Question

Part 1: Firm Performance

In this spreadsheet, you will find data with a number of variables that are commonly studied in business strategy research. Working from column A across, each firm has an identifier code. Firm ownership is a dummy coded variable where 0 = publicly-traded and 1 = privately-held firm ownership. Firm performance is the company’s self-assessment about the extent to which they meet/exceed performance expectations.

The remaining variables are factors that are predicted to influence performance. Customer orientation measures the extent to which a firm focuses on its customers and their needs, wants, and preferences. Long term orientation, benchmarking, and planning are variables that speak to the firm’s strategic planning capacity. Finally, risk taking is the firm’s capacity for risky strategic moves. Each variable is measured by managers reporting on a 1-7 Likert scale.

Firm ID	ownership (private = 1)	firm performance	customer orientation	long-term orientation	benchmarking	planning	risk taking	Risk taking squared	firm performance
1	1	4.33	5.50	6.20	5.00	1.00	5.00	25.00	4.33
2	0	4.00	6.25	4.80	1.83	4.17	5.80	33.64	4.00
3	0	4.67	6.25	2.00	5.50	5.33	4.80	23.04	4.67
4	0	4.00	4.25	3.80	1.67	5.00	6.00	36.00	4.00
5	1	4.67	6.25	5.60	4.50	4.50	5.20	27.04	4.67
6	1	5.67	5.25	4.20	5.00	2.17	3.00	9.00	5.67
7	0	2.67	3.00	5.40	5.33	5.50	4.60	21.16	2.67
8	0	2.67	5.75	3.00	4.33	4.67	6.80	46.24	2.67
9	1	5.00	6.25	5.00	3.33	3.83	4.80	23.04	5.00
10	1	6.00	6.25	5.80	3.83	4.33	2.80	7.84	6.00
11	1	5.00	6.00	3.80	4.00	3.00	3.60	12.96	5.00
12	0	5.00	6.25	5.00	4.67	3.83	4.20	17.64	5.00
13	1	5.33	5.50	5.40	2.67	4.00	3.20	10.24	5.33
14	0	5.00	4.75	5.20	6.67	6.00	1.60	2.56	5.00
15	0	4.67	6.50	6.80	4.67	5.50	4.00	16.00	4.67

9. Estimate a multiple regression model for the influence of customer orientation, long-term orientation, and benchmarking on firm performance. Report the regression equation and interpret your findings.

Please answer with Excel solved with toolpak if necessary.

Answer 1

Using Excel with toolpak.

Steps:

Data-->Data Analysis--->Regression:

Select data:

Input data--firm performance

Output data-- Influence of customer orientation, long-term orientation, and benchmarking.

Output Result:

R-squared value is 0.2834 or 28.34% that is low it's mean our model not good for predictions.

Regression Equation:

firm performance = 0.8923 + 0.4805 * (customer orientation) + 0.1592 *(long-term orientation) + 0.0548 *(benchmarking)

Interpretation of Regression Coefficient:

If customer orientation is increase by 1 unit then firm performance will increase by 0.4805.

if long term orientation is increase by 1 unit then firm performance will increase by 0.1592.

if benchmarking is increase by 1 unit then firm performance will increase by 0.0548.

all coefficient of p value is greater than 0.05 it is mean they are not significant for firm performance.