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 reliability
Average variance extracted (AVE)
SG&A/SALES
0.96 (150.60)
R&D/SALES
0.70 (119.60)
SALES/COGS
0.54 (79.62)
0.79
0.57
SALES/CAPEX
0.86 (171.70)
SALES/P&E
0.91 (183.00)
EMPL/ASSETS
0.51 (99.36)
0.82
0.61
Goodness of fit measures
Goodness of fit index
0.9584
Goodness of fit index adjusted for degrees of freedom
0.8907
Bentler’s comparative fit index
0.9415
Bentler & Bonett’s nonnormed index
0.8903
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.
