Handbook of Management Scales/Firm's financial performance over the past 5 years

Firm's financial performance over the past 5 years (alpha = 0.8815)

Items

(1/decreased significantly - 3/remained constant - 5/increased significantly)

• Return on investment
• Profits as a percent of sales
• The firm’s net income before taxes
• The present value of the firm

Source

• Carr/Pearson (1999): Strategically managed buyer–supplier relationships and performance outcomes. Journal of Operations Management, Vol. 17, No. 5, pp. 497-519.

Comments

In general, particular attention needs to be paid to the measurement of performance. A review of the operationalization of organizational performance by Richard et al. (2009) highlights the limited effectiveness of commonly accepted measurement practices. Their article is strongly recommended for reading: Richard et al. (2009): Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management, Vol. 35, Nr. 5, pp. 718-804.

Related Scales

• Comparative organizational performance
• Cost performance, delivery performance, flexibility performance, and quality performance
• Performance
• Organizational performance: liquidity, profitability, growth, stock market performance