A new perspective on a fundamental debate: a multilevel approach to industry, corporate, and business unit effects

Misangyi, Vilmos F.; Elms, Heather; Greckhamer, Thomas; LePine, Jeffery A.

doi:10.1002/smj.530

Cited by 229 publications

(376 citation statements)

References 32 publications

(110 reference statements)

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“…However, both techniques have limitations resulting from their underlying assumptions, sometimes generating inconsistent and unreliable results (Misangyi et al, 2006). ANOVA assumes that each effect class is composed of specific effect levels, which are all present in the analyzed sample.…”

Section: Methodsmentioning

confidence: 99%

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Zouaghi¹,

Sánchez

Hirsch

2017

Span. j. agric. res.

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Strategic management research has demonstrated the importance of firm-and industry structure as drivers of firm profitability. However, less is known about how firms´ geographical locations affect profitability. Applying a multi-level approach of hierarchical linear modeling we estimated firm-, industry-, and region-specific effects on profitability of 3,273 agri-food firms operating in different Spanish districts over the time span 2006-2013. The results reveal the dominance of firm-specific effects which contribute up to 48.8% to variance in firm profitability while the contribution of industry effects (0.8-4.2%), geographical location (0.1-1.8%), and year effects (0.1-2.5%) is rather small. Moreover, firm size, risk, and innovative activity turn out as significant profit drivers at the firm level. Although firm-effects outweigh industry-and region-specific factors, the results indicate that industry concentration as well as regional education and unemployment influence profitability. In addition, proximity to technological institutes as well as the degree of urbanization of the region in which a firm operates can be drivers of profitability. Hence, despite the superiority of firm effects the results indicate that agri-food managers should also consider possible advantages from location-based resources in order to ensure competitiveness.Additional keywords: agri-food profits; firm-, industry-, and location effects; hierarchical linear model.

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Section: Methodsmentioning

confidence: 99%

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

Zouaghi¹,

Sánchez

Hirsch

2017

Span. j. agric. res.

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“…Accordingly, HLM surpasses the feasibility of standard OLS regressions (Raudenbush and Bryk 2002). In general, nested data structures, where the objects of investigations are hierarchically separated, are frequently observed in the fields of management (e.g., Misangyi et al 2006;Van Der Vegt et al 2005) and finance (e.g., Engelen and van Essen 2010;Kayo and Kimura 2011). In light of the fact that our research design assessed the impact of investor related predictors on startup related ones, we consequently applied a twolevel HLM approach (see Fig.…”

Section: Methods Of Analysismentioning

confidence: 99%

A world of difference? The impact of corporate venture capitalists’ investment motivation on startup valuation

et al. 2017

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Corporate venture capital (CVC) investors are regularly painted with the same brush, a fact underscored by the often observed belief in the extant literature that corporate venture capitalists (CVCs) form a homogeneous group. In contrast to this simplifying perspective, this paper categorizes CVCs into subgroups by examining their levels of strategic and financial investment motivation using computer-aided text analysis and cluster analysis. To validate the resulting clusters, this paper studies the impact of CVC type on startup valuation from an intra-group perspective by applying hierarchical linear modeling, thus illustrating which particular investment motivation might be preferable to others in the context of negotiating valuations. An empirical analysis of 52 CVC mission statements and 147 startup valuations between January 2009 and January 2016 revealed that first, CVCs with a strategic investment motivation assign lower startup valuations than CVCs with an analytic motivation that have moderate levels of the two scrutinized dimensions, suggesting that entrepreneurs trade off these CVCs' value-adding contributions against a valuation discount; second, CVCs with an unfocused investment motivation pay significantly higher purchase prices, thus supporting the hypothesis that they have a so-called liability of vacillation; and third, the valuations of CVCs with a financial investment motive are not significantly different from JEL Classification C12 Á C30 Á C38 Á G24 Á G32 Á M13

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“…Most recently, strategy researchers argued that hierarchical linear modeling (HLM), also known as multilevel modeling, was the best method for examining multilevel effects (Hough, 2006;Misangyi et al, 2006). Specifically, HLM is generally considered superior to VCA and ANOVA because HLM (a) permits complex error structures and can thus model dependence between levels of analysis, (b) has greater statistical power than the other two methods, and (c) addresses the problem of collinearity between corporations and industries (Hough, 2006 Bobko, 2001).…”

Section: Hlmmentioning

confidence: 99%

Unpacking the Drivers of Corporate Social Performance: A Multilevel, Multistakeholder, and Multimethod Analysis

et al. 2015

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The question of what drives corporate social performance (CSP) has become a vital concern for many managers and researchers of large corporations. This study addresses this question by adopting a multilevel, multistakeholder, and multimethod approach to theorize and estimate the relative influence of macro (national business system and country), meso (industry), and micro (firm-level) factors on CSP. Applying three different methods of variance decomposition analysis to an international sample of 2,060 large public companies over a time span of 5 years, our results show that firm-level factors explain the largest proportion of variance in aggregate CSP as well as CSP oriented toward communities, the natural environment, and employees. These results support our hypotheses according to which CSP is not primarily driven by macrolevel or mesolevel factors, except for shareholderoriented CSP, which is relatively more influenced by country-level factors. As a whole, our findings also point to the value of subdividing CSP into its stakeholder-specific components as this disaggregation allows for a more careful examination of distinct drivers of distinct aspects of CSP.Keywords: Corporate social performance; corporate social responsibility; decomposition of variance; hierarchical linear modeling; stakeholders; variance components analysis.Abbreviations: ANOVA = analysis of variance; CSP = corporate social performance; HLM = hierarchical linear modeling; MLE = maximum likelihood estimation; NBS = national business system; REMLE = restricted maximum likelihood estimation; VCA = variance components analysis.Unpacking 2

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A new perspective on a fundamental debate: a multilevel approach to industry, corporate, and business unit effects

Cited by 229 publications

References 32 publications

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

What drives firm profitability? A multilevel approach to the Spanish agri-food sector

A world of difference? The impact of corporate venture capitalists’ investment motivation on startup valuation

Unpacking the Drivers of Corporate Social Performance: A Multilevel, Multistakeholder, and Multimethod Analysis

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