Nonlinear structural equation modeling: is partial least squares an alternative?

Nonlinear structural equation modeling provides many advantages over analyses based on manifest variables only. Several approaches for the analysis of latent interaction effects have been developed within the last 15 years, including the partial least squares product indicator approach (PLS-PI), the constrained product indicator approach using the LISREL software (LISREL-PI), and the distribution-analytic latent moderated structural equations approach (LMS) using the Mplus program. An assumed advantage of PLS-PI is that it is able to deal with very large numbers of indicators, while LISREL-PI and LMS have not been investigated under such conditions. In a Monte Carlo study, the performance of LISREL-PI and LMS was compared to PLS-PI results previously reported in Chin et al. (2003) and Goodhue et al. (2007) for identical conditions. The latent interaction model included six indicator variables for the measurement of each latent predictor variable and the latent criterion, and sample size was N=100. The results showed that PLS-PI’s linear and interaction parameter estimates were downward biased, while parameter estimates were unbiased for LISREL-PI and LMS. True standard errors were smallest for PLS-PI, while the power to detect the latent interaction effect was higher for LISREL-PI and LMS. Compared to the symmetric distributions of interaction parameter estimates for LISREL-PI and LMS, PLS-PI showed a distribution that was symmetric for positive values, but included outlying negative estimates. Possible explanations for these findings are discussed.     

Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC-MNC Performance

Previous theoretical and empirical research provides substantial support for a contingency approach toward international entry-mode selection. Similarly, additional empirical research supports the notion that different international ownership-based entry modes tend to be associated with varying performance levels. In this study we provide an initial attempt to use Werner, Brouthers and Brouthers' (1996) multiple measures of Perceived Environmental Uncertainty (PEU) to determine the entry mode choices of firms and link these risk-adjusted mode choices to managerial satisfaction with firm performance. We hypothesize and find that firms which make PEU risk-adjusted entry mode choices are significantly more satisfied with their firm's performance than firms whose entry mode choices cannot be predicted using multiple PEU risk measures.     

Zum Einfluss der Inhaberführung auf die Betriebsrat-Geschäftsführer-Beziehung – Eine theoretische und empirische Analyse in mittelständischen Unternehmen

This paper examines the quality of the relationship between business managements and works councils in small and medium-sized enterprises and strives for answering the question, which factors determine the quality. As ownership is an important determining factor of the establishment of works councils in small and medium-sized businesses, especially the impact of ownership on this relationship has been investigated. Agency theory and stewardship theory give hints that the owner management can have different impacts on this relationship. In order to test these contradictory hypotheses we have estimated a Heckman selection model to investigate which factors determine the quality of the relationship between business managements and works councils. Our results based on data generated from a survey in small and medium-sized enterprises conducted by the IfM Bonn in the years 2005 and 2006 indicate that ownership has a negative influence on the establishment of works councils, but a positive one on the quality of the relationship between business management and works council. Thus, the hypotheses predicting the existence of stewardship behaviour among owners and the existence of agency behaviour among managers can be confirmed.     

Assessing goodness-of-fit for evaluation of dose-proportionality

For the clinical development of a new drug, the determination of dose-proportionality is an essential part of the pharmacokinetic evaluations, which may provide early indications of non-linear pharmacokinetics and may help to identify sub-populations with divergent clearances. Prior to making any conclusions regarding dose-proportionality, the goodness-of-fit of the model must be assessed to evaluate the model performance. We propose the use of simulation-based visual predictive checks to improve the validity of dose-proportionality conclusions for complex designs. We provide an illustrative example and include a table to facilitate review by regulatory authorities.     

Strategic management staffing decisions among German subsidiaries in Japan

This study discusses the composition of strategic management teams in foreign subsidiaries beyond decisions solely about the general manager, i.e. encompassing third-country nationals; locally hired “foreigners” as well as managers on short-term assignments. We extend the discussion about expatriates by developing hypotheses about those issues based on the resource-based view of the firm and the principal agent theory and find that both are important for understanding staffing decisions. This research analyses these issues by means of a data set on German subsidiaries in Japan and shows that recent changes in the global environment are providing multinationals greater latitude when staffing foreign-based subsidiaries, including choices that have not been given due weight in IHRM literature.     

Participation in risk sharing under ambiguity

Theory and Decision - This paper is about (non) participation in efficient risk sharing among agents who have ambiguous beliefs about uncertain states of nature. The question we ask is whether and...     

Power indices and minimal winning coalitions

The Penrose–Banzhaf index and the Shapley–Shubik index are the best-known and the most used tools to measure political power of voters in simple voting games. Most methods to calculate these power indices are based on counting winning coalitions, in particular those coalitions a voter is decisive for. We present a new combinatorial formula how to calculate both indices solely using the set of minimal winning coalitions.