Development and validation of a multidimensional business capabilities measurement instrument

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Date

2009

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Open Access Color

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Abstract

According to the theory of resource-based view, a firm's special capabilities are the main sources of its superior performance and competitive advantage. The effects of business capabilities on performance and competitive advantage have been tested by myriad research studies, but the various studies have lacked a commonly accepted measurement instrument that comprises all components of business capabilities. This study aims to fill this gap through conceptualizing and developing a multidimensional business capabilities measurement instrument. We established a scale incorporating seven dimensions of business capabilities that are compatible with operational functions. Data were then collected from 445 owners/executives of the manufacturing firms and analyzed through confirmatory factor analysis to assess validity and reliability. As a result, we have attempted to contribute to business executives and academics by providing a multidimensional business capabilities scale.

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Keywords

Business capabilities, Confirmatory factor analysis, Measurement instrument, Organizational capabilities, Resource-based view

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Citation

11

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Q3

Source

Journal of Transnational Management

Volume

14

Issue

3

Start Page

215

End Page

240