M. Bhargava et al., RECONCILING DIVERSE MEASURES OF PERFORMANCE - A CONCEPTUAL-FRAMEWORK AND TEST OF A METHODOLOGY, Journal of business research, 31(2-3), 1994, pp. 235-246
This paper examines the multidimensional aspects of performance measur
es specifically studying variables related to ''marketing effectivenes
s.'' A measurement model for assessing the validity and reliability of
performance measures is developed. The framework provides a conceptua
l platform from which further empirical and theoretical development ma
y proceed. This is illustrated through an empirical analysis which add
resses the issues associated with resolving conflicts among performanc
e measures. The empirical results show the importance of carefully ass
essing the performance measures chosen. The results confirm earlier fi
ndings that the dimensions of performance can be mutually exclusive, l
eading to confusion as to the appropriate means of resolving tradeoffs
. Data Envelopment Analysis based on the performance measures allows t
he creation of a performance frontier which inherently recognizes the
tradeoffs. This method is used to further validate the characteristics
of the performance measures chosen. The model incorporating profitabi
lity, market growth and adaptability was the most consistent in both p
redictive and concurrent validity checks.