GEM CASE STUDY 1
A GEM Case Study
Liberty University
BUSI 600
GEM CASE STUDY 2
A GEM Case Study
Entrepreneurship is considered an essential component of economic growth (Herrington &
Coduras, 2019). Entrepreneurship opportunities also impact national competitive advantage and
development by increasing wealth, job creation, and productivity. The purpose of the discussion
is to provide a forum of Global Entrepreneurship Monitor (GEM) using critical informants from
10 nations to understand factors that influence economic development.
Independent and Dependent Variables in This Study
From the case study, the independent and dependent variables are illustrated in Exhibit C-
GEM 1–1. According to Schindler (2019), dependent and independent variables are the main
interest of researchers. However, the dependent variable is measurable and predictable, and
influenced by the independent variable (Kaliyadan & Kulkarni, 2019). This suggests that
independent variables are manipulated to influence the dependent variable. The dependent
variable from the GEM case study includes economic growth through the gross domestic product
(GDP) and jobs. Furthermore, the construct of business dynamic is a dependent variable because
it comprises new jobs/firms, creating employment opportunities, firm growth, firm dissolution,
and firm contraction.
On the other hand, the independent variables include general national framework,
entrepreneurial opportunities, entrepreneurial capacity, and entrepreneurial framework condition.
Any change in independent variables directly affects the dependent variable, such as economic
growth and business dynamics. Losh (2017) found that dependent variables jeopardize the flow
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of any research since it depends on other variables being measured that change due to
manipulating independent variables.
Intervening, extraneous, and moderating variables that the study attempted to control with
its 10-nation design
In the 10-nation design, A GEM study attempted to control intervening, extraneous, and
moderating variables. These variables also affect dependent and independent variables. There are
numerous extraneous variables (EV) in research that affect the relationship between dependent
and independent variables (Schindler, 2019). Researchers in the GEM Study include a nation's
business dynamic, social, cultural, and political context. As such, EVs should be eliminated or
controlled to ensure they do not affect independent variables' manipulation. In this study,
researchers were cautious in managing EVs using data from 10 nations based on economic
growth, business dynamic, and entrepreneurial sectors. Besides, the authors controlled EVs by
randomly recruiting 1,000 adults per nation. Ledford (2018) also argues that random assignment
can help maintain EVs.
In contrast, moderating variables (MVs) are alternative, independent variables with a
contributory impact on the relationship between independent and dependent variables (Schindler,
2019). The MVs are also important in research because they describe the relationship between
dependent and independent variables. As demonstrated in the GEM case study, the MVs consist
of fostering entrepreneurship, provide women with resources to participate in entrepreneurship,
training programs for skill development, develop society capacity, and a culture that promotes
entrepreneurship across the society. The GEM study researchers attempt to control MVs by
showing the casual relationship that influences entrepreneurial opportunities, entrepreneur
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potential, business dynamics, and national economic growth. For example, the authors
discovered that there is a positive relationship between business start-up with perceived
opportunity (0.79), population's entrepreneur capacity (0.64%), and motivation (0.93). Moreover,
start-up rates are positively correlated with GDP growth (0.60) and employment (0.47).
The intervening variable (IV) reflects external factors presumed to affect dependent and
independent variables (Schindler, 2019). The IVs could be business start-up rates and
government. As such, the GEM authors controlled IVs through the general national framework
conditions, particularly the government. Additionally, the authors used Entrepreneurial
Framework Conditions, particularly government programs and policies, to control IVs.
Can You Do A Causal Study Without Controlling Intervening, Extraneous, and Moderating
Variables?
It is possible to conduct a casual study without controlling IVs, EVs, and MVs. However,
it is essential to control these variables because they can affect the accuracy of the study. Namazi
and Namazi (2016) found that controlling these variables presents a study with the ability to see
how IVs, EVs, and MVs can affect the dependent variable. Research can be reliable when
researchers test hypotheses to determine a casual correlation between dependent and independent
variables. Hence, it allows the researchers to manipulate an independent variable and randomly
control intervening, extraneous, and moderating variables.
Similarly, Proverbs 25:2 (KJV) brings into perspective how God gloriously acts without
expressing His purpose. This implies that humans should only work after taking into account
careful considerations. For instance, humans/researchers should conduct a casual study after
controlling IVs, EVs, and MVs to ensure accuracy.
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What is the impact on study results of using national experts (key informants) to identify
and weigh entrepreneurial framework conditions?
The GEM study collected information by surveying 1,000 adults per nation and personal
interviews with 4 to 39 key informants in every country. The critical informants from ten nations
were selected based on their skills and expertise in the nine entrepreneurial framework
conditions highlighted in Exhibit C-GEM 1–1. As a result, the national experts were selected
because they are knowledgeable about factors that affect business start-rates. Key informants
also completed a 12-page questionnaire based on their personal experience and interviews. This
can lead to minimal statistical error in the results because the information was collected from
primary sources. The national experts could also allow GEM researchers to understand research
and how certain outcomes were achieved. This attempt increases the credibility and validity of
the study results (Project, 2020). Using national experts to identify and weigh the nine
entrepreneurial framework conditions offer credible results used in decision making.
Can you do a causal study when much of the primary data collected is descriptive opinion
and ordinal or interval data?
The GEM study used primary data gathered through descriptive opinion, ordinal, or
interval data—however, several variables were monitored. Yannakakis, Cowie, and Busso (2017)
demonstrate that data must be reliable and valid. Nonetheless, data validity and reliability depend
on whether researchers are creating a GEM model or a causal study. Developing a GEM
Conceptual model is a phase of the research design preliminary to an actual casual study.
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Therefore, this suggests that the GEM Conceptual model should be tested over time in other
nations.
Conclusion
The case study focused on exploring factors affecting national growth using information
from 10 countries. From the analysis, multiple measures affect economic growth. While the
study does not provide exact causes for economic growth, the GEM model provides a framework
that governments can use to initiate suitable policies to promote entrepreneurship.
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References
Herrington, M., & Coduras, A. (2019). The national entrepreneurship framework conditions in
sub-Saharan Africa: A comparative study of GEM data/National Expert Surveys for
South Africa, Angola, Mozambique and Madagascar. Journal of Global
Entrepreneurship Research, 9(1), 1-24. https://doi.org/10.1186/s40497-019-0183-1
Kaliyadan, F., & Kulkarni, V. (2019). Types of variables, descriptive statistics, and sample size.
Indian Dermatology Online Journal, 10(1), 82.
https://doi.org/10.4103/idoj.IDOJ_468_18
Ledford, J. R. (2018). No randomization? No problem: Experimental control and random
assignment in single case research. American Journal of Evaluation, 39(1), 71-90.
https://doi.org/10.1177/1098214017723110
Losh, S. C. (2017). Dependent and independent variables. The Wiley
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Blackwell Encyclopedia of
Social Theory, 1-3. https://doi.org/10.1002/9781118430873.est0622
Namazi, M., & Namazi, N. R. (2016). Conceptual analysis of moderator and mediator variables
in business research. Procedia Economics and Finance, 36, 540-554.
https://doi.org/10.1016/S2212-5671(16)30064-8
Project, T. T. (2020). Beyond internal validity: Towards a broader understanding of credibility in
development policy research. World Development, 127, 104802.
https://doi.org/10.1016/j.worlddev.2019.104802
Schindler, P. S. (2019). Business research methods (13th ed.). McGraw-Hill.
