Your post is well structured and easy to follow. Beginning with the first question in identifying dependent and independent variables, I respect your point, but I can’t entirely agree with it. Based on the conceptual model presented in exhibit 1-1, I think the dependent variable, which you clearly define as the “variable being monitored and measured,” is the construct of economic growth based on the GDP and job creation. Another dependent variable is the construct of business dynamics. The independent variables based on the conceptual model include the general national framework conditions, entrepreneurial opportunities, entrepreneurial capacity, and entrepreneurial framework conditions. EXHIBIT C-GEM 1-1 of the conceptual model contains entities that can be broken down to create concrete and measurable elements that would increase the reliability and accuracy of the study results.
According to Schindler (2019), Extraneous variables are defined as “almost infinite in number and treated as independent or moderating variables which are assumed or excluded from the study.” Moderating variables are defined as “independent variables believed to have a significant contributory or contingent effect on the IV-DV relationship” (Schindler, 2019). It is important to analyze factors that create a favorable entrepreneurship environment for people to start businesses. The idea is to measure factors that would contribute to the establishment of businesses and job creation and ultimately to an increase in GDP. These factors can range from the creativity of ideas to the demographic characteristics of a particular country. It isn’t easy to measure such factors, and therefore they are assumed, discounted, or controlled because the research must prove causation with some degree of certainty.
Your post accurately captures the role and importance of key informants. Based on the case study, the assumption is that the informants would focus on factors that highly correlates with business startup rates. One obvious question on selecting the key informants is whether the informants were selected from a probability or nonprobability sample. Do you think key informants should be preselected so that each measurement question is refined?
On the question of causal study and collected primary data, the case study raises whether the study qualifies as a causal study or descriptive study. At this stage, the researcher should address issues of reliability and validity of the study. If the researcher used correlation statistics, then the study is causal. Otherwise, the researcher may opt to use the GEM conceptual model as a preliminary research design that acts as a guide to the actual causal study, in which case the model will need to be tested over time. The test would involve manipulating different variables that have the appropriate indices and measuring the net effects.