Dear ENTREP Colleagues,
We are delighted to share an article from the latest issue of Organizational Research Methods (ORM) on moderation and mediation--two of the most popular types of effects included in most entrepreneurship theories:
· Aguinis, H., Edwards, J. R., & Bradley, K. J. 2017. Improving our understanding of moderation and mediation in strategic management research. Organizational Research Methods, 20: 665-685. [available at http://www.hermanaguinis.com/pubs.html]
Although ORM is devoted to methodological issues in management and other fields, it does not publish strategy- and entrepreneurship-related articles often. We certainly hope the publication of our article will start a trend in the right direction.
Abstract
We clarify differences among moderation, partial mediation, and full mediation, and identify methodological problems related to moderation and mediation from a review of articles in Strategic Management Journal and Organization Science published from 2005 to 2014. Regarding moderation, we discuss measurement error, range restriction, and unequal sample sizes across moderator-based subgroups; insufficient statistical power; the artificial categorization of continuous variables; assumed negative consequences of correlations between product terms and its components (i.e., multicollinearity); and interpretation of first-order effects based on models excluding product terms. Regarding mediation, we discuss problems with the causal-steps procedure; inferences about mediation based on cross-sectional designs; whether a relation between the antecedent and the outcome is necessary for testing mediation; the routine inclusion of a direct path from the antecedent to the outcome; and consequences of measurement error. We also explain how integrating moderation and mediation can lead to important and useful insights for strategic management theory and practice. Finally, we offer specific and actionable recommendations for improving the appropriateness and accuracy of tests of moderation and mediation in strategic management research. Our recommendations can also be used as a checklist for editors and reviewers who evaluate manuscripts reporting tests of moderation and mediation.
All the best,
--Herman.
Herman Aguinis, Ph.D.
Avram Tucker Distinguished Scholar and Professor of Management
George Washington University School of Business
2201 G Street, NW
Washington, DC 20052
http://hermanaguinis.com/
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