One research method that is gaining increasing popularity in the systems area is the Grounded Theory Method originated by Glaser and Strauss. There are some profound problems with this approach, in particular the unproblematic conceptualization of data, and a level of methodological flexibility that can degenerate into methodological indifference and result in superficial and ambiguous conclusions. This paper argues that the method is not indelibly stamped with these failings; although they are failings, despite views of many users of the method. If these faults are remedied the method proves itself particularly suited to research endeavours that proceed from an anti-positivist orientation, that sees truth as made rather than as discovered, and where representation is viewed as a distributed, systems phenomenon. The paper seeks to draw general lessons from the Grounded Theory Method and other aspects of the discussion with regard to the study of systems and organizations in particular.