Re: st: Harman's single-factor test in Stata

[John Antonakis <John.Antonakis@unil.ch>]

Hi Michele:

I would strongly advise you to not conduct such a test--thus, your Stata 
question is not really of issue.

Common-method variance bias is a kind of omitted variable problem that 
creates endogeneity. The problem you have is that you don't know how 
this omitted variable affects the other variables in the model. The 
Harman approach has been shown to not recover true model parameters:

Richardson, H. A., Simmering, M. J., & Sturman, M. C. (2009). A Tale of 
Three Perspectives: Examining Post Hoc Statistical Techniques for 
Detection and Correction of Common Method Variance. Organizational 
Research Methods, 12(4), 762-800.

Antonakis, J., Bendahan, S., Jacquart, P., & Lalive, R. (2010). On 
making causal claims: A review and recommendations. The Leadership 
Quarterly, 21(6), 1086-1120. (this paper also shows how endogeneity 
creates bias and that only instruments can help you).

Only a design that eliminates common-method variance, or instrumental 
variables, can save the day.  The latter are hard to come by but if you 
have them then you can purge the model from the endogeneity bias.  See also:

Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources 
of Method Bias in Social Science Research and Recommendations on How to 
Control It. Annual Review of Psychology, 63(1), 539-569.

HTH,
JOhn.

__________________________________________

Prof. John Antonakis
Faculty of Business and Economics
Department of Organizational Behavior
University of Lausanne
Internef #618
CH-1015 Lausanne-Dorigny
Switzerland
Tel ++41 (0)21 692-3438
Fax ++41 (0)21 692-3305
http://www.hec.unil.ch/people/jantonakis

Associate Editor
The Leadership Quarterly
__________________________________________


On 13.04.2012 17:35, Bernini, Michele wrote:
> Dear Statalister,
>
> I am trying to perform an Harman's single-factor test with stata to check for Common Method Variance. However I am not sure which method should I use when I do Factor Analysis with Stata. For example Principal factor confirms the presence of CMV while Principal-Component factor rejects it.
>
> Thanks for your help!
>
>
>
> Michele Bernini
> Phd Candidate
> School of International Studies (SIS)
> University of Trento
> Via Verdi, 8/10
> I-38122 Trento
> Italy
>
> Tel. +39 3491831687
>
>
>
>
>
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