Abstract
Organizational performance (OP) is a central construct in strategic management research. While previous studies established the multidimensionality of OP, relationships between OP and its dimensions remain unexplored. It is important to specify these relationships to determine how to measure OP and how to interpret empirical results. We apply confirmatory tetrad analysis and the framework of Edwards (2001) to test our hypotheses regarding the multidimensional construct type of OP based on a large sample of listed U.S. organizations. Our results suggest that OP is best modeled as a set of four related dimensions (i.e., profitability, liquidity, growth, and stock market performance). Our study has far-reaching implications for future research by showing that hypotheses concerning antecedents or consequences of OP should be developed at the dimensional level.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
