining their attitudes toward fundamental changes that are world wide in scope. These changes have equally in no small measure affect the academia. Social researchers in various disciplines have been challenged to explore practical means of carrying out their researches too. In recognition of this fact, this stduy sets out to explore theory building using qualitative data analysis. This study is treated in 3 main parts. The first part provides the background information necessary to embark on this form of research process. It thus, introduces the methodology and explains something about the characteristics of users of this method. It further explores the differences among description, conceptual ordering and theorizing. The relationship between qualitative and quantitative forms of analysis are analyzed and the need to maintain a balance objectivity and creativity. The second part presents the specific analytic techniques and procedures to be used in developing theory. It posits the idea of analytic tools, a palate of devices theorists can use to facilitate analysis and enhance discovery. An explanation of how we view process and describes how to code for it. This second part consequently concludes with a review of the sampling procedure involved in theory building. The third and final part explores further matters of concern to all researchers namely what comes after completing the analysis. This is presented in the form of questions that most often asked by researchers who use this methodology along with the answers to those questions. The study concludes with possible provision of criteria needed for evaluating both the research process and the empirical grounding of findings. It finally posits and recommend to research students of social and management sciences the gains of grounded theory if proper procedures are followed.