Two Stage Least Squares Regression


New Member
I am trying to test a model and have been advised that 2SLS is the appropriate method. I am using SPSS which has the 2SLS option. My problem is that (1) I am not sure if this is the correct technique and (2) am having problems trying to work out which variables are DV, Explanatory and Instrumental for SPSS input.

(1) Advanced practice usage = size + competition + strategy + error

(2) Organisational performance = advanced practice usage +error

I originally planned on a path analysis, but that assumes that size, competition and strategy are not related to organisational performance (which they could be). 2SLS has been suggested as a solution to the problem.

Any help please would be very much appreciated as I have been working on this data set for weeks!

Thank you,