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.
AtincG.SimmeringM. J.KrollM. J. (2011) “Control Variable Use and Reporting in Macro and Micro Management Research,” Organizational Research Methods15: 57–74.
2.
AudasR.BarmbyT.TrebleJ. (2004) “Luck, Effort, and Reward in an Organizational Hierarchy,” Journal of Labor Economics22: 379–95.
3.
BarneyJ. (1991) “Firm Resources and Sustained Competitive Advantage,” Journal of Management17: 99–120.
4.
BaronR. M.KennyD. A. (1986) “The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations,” Journal of Personality and Social Psychology51: 1173–82.
5.
BermanE.BoundJ.GrilichesZ. (1994) “Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence From the Annual Survey of Manufacturers,” Quarterly Journal of Economics109: 367–97.
6.
BorjasG. J. (1987) “Self-Selection and the Earnings of Immigrants,” American Economic Review77: 531–53.
7.
BoxallP.AngS. H.BartramT. (2011) “Analysing the ‘Black Box’ of HRM: Uncovering HR Goals, Mediators, and Outcomes in a Standardized Service Environment,” Journal of Management Studies48: 1504–32.
8.
BoydB. K.BerghD. D.IrelandD.KetchenD. J. (2013) “Construct Measurement in Strategic Management Research,” Organizational Research Methods16: 3–14.
9.
BoydB. K.GoveS.HittM. A. (2005) “Construct Measurement in Strategic Management Research: Illusion or Reality?” Strategic Management Journal26: 239–57.
10.
BoydB. K.HaynesK. T.HittM. A.BerghD. D.KetchenD. J. (2012) “Contingency Models in Strategic Management: Use, Disuse, or Misuse?” Journal of Management38: 278–313.
11.
BrivotM.LamH.GendronY. (2014) “Digitalization and Promotion: An Empirical Study in a Large Law Firm,” British Journal of Management25: 805–18.
12.
CarlsonK. D.WuJ. (2011) “The Illusion of Statistical Control: Control Variable Practice in Management Research,” Organizational Research Methods15: 413–35.
13.
CrosslandC.HambrickD. C. (2011) “Differences in Managerial Discretion across Countries: How Nation-Level Institutions Affect the Degree to Which CEOs Matter,” Strategic Management Journal32: 797–819.
14.
DeVaroJ. (2006a) “Internal Promotion Competitions in Firms,” RAND Journal of Economics37: 521–42.
HoV. T.PollackJ. M. (2014) “Passion Isn’t Always a Good Thing: Examining Entrepreneurs’ Network Centrality and Financial Performance with a Dualistic Model of Passion,” Journal of Management Studies51: 433–59.
26.
JamesL. R.BrettJ. M. (1984) “Mediators, Moderators, and Tests for Mediation,” Journal of Applied Psychology69: 307–21.
27.
JamesL. R.MulaikS. A.BrettJ. M. (2006) “A Tale of Two Methods,” Organizational Research Methods9: 233–44.
28.
KennyD. A.KashyD. A.BolgerN. (1998) “Data Analysis in Social Psychology,” in GilbertD. T.FiskeS. T.LindzeyG. (eds) Handbook of Social Psychology, pp. 233–65. New York: McGraw Hill.
29.
LazearE. P.RosenS. (1981) “Rank-Order Tournaments as Optimum Labor Contracts,” Journal of Political Economy89: 841–64.
30.
MathieuJ. E.DeShonR. P.BerghD. D. (2008) “Mediational Inferences in Organizational Research: Then, Now, and Beyond,” Organizational Research Methods11: 203–23.
31.
MillerT. L.del Carmen TrianaM.ReutzelC. R.CertoS. T. (2007) “Mediation in Strategic Management Research: Conceptual Beginnings, Current Application, and Future Recommendations,” in KetchenD.BerghD. D. (eds) Research Methodology in Strategy and Management, vol. 4, pp. 295–318. Oxford: Elsevier.
32.
MooneyA. C.HolahanP. J.AmasonA. C. (2007) “Don’t Take It Personally: Exploring Cognitive Conflict as a Mediator of Affective Conflict,” Journal of Management Studies44: 733–58.
33.
NdoforH. A.SirmonD. G.HeX. (2011) “Firm Resources, Competitive Actions and Performance: Investigating a Mediated Model with Evidence from the In-Vitro Diagnostics Industry,” Strategic Management Journal32: 640–57.
34.
ShaverJ. M. (2005) “Testing for Mediating Variables in Management Research: Concerns, Implications, and Alternative Strategies,” Journal of Management31: 330–53.
35.
VenkatramanN.GrantJ. H. (1986) “Construct Measurement in Organizational Strategy Research: A Critique and Proposal,” Academy of Management Review11: 71–87.
36.
WaldmanM. (1984) “Job Assignments, Signaling and Efficiency,” RAND Journal of Economics15: 255–70.
37.
WaldmanM. (2013) “Classic Promotion Tournaments versus Market-Based Tournaments,” International Journal of Industrial Organization31: 198–210.
38.
WoodR. E.GoodmanJ. S.BeckmannN.CookA. (2008) “Mediation Testing in Management Research: A Review and Proposals,” Organizational Research Methods11: 270–95.
