Table 3 PCA results and item reliability...

Table 3

PCA results and item reliability

Variables	Items	Factor loadings^a	AVE^b	Cronbach alpha^c
Extent of BI Use (BI)	Our BI system is supporting financial management	0.195 (0.824)	0.800	0.968
	Our BI system is supporting supply chains and procurement	0.209 (0.851)
	Our BI system is supporting production/service management	0.184 (0.826)
	Our BI system is supporting project management	0.202 (0.825)
	Our BI system is supporting human resources	0.220 (0.770)
	Our BI system is supporting sales	0.189 (0.825)
	Our BI system is supporting marketing	0.182 (0.786)
Effectiveness of Formal Controls (EFC)	Contribution of our cost control systems (such as variance analysis) to organisational performance outcomes	0.823	0.820	0.902
	Contribution of our strategic planning systems to organisational performance outcomes	0.877
	Contribution of our budget systems to organisational performance outcomes	0.840
	Contribution of our activity-based costing systems to organisational performance outcomes	0.883
	Contribution of our result monitoring systems to organisational performance outcomes	0.844
	Contribution of our internal auditing systems to organisational performance outcomes	0.823
Effectiveness of Informal Controls (EIC)	We are satisfied with how our employees can achieve consensus seeking without needing management intervention	0.761	0.650	0.912
	We are satisfied with how our employees can practice open channels of communication	0.773
	We are satisfied with how our employees can adapt to the local situation	0.831
	We are satisfied with how our corporate culture encourages informal signalling of potential problems	0.849
	We are satisfied with how our managers can develop new ideas even if they fall outside an individual area of responsibility	0.818
	We are satisfied with how our top-level managers can co-ordinate business activities across the organisation	0.845
Business Process Performance (BPP)	Business process performance has been	0.920	0.840	0.939
	Effectiveness of business process monitoring has been	0.885
	Business process continuous improvement has been	0.889
	Efficiency of internal processes has been	0.820
	Staff productivity has been	0.883
Customer Service Performance (CSP)	Customer satisfaction has been	0.874	0.780	0.776
	Response time to customers has been	0.900
	Customer retention has been	0.839
	Time to market for our products/services has been	0.905
Feedback, Learning and Development (FLD)	Employee satisfaction has been	0.818	0.800	0.849
	Employee training has been	0.878
	Number of new products/services launched has been	0.839
Financial Performance (FP)	The increase in operating income has been	0.888	0.820	0.939
	The improvement in sales growth rate has been	0.922
	The increase in return on investment has been	0.839
	The increase in return on assets has been	0.899
	Increase in gross profit has been	0.860
Quality of Board (QB)	Our board monitors organisational performance	0.859	0.740	0.929
	Our board accounts to stakeholders on organisational performance	0.854
	Our board holds executive management accountable	0.870
Organisation Environment (OE)	Changes in the external business environment make our products/services quickly obsolete	0.706	0.510	0.961
	Changes in the external business environment make our technologies quickly obsolete	0.716
	Changes in the external business environment make our competitive practices quickly obsolete	0.762
	The business environment is threatening the survival of our organisation	0.690
	Tough price competition is threatening the survival of our organisation	0.704
Organisation Strategy (ST)	Our organisation provides a variety of products or services	0.904	0.770	0.969
	Our organisation makes frequent changes to products/services that it offers	0.862
	Our organisation is a pioneer attempting to be first in introducing innovative products/services	0.901
	Pricing below competitors is a constant emphasis for us	0.882
	Continuing, overriding concern for lowest cost per unit is a constant emphasis for us	0.893
	Products or services in lower priced market segments is a constant emphasis for us	0.835
Organisation Structure (OS)	Our workers have the authority to correct problems when they occur	0.768	0.570	0.926
	Our work teams have control over their job	0.745
	Our supervisors or middle managers are supportive of the decisions made by our work teams	0.770
	We encourage workers to be creative in dealing with problems at work	0.734

Variables	Items	Factor loadings^a	AVE^b	Cronbach alpha^c
Extent of BI Use (BI)	Our BI system is supporting financial management	0.195 (0.824)	0.800	0.968
	Our BI system is supporting supply chains and procurement	0.209 (0.851)
	Our BI system is supporting production/service management	0.184 (0.826)
	Our BI system is supporting project management	0.202 (0.825)
	Our BI system is supporting human resources	0.220 (0.770)
	Our BI system is supporting sales	0.189 (0.825)
	Our BI system is supporting marketing	0.182 (0.786)
Effectiveness of Formal Controls (EFC)	Contribution of our cost control systems (such as variance analysis) to organisational performance outcomes	0.823	0.820	0.902
	Contribution of our strategic planning systems to organisational performance outcomes	0.877
	Contribution of our budget systems to organisational performance outcomes	0.840
	Contribution of our activity-based costing systems to organisational performance outcomes	0.883
	Contribution of our result monitoring systems to organisational performance outcomes	0.844
	Contribution of our internal auditing systems to organisational performance outcomes	0.823
Effectiveness of Informal Controls (EIC)	We are satisfied with how our employees can achieve consensus seeking without needing management intervention	0.761	0.650	0.912
	We are satisfied with how our employees can practice open channels of communication	0.773
	We are satisfied with how our employees can adapt to the local situation	0.831
	We are satisfied with how our corporate culture encourages informal signalling of potential problems	0.849
	We are satisfied with how our managers can develop new ideas even if they fall outside an individual area of responsibility	0.818
	We are satisfied with how our top-level managers can co-ordinate business activities across the organisation	0.845
Business Process Performance (BPP)	Business process performance has been	0.920	0.840	0.939
	Effectiveness of business process monitoring has been	0.885
	Business process continuous improvement has been	0.889
	Efficiency of internal processes has been	0.820
	Staff productivity has been	0.883
Customer Service Performance (CSP)	Customer satisfaction has been	0.874	0.780	0.776
	Response time to customers has been	0.900
	Customer retention has been	0.839
	Time to market for our products/services has been	0.905
Feedback, Learning and Development (FLD)	Employee satisfaction has been	0.818	0.800	0.849
	Employee training has been	0.878
	Number of new products/services launched has been	0.839
Financial Performance (FP)	The increase in operating income has been	0.888	0.820	0.939
	The improvement in sales growth rate has been	0.922
	The increase in return on investment has been	0.839
	The increase in return on assets has been	0.899
	Increase in gross profit has been	0.860
Quality of Board (QB)	Our board monitors organisational performance	0.859	0.740	0.929
	Our board accounts to stakeholders on organisational performance	0.854
	Our board holds executive management accountable	0.870
Organisation Environment (OE)	Changes in the external business environment make our products/services quickly obsolete	0.706	0.510	0.961
	Changes in the external business environment make our technologies quickly obsolete	0.716
	Changes in the external business environment make our competitive practices quickly obsolete	0.762
	The business environment is threatening the survival of our organisation	0.690
	Tough price competition is threatening the survival of our organisation	0.704
Organisation Strategy (ST)	Our organisation provides a variety of products or services	0.904	0.770	0.969
	Our organisation makes frequent changes to products/services that it offers	0.862
	Our organisation is a pioneer attempting to be first in introducing innovative products/services	0.901
	Pricing below competitors is a constant emphasis for us	0.882
	Continuing, overriding concern for lowest cost per unit is a constant emphasis for us	0.893
	Products or services in lower priced market segments is a constant emphasis for us	0.835
Organisation Structure (OS)	Our workers have the authority to correct problems when they occur	0.768	0.570	0.926
	Our work teams have control over their job	0.745
	Our supervisors or middle managers are supportive of the decisions made by our work teams	0.770
	We encourage workers to be creative in dealing with problems at work	0.734

Note(s): Four formal control items and three informal controls items were dropped in the initial PCA analysis and are not reflected

Standardised weights are reported for formative indicators (loadings in brackets) with all significant at p < 0.001, item VIF values ranged from 2.304 to 2.584

AVE reported for all constructs, but has limited relevance for constructs modelled in the formative mode

Cronbach’s alpha test for composite reliability reported for all constructs, but has limited relevance for constructs modelled in the formative mode

Source(s): Self

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