Research and Insights Archive

Research and Insights from the Center for Effective Organizations

Are All Nonfinancial Performance Measures Created Equal? Evidence on Customer Satisfaction and Employee Satisfaction Measures from the Homebuilding Industry

Clara Xiaoling Chen (University of Illinois), Melissa Martin (USC), and Kenneth A. Merchant’s (USC) findings suggest that the validity of a business model depends not only on the soundness of the conceptual model per se, but also on how the variables in the business model are measured.

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Are All Nonfinancial Performance Measures Created Equal?

Clara Ziaoling Chen (University of Illinois), Melissa Martin, and Kenneth A. Merchant (USC) test the business model of a company in the homebuilding industry using its monthly customer satisfaction, employee satisfaction, and financial data for over 200 projects for the period 2001-2004.

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