Testing Metric Equivalence in Cross-National Strategy Research: An Empirical Test across U.S. and Japan

The authors propose a conceptual and analytical framework for assessing metric equivalence in cross-national strategy research. They illustrate this framework by testing the equivalence of measurement models for a set of strategy constructs across the U.S. and Japan. Results of a two-group LISREL analysis conducted on a dataset of 447 inter-organizational relationships reveal that some constructs have strong cross-national equivalence, while others need content re-specification or re-conceptualization. The authors discuss implications and offer suggestions about how to conduct empirical strategy research in cross-national settings.