Daily Archives: April 20, 2019


Four Issues around Using Academic Return on Investment (A-ROI) to Inform and Improve Decisions: Part I – Validity

INTRODUCTION Return on investment (ROI) is a concept that originated in the business world in the early twentieth century. According to the Hagley Museum and Library, the concept and the formula were first developed in 1914 by Donaldson Brown, the Assistant Treasurer of the DuPont Company, for monitoring business performance as the company was grappling with diversifying from explosives to lacquers, Pyralin plastics and dyes[1]. ROI was quickly adopted by the DuPont Company as their primary performance measure for all of its departments and later required for all capital appropriations and projects submitted for approval by the company’s senior management. […]