When your errors are your only hope : Testing “hidden hypotheses” in mediation studies in strategic management

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)73-89
Journal / PublicationStrategic Organization
Volume14
Issue number1
Early online date8 Sep 2015
Publication statusPublished - Feb 2016

Abstract

Mediation models involve two regression equations, one each for the dependent and mediating variables, Y and M. Tests of theoretical hypotheses in strategic management focus on “betas,” that is, the estimated regression coefficients in the Y and M equations. A neglected point is that strategic management theory sometimes suggests a “hidden hypothesis” concerning the sign of the error correlation between the Y and M regressions. Systems-based estimation methods can be used to test “hidden hypotheses.” We show that sometimes “hidden hypotheses” offer the only hope of empirically distinguishing between competing theories.

Research Area(s)

  • mediating effects, mediation, systems-based estimation methods, three-stage least squares (3SLS)