What is the role of the non-university service setting in theory development research? The authors discuss the importance of nursing theory to professional survival, economic necessity, and the generation of a knowledge base for practice. Motivational and contextual characteristics of the non-university setting that enhance or inhibit the conduct of research are identified. Common problems that arise from differing needs and goals of clinical nursing personnel and theoretical researchers are explicated. Specific strategies to facilitate theoretical research in a service setting are proposed.