Abstract

We propose a general method for testing the robustness of variance decomposition results to mismeasurement. To demonstrate the method, estimate a variance decomposition of survey results on plant management practices across industry and internationally, and then test the results to mismeasurement in the survey data. Our results suggest that a collection of the most commonly proposed sources of variation in management practices collectively explain roughly 20% of total variation in practices in our data. We describe the implications for future research on heterogeneity in management practices and the generalizability of the method.

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