Dealing with Common Method Variance in International Marketing Research

Abstract

Common method variance (CMV) is an important concern in international marketing research because presumed substantive relationships may actually be due to shared method variance. Because method effects may vary systematically across cultures and countries, accounting for method effects in international marketing research is particularly critical. A systematic review of Journal of International Marketing articles published during a five-year period (2015–2019, N = 93) shows that (1) authors often report post hoc CMV tests but usually conclude that CMV is not an issue and (2) many post hoc tests are conducted using the Harman one-factor test and the marker variable technique, which have serious deficiencies for detecting and controlling CMV. Drawing on a classification and comparative evaluation of the most common statistical approaches for dealing with CMV, the authors recommend two approaches and propose a procedure for dealing with CMV in international marketing research. The procedure, which is based on multisample structural equation modeling, is illustrated with data from a cross-national pan-European survey (N = 11,970, 14 countries), which shows that even though method variance is present in the data, method effects do not seriously bias the substantive conclusions in this particular study.