The variable or variables hypothesised to have a causal effect on the dependent variable of interest must be systematically manipulated while other potentially influential factors are rigorously controlled. In this manner, the contribution of each variable can be uniquely identified. The ability for other scientists to also replicate any particular finding considerably strengthens the objectivity of the scientific method. The Problem of Observation Strategic management, like many other social sciences, has trouble meeting the core requirements of observation, manipulation and replication. With regard to observation, gathering data on strategic behaviour has always proved problematic.
Firms are very reluctant to reveal their strategies to researchers before they are implemented.
There are also problems in determining a firm's strategy after the event. Reliability may also be low, with different members of the firm ascribing success to different factors. The problem of not being able to directly observe the phenomenon of interest is not unique to strategic management. It is our contention that further theoretical development in strategic management will necessarily be hampered without the development of a methodology to directly study the effect of firm strategy upon performance. While qualitative methods may be instructive with regard to the insights that they are able to generate, they are also extremely expensive to conduct both in terms of time and money, and can cover only a very few possible situations.