When your errors are your only hope: Testing 'Hidden Hypotheses' in mediation studies in strategic management

摘要

Mediation models involve two regression equations, one each for the dependent and mediating variables, Y and M. Tests of theoretical hypotheses in strategic management focus on betas, that is, the estimated regression coefficients in the Y and M equations. A neglected point is that strategic management theory sometimes suggests a hidden hypothesis concerning the sign of the error correlation between the Y and M regressions. Systems-based estimation methods can be used to test hidden hypotheses. We show that sometimes hidden hypotheses offer the only hope of empirically distinguishing between competing theories.