Harpreet Singh Bedi

Are subjective business performance measures justified

Purpose – The purpose of this paper is to operationalize the subjective measures of business performance and assessing their justification for use in place of objective measures of business performance. Design/methodology/approach – The study is based on a sample survey of 171 companies listed on Bombay Stock Exchange, India. A cross-sectional descriptive research design has been used. Exploratory factor analysis was used to assess the factor structure and dimensionality of objective and subjective measures of business performance. The psychometric properties of these measures and their interrelationship have been assessed through confirmatory factor analysis. Findings – The study finds a strong positive correlation between subjective business performance and objective business performance. The study finds it justified to use the subjective measures of business performance. Research limitations/implications – Response bias may have crept in because of self-reported measure used for the study. Future resea...

EFFECT OF ORGANISATIONAL AND ENVIRONMENTAL FACTORS ON INNOVATIVENESS AND BUSINESS PERFORMANCE RELATIONSHIP

We have investigated the role played by organisational and environmental factors in innovativeness and business performance relationship. The study is based on a purposive sample of 168 key informants (senior level managers in decision-making roles) from Indian firms. For data collection, we developed scales to measure innovativeness and business performance. The results show that innovativeness is a significant determinant of business performance. We also find that influence of innovativeness on external business performance is moderated by organisational and environmental variables. The organisational decision makers in India can draw insights from these results and better decide their strategic postures for designing organisational structure (OS) and for coping better with the external business environment. The study contributes to the literature by providing empirical evidence in support of organic structure and innovativeness for Indian firms to achieve superior business performance in the face of turbulent external business environment.