Handbook of Management Scales/Cost performance

Cost performance (alpha = 0.817; composite reliability = 0.830; average variance extracted = 0.62)

Description

Multi-item constructs served as variables for four performance measures of quality performance, delivery performance, flexibility performance and cost performance. Construct validity was given by satisfactory psychometric properties on content validity, unidimensionality, reliability, convergent and discriminant validity. The development and design of the survey instrument by an international group of senior researchers, as well as the grounding of each measurement item in empirical operations management literature, assured content validity.

Items

Respondents were asked to indicate their performance relative to their competitors' performance on a number of dimensions, using a scale ranging from "far worse" (value = 1) to "far better" (value = 7).

• Direct manufacturing costs
• Total product costs
• Raw material costs

Source

• Power et al. (2010): The cultural characteristic of individualism/collectivism: A comparative study of implications for investment in operations between emerging Asian and industrialized Western countries. Journal of Operations Management, Vol. 28, No. 3, pp. 206-222.

Related scales

• Comparative organizational performance
• Delivery performance, flexibility performance, and quality performance
• Firm's financial performance over the past 5 years
• Performance
• Organizational performance: liquidity, profitability, growth, stock market performance