Empirical results
Aggregate sample K ¼ 1 re sults
First, the relationship between firm capabilities and profitability was estimated for the aggregate sample by multiple regression (Table I). This analysis is equivalent to performing the latent structure regression analysis for K ¼ 1 groups as long as all the regression coefficients estimated remain non-negative. This aggregate regression model shows a significant overall fit (F ¼ 21.65, p , 0.01; R 2 ¼ 0.34).