Organizational Phronesis Scale Development

Society is calling for practically wise organizations, companies with humanized strategy and highly innovative sustainable performance. Searching for answers, researchers are looking back to phronesis, the Aristotelian construct, also known as practical wisdom and prudence. While leaders guide organizational practical wisdom development, employees work with these guidelines and incorporate practical wisdom into company actions. The investigation on phronesis in knowledge management is intensifying because of the urge to comprehend how to disseminate phronesis (among leaders and members) and build practically wise organizations. However, there is no measurement examining employees' perceptions of phronetic organizations. Therefore, this research aims to develop a scale measuring organizational practical wisdom. We built the survey grounded on the academic studies concerning practically wise organizations, and experts reviewed the items to address it. Data were collected utilizing an online survey with 16 items and sociodemographic questions. Participants answered the survey on a 5-point Likert scale from (1) I completely disagree to (5) I agree completely. We made it available in Portuguese, and we e-mail the survey to Brazilian and Portuguese universities, companies listed in free databases, unions, and our network through social media and mobile messages. We received 199 answers. After performed exploratory factorial analyses with the software IBM SPSS Statistics 27 to exclude unnecessary or poorly performed items, we conducted cases listwise exclusion; we withdraw items with a communality of less than 0.50; and we applied the matrix of correlations, using the principal components' method's extraction, followed by an orthogonal Varimax rotation. The final exploratory factorial analysis revealed a model accounting for 65.544% of Total Variance Explained. Cronbach's alpha was determined as 0.951 to evaluate internal data consistency. The main contribution is the deve