Applying Random Coefficient Models to Strategy Research: Identifying and Exploring Firm Heterogeneous Effects
Autor: | Gonçalo Pacheco-de-Almeida, Ashton Hawk, Juan Alcacer, Wilbur Chung |
---|---|
Rok vydání: | 2018 |
Předmět: |
060106 history of social sciences
Computer science Strategy and Management 05 social sciences Multilevel model Regression analysis 06 humanities and the arts Management Science and Operations Research Competitive advantage Differential effects Management of Technology and Innovation 0502 economics and business Strategy research Econometrics 0601 history and archaeology Strategic management Business and International Management 050203 business & management |
Zdroj: | Strategy Science. 3:533-553 |
ISSN: | 2333-2077 2333-2050 |
Popis: | Strategy aims at understanding the differential effects of firms’ actions on performance. However, standard regression models estimate only the average effects of these actions across firms. Our paper discusses how random coefficient models (RCMs) may generate new insights about firm heterogeneity and its effects on performance in empirical settings in strategy. RCMs allow testing for and predicting firm-specific coefficients, thereby distinguishing between effects that have a significant mean versus significant variance. RCMs may also be used to explore the sources of firm heterogeneous effects. We develop a simulation test bed using synthetic data sets to show that RCMs are more precise at allocating firm heterogeneous effects to model slopes and intercepts than standard regression models. We also discuss RCMs’ possible limitations due to sample size requirements, nonconvergence problems, and potentially restrictive assumptions. Overall, RCMs allow strategy researchers to test and build new theories at a more granular level. |
Databáze: | OpenAIRE |
Externí odkaz: |