The importance of the measuring organizational performance is growing in recent strategy study. Though many measures of the organizational performance were developed and used, there are discussions about the relationship of the measures.
The main objective of this study are as follows:
(1)Is there an analogy between measures of organizational performance?
(2)Is there a cross-sectional consistency in each measure?
Four measures are used for this study-these are Return On Asset(ROA), Data Envelopment Analysis(DEA), Tobin's q and stock price. The longitudinal data(1989-1996) are collected from 25 Korean commercial bank. For the analysis, correlation analysis and simple regression were carried out.
The major results of this study are as follows: (1) there isn't an analogy between measures of the performance, (2) there is a cross-sectional consistency in above three measures(DEA is omitted for this analysis because DEA value is a relative value), (3) the use of multiple criteria is better when measuring organizational performance.
