1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

This article introduces the concept of the capability lifecycle (CLC), which articulates general patterns and paths in the evolution of organizational capabilities over time. The capability lifecycle provides a structure for a more comprehensive approach to dynamic resource-based theory. The analysis incorporates the founding, development, and maturity of capabilities in a manner that helps to explain the sources of heterogeneity in organizational capabilities. In addition, the analysis includes the "branching" of an original capability into several possible altered forms.

The Dynamic Resource-Based View: Capability Lifecycles

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The Theory of Industrial Organization

This article introduces the concept of the capability lifecycle (CLC), which articulates general patterns and paths in the evolution of organizational capabilities over time. The capability lifecycle provides a structure for a more comprehensive approach to dynamic resource-based theory. The analysis incorporates the founding, development, and maturity of capabilities in a manner that helps to explain the sources of heterogeneity in organizational capabilities. In addition, the analysis includes the ‘branching’ of an original capability into several possible altered forms. Copyright © 2003 John Wiley & Sons, Ltd.

The dynamic resource-based view: capability lifecycles

Although the resource-based view (RBV) is one of the most popular and fruitful areas of strategy research, it often perplexes scholars from other disciplines. Also, it is unclear whether strategy scholars themselves agree on the RBV's basic issues and premises. To clarify the contribution of the RBV, in this paper we elaborate its basic tenets and relate them to other current research on interfirm performance variance. We suggest a more expansive discussion of sustained differences among firms and thereby develop a broad theory of competitive heterogeneity. Copyright © 2003 John Wiley & Sons, Ltd.

Guest editors\' introduction to the special issue: why is there a resource-based view? Toward a theory of competitive heterogeneity

This article introduces the Special Issue and discusses the microfoundations of routines and capabilities, including why a microfoundations view is needed and how it may inform work on organizational and competitive heterogeneity. Building on extant research, we identify three primary categories of micro-level components underlying routines and capabilities: individuals, social processes, and structure. We discuss how these components, and their interactions, may affect routines and capabilities. In doing so, we outline a research agenda for advancing the field's understanding of the microfoundations of routines and capabilities.

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Microfoundations of routines and capabilities: individuals, processes, and structure

Many studies argue that the continual creation of new ideas by small and young firms steadily destroys the competitive positions of their larger, more established rivals. Despite this attention, empirical results relating firm size to innovation remain exceedingly fragile. This study proposes three reasons for the empirical inconsistencies in the literature: that small and large firms differ in their: (1) stock of technological experiences, (2) use of own- and partner-firm experiences, and (3) abilities to translate own- and partner-firm experiences into innovation activity. Results from a 10-year study of 463 semiconductor firms demonstrate that the mixed findings generated from prior work are partially attributed to these three general propositions. In particular, resource flows, in the form of operating experience developed internally and accessed through codevelopment partners, positively affect innovation activity; but these benefits diminish as a firm increases in size. The findings broadly support the notion that differences in the incentives and abilities of small and large firms give rise to heterogeneity in the firms' innovation activity. Copyright © 2008 John Wiley & Sons, Ltd.

Unbundling competitive heterogeneity: incentive structures and capability influences on technological innovation

The question of how firms differ is paramount to strategy scholars. This question has motivated empirical research on the factors influencing performance differences among close competitors. It also has motivated work on factors that increase or decrease the mean performance of firms in an industry. Theories about resources and capabilities tend to dominate discussions of heterogeneity in performance and superior performance. Yet, the strategy field lacks a cumulative body of empirical work showing how firms differ. This article derives conclusions and questions from empirical work on capabilities. We then discuss work that complements but lies beyond the boundaries of traditional capabilities research. We conclude by suggesting approaches to and areas of future work.

A capability-based view of competitive heterogeneity

Firms often bring in personnel from rivals to gain tacit knowledge and skills. Personnel new to a firm may broaden the firm's knowledge stock, but may not disrupt the firm's ways of organizing. Instead, personnel inflows may contribute to the retention of a firm's traditional ways of organizing. This study tracks the flow of personnel within and across organizational boundaries (intrafirm and interfirm flows) and geographic boundaries (local and cross-border flows) for multiunit banks operating in the Foreign Exchange Trade Industry from 1973--1993. We test how a firm's retention activity responds to inflows of personnel from different sources (e.g., intrafirm, interfirm, local, and cross-border). The findings show that inflows of personnel from different sources increase a firm's retention activity. Rather than adopting changes in behavior in response to an influx of personnel from within or across spatial boundaries, firms in the foreign exchange industry tend to retain their existing ways of organizing. Personnel inflows from a combination of sources, such as local intrafirm, cross-border intrafirm, local interfirm, and cross-border interfirm, also positively affect retention. By examining the differences in the magnitudes of these effects, we empirically show that considering different sources of personnel inflows in combination is worthwhile.

Tammy L. Madsen

Papers

Guest editors\' introduction to the special issue: why is there a resource-based view? Toward a theory of competitive heterogeneity

Microfoundations of routines and capabilities: individuals, processes, and structure

Unbundling competitive heterogeneity: incentive structures and capability influences on technological innovation

A capability-based view of competitive heterogeneity

Knowledge Retention and Personnel Mobility: The Nondisruptive Effects of Inflows of Experience