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Comparative configurational process analysis: a new set-theoretic technique for longitudinal case analysis

Journal: Organizational Research Methods

Date: 2024

Author: Christian Rupietta, Johannes Meuer

Abstract:
In the past 20 years, researchers have significantly advanced various management fields by examining organizational phenomena through a configurational lens, including competitive strategies, corporate governance mechanisms, and innovation systems. Qualitative comparative analysis (QCA) has emerged as a primary method for empirically investigating organizational configurations. However, QCA has traditionally struggled to capture the temporal aspects of configurational phenomena. In this paper, we present configurational comparative process analysis (C2PA), which merges QCA with sequence analysis. We introduce the concept of configurational themes—recognizable temporal patterns of recurring combinations of explanatory conditions—to identify and track the temporal dynamics among these phenomena. We also outline configurational matching—a method for empirically identifying these themes by distinguishing theme-defining from theme-supporting conditions. C2PA allows researchers to explore the temporal dynamics of configurational phenomena, such as their stability, emergence, and decline at critical junctures. We illustrate the application of C2PA through a study of shareholder value orientation and discuss its potential for addressing key questions in management research.

Link: Google Scholar

Background and Context

Research Gap

Qualitative Comparative Analysis (QCA) has struggled to capture temporal dynamics of configurational phenomena despite its widespread use in management research.

New Approach

The authors introduce Comparative Configurational Process Analysis (C²PA), which merges QCA with sequence analysis to study how configurations evolve over time.

Methodology

The paper illustrates C²PA through a study of shareholder value orientation among 54 German HDAX-listed companies between 2006-2017.

C²PA Bridges Two Powerful Analytical Methods

QCA Analyzes configurations at single points in time Sequence Analysis Analyzes temporal patterns and processes C²PA Analyzes temporal dynamics of configurations
  • QCA excels at analyzing how multiple conditions combine but struggles with capturing change over time.
  • Sequence analysis is designed to analyze temporal patterns but doesn't address configurational complexity.
  • C²PA bridges these approaches, allowing researchers to study how configurations evolve across time periods.

The Five-Step Systematic Process of C²PA

Step 1 Research Questions Step 2 Cross-Sectional QCA Step 3 Configurational Themes Step 4 Sequence Analysis Step 5 Meta- Inference
  • C²PA begins with formulating research questions focused on temporal dynamics at case and theme levels.
  • Repeated cross-sectional QCA identifies configurations at each time point, which are then matched into themes.
  • Sequence analysis tracks how cases move between themes over time, revealing patterns of stability and change.

Three Distinct Ownership Configurations Lead to Strong Shareholder Value Orientation

Individual Investor Dominant Strong Individual Investors Absent Government Government Dominant Strong Government Absent Holdings Holding Dominant Strong Holdings Absent Individuals Each theme requires one dominant shareholder type
  • C²PA identified three distinct ownership configurations consistently associated with strong shareholder value orientation (SVO).
  • Each configuration requires one dominant shareholder type and the absence of specific other types.
  • This contradicts traditional assumptions that only concentrated ownership by individual investors leads to SVO.

C²PA Reveals Company Transitions Between Ownership Themes Over Time

Traditional QCA Company A: Strong SVO Company B: Strong SVO C²PA A: B: C: 2006 2009 2013 2017 Companies switch between themes over time
  • Traditional QCA would only identify that companies have strong SVO at single points in time.
  • C²PA reveals companies switch between different ownership themes while maintaining strong SVO over time.
  • External factors (like the 2008 financial crisis) triggered ownership structure changes in some companies.

Contribution and Implications

  • C²PA enables researchers to study temporal dynamics of configurations, addressing a key limitation of QCA.
  • The concept of "configurational themes" advances theory by decomposing configurations into stable and supporting elements.
  • "Configurational matching" systematically identifies similarities and differences in structures over time for robust pattern recognition.
  • The methodology has wide applications in organization studies, corporate governance, strategy, innovation, and policy research.
  • For SVO research specifically, it revealed multiple pathways to strong shareholder orientation beyond concentrated individual ownership.

Data Sources

  • The SVO case study analyzed a balanced panel of 54 German HDAX-listed companies from 2006-2017.
  • Ownership data was collected from Thomson Reuters' Refinitiv database and categorized into five shareholder types.
  • Visualization 1-3 demonstrate the method's conceptual foundations based on the authors' methodological framework.
  • Visualization 4 was based on Figure 5 of the paper showing the three configurational themes for strong SVO.
  • Visualization 5 was inspired by Figure 6 showing the sequence clusters of companies following similar paths.