RESEARCH METHODOLOGY
3.6 Test of Research Instruments
3.6.3 Construct Validity
Table 3.6 (Continued)
Variable Cronbach's Alpha Coefficient
4. Foreign currency exchange risks .586
5. Different language and sociocultural traits .655
Entire Questionnaire Reliability .884
Table 3.7 Results from Confirmatory Factor Analysis of Export Performance (EP)
Variable Factor Loadings Reliability
(R2)
b SE B T
Financial Performance 0.98 0.238 0.57 8.246** 0.327 Non-Financial Performance 1.59 0.483 0.96 2.667** 0.914
= 0, df = 0, p = 1.000, GFI = 1.000, AGFI = 1.000, RMR = 0.000
Note: * Correlation is significant at the 0.05 level (2-tailed) t>1.96 ** Correlation is significant at the 0.01 level (2-tailed) t>2.58
Export Performance
Financial
Non-Financial 0.
Chi-Square = 0.00, df = 0 , P-value = 1.00000, RMSEA=0.000 0.57
0.09 0.67
0.96
Figure 3.1 Results from Confirmatory Factor Analysis of Export Performance
2) Construct Validity of Entrepreneurial Orientation
The entrepreneurial orientation measurement model comprises three components: 1) innovativeness, 2) proactiveness, and 3) risk taking.
Results from the confirmatory factor analysis of entrepreneurial orientation indicate that the entrepreneurial orientation measurement model is consistent with the empirical data with a statistical significance level of .01, which is determined by a 1.170 value chi-square, 0.279 probability (p), and 1 degree of
freedom. That is, the chi-square insignificantly differs from zero. It denotes that the assumption of the entrepreneurial orientation measurement model is consistent with empirical data, as the Goodness of Fit Index (GFI) is equal to 0.997, the Adjusted Goodness of Fit Index (AGFI) equals 0.985, and the Root of Mean Square Residuals (RMR) is 0.150.
The significance of standard components (B) of each observed variable in the entrepreneurial orientation measurement model yields a positive value for all factor loadings, which range from 0.50 to 0.81, and a statistical significance level of 0.01 for all. Components are sorted from the most significant to the least significant, i.e. proactiveness, risk taking, and innovativeness give factor loadings of 0.81, 0.61 and 0.50, respectively, and a joint variation of entrepreneurial orientation component of 64.90 percent, 54.90 percent, and 37.70 percent, respectively. Table 3.8 and Figure 3.2 below reflect those results.
Table 3.8 Results from Confirmatory Factor Analysis of Entrepreneurial Orientation (EO)
Variable Factor Loadings Reliability
(R2)
b SE B T
Innovativeness 0.99 0.269 0.50 10.871** 0.549
Proactiveness 0.72 0.456 0.81 3.479** 0.649
Risk Taking 0.22 0.304 0.61 8.035** 0.377
= 1.170, df = 1, p = 0.27953, GFI = 0.997, AGFI = 0.985, RMR = 0.150
Note: * Correlation is significant at the 0.05 level (2-tailed) t>1.96 ** Correlation is significant at the 0.01 level (2-tailed) t>2.58
Entrepreneurial
Orientation Proactiveness
Risk Taking
Chi-Square = 1.17, df = 1 , P-value = 0.27953, RMSEA=0.024 0.81
0.62 0.35
0.61
Innovativeness 0.75 0.50
Figure 3.2 Results from Confirmatory Factor Analysis of Entrepreneurial Orientation
3) Construct Validity of Internal Export Barriers
The internal export barriers measurement model contains three components: 1) informational barriers, 2) resource barriers, and 3) marketing barriers.
Results from the confirmatory factor analysis of internal export barriers indicate that the internal export barriers measurement model is consistent with the empirical data with a statistical significance level of 0.01, which is determined by a 1.85 value chi-square, 0.173 probability (p), and 1 degree of freedom. That is, the chi- square insignificantly differs from zero. It denotes the assumption that theinternal export barriers measurement model is consistent with empirical data, as the Goodness of Fit Index (GFI) is equal to 0.996, the Adjusted Goodness of Fit Index (AGFI) equals 0.976, and the Root of Mean Square Residuals (RMR) is 0.197.
The significance of standard components (B) of each observed variable in the internal export barriers measurement model yields a positive value for all factor loadings, which range from 0.46 to 0.77, with a statistical significance level of 0.01 for all. Components are sorted from the most significant to the least significant, i.e.
resource barriers, marketing barriers, and informational barriers give factor loadings of 0.77, 0.77 and 0.46, respectively, and a joint variation of internal export barriers component of 59.30 percent, 59.10 percent, and 20.70 percent, respectively. Table 3.9 and Figure 3.3 below reflect those results.
Table 3.9 Results from Confirmatory Factor Analysis of Internal Export Barriers (IEB)
Variable Factor Loadings Reliabili
ty (R2)
b SE B T
Informational Barriers 0.99 0.328 0.46 11.434** 0.207 Resource Barriers 1.50 0.335 0.77 4.604** 0.593 Marketing Barriers 1.20 0.215 0.77 4.628** 0.591
= 1.85, df = 1, p = 0.17326, GFI = 0.996, AGFI = 0.976, RMR = 0.197
Note: * Correlation is significant at the 0.05 level (2-tailed) t>1.96 ** Correlation is significant at the 0.01 level (2-tailed) t>2.58
Internal Export
Barriers Functional
Marketing
Chi-Square = 1.85, df = 1 , P-value = 1.17326, RMSEA=0.053 0.77
0.41 0.41
0.77
Informational 0.79
0.46
Figure 3.3 Results from Confirmatory Factor Analysis of Internal Export Barriers
4) Construct Validity of External Export Barriers
The external export barriers measurement model covers four components: 1) procedural barriers, 2) home governmental barriers, 3) customer and competitor barriers, and 4) external environment barriers.
Results from the confirmatory factor analysis of external export barriers indicate that the external export barriers measurement model is consistent with the empirical data with a statistical significance level of 0.01, which is determined by a 5.82 value chi-square, 0.121 probability (p), and 3 degree of freedom. That is, the chi- square insignificantly differs from zero. It denotes the assumption that theexternal export barriers measurement model is consistent with the empirical data, as the Goodness of Fit Index (GFI) is equal to 0.991, the Adjusted Goodness of Fit Index (AGFI) equals to 0.969, and the Root of Mean Square Residuals (RMR) is 0.293.
The significance of standard components (B) of each observed variable in the external export barriers measurement model yields a positive value for all factor loadings, which range from 0.45 to 0.78, with a statistical significance level of 0.01 for all. Components are sorted from the most significant to the least significant, i.e.
home governmental barriers, external environment barriers, customers and competitors, and procedural barriers give factor loadings of 0.78, 0.63, 0.61, and 0.45, respectively, and a joint variation of external environment barriers component of 60.20 percent, 40.10 percent, 37.20 percent, and 20.60 percent, respectively. Table 3.10 and Figure 3.4 below reflect those results.
Table 3.10 Results from Confirmatory Factor Analysis of External Export Barriers (EEB)
Variable Factor Loadings Reliability
(R2)
b SE B T
Procedural Barriers 0.99 0.330 0.45 11.407** 0.206 Home Governmental Barriers 1.53 0.268 0.78 5.745** 0.602 Customers and Competitors Barriers 1.16 0.236 0.61 9.568** 0.372 External Environment Barriers 0.98 0.156 0.63 9.157** 0.401
= 5.82, df = 3 , p = 0.12053, GFI = 0.991, AGFI = 0.969, RMR = 0.293
Note: * Correlation is significant at the 0.05 level (2-tailed) t>1.96 ** Correlation is significant at the 0.01 level (2-tailed) t>2.58