Page 166 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
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In Pursuit of Eco-innovation

Likelihood Method, while the selected rotation was Direct Oblimin ro-
tation, which assumes that different factors are related.

The appropriateness of factor analysis was determined by examining
the correlation matrix of the command-and-control instrument items.
The existence of sufficient correlations (the Bartlett’s test of sphericity)
and the Kaiser-Meyer-Olkin measure of sampling adequacy higher than
0.50 are more critical issues. The Bartlett’s test of sphericity, which statis-
tically tests for the presence of correlations among the underlying varia-
bles, showed that the correlation matrix has significant correlations (p <
0.05). In our case, the Bartlett’s test of sphericity showed that correlation
matrix has significant correlations (sig. = 0.000 for all items). Further-
more, the Kaiser-Meyer-Olkin measure of sampling adequacy was exam-
ined and indicated similar results; specifically, the KMO value was 0.741,
166 which means a middling sample adequacy.

The number of expected factors was one, and the extracted factor
was one, as expected and already tested in previous research works, when
using this construct. In addition, the scree plot of the initial run indi-
cated one factor as an appropriate number. Further, one factor explains
81.487% of variance.

After consideration of each item’s communality index and its contri-
bution, we retained all the items (the lowest communality after extrac-
tion was 0.779). In the process of analysis, researchers usually delete or ex-
clude the items that have low communalities after extraction – below the
threshold of 0.20.

Table 32: KMO and Bartlett’s test of sphericity (Command-and-control instrument)

KMO and Bartlett’s test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.741
967.439
Approx. chi-square
6
Bartlett’s test of sphericity df 0.000

Sig.

A confirmatory factor analysis was conducted in order to validate
the findings of the exploratory factor analysis, which resulted in one fac-
tor composed of four items. This has also been confirmed by the con-
firmatory factor analysis. The eco-innovation determinant the com-
mand-and-control instrument comprises four items. All the coefficients
were found to be positive, high and significant, and are indicated in Ta-
ble 33 and Figure 8.
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