How Much of a Problem is Omitted Variable Bias Really? Examining Strategy Research with the ITCV

Strategy scholars are increasingly concerned about biased empirical analyses from endogeneity. Treatments of the topic offer a dreary assessment, suggesting endogeneity is pervasive and remedies to attenuate bias are often deleterious. We examine the extent to which endogeneity from omitted variables appears to practically bias strategy research. We leverage the impact threshold of a confounding variable (ITCV), which allows us to estimate the...