Construct reliability and validity
| Construct/dimension/indicator | Weights | Loadings | Jöreskog’s rho_C | Convergent validity AVE |
|---|---|---|---|---|
| EO (MC) (composite mode A) | 0.893 | 0.676 | ||
| Analysis (composite mode A) | 0.325 | 0.880 | 0.785 | 0.558 |
| Information systems provide support for decision-making | 0.261 | 0.647 | ||
| When confronted with a major decision, we usually try to develop a thorough analysis | 0.180 | 0.620 | ||
| Workforce planning and performance appraisal of senior managers | 0.771 | 0.933 | ||
| Defensiveness (composite mode A) | 0.247 | 0.807 | 0.881 | 0.713 |
| Use of cost control systems for monitoring the performance of value-generating activities | 0.218 | 0.797 | ||
| Use of production management techniques for value-generation activities | 0.372 | 0.840 | ||
| Emphasis on product quality through the use of quality circles | 0.576 | 0.892 | ||
| Futurity (composite mode A) | 0.334 | 0.838 | 0.811 | 0.598 |
| We emphasise basic research to provide us with future competitive edge | 0.603 | 0.893 | ||
| Formal tracking of significant general trends | 0.105 | 0.534 | ||
| Forecasting key indicators of operations | 0.481 | 0.843 | ||
| Proactiveness (composite mode A) | 0.310 | 0.759 | 0.833 | 0.633 |
| Usually. the first ones to introduce new brands or products/services in the market | 0.432 | 0.844 | ||
| Constantly on the lookout for businesses that can be acquired | 0.611 | 0.926 | ||
| Operations in larger stages of the life cycle are strategically eliminated | 0.120 | 0.575 | ||
| CO (MC) (composite mode A) | 0.712 | 0.552 | ||
| Aggressiveness (composite mode A) | 0.673 | 0.744 | 0.876 | 0.703 |
| Cutting prices to increase market share | 0.449 | 0.875 | ||
| Setting prices below the competition | 0.308 | 0.737 | ||
| Seeking market share position at the expense of cash flow and profitability | 0.424 | 0.895 | ||
| Risklessness (composite mode A) | 0.672 | 0.743 | 0.870 | 0.769 |
| We seem to adopt a rather conservative view when making major decisions | 0.610 | 0.895 | ||
| A tendency to trigger or support projects where the expected returns are more reliable/certain | 0.529 | 0.858 | ||
| PBP (MC) (composite mode A) | 0.923 | 0.857 | ||
| Growth (composite mode A) | 0.581 | 0.937 | 0.902 | 0.756 |
| Sales growth position relative to competition | 0.413 | 0.885 | ||
| Satisfaction with sales growth rate | 0.263 | 0.771 | ||
| Market share gains relative to competition | 0.458 | 0.943 | ||
| Profitability (composite mode A) | 0.499 | 0.914 | 0.889 | 0.800 |
| Satisfaction with return on sales | 0.610 | 0.915 | ||
| Advantageous financial liquidity position relative to competition | 0.506 | 0.873 |
| Construct/dimension/indicator | Weights | Loadings | Jöreskog’s | Convergent |
|---|---|---|---|---|
| Analysis (composite mode A) | ||||
| Information systems provide support for decision-making | 0.261 | 0.647 | ||
| When confronted with a major decision, we usually try to develop a thorough analysis | 0.180 | 0.620 | ||
| Workforce planning and performance appraisal of senior managers | 0.771 | 0.933 | ||
| Defensiveness (composite mode A) | ||||
| Use of cost control systems for monitoring the performance of value-generating activities | 0.218 | 0.797 | ||
| Use of production management techniques for value-generation activities | 0.372 | 0.840 | ||
| Emphasis on product quality through the use of quality circles | 0.576 | 0.892 | ||
| Futurity (composite mode A) | ||||
| We emphasise basic research to provide us with future competitive edge | 0.603 | 0.893 | ||
| Formal tracking of significant general trends | 0.105 | 0.534 | ||
| Forecasting key indicators of operations | 0.481 | 0.843 | ||
| Proactiveness (composite mode A) | ||||
| Usually. the first ones to introduce new brands or products/services in the market | 0.432 | 0.844 | ||
| Constantly on the lookout for businesses that can be acquired | 0.611 | 0.926 | ||
| Operations in larger stages of the life cycle are strategically eliminated | 0.120 | 0.575 | ||
| Aggressiveness (composite mode A) | 0.876 | 0.703 | ||
| Cutting prices to increase market share | 0.449 | 0.875 | ||
| Setting prices below the competition | 0.308 | 0.737 | ||
| Seeking market share position at the expense of cash flow and profitability | 0.424 | 0.895 | ||
| Risklessness (composite mode A) | ||||
| We seem to adopt a rather conservative view when making major decisions | 0.610 | 0.895 | ||
| A tendency to trigger or support projects where the expected returns are more reliable/certain | 0.529 | 0.858 | ||
| PBP (MC) (composite mode A) | ||||
| Growth (composite mode A) | ||||
| Sales growth position relative to competition | 0.413 | 0.885 | ||
| Satisfaction with sales growth rate | 0.263 | 0.771 | ||
| Market share gains relative to competition | 0.458 | 0.943 | ||
| Profitability (composite mode A) | ||||
| Satisfaction with return on sales | 0.610 | 0.915 | ||
| Advantageous financial liquidity position relative to competition | 0.506 | 0.873 |
Notes:
ρC = composite reliability. AVE = average variance extracted. MC = multidimensional construct
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