Understanding Relative and Absolute Change in Discontinuous Growth Models: Coding Alternatives and Implications for Hypothesis Testing

Organizational researchers routinely have access to repeated measures from numerous time periods punctuated by one or more discontinuities. Discontinuities may be planned, such as when a researcher introduces an unexpected change in the context of a skill acquisition task. Alternatively, discontinuities may be unplanned, such as when a natural disaster or economic event occurs during an ongoing data collection. In this article, we build off the basic discontinuous growth model and illustrate how alternative specifications of time-related variables allow one to examine relative versus absolute change in transition and post-transition slopes. Our examples focus on interpreting time-varying covariates in a variety of situations (multiple discontinuities, linear and quadratic models, and models where discontinuities occur at different times). We show that the ability to test relative and absolute differences provides a high degree of precision in terms of specifying and testing hypotheses.