In this article it is argued that the realism-relativism duality addressed by the grounded theory approach to qualitative research is best accounted for when the method is understood to be an inductive approach to hermeneutics. Phenomenology, C.S. Peirce's theory of inference, philosophical hermeneutics, pragmatism and the new rhetoric are drawn upon in support of this argument. It is also held that this formulation of the grounded theory method opens the possibility that the method improves on earlier approaches to methodical hermeneutics. As an outcome of this formulation, the debate on the validity and reliability of returns from the grounded theory approach is cast in a new light. The new methodical hermeneutics is discussed in terms of prior attempts to relate hermeneutics to method.
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