Identification and Analysis of Moderator Variables

Sharma, Subhash C.; Durand, Richard M.; Gur-Arie, Oded

doi:10.2307/3150970

Cited by 844 publications

(565 citation statements)

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“…Hypothesis 2a-c were tested using moderated regression analysis (Schoonhoven, 1981;Sharma et al, 1981). This involves including an interaction effect between the independent variable (cross-functional dispersion of influence on marketing activities) and the hypothesized moderator (market-related dynamism).…”

Section: Resultsmentioning

confidence: 99%

Should marketing be cross-functional? Conceptual development and international empirical evidence

Krohmer

Homburg

Workman

2002

Journal of Business Research

148

180

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While it has frequently been stated that decisions on marketing activities should be made cross-functionally, there is no empirical evidence that shows benefits of performing marketing activities in this way. This paper examines the link between the cross-functional dispersion of influence on marketing activities and performance at the SBU level and considers dynamism of the market, which may moderate the strength of this relationship. Using data from a cross-national study in three industry sectors, the authors find that cross-functional dispersion of influence on marketing activities increases the performance of the SBU. They also find that the relationship between the cross-functional dispersion of influence on marketing activities is negatively influenced by dynamism of the market. This research thus provides empirical evidence for the positive performance implications of cross-functional interaction in the context of marketing activities. D

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Section: Resultsmentioning

confidence: 99%

Should marketing be cross-functional? Conceptual development and international empirical evidence

Krohmer

Homburg

Workman

2002

Journal of Business Research

148

180

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“…Subgroup analysis, as it is sometimes called in the marketing, medical, and industrial/organizational psychology literature, often proceeds by identifying a moderator variable z, creating groups on the basis of a median split or EGA, and comparing the relationship between variables x and y for the resulting z subgroups (Sharma et al, 1981). Investigation of the interaction effect proceeds by statistically comparing r xy or R 2 from the two subgroups.…”

Section: Ega and Interaction Effectsmentioning

confidence: 99%

“…Most interaction hypotheses are more appropriately tested by use of regression methods involving product terms as predictors (see Aiken & West, 1991). These methods are generally regarded as preferable because they (a) maintain the continuous nature of the potential moderator variable, (b) are often more appropriate for the hypotheses of interest (Stone & Hollenbeck, 1989; but see Arnold, 1982Arnold, , 1984Sharma et al, 1981), and (c) do not involve many of the costs associated with dichotomization. Humphreys and Dachler (1969a) noted that selection of extreme groups on two variables followed by dichotomization and a two-way ANOVA is a problematic strategy.…”

Section: Ega and Interaction Effectsmentioning

confidence: 99%

Use of the Extreme Groups Approach: A Critical Reexamination and New Recommendations.

Preacher¹,

Rucker²,

MacCallum³

et al. 2005

Psychological Methods

605

491

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Analysis of continuous variables sometimes proceeds by selecting individuals on the basis of extreme scores of a sample distribution and submitting only those extreme scores to further analysis. This sampling method is known as the extreme groups approach (EGA). EGA is often used to achieve greater statistical power in subsequent hypothesis tests. However, there are several largely unrecognized costs associated with EGA that must be considered. The authors illustrate the effects EGA can have on power, standardized effect size, reliability, model specification, and the interpretability of results. Finally, the authors discuss alternative procedures, as well as possible legitimate uses of EGA. The authors urge researchers, editors, reviewers, and consumers to carefully assess the extent to which EGA is an appropriate tool in their own research and in that of others.

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“…Moderated multiple regression was used to test our hypothesized relationships because it is recommended for detecting interactions (Sharma et al 1981). Further, the incremental contributions of the explanatory variable main and interaction effects were analyzed in a forward stepwise fashion.…”

Section: Methodsmentioning

confidence: 99%

Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms

King

Slotegraaf

Kesner

2008

Organization Science

216

151

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W e explore the role of resource interactions in explaining firm performance in the context of acquisitions. Although we confirm that acquisitions do not lead to higher performance on average, we do find that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other; meanwhile, acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified.Key words: merger and acquisition; resource-based view; high technology History: Published online in Articles in Advance January 7, 2008. IntroductionThe value of worldwide merger and acquisition (M&A) activity set a new record in 2006 with $3.79 trillion worth of transactions-a 38% increase over 2005 (Berman 2007a). 1 The dominant rationale used to explain acquisition activity is that acquiring firms seek higher performance (Bergh 1997, Sirower 1997. However, existing M&A research has not consistently identified variables that impact acquisition performance (King et al. 2004). These mixed signals represent an apparent inconsistency or unsolved puzzle (Agrawal and Jaffe 2000), because firms continue to use acquisitions as a strategic tool with no evidence establishing that acquisitions improve firm performance. Consequently, there is a recognized need for research to identify a theoretical framework that helps to explain acquisition performance (Hitt et al. 1998, Hoskisson et al. 1994, Sirower 1997.Research on resource interdependence may offer such a framework (Barney 1988, Capron and Pistre 2002, King et al. 2004). Using resource-based theory (RBT) as a theoretical lens, research in this area suggests that, in general, acquisition performance will be higher when acquiring and target firm resources complement one another (Capron and Pistre 2002;Hitt et al. 1998Hitt et al. , 2001Puranam et al. 2006). Most extant research on resource interconnectedness (Dierickx and Cool 1989) has focused on positive reinforcement (Milgrom and Roberts 1995, Tanriverdi and Venkatraman 2005, Teece 1986) or on complements, where the marginal benefit from higher levels of one resource increases from the level of another resource (Sigglekow 2002). However, firm resource transfers may also serve as substitutes , Miller 2003 or display negative interactions (Sigglekow 2002). We examine resource interactions involving both substitutes and complements between acquiring and target firm resources.Although an acquiring firm's ability to achieve improved performance is likely to depend on interdependence between its resources and those of the target firm, there is limited research that empirically examines target and acquiring firm resource interactions on firm performance (Song et al. 2005). For example, in three different studies, Capron and her colleagues use a methodology largely reliant on survey data, showing that substantial...

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Identification and Analysis of Moderator Variables

Cited by 844 publications

References 0 publications

Should marketing be cross-functional? Conceptual development and international empirical evidence

Should marketing be cross-functional? Conceptual development and international empirical evidence

Use of the Extreme Groups Approach: A Critical Reexamination and New Recommendations.

Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms

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