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Robustness Of Ordinal Measures Of Competitive Strategy Variables Employed In Business Research: A PIMS Data-based Analysis

A. Parasuraman, P. Varadarajan
Published 1988 · Economics

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Abstract PIMS data for a sample of capital goods business and a series of transformations of the data generated through Monte Carlo simulation were used to examine the robustness of ordinal measures of competitive strategy variables in additive and multiplicative regression models. Ten sets of transformations were made under a variety of assumptions about the types of errors executives may make in providing ordinal estimates of their relative competitive positions. While the findings are somewhat encouraging to researchers engaged in strategy research, they also point to a need for additional methodological research in this area.
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