Controlling for endogeneity with instrumental variables in strategic management research

By G. Bascle. 2008

1,089 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/4804894511ce9a674c7d38f482ab81855cf43a10

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Management Science and Operations Research

Citations in the corpus

Entrepreneurial Risk Taking of Private Family Firms (2013, result): “Based on results of previous studies, we selected two instrumental variables (“higher education” and “years worked for the family firm”) that are likely to meet these conditions and that have some dissimilarities (Bascle, 2008).”
Organizational Learning in Target Setting (2017, background): “Difference Generalized Method of Moments (GMM) includes lag variables as instruments to address potential additional endogeneity issues (Bascle, 2008; Roodman, 2009; Semadeni, Withers, & Certo, 2014); however, working with young branches with little past experience limits the option of using a diffe”
Instrumental leadership: Measurement and extension of transformational–transactional leadership theory (2014, neutral): “This technique is currently making inroads into applied psychology (Colbert, Judge, Choi, & Wang, 2012; Foster & McLanahan, 1996; Gennetian, Magnuson, & Morris, 2008) and management (Bascle, 2008; Carpenter, Li, & Jiang, 2012; Echambadi, Campbell, & Agarwal, 2006; Shaver, 2005).”
Unraveling the “passion orchestra” in academia (2016, methodology): “First, in order to examine and correct for potential endogeneity problems in our study, we carried out instrumental variable analyses complemented with Sargan and Durbin-WuHausman tests, as recommended by Baum (2006) and Bascle (2008).”
CEO Compensation in Private Family Firms (2013, methodology): “Specifically, instrumental variables methods focus on the variations in X that are uncorrelated with the error term (Bascle, 2008).”
The contingent value of venture capitalist reputation (2011, methodology): “These methods are robust using this technique (Bascle, 2008).”
The role of state ownership and institutions in the innovation performance of emerging market enterprises: Evidence from China (2017, methodology): “Second, the Sargan test does not reject the null hypothesis that the instruments are uncorrelated with the error term in all specifications (Bascle, 2008).”
CEO Career Variety: Effects on Firm-Level Strategic and Social Novelty (2014, background): “First, in 1997 companies changed how they reported intra-firm segment-level data (Bascle, 2008); thus, by starting our data panel in 1999, our corporate strategic change measure (described below) is comparable across our entire panel.”
The Family's Financial Support as a “Poisoned Gift”: A Family Embeddedness Perspective on Entrepreneurial Intentions (2017, methodology): “We tested for potential endogeneity by using a two-stage least squares approach with multiple instrumental variables (Bascle 2008).”
Balance Within and Across Domains: The Performance Implications of Exploration and Exploitation in Alliances (2011, background): “These latter statistics are conservative since they account for size distortions to weak instruments and correct for the number of instruments (Bascle, 2008).”
The perils of endogeneity and instrumental variables in strategy research: : Understanding through simulations (2014, methodology): “Given such enormous bias, we recommend testing for instrument endogeneity using the Sargan (1958) test or Hansen’s (1982) J-statistic (for other tests of instrument endogeneity, see Bascle, 2008).”
Leveraging marketing capabilities into competitive advantage and export performance (2015, background): “Although failure to control for endogeneity does not necessarily lead to genuine threats to validity, it is desirable that subsequent empirical research check this potential issue and corresponding solutions (Bascle 2008).”
Interpersonal Power (2015, background): “There are many ways to deal with the endogeneity problem—readers should refer to more technical literature on the topic (Antonakis et al.; Bascle, 2008; Foster & McLanahan, 1996; Larcker & Rusticus, 2010).”