Testing A Business Model Including Nonfinancial Measures In The Homebuilding Industry

The authors test a business model that includes customer satisfaction, employee satisfaction, and financial performance from a company in the homebuilding industry for the period 2001-2004. While prior research often uses a single customer satisfaction measure, the paper site uses two sets of customer satisfaction measures, which allows examining the effect of measurement alternatives on the forward-looking properties of customer satisfaction measures. The findings suggest that the validity of a business model depends not only on the soundness of the conceptual model per se, but also on how the variables in the business model are measured.