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Organizational Research Methods, Vol. 8, No. 2, 202-221 (2005)
DOI: 10.1177/1094428105275375

A Statistical Conversion Technique: Objective and Perceptive Financial Measures of the Performance Construct

Minoo Tehrani

Roger Williams University

Reza Noubary

Bloomsburg University

This study develops a statistical technique that allows comparison of objective and perceptive financial measures of the performance construct. The proposed technique provides a simple and statistically meaningful method for conversion of objective or archival financial data into scales that can be used for testing the convergent validity with corresponding perceptive measures of performance. Use of the proposed technique can enhance flexibility in application of data collected from different sources and strengthen the generalizability of the findings across studies in the strategic management literature. Empirical data of performance measures are used to demonstrate the use of the technique.

Key Words: statistical method • objective and perceptive measure conversion • performance construct


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