On How To Measure Managerial and Organizational Capabilities: Multi‐Item Models for Measuring Distinctive Competences

The scales created provide consistent empirical evidence to remove doubts surrounding managerial self‐evaluation, including those arising from problems of self‐esteem and reinforcement effects and to support the predictive ability of distinctive competences on current and long‐term performance variability.

Abstract

This paper specifies how to construct and validate an instrument based on multi‐item scales for the cataloguing and measurement of managerial and organizational capabilities on the basis of management perceptions. The construction and reduction of the scales have been reinforced by the Delphi and retesting techniques. The use of this methodology was illustrated in a sample of Spanish industrial firms. The paper enhances the value of the instruments for a resource‐based view with regard to the faithful and rigorous measurement of its key concept, distinctive competences. The scales created provide consistent empirical evidence to remove doubts surrounding managerial self‐evaluation, including those arising from problems of self‐esteem and reinforcement effects. In addition, the paper provides empirical evidence to support the predictive ability of distinctive competences on current and long‐term performance variability.