Modeling Levels and Time in Entrepreneurship Research: An Illustration with Growth Strategies and Post-IPO Performance
Organizational Research Methods, Forthcoming
64 Pages Posted: 12 May 2009 Last revised: 16 Nov 2011
Date Written: April 29, 2009
Abstract
New ventures lack resources, are buffeted by environmental factors, and often experience rapid growth and organizational transformations that can have profound effects on performance and survival. Methodologically, however, efforts to explain variation in entrepreneurial outcomes among and between levels over time often address levels or time, but rarely both. Because scholars potentially can make rich theoretical contributions by simultaneously investigating temporal relationships that cross levels, we illustrate multi-year, multilevel model building with random coefficient modeling (RCM) using language that is accessible to entrepreneurship scholars. Specifically, we model the effects of strategic growth actions on new venture performance using a longitudinal dataset of young, IPO-stage firms. Our illustration demonstrates the statistical advantages of modeling levels and time simultaneously, and offers a roadmap for entrepreneurship scholars interested in examining these effects. We also describe some specific research questions to help advance theory development using RCM.
Keywords: entrepreneurship, multilevel methods, longitudinal data, random coefficient modeling, new venture performance
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Managing Resources: Linking Unique Resources, Management and Wealth Creation in Family Firms
By David G. Sirmon and Michael A. Hitt
-
Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box
By David G. Sirmon, Michael A. Hitt, ...
-
A Model of Strategic Entrepreneurship: The Construct and its Dimensions
By R. Duane Ireland, Michael A. Hitt, ...
-
Knowledge Search in International Cooperative Ventures
By Oded Shenkar and Jiatao Li
-
Creating Value in the Face of Declining Performance: Firm Strategies and Organizational Recovery
By J.l. Morrow, David G. Sirmon, ...
-
Resource Management in Dyadic Competitive Rivalry: The Effects of Resource Bundling and Deployment
By David G. Sirmon, Steve Gove, ...
-
Toward a Model of Strategic Outsourcing
By Tim R. Holcomb and Michael A. Hitt
-
Making the Most of What You've Got: Managerial Ability as a Source of Resource Value Creation
By Tim R. Holcomb, R. Michael Holmes, ...