I'm trying to find the effects of culture on the existence of teamwork. My dataset consists of 29 countries and of around 30.000 companies. My dataset is cross-sectional.
Dependent variable Team = a dummy variable that equals 1 when there is teamwork present in the company. (Firm level)
Independent variables Individualism = A national cultural score which is defined on country-level (range 1-100). Masculinity = A national cultural score which is defined on country-level (range 1-100). Power = A national cultural score which is defined on country-level (range 1-100). Female = The percentage of females in the company used as a proxy for altruism (Firm level)
Control variables Size = This variable equals the amount of employees in the company (Firm level) Sector = 0-5 depending on type of sector (dummy). (Firm level).
What is the best way to analyze this matter.? Using a regression on country level with the averages of the firm level variables comes at the cost of the amount of observation (29 instead of 30.000). To be able to analyze this matter on firm level, I have to make the assumption that all cultural scores are exactly the same for each company in the same country, which feels like a strong assumption. However, I would have much more observations (30.000 instead of 29).
What is the best way to analyze this matter?
Thank you in advance and best regards,
Hi Martijn,
you could go for multi-level regression models. It seems that your case fits the conditions. Country variables would be level-1 and firm variables - level-2 covariates.
Hope this helps,
Błażej
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