Abstract
From the roots of corporate longevity that has been built by previous researchers, this article enhances existing work toward measuring the concept of corporate sustainable longevity (CSL) beyond an average firm’s age. By adopting the sequential exploratory mixed method, we performed this study in two phases: qualitative followed by quantitative. In the first phase, we used the Delphi method to verify and validate the thematic elements of the construct and generated a pool of items from the extant literature. In the second phase, we collected the data twice through a survey questionnaire (pilot N = 200 and final N = 271) and validated the scale through exploratory and confirmatory factor analyses. The results generated a five-factor structure of CSL with model fit indices, root mean square error of approximation (RMSEA) = 0.15, goodness-of-fit index (GFI) = 0.917, adjusted goodness-of-fit index (AGFI) = 0.901, normed fit index (NFI) = 0.938, incremental fix index (IFI) = 0.996 with comparative fit index (CFI) = 0.996 with satisfactory discriminant and convergent validities. Cronbach’s alpha ranging from 0.89 to 0.90 provided an evidence of internal consistency reliability of the CSL scale. This novel scale fills the gap in the literature by enabling practitioners and researchers in anticipating the firm’s ability to survive in the long run. The significance and limitations of the study are discussed in the end.
Highlights
In the recent development of both theory and practice, there is a dynamic pursuance toward identifying and examining desired approaches and techniques to determine the sustainability of businesses, apart from profitability and profit growth (Cefis & Marsili, 2005; Gilbert, 1983; Glenn & Stahl, 2009)
After fulfilling the abovementioned criteria, we applied further scrutiny and excluded the items from the analysis that did not fulfill the following criteria: first, if less than three items were loaded on any factor; second, if any item was cross loaded on more than one factor with very close loading; third, if an item showed individual KMO value of less than 0.50; and fourth, if individual item reliability was lower than the minimum threshold of .6, which might create internal consistency issues of the measurement scale
To verify and cross-validate the five-factor solution of corporate sustainable longevity (CSL) that emerged as a result of exploratory factor analysis (EFA), we performed a confirmatory factor analysis on the data collected in the second phase (N = 271)
Summary
In the recent development of both theory and practice, there is a dynamic pursuance toward identifying and examining desired approaches and techniques to determine the sustainability of businesses, apart from profitability and profit growth (Cefis & Marsili, 2005; Gilbert, 1983; Glenn & Stahl, 2009). Researchers are in constant pursuit of understanding the reasons behind business failures (Brito & Brito, 2014; Panza, Ville, & Merrett, 2018; Parker, Peters, & Turetsky, 2002). Such a thread of earlier work that encompasses various methodologies of inquiries led us to a broader context of inquiries. Most of the firms do not survive in the long run and die before the average firm life or through the second generation in case of a family firm (Ahn, 2018; Cressy, 2006). Contemporary globalization challenges, tough competition, technological advancements, and many more elements threaten the very survival of the firms
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