A Note on Testing for Complementarity and Substitutability in the Case of Multiple Practices

Journal of Productivity Analysis, Vol. 35, No. 3, pp. 263-269, June 2011

Posted: 24 May 2011

See all articles by Martin A. Carree

Martin A. Carree

University of Maastricht - Department of Organization & Strategy

Boris Lokshin

Maastricht University, School of Business and Economics

René Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation; Maastricht University - Department of Organization & Strategy

Date Written: May 16, 2011

Abstract

Recent empirical studies of firm-level performance have tested complementarity in the case of multiple practices. These papers have drawn conclusions using potentially biased estimates of pair-wise interaction effects. We develop a consistent and simple testing framework and test it against alternatives.

Keywords: Complementarity, supermodularity, firm performance

JEL Classification: C12, D24

Suggested Citation

Carree, Martin A. and Lokshin, Boris and Belderbos, Rene, A Note on Testing for Complementarity and Substitutability in the Case of Multiple Practices (May 16, 2011). Journal of Productivity Analysis, Vol. 35, No. 3, pp. 263-269, June 2011. Available at SSRN: https://ssrn.com/abstract=1843177

Martin A. Carree

University of Maastricht - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Boris Lokshin (Contact Author)

Maastricht University, School of Business and Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 388 3697 (Phone)
+31 43 325 4893 (Fax)

Rene Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+32 16 32 6912 (Phone)
+32 16 32 6732 (Fax)

Maastricht University - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

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