Measurement scale of international opportunity identification in early internationalization firms

Abstract

PurposeThe purpose of this paper is to develop the international opportunity identification (IOI) scale through psychometric evaluation in an emerging economy context.Design/methodology/approachSamples consist of international firms operating in the apparel industry in Bangladesh. Exploratory factor analysis (EFA) was conducted on the first wave of responses to unfold the underlying dimensions of IOI. The second wave of data was used to confirm the validity of IOI scale through confirmatory factor analysis (CFA).FindingsEFA suggests a unidimensional scale, which is supported by CFA. The relationship between IOI and financial performance is significant and confirms nomological validity. Results also confirm the validity and reliability of the IOI scale.Originality/valueThis study indicates that IOI is a reliable and valid scale to measure the strategic action of the international firms operating in emerging economies, and has a positive relationship with financial performance.