A Perceptual Measure of the Degree of Development of Proprietary Equipment

In this article we evaluate the psychometric properties of a scale for a perceptual measure of the extent to which manufacturing organizations develop proprietary equipment. We use a confirmatory factor analysis (CFA) approach to assess unidimensionality and reliability as well as convergent, discriminant and concurrent validity. Convergent and discriminant validity is assessed using CFA of the multitrait-multimethod (MTMM) matrix. In addition, we assess the scale's factorial invariance across industries. Results suggest that although method effects are present, the scale demonstrates internal consistency and validity. Implications of this study in the field of operations strategy and general strategy are discussed.