A GEM OF A STUDY 1
Discussion 1: A GEM Of A Study
Olen C. Appleton
Master of Business Administration in Finance of Liberty University
BUSI 600: Business Research Methods
Dr. Michael Walker
Author Note
Olen Appleton
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Olen Appleton
Email: oappleton@liberty.edu
A GEM OF A STUDY 2
A GEM Of A Study
1. What are the independent and dependent variables in this study?
The dependent and independent variables in this study were carefully accounted for and
compensated for in the final product because of the differences in the variables across 10
countries that the study represented. The way that this information had to be accounted for and
used for this study was by using a technique of aggregate methodology. “The Global
Entrepreneurship Monitor (GEM) is one such effort that uses the aggregating methodology.
GEM surveys the adult population of nations and subsequently aggregates responses to create
indicators of national-level variables. Some potential, nation-level dependent variables that result
from this effort are innovativeness, competitiveness, and growth expectations. It is easy to see
the difficulty in measuring the growth expectations, for example, of a nation without using an
aggregate methodology” (Mattingly, 2015).
The specific dependent variables for this study were the GDP of the country and the growth
of job formation.
The independent variables were those that influence the dependent variables. In this study,
the independent variables were outlined as ““diversity in framework conditions, entrepreneurial
sectors, business dynamics, and economic growth” (Schindler). Those variables were developed
and exposed in the concept framework that was shown in the exhibit of the case study and they
came from the Global Entrepreneurship Monitor which got them from Kauffman Center for
Entrepreneurship Leadership (Babson College) and the London Business School study.
2. What are some of the intervening, extraneous, and moderating variables that the study
attempted to control with its 10-nation design?
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“Intervening variable is a factor that theoretically affects the DV but cannot be observed or
has not been measured; its effect must be inferred from the effects of the independent and
moderating variables on the observed phenomenon” (Schindler, Pg 15). There are a few of the
intervening variables that affect the dependent variable in this study and can be seen in the data.
Not all the countries listed currently treat businesses the same. Different countries and
governments incentivize business entrepreneurship in different ways in different sectors. For
example, the United States incentivizes different sectors in different ways and sometimes
incentivizes different groups in ways that other countries would not. Currently, the United States
incentivizes the green energy startups with subsidies in ways that countries in this list would not.
The tax rates in these countries also could be intervening variables that would factor into this
data and affect the DV, but the extent of which it affects can not be concretely measured.
“Moderating variable is a second independent variable believed to have a significant
contributory effect on the original Independent to dependent variable relationship” (Schindler, Pg
13) In this study there is the moderating variable that could have a contributory effect on the
original independent to dependent variables were the moderating variables of people outside the
active age group 25-44 and facilitating availability to women to participate in the entrepreneurial
process. The dependent variable is the GDP and job production and the independent variables
included entrepreneurial sectors and business dynamics and in some of those countries this
moderating variable would have to be accounted for to compensate for the differences in how
those in that moderating variable group are treated customarily in that society as a whole and in
the business world.
3. Can you do a causal study without controlling intervening, extraneous, and moderating
variables?
A GEM OF A STUDY 4
Extraneous variables are those that are more difficult to control for in certain aspects, but
there are certain ways research can be conducted while trying to control the impact. “Extraneous
variables are independent variables that have not been controlled. They may or may not influence
the results. One way to control an extraneous variable which might influence the results is to
make it a constant (keep everyone in the study alike on that characteristic)” (Siegle, Pg. 2). The
intervening and moderating variables were defined in depth in question number two and after
recollecting on the influence those variables can have on the data, it can be understood that a
causal study could be attempted, but the information would be very generic and un-appliable to
policy and execution strategy. The study that does not control for those variables would be better
served as an information presentation comparing countries states of GDP without clearly
defining the cause.
4. What is the impact on study results of using national experts (key informants) to
identify and weigh entrepreneurial framework conditions?
Using national experts for this study was a vital piece of touch for the leveling of controls in
this study. The people that best know the country and the minute details of how different sectors
and age groups and motivations are driven are the ones that should be used to develop controls.
Using general stereotypes from average outsiders is guesswork and is not credible. Using
experts that have experience in this type of research in the country that these studies is being
conducted in was the best thing that this study could do to help assist in weighing the data.
Many studies have been done attempting to account for the differences in the cultures and
impact that can be measured wants cultural differences are controlled. The thing that makes it
difficult using normal people instead of experts is the stereotypes. “National stereotypes can be
defined as shared beliefs about the features of a typical representative of a particular nation). For
A GEM OF A STUDY 5
instance, Americans are widely believed to value hard work and financial success, whereas the
Japanese are thought to adhere to tradition and social harmony, and Scandinavians to honesty
and modesty. The view that national stereotypes, like other stereotypes although exaggerated,
may generally have a “kernel of truth” was commonly endorsed in 20th century personality
psychology. Consequently, the kernel of truth hypothesis does not apply to national stereotypes”
(Lönnqvist, 2012). Experts used in this study help eliminate that kernel of truth issue and ensure
all controls and included variables are acceptable for this causal study.
5. Can you do a causal study when much of the primary data collected is descriptive
opinion and ordinal or interval data?
A causal study can be done when the primary data collected is descriptive opinion and
ordinal or interval data because that is the data that there is to work with. There will never be the
“perfect” type of data to pinpoint exactly what causes something because there are always
variables that the study cannot know exist that are influencing every situation that is being
researched. A causal study is trying to understand the cause and effect of independent and
dependent variables and thus the descriptive opinion and ordinal or interval data is not the best
way to judge that affect. Descriptive opinion is what it sounds like, it is trying to describe
characteristics, but does not necessarily prove any cause and effect. “Ordinal data is the order of
the values is what’s important and significant, but the differences between each one is not really
known. Ordinal data shows imply an order, but the differences between order of 7 and 5 for
example may not be equal to the difference between 5 and 3 when ordering information. The
useful information in ordinal data is the median and mode” (Visano). Interval data tells the order
and the exact value of the difference in the values of the data. Ordinal and Interval data
combined with the descriptive opinion begins to give some sort of causality to form, but still is
or
A GEM OF A STUDY 6
not the perfect type of data to glean a perfect causal relationship from but could be used if that
were all the data that was available.
A GEM OF A STUDY 7
References
Lönnqvist, J. E., Yijälä, A., Jasinskaja-Lahti, I., & Verkasalo, M. (2012). Accuracy and contrast
in national value stereotypes – A Case study using Ingrian-Finns as bi-cultural experts.
International Journal of Intercultural Relations, 36(2), 271–278.
https://doi.org/10.1016/j.ijintrel.2011.08.002
Mattingly, E. S. (2015). Dependent Variables in Entrepreneurship Research. The Journal of
Entrepreneurship, 24(2), 223–241. https://doi.org/10.1177/0974930615586887
Schindler. (2021). Business Research Methods (13th edition). Mc Graw Hill Education (Uk).
Siegle, D. (2021). Educational Research Basics. UCONN Research Basics, 1–5.
https://researchbasics.education.uconn.edu/variables/#
Visano, L. A. (n.d.). Lecture 18 | L.A. Visano - Professor, Human Rights and Equity Studies. York
University. Retrieved May 28, 2021, from https://lavisano.info.yorku.ca/presentation-by-
patrick-teed-2/
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