Theoretical Implications of Measurement Inconsistencies in Organizational Decline Research

What should be the appropriate measure of decline in institutions of higher education? Though different scholars emphasize either objective or perceptual indicators, we contend that studying the differences between objective and perceptual idicators of decline is itself a useful mechanism for theory-building. The authors examine 82 universities where objective and perceptual measures of decline contradict each other. Their results indicate that institutions suffering from "objective decline" without "perceptual decline" are characterized by processes of "decline as crisis." In contrast, institutions with "perceived decline" only are characterized by processes of "decline as stagnation." Results indicate the need to recognize that objective and perceptual indicators may often address different aspects of decline and that institutions of higher education using any single type of measure may have a limited perspective on the decline phenomenon.