An Assessment Of Hierarchical Linear Modeling In International Business

Abstract

International marketing research, in most cases, involves at least two levels (e.g. firms within countries) that make the Hierarchical Linear Modeling (HLM) a suitable data analysis technique. Due to its robustness, the use of HLM in the International Business (IB) research has increased substantially over the last decade. However there is still a lack of standardization in the fundamental issues that hinders the wide spread use of HLM. This study provides unified approach to HLM use in IB research by providing standards for appropriate use of HLM. To achieve this goal, a detailed analysis of the method’s use in 42 IB studies is provided and these studies are compared with 104 non-international studies to determine where IB research stands in terms of HLM use. Finally this study focuses on the good HLM practices and offers suggestions designed to maximize the effective use of HLM and potential in international business studies.