Restricted Variance Interactions in Entrepreneurship Research: A Unique Basis for Context-as-Moderator Hypotheses

Jose M.  Cortina; Tine Köhler; Zitong Sheng; Kathleen R. Keeler; Bo Bernhard Nielsen; Joseph E. Coombs; David J.  Ketchen, Jr

doi:10.1177/10422587221121293

Restricted Variance Interactions in Entrepreneurship Research: A Unique Basis for Context-as-Moderator Hypotheses

Jose M. Cortina^*, Tine Köhler, Zitong Sheng, Kathleen R. Keeler, Bo Bernhard Nielsen, Joseph E. Coombs, David J. Ketchen, Jr

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

In this methodological brief, we demonstrate the usefulness of the restricted variance (RV) interaction to entrepreneurship research. RV reasoning can help scholars to specify precise roles for contextual moderators. This specificity allows for strengthening of arguments and for testing of one of the reasons for an interaction. In some cases, it points to otherwise unexpected interaction patterns. We illustrate the power of RV reasoning with a data set of 503 biotech firms to show how RV explains geographic differences in the relationship between number of alliances and initial public offering value. Finally, we show how these interactions can be tested given typical distributions.

Original language	English
Journal	Entrepreneurship: Theory and Practice
Volume	47
Issue number	5
Pages (from-to)	1995-2016
Number of pages	22
ISSN	1042-2587
DOIs	https://doi.org/10.1177/10422587221121293
Publication status	Published - Sept 2023
Externally published	Yes

Bibliographical note

Published online: 27 October 2022.

Keywords

Interactions
Moderation
Context
Restriced variance

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10.1177/10422587221121293Licence: Unspecified

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Cite this

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title = "Restricted Variance Interactions in Entrepreneurship Research: A Unique Basis for Context-as-Moderator Hypotheses",

abstract = "In this methodological brief, we demonstrate the usefulness of the restricted variance (RV) interaction to entrepreneurship research. RV reasoning can help scholars to specify precise roles for contextual moderators. This specificity allows for strengthening of arguments and for testing of one of the reasons for an interaction. In some cases, it points to otherwise unexpected interaction patterns. We illustrate the power of RV reasoning with a data set of 503 biotech firms to show how RV explains geographic differences in the relationship between number of alliances and initial public offering value. Finally, we show how these interactions can be tested given typical distributions.",

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author = "Cortina, {Jose M.} and Tine K{\"o}hler and Zitong Sheng and Keeler, {Kathleen R.} and Nielsen, {Bo Bernhard} and Coombs, {Joseph E.} and {Ketchen, Jr}, {David J.}",

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T1 - Restricted Variance Interactions in Entrepreneurship Research

T2 - A Unique Basis for Context-as-Moderator Hypotheses

AU - Cortina, Jose M.

AU - Köhler, Tine

AU - Sheng, Zitong

AU - Keeler, Kathleen R.

AU - Nielsen, Bo Bernhard

AU - Coombs, Joseph E.

AU - Ketchen, Jr, David J.

N1 - Published online: 27 October 2022.

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N2 - In this methodological brief, we demonstrate the usefulness of the restricted variance (RV) interaction to entrepreneurship research. RV reasoning can help scholars to specify precise roles for contextual moderators. This specificity allows for strengthening of arguments and for testing of one of the reasons for an interaction. In some cases, it points to otherwise unexpected interaction patterns. We illustrate the power of RV reasoning with a data set of 503 biotech firms to show how RV explains geographic differences in the relationship between number of alliances and initial public offering value. Finally, we show how these interactions can be tested given typical distributions.

AB - In this methodological brief, we demonstrate the usefulness of the restricted variance (RV) interaction to entrepreneurship research. RV reasoning can help scholars to specify precise roles for contextual moderators. This specificity allows for strengthening of arguments and for testing of one of the reasons for an interaction. In some cases, it points to otherwise unexpected interaction patterns. We illustrate the power of RV reasoning with a data set of 503 biotech firms to show how RV explains geographic differences in the relationship between number of alliances and initial public offering value. Finally, we show how these interactions can be tested given typical distributions.

KW - Interactions

KW - Moderation

KW - Context

KW - Restricted variance

KW - Interactions

KW - Moderation

KW - Context

KW - Restriced variance

U2 - 10.1177/10422587221121293

DO - 10.1177/10422587221121293

M3 - Journal article

SN - 1042-2587

VL - 47

SP - 1995

EP - 2016

JO - Entrepreneurship: Theory and Practice

JF - Entrepreneurship: Theory and Practice

IS - 5

ER -