The measurement and communication of the effect size of an independent variable on a dependent variable is critical to effective statistical analysis in the Social Sciences. We develop ideas about how to extend traditional methods of evaluating relationships in multivariate models to explain and illustrate the statistical power of a focal independent variable. Even with a growing acceptance of the need to report effect sizes, scholars in the management community have few well-established protocols or guidelines for reporting effect sizes. In this editorial essay, we: (1) review the necessity of reporting effect sizes; (2) discuss commonly used measures of effect size and accepted cut-offs for large, medium, and small effect sizes; (3) recommend standards for reporting effect sizes via verbal descriptions and graphical presentations; and (4) present best practice examples of reporting and discussing effect size. In summary, we provide guidance for authors on how to report and interpret effect sizes, advocating for rigor and completeness in statistical analysis.
Research on interfirm alliances indicates that partner firms' asymmetry in network centrality increases the likelihood of alliance dissolution because it gives rise to a power imbalance and opportunism in the partnership. We contend that this view of centrality asymmetry does not consider the binding force that network resource complementarity can provide in an alliance, which motivates partners to ally for the long term. We propose that centrality asymmetry can have both divisive and cohesive forces in an alliance, whichwhen considered together-lead to a prediction that centrality asymmetry has a U-shaped relationship with alliance dissolution. Moderate levels of asymmetry lead to lower rates of dissolution than high and low levels of asymmetry. The degree of cooperation between partners and the degree of external competition reduce the effects of centrality asymmetry on alliance dissolution because they mitigate power imbalances while encouraging partners to strengthen the alliance to withstand competitive challenges.
We propose that multinationals use intergovernmental ties between home and host countries at subnational levels to reduce the political uncertainty in location choice. We find that Japanese firms tend to enter the countries that have international friendship cities (sister cities) with Japan. These effects of sister-city ties are significant in early years (1990-1999) and diminish in recent years (2000-2009).
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