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Journal article
Why theory matters for causal inference? Rethinking endogeneity in entrepreneurship research
Strategic Entrepreneurship Journal, Forthcoming
09 Jun 2026
Featured in Collection : Research Supported by Drexel Libraries' OA Programs
Abstract
Endogeneity in entrepreneurship research is often treated as a statistical complication addressable through advanced econometric tools. This commentary argues that such an approach overlooks a deeper issue: endogeneity is conceptual before it is statistical. Because entrepreneurial phenomena involve reciprocal relationships, evolving mechanisms, and context-dependent processes, biased estimates frequently stem from underspecified constructs and unclear causal logic. I contend that theory, sufficiently precise to specify constructs, articulate mechanisms, and establish temporal ordering and boundary conditions, is the primary tool for reducing endogeneity in empirical estimation. Integrating theory with structural causal modeling and rigorous empirical design strengthens identification while enhancing explanatory value. I conclude with practical recommendations for scholars, emphasizing theory's central role in producing credible, cumulative knowledge in entrepreneurship research.
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Details
- Title
- Why theory matters for causal inference? Rethinking endogeneity in entrepreneurship research
- Creators
- Daniel Tzabbar (Corresponding Author) - Drexel University, Management
- Publication Details
- Strategic Entrepreneurship Journal, Forthcoming
- Publisher
- Wiley
- Number of pages
- 29
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Management
- Web of Science ID
- WOS:001787981100001
- Other Identifier
- 991022185675604721
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- Web of Science research areas
- Business
- Management