Table 4. Confirmatory factor analysis...

Table 4.

Confirmatory factor analysis factor names, factor loadings and Cronbach’s alpha

Factor	Items	(λ)	AVE	CR
Working capital management (α = 0.89)	A robust working capital system	0.824
	Preparation of cash flow forecast in identifying future surplus and deficits	0.812
	Maintenance of proper records of all payables	0.776	0.63	0.88
	Full automated receivable management system	0.796
	Sufficient cash flow to meet daily needs	0.769
Capital budget management (α = 0.86)	Periodic budget estimation	0.776
	Proper budget prior to any transaction	0.757
	Creation of financial statement	0.786	0.60	0.86
	Activity based budgeting	0.759
	Financial analysis	0.781
Asset management (α = 0.82)	Assets are kept in the best condition until disposal	0.768
	Laid down procedure for disposing assets	0.818
	Provision for depreciation of assets	0.786	0.62	0.74
	Maintenance of an up-to-date asset register	0.769
Financial outcomes (α = 0.87)	In comparison to other firms over the last three years, the firm has seen a return on its investment	0.764
	In comparison to other firms over the last three years, there has been a return on the firm's assets	0.824
	In comparison to other firms over the last three years, the firm's profit has increased	0.769	0.62	0.75
	In comparison to other firms over the last three years, the firm's revenue has increased	0.791
Organizational outcomes (α = 0.85)	The productivity of the firm has increased	0.829
	New products or services are developed by the firm	0.881	0.70	0.86
	Quality products or services are offered by the firm	0.839
	The firm satisfy its customers or clients	0.785
Capital market outcomes (α = 0.88)	In comparison to other firms over the last three years, the firm's market value has increased	0.785
	In comparison to other firms over the last three years, the firm's market share has increased	0.773	0.61	0.83
	In comparison to other firms, the firm has had a growth in sales over the last three years	0.835
	In comparison to other firms, the firm's stock price has increased over the last three years	0.743
Human resource outcomes (α = 0.81)	The firm's management and employees get along well	0.803
	The firm has the ability to retain employees	0.814
	The firm has the ability to attract employees	0.766	0.63	0.81

Factor	Items	(λ)	AVE	CR
Working capital management (α = 0.89)	A robust working capital system	0.824
	Preparation of cash flow forecast in identifying future surplus and deficits	0.812
	Maintenance of proper records of all payables	0.776	0.63	0.88
	Full automated receivable management system	0.796
	Sufficient cash flow to meet daily needs	0.769
Capital budget management (α = 0.86)	Periodic budget estimation	0.776
	Proper budget prior to any transaction	0.757
	Creation of financial statement	0.786	0.60	0.86
	Activity based budgeting	0.759
	Financial analysis	0.781
Asset management (α = 0.82)	Assets are kept in the best condition until disposal	0.768
	Laid down procedure for disposing assets	0.818
	Provision for depreciation of assets	0.786	0.62	0.74
	Maintenance of an up-to-date asset register	0.769
Financial outcomes (α = 0.87)	In comparison to other firms over the last three years, the firm has seen a return on its investment	0.764
	In comparison to other firms over the last three years, there has been a return on the firm's assets	0.824
	In comparison to other firms over the last three years, the firm's profit has increased	0.769	0.62	0.75
	In comparison to other firms over the last three years, the firm's revenue has increased	0.791
Organizational outcomes (α = 0.85)	The productivity of the firm has increased	0.829
	New products or services are developed by the firm	0.881	0.70	0.86
	Quality products or services are offered by the firm	0.839
	The firm satisfy its customers or clients	0.785
Capital market outcomes (α = 0.88)	In comparison to other firms over the last three years, the firm's market value has increased	0.785
	In comparison to other firms over the last three years, the firm's market share has increased	0.773	0.61	0.83
	In comparison to other firms, the firm has had a growth in sales over the last three years	0.835
	In comparison to other firms, the firm's stock price has increased over the last three years	0.743
Human resource outcomes (α = 0.81)	The firm's management and employees get along well	0.803
	The firm has the ability to retain employees	0.814
	The firm has the ability to attract employees	0.766	0.63	0.81

Notes:

AVE = represents average variance extracted; CR = represents composite reliability. All factor loadings are significant at *p < 0.05

Source: Table by author

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