Advances in Operations Research / 2015 / Article / Tab 1

Research Article

An Empirical Study of Strategic Positioning and Production Efficiency

Table 1

Factor analysis to confirm strategy constructs ( = 33,449).

Variables Confirmatory factor analysis
Cost leadership factor loading (-value)Differentiation factor loading (-value)Composite reliabilityAverage variance extracted (AVE)

SG&A/SALES0.96 (150.60)
R&D/SALES0.70 (119.60)
SALES/COGS0.54 (79.62)0.790.57
SALES/CAPEX 0.86 (171.70)
SALES/P&E 0.91 (183.00)
EMPL/ASSETS 0.51 (99.36)0.820.61

Goodness of fit measures Goodness of fit index0.9584
Goodness of fit index adjusted for degrees of freedom0.8907
Bentler’s comparative fit index0.9415
Bentler & Bonett’s nonnormed index0.8903

SG&A/SALES = average of SG&A/net sales from -1 to -5.
R&D/SALES = average of R&D Exp/net sales from -1 to -5.
SALES/COGS = average of net sales/cost of goods sold from -1 to -5.
SALES/CAPEX = average of net sales/Capital expenditure from -1 to -5.
SALES/P&E = average of net sales/net book value of plant and equipment from -1 to -5.
EMPL/ASSETS = number of employees/average of total asset from -1 to -5.

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