Developing a sustainable financial performance measurement instrument: Initial content-validity evidence for ESG practices, digital transformation, management innovation, and circular economy practices

Abstract

This study develops a measurement instrument for assessing sustainable financial performance (SFP) through environmental, social, and governance (ESG) practices, digital transformation (DT), management innovation (MI), and circular economy practices (CEPs), and reports initial evidence of its content validity. The instrument is intended for Omani state-owned enterprises and is designed to capture organizational capabilities relevant to long-term financial sustainability, workforce readiness, leadership, innovation, responsible resource use, and organizational transformation. Six academic and professional experts evaluated item relevance, representativeness, and clarity using the Content Validity Index (CVI) and interrater agreement (IRA). Most items demonstrated strong expert agreement, while weaker items, particularly within MI and selected SFP-related dimensions, were identified for revision rather than treated as fully established measures. The findings therefore support progression to pilot testing but do not constitute evidence of construct validity, reliability, convergent validity, discriminant validity, or predictive validity. The study contributes an initial, context-specific measurement framework that can support subsequent psychometric validation and offers HR practitioners a structured basis for identifying capability, training, leadership, and change-management needs associated with ESG and digital transformation. Keywords:ESG practices, digital transformation, sustainable financial performance, sustainable social development, Oman Vision 2040, state-owned enterprises