Measurement of Business Performance in Strategy Research: A Comparison of Approaches

A two-dimensional classificatory scheme highlighting ten different approaches to the measurement of business performance in strategy research is developed. The first dimension concerns the use of financial versus broader operational criteria, while the second focuses on two alternate data sources (primary versus secondary). The scheme permits the classification of an exhaustive coverage of measurement approaches and is useful for discussing their relative merits and demerits. Implications for operationalizing business performance in future strategy research are discussed.