An Empirical Study of Strategic Positioning and Production Efficiency

Table 1

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


Variables	Confirmatory factor analysis
Variables	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.

Advances in Operations Research

An Empirical Study of Strategic Positioning and Production Efficiency

Table 1