Propensity Score Analysis

Abstract

The Problem. Flexible work arrangements (FWAs) have long been heralded as antecedent to numerous positive organizational attitudes and outcomes. However, results on FWAs benefits are mixed which may be due to differences in employee characteristics. Not all individuals may desire such arrangements. This can confound group comparisons and may bias the results used in the development of human resource development (HRD) theory. The Solution.Propensity score analysis is a statistical approach that utilizes covariates to match participants (e.g., FWAs vs. non-FWAs) on their likelihood of group assignment. Once matched, these differences are mitigated thus improving the ability to more precisely estimate program effects. The Stakeholders. The intended audience for this article includes HRD scholars and scholar-practitioners interested in reducing non-equivalent group design bias in the context of flexible working arrangements and other HRD-related theory.

Board busyness and firm productivity

“…Therefore, the results may be subject to a potential heterogeneity among the subsamples. To alleviate this concern, following prior literature (e.g., Freedman and Berk, 2008; Lane and Gibbs, 2014; Shipman et al , 2017; Elnahass et al , 2020), this paper uses a propensity score matching (PSM) approach and matches observations from subsamples. Then, the paper re-runs test models for these matched subsamples.…”

“…As such, current paper encourages readers to exercise caution when employing the results. Fifth, to examine self-selection bias, this paper employs PSM which is the most commonly used approach in literature (e.g., Freedman and Berk, 2008; Lane and Gibbs, 2014; Shipman et al , 2017; Elnahass et al , 2020). Nevertheless, PSM has its own limitations such as statistical bias (e.g., Shipman et al , 2017; King and Nielsen, 2019), and thus, to the extent that this approach is not exhaustive, one should be cautious in drawing causal inferences.…”