Construct reliability and validity
| Latent variables | Manifest variable name | Factor loadings | Cronbach's alpha | Composite reliability (CR) | Dijkstra-Henseler ρA | Average variance extracted (AVE) | |
|---|---|---|---|---|---|---|---|
| Production dynamic capabilities | Creation of new facilities | 0.784 | 0.872 | 0.912 | 0.881 | 0.722 | |
| Introduction of a new service provision/production process | 0.880 | ||||||
| Introduction of new technology | 0.861 | ||||||
| Building the expertise needed for new technology | 0.871 | ||||||
| Production ordinary capabilities | Service and production facilities (work environment) | 0.770 | 0.821 | 0.870 | 0.829 | 0.528 | |
| Current technology | 0.751 | ||||||
| Management's capabilities (e.g. production manager, technical manager etc.) | 0.658 | ||||||
| Service and production processes | 0.758 | ||||||
| Technological know-how (engineering knowledge) | 0.671 | ||||||
| Employees' technical abilities and competences | 0.742 | ||||||
| Industry 4.0 | Digitization of operation | 0.686 | 0.835 | 0.887 | 0.880 | 0.664 | |
| Automation of operational processes | 0.827 | ||||||
| Digitization solutions determine the value of a product | 0.919 | ||||||
| Real-time connection | 0.811 | ||||||
| Lean | Continuous improvement | 0.835 | 0.591 | 0.782 | 0.584 | 0.545 | |
| Restructuring | 0.671 | ||||||
| Pull principle | 0.634 | ||||||
| Business performance | Market share | 0.921 | 0.833 | 0.923 | 0.835 | 0.857 | |
| Profit as a proportion of sales | 0.931 | ||||||
| Operational performance | Cost | Cost | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 |
| Differentiation | Quality | 0.822 | 0.658 | 0.721 | 0.809 | 0.591 | |
| Time | 0.842 | ||||||
| Flexibility | 0.634 | ||||||
| Latent variables | Manifest variable name | Factor loadings | Cronbach's alpha | Composite reliability (CR) | Dijkstra-Henseler ρA | Average variance extracted (AVE) | |
|---|---|---|---|---|---|---|---|
| Production dynamic capabilities | Creation of new facilities | 0.784 | 0.872 | 0.912 | 0.881 | 0.722 | |
| Introduction of a new service provision/production process | 0.880 | ||||||
| Introduction of new technology | 0.861 | ||||||
| Building the expertise needed for new technology | 0.871 | ||||||
| Production ordinary capabilities | Service and production facilities (work environment) | 0.770 | 0.821 | 0.870 | 0.829 | 0.528 | |
| Current technology | 0.751 | ||||||
| Management's capabilities (e.g. production manager, technical manager etc.) | 0.658 | ||||||
| Service and production processes | 0.758 | ||||||
| Technological know-how (engineering knowledge) | 0.671 | ||||||
| Employees' technical abilities and competences | 0.742 | ||||||
| Industry 4.0 | Digitization of operation | 0.686 | 0.835 | 0.887 | 0.880 | 0.664 | |
| Automation of operational processes | 0.827 | ||||||
| Digitization solutions determine the value of a product | 0.919 | ||||||
| Real-time connection | 0.811 | ||||||
| Lean | Continuous improvement | 0.835 | 0.591 | 0.782 | 0.584 | 0.545 | |
| Restructuring | 0.671 | ||||||
| Pull principle | 0.634 | ||||||
| Business performance | Market share | 0.921 | 0.833 | 0.923 | 0.835 | 0.857 | |
| Profit as a proportion of sales | 0.931 | ||||||
| Operational performance | Cost | 1.000 | 1.000 | 1.000 | 1.000 | 1.000 | |
| Quality | 0.822 | 0.658 | 0.721 | 0.809 | 0.591 | ||
| Time | 0.842 | ||||||
| Flexibility | 0.634 | ||||||
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