CONSTRUCT-VALIDITY OF SOME UNWEIGHTED PRODUCT-COUNT DIVERSIFICATION MEASURES

Construct validities are assessed for three simple-to-compute, unweigh ted, SIC-based continuous diversification measures and a recently prop osed two-dimensional, SIC-based categorical diversification measure. T wo of the three continuous measures are found to correspond strongly t o Rumelt's categorical measures, suggesting that these two objective a nd easy-to-calculate measures are better suited for large sample, stra tegy research than has previously been assumed. No support is found fo r the two-dimensional measure.