Premium
Construct validity of some unweighted product‐count diversification measures
Author(s) -
Lubatkin Michael,
Merchant Hemant,
Srinivasan Narasimhan
Publication year - 1993
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250140604
Subject(s) - categorical variable , diversification (marketing strategy) , construct (python library) , econometrics , mathematics , measure (data warehouse) , construct validity , statistics , computer science , business , data mining , marketing , psychometrics , programming language
Construct validities are assessed for three simple‐to‐compute, unweighted, SIC‐based continuous diversification measures and a recently proposed two‐dimensional, SIC‐based categorical diversification measure. Two of the three continuous measures are found to correspond strongly to Rumelt's categorical measures, suggesting that these two objective and easy‐to‐calculate measures are better suited for large sample, strategy research than has previously been assumed. No support is found for the two‐dimensional measure.