Measurement of business environment characteristics in the US technical textile industry: An empirical study

Abstract

Business environment has long been identified as an important contingency in the operations management literature. However, relatively little effort has been devoted to the empirical measurement of its characteristics. This study aims to develop a reliable and valid instrument for measuring business environment characteristics (BEC) in the context of operations management. The study proposes a conceptual model based on one of most widely accepted BEC frameworks - the four-dimension classification: diversity, complexity, dynamism, and hostility. A survey instrument was developed to collect primary data on US technical textile firms. Factor analysis was utilized to test the proposed BEC model using the data from 202 survey returns. The results indicate that the developed survey instrument can generate reliable data. The BEC model is proven valid, and the four dimensions account for the most variance in the business environment. This research provides the springboard for further systematic studies of BEC in operations management. © 2009 The Textile Institute.