The constrained latent structure regression results While the aggregate sample K ¼ 1 solution presented above suggests that the technology-related capabilities are most closely related to performance (at least for this aggregate sample of firms), they leave unaddressed the issue of whether different capabilities are more critical to performance than others for different groups or clusters of firms. To investigate the various forms of heterogeneity discussed, we analyze this
set of the US firms using the constrained latent structure regression methodology described earlier which models the observed relationships between capabilities and performance, and choose the “best” solution using the AIC heuristic as in DeSarbo and Cron (1988) (although the results are consistent across all information heuristics presented earlier).