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The Use of Regression on Dummy Variables in Management Research

Author

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  • S. R. Searle

    (Associate Professor of Biological Statistics, Department of Plant Breeding and Biometry, New York State College of Agriculture, Cornell University, Ithaca, New York)

  • Jon G. Udell

    (Assistant Dean and Director of the Bureau of Business Research and Service of the Graduate School of Business, and Associate Director of the University-Industry Research Program at The University of Wisconsin-Madison)

Abstract

Studies of organizational behavior and other managerial phenomena frequently include variables which are not readily measurable by cardinal or ratio scales. Variables of this nature occur, for example, when investigating the relationship between a supervisor's span of control and (i) dissimilarity of subordinate's jobs, (ii) supervision received from other executives, (iii) geographic concentration of subordinates, and (iv) personal assistants. The (0, 1) variable technique, explained and illustrated here in terms of this example, offers the researcher a superior analysis for those sociological, psychological, and managerial phenomena for which no metric has yet been developed. The authors believe that this is one of the most useful statistical techniques available to the management scientist.

Suggested Citation

  • S. R. Searle & Jon G. Udell, 1970. "The Use of Regression on Dummy Variables in Management Research," Management Science, INFORMS, vol. 16(6), pages 397-409, February.
    • Handle: RePEc:inm:ormnsc:v:16:y:1970:i:6:p:b397-b409
    DOI: 10.1287/mnsc.16.6.B397
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    Cited by:

    1. Fernando Martín-Alcázar & Pedro Romero-Fernández & Gonzalo Sánchez-Gardey, 2012. "Transforming Human Resource Management Systems to Cope with Diversity," Journal of Business Ethics, Springer, vol. 107(4), pages 511-531, June.
    2. WeiWei Chen & Hsiao-Ching Lee, 2018. "How to explain service failure? Impacts of justifications," Service Business, Springer;Pan-Pacific Business Association, vol. 12(2), pages 331-356, June.

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