A Comparison of Methods and Sources for Obtaining Estimates of New Venture Performance

Posted: 11 Nov 2009

See all articles by Candida G. Brush

Candida G. Brush

affiliation not provided to SSRN

Pieter A. Vanderwerf

Boston University - Questrom School of Business

Date Written: 1992

Abstract

This review evaluates different methods of measuring firm performance and highlights the cost, time and accuracy of various data collection methods. Data were gathered from 66 manufacturing firms in Massachusetts that had formed within the 4-6 years prior to the research and were listed in the 1987 edition of the Massachusetts Directory of Manufacturers. In order to collect data from these firms, they were either sent a mail survey or contacted for a telephone interview. Generally, responses provided were from the owner/manager. In addition, performance information was obtained from an archival source, the Massachusetts Directory of Manufacturers, and from competitors. The performance information captured in this study included annual sales, number of employees, return on sales, growth in sales, and growth in employees. In reviewing the results, there was a high and significant correlation for the annual sales information obtained from the archival source and the direct questioning by mail or phone. Most of these firm owner/managers preferred to be contacted by phone. This method also yielded a higher response rate and took less time to complete. The focus of this research is not to prescribe what method is best, but rather, it is to discuss the advantages and disadvantages of these methods. (SRD)

Keywords: Entrepreneurship research, Research methods, Information sources, Firm performance, Measurement techniques, Manufacturing industries

Suggested Citation

Brush, Candida G. and Vanderwerf, Pieter A., A Comparison of Methods and Sources for Obtaining Estimates of New Venture Performance (1992). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1503898

Candida G. Brush (Contact Author)

affiliation not provided to SSRN

Pieter A. Vanderwerf

Boston University - Questrom School of Business

595 Commonwealth Avenue
Boston, MA MA 02215
United States

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