The Use of Regression on Dummy Variables in Management Research

S. R. Searle and Jon G. Udell
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S. R. Searle: Associate Professor of Biological Statistics, Department of Plant Breeding and Biometry, New York State College of Agriculture, Cornell University, Ithaca, New York
Jon G. Udell: Assistant Dean and Director of the Bureau of Business Research and Service of the Graduate School of Business, and Associate Director of the University-Industry Research Program at The University of Wisconsin-Madison

Management Science, 1970, vol. 16, issue 6, B397-B409

Abstract: Studies of organizational behavior and other managerial phenomena frequently include variables which are not readily measurable by cardinal or ratio scales. Variables of this nature occur, for example, when investigating the relationship between a supervisor's span of control and (i) dissimilarity of subordinate's jobs, (ii) supervision received from other executives, (iii) geographic concentration of subordinates, and (iv) personal assistants. The (0, 1) variable technique, explained and illustrated here in terms of this example, offers the researcher a superior analysis for those sociological, psychological, and managerial phenomena for which no metric has yet been developed. The authors believe that this is one of the most useful statistical techniques available to the management scientist.

Date: 1970
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