Common-method variance

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In applied statistics, (e.g., applied to the social sciences and psychometrics), common-method variance (CMV) is the spurious "variance that is attributable to the measurement method rather than to the constructs the measures are assumed to represent" [1] or equivalently as "systematic error variance shared among variables measured with and introduced as a function of the same method and/or source". [2] For example, an electronic survey method might influence results for those who might be unfamiliar with an electronic survey interface differently than for those who might be familiar. If measures are affected by CMV or common-method bias, the intercorrelations among them can be inflated or deflated depending upon several factors. [3] Although it is sometimes assumed that CMV affects all variables, evidence suggests that whether or not the correlation between two variables is affected by CMV is a function of both the method and the particular constructs being measured. [4]

Contents

Remedies

Ex ante remedies

Several ex ante remedies exist that help to avoid or minimize possible common method variance. Important remedies have been compiled and discussed by Chang et al. (2010), Lindell & Whitney (2001) and Podsakoff et al. (2003). [5] [6] [1]

Ex post remedies

Using simulated data sets, Richardson et al. (2009) investigate three ex post techniques to test for common method variance: the correlational marker technique, the confirmatory factor analysis (CFA) marker technique, and the unmeasured latent method construct (ULMC) technique. Only the CFA marker technique turns out to provide some value, whereas the commonly used Harman test does not turn out to provide such value. [2] A comprehensive example of this technique has been demonstrated by Williams et al. (2010). [7] Kock (2015) discusses a full collinearity test that is successful in the identification of common method bias with a model that nevertheless passes standard convergent and discriminant validity assessment criteria based on a CFA. [8] [9]

Related Research Articles

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Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin with a statistical population or a statistical model to be studied. Populations can be diverse groups of people or objects such as "all people living in a country" or "every atom composing a crystal". Statistics deals with every aspect of data, including the planning of data collection in terms of the design of surveys and experiments.

Meta-analysis Statistical method that summarizes data from multiple sources

A meta-analysis is a statistical analysis that combines the results of multiple scientific studies. Meta-analysis can be performed when there are multiple scientific studies addressing the same question, with each individual study reporting measurements that are expected to have some degree of error. The aim then is to use approaches from statistics to derive a pooled estimate closest to the unknown common truth based on how this error is perceived.

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Heteroscedasticity

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In multivariate statistics, exploratory factor analysis (EFA) is a statistical method used to uncover the underlying structure of a relatively large set of variables. EFA is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables. It is commonly used by researchers when developing a scale and serves to identify a set of latent constructs underlying a battery of measured variables. It should be used when the researcher has no a priori hypothesis about factors or patterns of measured variables. Measured variables are any one of several attributes of people that may be observed and measured. Examples of measured variables could be the physical height, weight, and pulse rate of a human being. Usually, researchers would have a large number of measured variables, which are assumed to be related to a smaller number of "unobserved" factors. Researchers must carefully consider the number of measured variables to include in the analysis. EFA procedures are more accurate when each factor is represented by multiple measured variables in the analysis.

Substitutes for leadership theory is a leadership theory first developed by Steven Kerr and John M. Jermier and published in Organizational Behavior and Human Performance in December 1978.

Measurement invariance or measurement equivalence is a statistical property of measurement that indicates that the same construct is being measured across some specified groups. For example, measurement invariance can be used to study whether a given measure is interpreted in a conceptually similar manner by respondents representing different genders or cultural backgrounds. Violations of measurement invariance may preclude meaningful interpretation of measurement data. Tests of measurement invariance are increasingly used in fields such as psychology to supplement evaluation of measurement quality rooted in classical test theory.

Philip Michael Podsakoff is an American management professor, researcher, author, and consultant who held the John F. Mee Chair of Management at Indiana University. Currently, he is the Hyatt and Cici Brown Chair in Business at the University of Florida.

The partial least squares path modeling or partial least squares structural equation modeling is a method of structural equation modeling which allows estimating complex cause-effect relationship models with latent variables.

WarpPLS

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In statistics, confirmatory composite analysis (CCA) is a sub-type of structural equation modeling (SEM). Although, historically, CCA emerged from a re-orientation and re-start of partial least squares path modeling (PLS-PM), it has become an independent approach and the two should not be confused. In many ways it is similar to, but also quite distinct from confirmatory factor analysis (CFA). It shares with CFA the process of model specification, model identification, model estimation, and model assessment. However, in contrast to CFA which always assumes the existence of latent variables, in CCA all variables can be observable, with their interrelationships expressed in terms of composites, i.e., linear compounds of subsets of the variables. The composites are treated as the fundamental objects and path diagrams can be used to illustrate their relationships. This makes CCA particularly useful for disciplines examining theoretical concepts that are designed to attain certain goals, so-called artifacts, and their interplay with theoretical concepts of behavioral sciences.

References

  1. 1 2 Podsakoff, P.M.; MacKenzie, S.B.; Lee, J.-Y.; Podsakoff, N.P. (October 2003). "Common method biases in behavioral research: A critical review of the literature and recommended remedies" (PDF). Journal of Applied Psychology. 88 (5): 879–903. doi:10.1037/0021-9010.88.5.879. hdl: 2027.42/147112 . PMID   14516251.
  2. 1 2 Richardson, H.A.; Simmering, M.J.; Sturman, M.C. (October 2009). "A tale of three perspectives: Examining post hoc statistical techniques for detection and correction of common method variance". Organizational Research Methods. 12 (4): 762–800. doi:10.1177/1094428109332834. hdl: 1813/72364 .
  3. Williams, L. J.; Brown, B. K. (1994). "Method variance in organizational behavior and human resources research: Effects on correlations, path coefficients, and hypothesis testing". Organizational Behavior and Human Decision Processes. 57 (2): 185–209. doi:10.1006/obhd.1994.1011.
  4. Spector, P. E. (2006). "Method Variance in Organizational Research: Truth or Urban Legend?". Organizational Research Methods. 9 (2): 221–232. doi:10.1177/1094428105284955.
  5. Chang, S.-J.; van Witteloostuijn, A.; Eden, L. (2010). "Common method variance in international business research". Journal of International Business Studies. 41: 178–184. doi: 10.1057/jibs.2009.88 .
  6. Lindell, M. K.; Whitney, D. J. (2001). "Accounting for common method variance in cross-sectional research designs". Journal of Applied Psychology. 86 (1): 114–121. doi:10.1037/0021-9010.86.1.114.
  7. Williams, L.J.; Hartman, N.; Cavazotte, F. (July 2010). "Method variance and marker variables: A review and comprehensive CFA marker technique". Organizational Research Methods. 13 (3): 477–514. doi:10.1177/1094428110366036.
  8. Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1-10.
  9. Kock, N.; Lynn, G. S. (2012). "Lateral collinearity and misleading results in variance-based SEM: An illustration and recommendations" (PDF). Journal of the Association for Information Systems. 13 (7): 546–580. doi:10.17705/1jais.00302.