-
Essay / Validation of measures - 3928
4 Analyzes and results4.1 Validation of measuresThis study refines the measures and assesses reliability and validity. First, the values of Cronbach's alphas for three components of market orientation, incremental and radical service innovations, market and financial performance, market turbulence, technological turbulence and competitive intensity range from 0 .70 to .92, all of which are above the recommended level of .70 (Nunnally, 1978). Based on the first selection, the internal consistency and reliability of the four scales were established. Then, to understand the factor structure and the quality of the measurements, a principal component analysis was carried out with varimax rotation. Eigenvalue assessment was used to identify the number of factors to retain. Throughout this process, factors are loaded as expected. Thus, these results indicate the unidimensionality of the different constructs. Next, this study estimated a 12-factor confirmatory measurement model, including 10 focal constructs and two controls. For multi-item scales, this study configured each questionnaire item to load only on its respective latent construct and allowed the latent constructs to be correlated. After removing an item with a low factor loading, the confirmatory model fit the data satisfactorily (X/df = 1.32, RMSEA = 0.05, CFI = 0.92, NNFI = 0.95, PNFI = 0.76). All factor loadings are statistically significant (from 0.62 to 0.91) because they are above the recommended level of 0.60 (Hair et al., 2006). The t value of each factor loading is also significant (p < 0.01). The composite reliabilities of the constructs exceed the usual benchmark of 0.60, ranging from 0.80 to 0.91 (Bagozzi & Yi, 1988), and the entire mean extracted v...... middle of paper.. ....could potentially overcome such bias. Third, given that the sample in this study comes from a wide range of service sectors, the applicability of these findings to other sectors should be considered with caution. Fourth, this study focuses on the mediating role of the relationship between market orientation and performance. Further research could examine the boundary conditions of market orientation. For example, the role of customer orientation may be particularly important in service industries requiring interaction, while concurrent orientation may be significant in areas requiring self-service technologies. Finally, this study was conducted in Taiwan, where a greater inclination toward the service sector can be observed than in many other countries. Replication of this research in other countries should help verify the applicability of the results to other parts of the world...