An Introduction to Group Based Trajectory Modeling in Strategic Management Research

We introduce Group Based Trajectory (GBT) models as a tool for empirical analysis for analyzing problems in Strategic Management research. Based on finite mixture models, GBT models enable approximation of an unknown distribution of a phenomenon into a discrete distribution with a finite number of support points. Such approximation offers significant potential for richer empirical analysis of issues in strategic management. We illustrate GBT models and their advantages over regression and strategic group analyses by applying it to study how technological capabilities of firms influences its performance. We conclude with a discussion of its potential uses in strategic management research.