Mediation in Strategic Management Research: Conceptual Beginnings, Current Application, and Future Recommendations

Mediating effects allow strategic management researchers to understand “black box” processes underlying complex relationships whereby the effect of an independent variable is transmitted to a dependent variable through a third variable. Since the seminal work of Baron and Kenny (1986), advancements have been made in mediation analysis. Thus, literature on the latest techniques for analyzing mediating and intervening varibales is presented. In addition, strategy literature published in the Academy of Management Journal and the Strategic Management Journal between 1986 and 2005 employing tests of mediation is reviewed to better understand how mediation techniques are used by strategy scholars. Finally, implications and limitations of current mediation analysis in strategy research are discussed, and recommendations are provided to strategy scholars examining mediation.