Page 222 - 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
ter extraction (0.11; which is below the threshold of 0.20). However, be-
cause of its importance, we retained it in the further analyses.
The number of extracted factors should be two, one pertaining to the
company growth and the other to the company profitability. As expect-
ed, the scree plot of the initial run indicated that two factors might be
an appropriate number, and the latent root (eigenvalue) criterion also in-
dicated two factors, which in total explain 53.722% of variance. The two
factors that were extracted as a result of the exploratory factor analysis
are presented in Table 75, together with the five related items and their
factor loadings. The solution with two factors was retained. Therefore,
the company performance construct was split into two individual factors,
one pertaining to the company profitability (including three items) and
the other to the company growth (including two items).
222
Table 75: Company performance dimension’s item factor loadings
Factors
Items Factor 1 Factor 2
(Company profitability) (Company growth)
Return on assets (ROA)
Return on equity (ROE) 1.016 0.304
Return on sales (ROS) 0.610
Number of employees – growth through
two business years 0.564
Net sales – growth through two busi-
ness years 0.861
0.269
N = 223
Extraction Method: Maximum Likelihood
Rotation Method: Oblimin with Kaiser Normalization (absolute factor loadings equal to or
higher than 0.20 displayed)
Bartlett’s test of sphericity: Chi-square = 243.333; 10 df; sig. = 0.000
Kaiser-Meyer-Olkin measure of sample adequacy = 0.596
Variance explained = 53.722
From Table 75, we can see that item “Return on equity (ROE)” load-
ed on two factors – company growth (the wrong factor) and company
profitability (the factor on which it should load). It had a higher loading
on the right factor; nonetheless, we decided that company performance
will be divided into two separate constructs – company profitability and
company growth. Therefore, factors will not be covered under one sec-
ond-order latent factor.
ter extraction (0.11; which is below the threshold of 0.20). However, be-
cause of its importance, we retained it in the further analyses.
The number of extracted factors should be two, one pertaining to the
company growth and the other to the company profitability. As expect-
ed, the scree plot of the initial run indicated that two factors might be
an appropriate number, and the latent root (eigenvalue) criterion also in-
dicated two factors, which in total explain 53.722% of variance. The two
factors that were extracted as a result of the exploratory factor analysis
are presented in Table 75, together with the five related items and their
factor loadings. The solution with two factors was retained. Therefore,
the company performance construct was split into two individual factors,
one pertaining to the company profitability (including three items) and
the other to the company growth (including two items).
222
Table 75: Company performance dimension’s item factor loadings
Factors
Items Factor 1 Factor 2
(Company profitability) (Company growth)
Return on assets (ROA)
Return on equity (ROE) 1.016 0.304
Return on sales (ROS) 0.610
Number of employees – growth through
two business years 0.564
Net sales – growth through two busi-
ness years 0.861
0.269
N = 223
Extraction Method: Maximum Likelihood
Rotation Method: Oblimin with Kaiser Normalization (absolute factor loadings equal to or
higher than 0.20 displayed)
Bartlett’s test of sphericity: Chi-square = 243.333; 10 df; sig. = 0.000
Kaiser-Meyer-Olkin measure of sample adequacy = 0.596
Variance explained = 53.722
From Table 75, we can see that item “Return on equity (ROE)” load-
ed on two factors – company growth (the wrong factor) and company
profitability (the factor on which it should load). It had a higher loading
on the right factor; nonetheless, we decided that company performance
will be divided into two separate constructs – company profitability and
company growth. Therefore, factors will not be covered under one sec-
ond-order latent factor.
