Complementary Methods to Mitigate the Misinterpretation of Results Due to Collinearity in International Business Research

Authors

DOI:

https://doi.org/10.18568/internext.v17i1.681

Keywords:

Structural equation modeling, Multicollinearity, International Business

Abstract

Objectives of the study: to demonstrate the methodological gaps in empirical work that use structural models in the area of International Business, and prescribe complementary methods to mitigate the problem of collinearity

Method: a simulation was developed to evidence the effects of collinearity with respect to the importance and significance of predictors, and actions aimed at controlling the undesired effects of collinearity was developed

Main results: the proposition of complementary methods that include grouping the latent variables that present multicollinearity into a second-order model, and the use of the technique that shows the relative importance of predictors

Theoretical and methodological contributions: the contribution is based on the complementary methods offered for the academic community to conduct empirical research that are laid out by the findings of this research paper

Relevance and originality: from the gaps pointed out in the recent scientific production of the field of knowledge of international business, complementary methods are presented to mitigate the problem of collinearity, which may render the results of empirical studies invalid

Social contributions and management: among the main managerial and social implications achieved through our findings of, we stimulate the development of robust, relevant and reliable empirical research

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Author Biographies

Diogenes de Souza Bido, Universidade Presbiteriana Mackenzie - M, São Paulo, (Brasil)

Dr. Diogenes de Souza Bido is Professor and Researcher of the postgraduate program in Business Administration at Universidade Presbiteriana Mackenzie. His main interests are related to the following themes: methodological aspects of research in administration, quantitative methods and organizational behavior. 

Antonio Carlos de Oliveira Barroso, Instituto de Pesquisas Energéticas e Nucleares – IPEN, São Paulo, (Brasil)

Dr. Antonio Carlos de Oliveira Barroso is Professor and Researcher in the postgraduate studies program at the Instituto de Pesquisas Energéticas e Nucleares. His research interests include Knowledge management applications for the R&D management, with emphasis on: Knowledge gaps; Social networks; Organizational culture; Technological and graph-bibliometric roadmap models; human factors; and socio-technical modeling of complex systems.

Eric David Cohen, Universidade Estadual de Campinas - UNICAMP, Campinas, São Paulo, (Brasil)

Dr. Eric David Cohen is professor of the graduate program in Business Administration at State University of Campinas. His research interests revolve around International Marketing, Business Strategy, and Marketing research.

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Published

2022-01-01

How to Cite

Bido, D. de S., Barroso, A. C. de O., & Cohen, E. D. (2022). Complementary Methods to Mitigate the Misinterpretation of Results Due to Collinearity in International Business Research. Internext - International Business and Management Review, 17(1), 105–127. https://doi.org/10.18568/internext.v17i1.681