Psychometric properties of an organisational effectiveness measure for state-owned enterprises

Abstract

Orientation: Academics and practitioners raised concerns over appropriate public sector effectiveness measurement systems. In the case of state-owned enterprises (SOEs), selecting appropriate effectiveness measures is challenging. They are often set up for service provision and profitability while competing values, expectations and demands of various stakeholders are inherently part of their functioning. Research purpose: To examine the psychometric properties of an adapted organisational effectiveness measure for SOEs, based on the competing values framework (CVF). Motivation for the study: Literature proposes the need for ongoing review of more appropriate and psychometrically sound effectiveness measures for SOEs. Research design, approach and me thod: A quantitative, cross-sectional research design was employed to collect and analyse data from 302 managerial and non-managerial staff at 12 SOEs in Zimbabwe. Exploratory and confirmatory factor analysis, as well as bifactor analysis were employed to investigate the most appropriate solution. Main findings: Various sub-dimensions of the CVF had acceptable reliabilities (≥ 0.8). Both the four-dimensional (rational goal, human relations, open systems and internal processes) and unidimensional (organisational effectiveness) factor structures had acceptable goodness-of-fit. In addition, omega hierarchical and explained common variance (associated with the bifactor model) supported the presence of a strong general factor (organisational effectiveness). Practical/managerial implications: Researchers may use this adapted measure of organisational effectiveness to understand the effectiveness of SOEs better. If managers require a fine-grained measure of the CVF dimensions, emphasis should be placed on the four-dimensional structure. Contribution/value-add: The present study found that various statistical techniques are required to understand the most relevant conceptualisation and operationalisation of the CVF for use within semi-state organisations.

Keywords

• organisational effectiveness
• competing values framework (cvf)
• stakeholders
• state owned enterprises (soes)
• exploratory factor analysis (efa)
• confirmatory factor analysis
• bifactor analysis.