All,
Bob Carton and I have created a new measure of overall organizational performance
that, based on a sample of over 4000 firms, was 500% more accurate than any other
measure that had been used to date, i.e., we explained about 65% of the variance
in organizational performance compared to slightly over 10% for the next best
performance measure.
Te book that we published based on this work was entitled "Measuring Organizational
Performance: Metrics for Entrepreneurship and Strategic Management Research,"
Edward Elgar, 2007.
One further point. As part of our multi-component Measure, we used Altman's Z-Score, which is an early bankruptcy prediction measure. While Altman's Z-Scroe
and subsequent Zeta-Score are both very good measures of potential bankruptcy, they are not as accurate as Wilcox's Linear Gambler's Ruin and Probability of
Ultimate Failure Indicies. When I substituted one of Wilcox's Indicies for
Altman's, and repeated our tests on a small subset of our 4,000+ sample, the R2 for this modified Measure exceeded 0.80. Moreover, there are still a few more
"improvements" that can be made that may get a more complete modification of
our Measurement Index close to 0.90 or possible even better than that
When this work is done, we will publish another book on this improved Measure of overall organizational financial performance.
Sincerely,
Dr. Charles Hofer
Regents Professor
----- Original Message -----
From: "Maria V Lugo"
To:
ENTREP@AOMLISTS.PACE.EDU
Sent: Thursday, November 3, 2011 7:10:46 AM
Subject: [ENTREP] Measures
Dear ENTREP members,
Could you please suggest some validated instruments that can be used to measure
entrepreneurial success.
Thanks,
Maria Lugo
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