Regression QCA
Explanatory Approach - Explain variance in an outcome
- Example: Differences in profitability among multinational firms
- Explain the presence or absence of an outcome condition
- Example: A subsidiary exhibiting a broad stakeholder orientation (e.g., [b@59812])
Nature of relationships between causes and outcomes - Statistical: Assess the average effect of variables on an outcome
- Example: When the R&D investment to sales ratio goes up by 1%, firm profitability goes up by 0.5%
- Set-theoretic: Identify the conditions or configurations of conditions consistent with the outcome
- Example: Combinations of human resource management practices associated with high subsidiary performance
Operates on - Variables
- Example: Return on assets
- Conditions or sets
- Examples: High performance, very high performance, not low performance
Ability to accommodate complexity - Limited, usually via lower-order interaction terms
- Example: The effect of a one-unit increase in R&D investment on firm performance is larger as the size of the firm increases
- Inherent
- Indicates potential complementarities, and multiple configurations can be associated with the outcome (see practical example in the text)