Development Study of Perceived Institutionalization and Perceived Performance Scales

Institutionalization is necessary for corporations to prevent economic, financial, legal, administrative, and technical chaos and thus improve performance. The concept of performance is the most supporting tool in conducting the control function in business management. While the amount of input and products in the forest industry in Turkey is rising, institutionalization is inadequate. This study attempts to methodologically develop and test scales for perceived institutionalization and perceived performance in furniture and panel businesses, which are two sub-sectors of the forest industry. Data was obtained in 35 cities between March and July 2017, through face-to-face interviews with 797 employees in 462 furniture businesses and 31 panel businesses. In the analysis of the study, content validity of the scales was evaluated through expert opinion and initial application, while construct validity was assessed by EFA and CFA. Cronbach alpha coefficient, CR, and AVE were used to evaluate reliability, while the suitability of perceived institutionalization and performance scale model was assessed through SEM. The scales have high reliability and validity, and an improvement in the institutionalization level of a business will result in improvements in performance (r=0.98). Through this methodological study, scales for perceived institutionalization and perceived performance in furniture and panel businesses operating in Turkey and the relationship between perceived institutionalization and perceived performance were explained by a model.