Common-method Variance

In their interesting article, A tale of three perspectives: Examining post hoc statistical techniques for detection and correction of common method variance, Richardson et al. (2009) define common-method variance (CMV) as “systematic error variance shared among variables measured with and introduced as a function of the same method and/or source”. Post-hoc techniques promise help, if the research design does not allow the independent and dependent variables to use data from different methods and sources. Richardson et al. evaluate (1) the correlational marker, (2) the confirmatory factor analysis (CFA) marker, and (3) the unmeasured latent method construct (ULMC) techniques. Interestingly, they find that only the CFA marker technique appears to have some practical value, but “recommend the CFA marker technique be used only as a means for providing evidence about the presence of CMV and only when researchers can be reasonably confident they have used an ideal marker”. A good description of the CFA marker technique can be found in an article by Williams et al. (2010).

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About Andreas Wieland

Dr. Andreas Wieland is an Assistant Professor of Supply Chain Management at the Department of Operations Management, Copenhagen Business School. His current research interests include supply chain risk management and international logistics strategies.

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