Finally, in the last stage, all 216 SBUs were contacted via phone or fax correspondence to obtain data on profits before taxes and revenues. The dependent variable, profitability, was calculated as a percent profit margin by dividing SBU’s profit before tax by SBU’s revenue. Again, the proposed constrained latent structure regression methodology is sufficiently general to accommodate any dependent variable as well as any specification of independent variables (e.g. resources and/or capabilities). DeSarbo et al. (2006) utilized aspects of this data to test the Miles and Snow (1978) strategic types framework against an empirically derived typology derived from a finite mixture structural equation methodology. These authors found that a dramatically different typology of strategic types could be empirically derived with much better statistical properties than the Miles and Snow traditional prospector, analyzer, defender, and reactor strategic types. Our objective is not to explicitly examine strategic types, but rather explore the nature of heterogeneity in the RBV framework amongst firms, and to decompose the nature of this heterogeneity in order to assess its latent source(s).