The Regression Paradigm: A Critical Appraisal and Suggested Directions

More sophisticated, and better, empirical research is on the rise in the business strategy/policy field. Regression analysis is most commonly used, but much of this regression-based empirical work is marred by a failure to specify alternative theories prior to empirical testing. In order to make strategic prescriptions from regression results, however, researchers often invent implicit casual theories that justify prescriptions; but these implicit theories are not usually tested explicitly in the research.