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Forest Products Society

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Publication: Journal of Forest Products Business Research
Authors: 0
Reference ID: Volume 5, Article No. 6
Publish Year: 2008
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Title: Measuring Firm Innovativeness: Cross Validation
Description:
The primary purpose of this research was to test the validity of a structural model linking firm innovativeness and performance. A scale for innovativeness was recently developed for use with forest products companies. We conducted structural equation modeling analysis (SEM) to perform a tight cross-validation of the calibration sample (1 10 U.S. softwood sawmills) on two independent
samples: 1) a validation sample composed of 1 17 primary forest products manufacturers; and 2) a validation sample composed of 101 secondary forest products manufacturers. The validation strategy allowed testing both for measurement invariance and structural invariance. SEM results validated the
model at both levels and allowed merging all of the datasets and conducting a pooled analysis of the model. A positive relationship between innovativeness and performance was confirmed on both validation samples as well as on the merged sample. These results support the use of the new scale linking firm innovativeness and performance across the entire U.S. forest products industry, regardless of business type (e.g., primary or secondary manufacturing).

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