The Vertical Construct Validity of Business Economic Performance Measures

Abstract

Organizational research has had problems with the concept of business economic performance because this concept has not been adequately developed theoretically, and little attention has been paid to measurement issues. This article discusses a study that formally assessed the performance construct, including the issues of dimensionality and convergent and discriminant validity. The research used data on the performance of 110 organizations, and the guiding hypotheses were that operating and market performance constitute two separate but correlated dimensions of the financial performance construct, and that indicators of operating performance would be highly correlated with and significantly related to that dimension, as would indicators of market performance with that dimension. The study's results supported the multidimensional nature of the construct.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 65 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.