Sample selection and theory development: implications of firms' varying abilities to appropriately select new ventures

Deskripsi

I highlight the need for researchers to consider sample selection when developing theory. When a sample observed by the researcher is the result of a selection process, the process may be (1) generating empirical relationships consistent with a theoretical explanation that in fact plays no causal role, or (2) canceling out an empirical relationship that is actually generated by a causal process associated with a proposed theory. Using the example of investment in new ventures, I argue that, when not explicitly considered, firms' varying abilities to appropriately select new ventures and thus select in or out of samples of such investments can lead to empirical misinterpretation and inappropriate theoretical conclusions. .Printed Journal