Method variance in organizational behavior and human resources research: Effects on correlations, path coefficients, and hypothesis testing

This research simulates the effects of method variance on correlations, standardized regression (path) coefficients, and squared multiple correlation coefficients. The results show that method variance can have extreme effects on these measures of association, depending on assumptions made about the nature of the method factors. The analysis also indicated that method variance can have strong effects on the probability of obtaining significant findings in the absence of true relationships. The link between findings of the present study and current developments on method variance in organizational behavior and human resources management research is discussed.