An Introduction to Group Based Trajectory Modeling in Strategic Management Research

39 Pages Posted: 22 Sep 2014 Last revised: 28 Apr 2020

See all articles by Anand Nandkumar

Anand Nandkumar

Indian School of Business (ISB), Hyderabad

Deepa Mani

Indian School of Business (ISB), Hyderabad

Date Written: September 21, 2014

Abstract

We introduce Group Based Trajectory (GBT) models as a tool for empirical analysis for analyzing problems in Strategic Management research. Based on finite mixture models, GBT models enable approximation of an unknown distribution of a phenomenon into a discrete distribution with a finite number of support points. Such approximation offers significant potential for richer empirical analysis of issues in strategic management. We illustrate GBT models and their advantages over regression and strategic group analyses by applying it to study how technological capabilities of firms influences its performance. We conclude with a discussion of its potential uses in strategic management research.

Keywords: Group based trajectory model, firm diversity, performance, technological capability, Tobin’s Q

Suggested Citation

Nandkumar, Anand and Mani, Deepa, An Introduction to Group Based Trajectory Modeling in Strategic Management Research (September 21, 2014). Indian School of Business, Available at SSRN: https://ssrn.com/abstract=2499138 or http://dx.doi.org/10.2139/ssrn.2499138

Anand Nandkumar

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Deepa Mani (Contact Author)

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

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