Track

Research Methodology

Abstract

Econometrics textbooks generally conclude that in regression, because the calculation of path estimate variances includes avariance inflation factor (VIF) that reflects correlations between “independent” constructs, multicollinearity should not causefalse positives except in extreme cases. However, textbook treatments of multicollinearity assume perfect measurement –rare in behavioral research. VIF is based on apparent correlations between constructs -- always less than actual correlationswhen measurement error exists. A brief review of recent articles in the MIS Quarterly suggests that the conditions forexcessive false positives are present in published research. In this paper we show (analytically and with a series of MonteCarlo simulations) that multicollinearity combined with measurement error presents greater than expected dangers from falsepositives in IS research when regression or PLS is used. Suggestions for how to address this situation are offered.

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