What is it about?
The study describes algorithms indicating success cases (firms) as well as failure cases via deductive, inductive, and abductive fuzzy-set logic of capabilities in favorable and unfavorable economic contexts--asymmetric four-corners algorithm solutions including firm success in favorable industry context, firm failure in favorable industry context, firm success in unfavorable industry context, and firm failure in unfavorable industry contexts.
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Why is it important?
This study demonstrates how to escape from the current pervasive use of "corrupt research" (Hubbard, 2015) practices in theory construction and empirical testing via symmetric XY variable, directional, relationships in hypotheses construction and statistical testing--what economist Deidre McCloskey identifies to be "rubbish". The study shows why and how to embrace core complexity tenets in constructing asymmetric configurations of antecedents that accurately predict singe and multiple conditional outcomes. The focus of this study: how to use good science practices for replacing the current pervasive use of bad science practices in strategic management and microeconomics. .
Perspectives
In his Nobel Prize essay, Herbert Simon describes the essential step in advancing useful micro-economic theory--how to go about replacing the pervasive use of bad science theory and empirical testing. While Ziliak and McCloskey (2008) provide details of the dominant bad science practices in economics (that also applies to strategic management), their insights have have fallen on deaf ears due to their failure to cover the essential step of how to escape these bad practices. The Nagy, Megehee, and Woodside study provides the theory and tools to move away from the current dominant use of multiple regression analysis and statistical significance testing to building and testing accurate, asymmetric algorithms of single and complex outcomes in strategic management. Ziliak, S. T., & McCloskey, D. N. (2008). The cult of statistical significance: How the standard error costs us jobs, justice and lives. University of Michigan Press. Ann Arbor, MI.
Professor Arch G Woodside
Boston College
Read the Original
This page is a summary of: Window to New Research Approaches: How Using Simon’s Scissors Cuts Perplexity in Strategy Theory, Research, and Practice, August 2019, Emerald,
DOI: 10.1108/s1069-096420190000026010.
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