Developing a Scale to Measure Institutional Effectiveness in the Context of Indian Business Schools: Using Exploratory Factor Analysis

This article is about the development of a measurement scale for assessing institutional effectiveness (IE) in the context of business schools (B-schools) in India. In the twenty-first century, IE has become an integral part of quality higher education. It attracts more scholars and academicians around the globe than ever before. The methodology comprises extensive review of literature, focusing on models and scale construction of IE. The content of the items was validated by academic and industry experts for 30 items under 6 factors. The definitions of the expected constructs were explained to the experts. Then, in the second phase, after the collection and filtration of responses, a total number of 205 respondents of the complete questionnaire were supported by literature review. As a result of the study, a standardized scale was developed with 15 items distributed among four major factors that made it possible to measure and, hence, improve the outcomes of an institution’s mission in terms of its planning, performance and effectiveness. The scale has been tested for content, construct and criterion validity with reliability scores of each factor. The article also provides the limitations of the study and the future scope for researchers to further explore and improve the measurement of the construct named IE.