ASSESSMENT AND REDIRECTION OF LONGITUDINAL ANALYSIS - DEMONSTRATION WITH A STUDY OF THE DIVERSIFICATION AND DIVESTITURE RELATIONSHIP

The authors review the application of longitudinal analysis in strateg ic management research and show that how such analysis is conducted ha s implications for empirical results and theory development. A content analysis of 203 longitudinal strategic management studies reveals tha t most researchers have nor (1) tested and controlled for violations i n the data assumptions underlying longitudinal analysis or (2) tested the stability and form of the empirical relationships over time. Impli cations of these findings are demonstrated with analyses of the divers ification and divestiture relationships of 180 Fortune 500 companies o ver the period 1985-88. The results show that empirical results, theor etical development, and practical applications can vary on the basis o f how longitudinal analysis is performed. Suggestions for the use of l ongitudinal analysis in strategic management research are offered. (C) 1997 by John Wiley & Sons, Ltd.