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dissertation in pdf-format - Aalto-yliopisto

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3 Research methodology<br />

3.4 Models and operationalization of variables<br />

Quantitative models were applied to meet the research aims and address<br />

the research questions posed <strong>in</strong> Articles I, II and IV. Descriptive statistics,<br />

<strong>in</strong>clud<strong>in</strong>g distributions of the variables, univariate statistics and factor<br />

analysis, were also used <strong>in</strong> the quantitative analyses.<br />

In Article I, an LRA-model with a b<strong>in</strong>ary dependent variable comb<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong>novation and growth was applied. The <strong>in</strong>dependent explanatory variables<br />

were location, branch of <strong>in</strong>dustry, size, age, success and public R&D<br />

fund<strong>in</strong>g. LRA-modell<strong>in</strong>g was selected partly because it is appropriate for<br />

test<strong>in</strong>g whether a firm belongs to a specific group characterised <strong>in</strong> at least<br />

two dimensions, and partly because LRA-models have fewer restrictive<br />

assumptions than regression analysis and discrim<strong>in</strong>ant analysis models.<br />

In this article, LRA-models are estimated first, ignor<strong>in</strong>g a priori<br />

probabilities, then matched pair comparisons (cross-validation) are<br />

<strong>in</strong>troduced. The <strong>in</strong>novation variable is the numbers of IPRs a company<br />

produced and owned dur<strong>in</strong>g the period 1988-2005, while the growth<br />

variable refers to turnover growth dur<strong>in</strong>g the period 2002-2005. The<br />

relationship between a company’s <strong>in</strong>dustrial sector and comb<strong>in</strong>ed<br />

<strong>in</strong>novativeness and growth was analysed us<strong>in</strong>g univariate statistics, because<br />

of the small numbers of observations <strong>in</strong> some <strong>in</strong>dustrial sectors. All the<br />

other variables were <strong>in</strong>cluded <strong>in</strong> the LRA-model.<br />

Several models, <strong>in</strong>clud<strong>in</strong>g RA-, DA- and LRA-models, were used <strong>in</strong> Article<br />

II to analyse the characteristics of high growth and highly successful firms.<br />

Growth of the firms was used as the dependent variable, and success as an<br />

<strong>in</strong>dependent variable <strong>in</strong> the RA-growth model, and vice versa <strong>in</strong> the RAsuccess<br />

model. In the DA- and LRA-models a b<strong>in</strong>ary variable <strong>in</strong>tended to<br />

describe simultaneous growth and success of the firms was used as a<br />

dependent variable. Both DA- and LRA-models were estimated ignor<strong>in</strong>g the<br />

a priori probabilities of firms display<strong>in</strong>g high growth and high success<br />

(Model 1) and then matched pair comparisons (cross-validation) were<br />

<strong>in</strong>troduced (Model 2). In Article II explanatory variables <strong>in</strong>cluded location,<br />

branch of <strong>in</strong>dustry, age, size, <strong>in</strong>novation activity and public R&D fund<strong>in</strong>g.<br />

The stepwise process<strong>in</strong>g (conducted us<strong>in</strong>g SPSS-software) <strong>in</strong>cluded some<br />

other explanatory variables and factors (growth <strong>in</strong> personnel, growth of the<br />

branch of <strong>in</strong>dustry, liquidity, profitability and solvency) identified by factor<br />

analysis.<br />

In the analyses presented <strong>in</strong> Article III, data acquired from detailed<br />

longitud<strong>in</strong>al case studies (2000-2009) were used. In Article IV mixed<br />

methods such as LRA-modell<strong>in</strong>g and multiple case study methods were<br />

used to analyse three different data sets and address the research questions.<br />

The dependent variable <strong>in</strong> the LRA-model was the branch of <strong>in</strong>dustry,<br />

42

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