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