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Common methods variance detection in business research

Author

Listed:
  • Fuller, Christie M.
  • Simmering, Marcia J.
  • Atinc, Guclu
  • Atinc, Yasemin
  • Babin, Barry J.

Abstract

The issue of common method variance (CMV) has become almost legendary among today's business researchers. In this manuscript, a literature review shows many business researchers take steps to assess potential problems with CMV, or common method bias (CMB), but almost no one reports problematic findings. One widely-criticized procedure assessing CMV levels involves a one-factor test that examines how much common variance might exist in a single dimension. This paper presents a data simulation demonstrating that a relatively high level of CMV must be present to bias true relationships among substantive variables at typically reported reliability levels. The simulation data overall suggests that at levels of CMV typical of multiple item measures with typical reliabilities reporting typical effect sizes, CMV does not represent a grave threat to the validity of research findings.

Suggested Citation

  • Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:3192-3198
    DOI: 10.1016/j.jbusres.2015.12.008
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    References listed on IDEAS

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    1. Williams, Larry J. & Brown, Barbara K., 1994. "Method Variance in Organizational Behavior and Human Resources Research: Effects on Correlations, Path Coefficients, and Hypothesis Testing," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(2), pages 185-209, February.
    2. Oliver, Richard L. & Bearden, William O., 1985. "Disconfirmation processes and consumer evaluations in product usage," Journal of Business Research, Elsevier, vol. 13(3), pages 235-246, June.
    3. Harrison, David A. & McLaughlin, Mary E. & Coalter, Terry M., 1996. "Context, Cognition, and Common Method Variance: Psychometric and Verbal Protocol Evidence," Organizational Behavior and Human Decision Processes, Elsevier, vol. 68(3), pages 246-261, December.
    4. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    5. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    6. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
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