Table III

Standardized estimations of the CFA

ItemsaStandardized coefficient (loadings)t-values (all significant (p<0.001)
Drivers
Cost reduction (VE=0.66; CR=0.79)
 Distribution costs0.8713.85
 Packaging costs0.7512.13
Customer satisfaction (VE=0.65; CR=0.85)
 On-time delivery of products0.7814.59
 Accurate order deliveries0.8516.36
 Customer satisfaction0.7914.77
Inventory optimisation (VE=0.83; CR=0.91)
 Inventory cycle times0.9418.03
 Inventory fill rates0.8816.60
Growth (VE=0.74; CR=0.92)
 Increasing firm’s sales0.7614.59
 Company growth0.9219.84
 Growth of the number of employees0.8316.79
 Sales volume growth0.9320.20
Innovation (VE=0.72; CR=0.88)
 Jointly product development and product innovation0.7514.11
 Access to technology0.8416.74
 Enhancing innovation potential0.9419.79
Demand optimisation (VE=0.73; CR=0.85)
 Seasonal levelling0.8012.85
 Other cyclical levelling0.9114.52
Partnership
Partnership in marketing and sales (MS) (VE=0.64; CR=0.92)
 Control-MS0.8116.72
 Decision-MS0.8517.52
 Risk/Reward-MS0.7915.96
 Investment-MS0.7314.17
 Communication-MS0.8117.13
Partnership in research and development (RD) (VE=0.65; CR=0.92)
 Control-RD0.8217.27
 Decision-RD0.8818.73
 Risk/Reward-RD0.7715.54
 Investment-RD0.7715.68
 Communication-RD0.7816.32
Partnership in purchasing and logistics (PL) (VE=0.59; CR=0.90)
 Control-PL0.7715.82
 Decision-PL0.8016.49
 Risk/Reward-PL0.7715.25
 Investment-PL0.7213.99
 Communication-PL0.7916.49
Partnership in production (Pr) (VE=0.60; CR=0.82)
 Control-Pr0.7514.67
 Decision-Pr0.8517.21
 Communication-Pr0.7114.01
Performance
Performance – MS (VE=0.80; CR=0.93)
 Average market share growth0.9019.11
 Average sales volume (units) growth0.9320.03
 Average turnover growth0.8617.51
Performance – RD (VE=0.64; CR=0.96)
 Customer satisfaction/market response0.8015.83
 % of products succeeding in the market0.7815.21
 Professional esteem to customers0.8517.33
 Agreed milestone/objectives met0.8116.11
 Number of products/projects completed0.7614.72
 Speed0.7013.12
 Quality of output/work0.7915.49
Performance – LP (VE=0.62; CR=0.91)
 Delivery speed to your customers0.7915.30
 Delivery dependability0.8316.23
 Responsiveness to your customers0.7413.74
 Delivery flexibility to your customers0.7714.58
 Order fill capacity0.8115.63
Performance – Pr (VE=0.62; CR=0.77)
 Cost per operation hour0.709.43
 Capacity utilisation0.8711.92

Notes: VE, variance extracted; CR, construct reliability. aAll items with loading below 0.70 have been excluded from the model. The items were: production costs, information handling costs, paper work order processing, entering new markets, joint advertising, price reduction, expanding geographic coverage, guaranteed supply, market share stability, scope of all functional areas, time frame of contract of all functional areas, trust and commitment of all functional areas, risk/reward-Pr, investment-Pr, behaviour of people involved in R&D activities, no. of patents, no. of ideas/findings, creativity/innovation level, network building activities of firm, expected or realized IRR/ROI, per cent of sales by new products, profit due to R&D, market share gained due to R&D, price of purchased products, quality of purchased products, delivery of purchased products, per cent of defects, range of products/services, utilisation of economic order quantity

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