Mechanisms and Empirical Research

Good research goes beyond testing the aggregate predictions of a theory to test the theory's underlying mechanism. A mechanism is a plausible account of the process that causes a systematic relationship between variables. Strategy researchers particularly need to understand the mechanisms that drive firm behavior and outcomes because we seek both to explain and offer prescriptions. We recommend that theories clearly specify their mechanisms and that empirical research test such mechanisms. Such tests will help differentiate among theories with similar aggregate predictions.