Table 2

Confirmatory factor analysis results for convergent validity and reliability

Construct and itemDescriptive statisticsConvergent validityReliability
MeanStandard deviationFactor loadingAverage variance extractedCronbach’s alphaComposite reliability
Big data analytics capabilities (BDAC)   0.8220.9580.958
BDAC1. We have advanced tools (analytics and algorithms) to extract value from big data3.4331.3360.914   
BDAC2. We are able to discover relationships and dependencies from big data3.361.3280.904   
BDAC3. We are able to perform predictions of outcomes and behaviors from big data3.4371.180.891   
BDAC4. We are able to discover new correlations from big data to spot market demand trends and predict user behavior3.5131.130.912   
BDAC5. Our big data analytics staff has the right skills to accomplish their jobs successfully3.361.190.911   
Digital capabilities (DC)   0.8490.9650.965
DC1. We offer different training (courses, literature, coaching) to improve the digital expertise of our team members3.231.2820.953   
DC2. Digital capabilities are an important selection criterion in recruiting new team members3.2031.3150.933   
DC3. Our team members use all digital services in the products we offer3.2071.3480.854   
DC4. Our team has the necessary capabilities to further digitalize our company3.3331.2580.932   
DC5. We actively discuss our digital projects within our company, including failures and best practices3.2671.2740.932   
Data-driven culture (DDC)   0.9110.9800.982
DDC1. We consider data a tangible asset2.9331.5080.865   
DDC2. We base our decisions on data rather than on instinct3.0271.7090.981   
DDC3. We are willing to override our own intuition when data contradict our viewpoints3.021.6730.991   
DDC4. We continuously assess and improve the business rules in response to insights extracted from data31.6040.967   
DDC5. We continuously coach our employees to make decisions based on data3.0571.6770.961   
Digital transformation (DT)   0.9340.9830.983
DT1. Our firm was integrating digital technologies such as artificial intelligence, big data, blockchain, cloud computing, and the Internet of things to drive organizational structure and culture changes in the last six years2.4971.3380.965   
DT2. Our firm was integrating digital technologies such as artificial intelligence, big data, blockchain, cloud computing, and the Internet of things to drive leadership styles, employee roles, and skills changes in the last six years2.6571.3660.960   
DT3. Our firm was driving new business processes, sales networks, and channels built on digital technologies such as artificial intelligence, big data, blockchain, cloud computing, and the Internet of things over the last six years2.6031.2780.963   
DT4. Our firm was supporting digital technologies such as artificial intelligence, big data, blockchain, cloud computing, and the Internet of things to rapidly adapt to changes in environmental conditions over the last six years2.5771.3920.978   

Note(s): Factor loadings should be above the 0.704 benchmark and average variance extracted should be greater than the 0.50 threshold to establish convergent validity, whereas Cronbach’s alpha and composite reliability should be meet the minimum threshold of 0.70 to establish reliability Hair et al. (2019, 2020), Lim (2025) 

Source(s): Authors’ own work

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