I investigate the effect of formal and informal institutions (MV) differences on the relationship between (IV)dynamic capabilities (sensing, seizing, reconfiguring) and (DV) innovation (exploration and exploitation). Given that my interest lies mainly in the moderating effect that formal, informal institutions have on such relations, I wonder whether the hierarchical regression model would be sufficient or seemingly unrelated regression would be better since I will look at both exploration and exploitation separately.
Also, the hierarchical method was often used across existing literature, investigating that phenomenon. So, should I use hierarchical instead of seemingly unrelated regression? Which technique helps me to extract the most "juicy information".
Could someone advise me what the best technique to apply?
IMO neither is good for your moderation interest. You have not given. any research questions but I recommend that you follow the information given in the attachment's Google search Examples,. are many including computer output. and the code that generated the output is given. Best wishes David Booth
Hello Ewelina,
Seemingly unrelated regression seemingly is applied more often to models having different DVs; I don't believe it makes a lot of sense for your situation.
EIther: (a) a path model; (b) a pair of regression models; (c) hierchical regression; or (d) an add-in such as Andrew Hayes' PROCESS macro (available for R, SAS, and SPSS) could be used to evaluate whether a moderation effect exists. In hierarchical regression (since you asked), the key issue is whether the IV by Moderator interaction adds significantly to the R-squared of a base model having IV and Moderator variables as predictors for the DV.
Judgments of juiciness are likely in the eye/mouth of the beholder.
Good luck with your work.
David Morse, So seemingly unrelated regression doesn't make sense here....even though I look at exploration and exploitation separately (DV)? Thank you for the advice!
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