The paper "Measurement of Business Economic Performance: An Examination of Method Convergence" by N. Venkatraman and Vasudevan Ramanujam explores the measurement of business economic performance (BEP) using two different approaches: perceptual assessments from senior executives and secondary data sources. The authors aim to evaluate the degree of convergence between these methods, which is crucial for ensuring the validity and reliability of performance measurements. The study collects data on three dimensions of BEP—sales growth, net income growth, and profitability (ROI)—using both methods. The authors use the MultiTrait, MultiMethod (MTMM) framework and confirmatory factor analysis (CFA) to assess the validity of the measurements. The MTMM analysis shows that both methods achieve convergent and discriminant validity, but the CFA provides more detailed insights into the measurement variance, demonstrating the relative superiority of the primary method over the secondary method in certain dimensions. The study concludes that perceptual data from senior managers can be a valid and reliable source for measuring BEP, and that the CFA approach is more effective in evaluating the measurement quality compared to the traditional MTMM analysis. The findings have implications for both research and managerial practice, suggesting that researchers should not rely solely on objective measures and that multiple informant approaches can provide valuable insights.The paper "Measurement of Business Economic Performance: An Examination of Method Convergence" by N. Venkatraman and Vasudevan Ramanujam explores the measurement of business economic performance (BEP) using two different approaches: perceptual assessments from senior executives and secondary data sources. The authors aim to evaluate the degree of convergence between these methods, which is crucial for ensuring the validity and reliability of performance measurements. The study collects data on three dimensions of BEP—sales growth, net income growth, and profitability (ROI)—using both methods. The authors use the MultiTrait, MultiMethod (MTMM) framework and confirmatory factor analysis (CFA) to assess the validity of the measurements. The MTMM analysis shows that both methods achieve convergent and discriminant validity, but the CFA provides more detailed insights into the measurement variance, demonstrating the relative superiority of the primary method over the secondary method in certain dimensions. The study concludes that perceptual data from senior managers can be a valid and reliable source for measuring BEP, and that the CFA approach is more effective in evaluating the measurement quality compared to the traditional MTMM analysis. The findings have implications for both research and managerial practice, suggesting that researchers should not rely solely on objective measures and that multiple informant approaches can provide valuable insights.