Measuring performance in competitive strategy research

Authors:
  • JPJohn A. Parnell
    John A. Parnell
  • NONicholas O'REgan
    Nicholas O'REgan
  • AGAbby Ghobadian
    Abby Ghobadian
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Abstract
When testing for strategy-performance linkages, attention is often given more to the measurement of strategy than to the measurement of performance. However, the selection of performance measures can dramatically influence the findings and conclusions of such studies. This research note provides evidence to support this assertion. Specifically, it is demonstrated that empirical findings can be directly linked to performance measures utilised. Because different strategies may have different performance objectives, selecting appropriate measures is a critical, but difficult task.