For both measures of munificence, results show a consistent positive relationship with organizational performance—a relationship that has substantive as well as statistical importance. A one standard deviation increase in the objective munificence measure increases test scores by 3.1 percentage points. This finding is supported by a wealth of previous research on the relationship between munificence and school performance (e.g. Croll 2002; West et al. 2001). At the same time, for the subjective measure of munificence, a one standard deviation change in munificence increases tests scores by 4.33 percentage points. Comparing the coefficients, subjective munificence (4.33) has a larger effect on performance that objective munificence (3.1). This implies that managers’ perceptions of the relative munificence of the environment may have a larger impact on organizational outcomes than an objective measurement of that munificence, perhaps because a feeling of environmental supportiveness is especially likely to prompt innovative actions that benefit the organization.