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Applying Item Response Theory to Multisource Performance Ratings: What are the Consequences of Violating the Independent Observations Assumption?

Multisource performance ratings involve multiple raters of a common target, thus violating the statistical assumption of independent observations. This study investigated the consequences of that violation on item response theory–based analyses of ratings in two domains of managerial performance. Using a differential item functioning framework, the authors found no significant differences in item parameters attributable to the violation. This finding suggests that item response theory can be applied to multisource ratings without discarding data in order to meet the independence assumption.