Abstract
The authors examined use of cross-validation in multiple regression research in organization studies by reviewing research published in three top journals in business policy and strategy (BPS) over 6 years. Application of a formula method of cross-validation to each study showed that shrinkage was often large. In some cases, shrinkage was greater than 50% of R2 when sample sizes were less than 90. The authors recommend that organization studies researchers use formula cross-validation to improve the validity of inferences while avoiding the additional data collection and split samples required by empirical methods.
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