Endogeneity in Strategy-Performance Analysis: An Application to Initial Human Capital Strategy and New Venture Performance
研究了战略选择的内生性如何影响绩效测量，并以新创企业创始人在初始人力资本规模和平均质量上的双重决策为例，演示了处理三种偏差来源的方法。
Managers engage in a variety of strategies, not randomly, but having in mind their performance implications. Therefore, strategic choices are endogenous in performance equations. Despite increasing efforts by various scholars in solving endogeneity bias, prior attempts have almost exclusively focused on single, one-sided, and discrete (binary) organizational decisions. Yet, in reality, managers often face multiple, simultaneous, and interdependent decisions, possibly including a continuous choice set. These choices may further entail a two-sided process between managers and others, such as employees, strategic partners, customers, or investors, whose choices and preferences also affect the final decision. We discuss how endogeneity can plague the measurement of the performance effects of these two-sided strategic decisions—which are more complex, but more realistic, than prior representations of organizational decision making. We provide an empirical demonstration of possible methods to deal with three different sources of bias, by analyzing the performance effects of two human capital choices made by founders at startup: the size and average quality of the initial workforce.