The aim of the chapter is to identify action research limitations in organization studies. Secondary data analysis is the research method applied in the study. Firstly, differences in terminology related to action research are presented, then its definitions and interpretations are discussed. Next, the generic research process is described. In the following section, literature review of action research applications is presented. Finally, the evaluation of action research method, its strengths and weaknesses and limitations in its application for organizational analysis and development are shown.