Page 224 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 224
In Pursuit of Eco-innovation
= 0.522; RMSEA = 0.418). We can see that all goodness-of-fit indexes
showed a poor fit.
224 Figure 21: Diagram of company performance dimension – construct Company profitabili-
ty with the standardized solution
Note: Measurement items: ROA = Return on assets; ROE = Return on equity; ROS = Re-
turn on sales; Chi-square = 37.225; p = 0.00; Goodness-of-fit indexes: NFI = 0.820; NNFI =
0.468; CFI = 0.823; SRMR = 0.522; RMSEA = 0.418; Reliability coefficients: Cronbach’s alpha
= 0.681; RHO = 0.870; Internal consistency reliability = 0.927.
Moreover, the second construct related to company performance,
company growth, is composed of only two items: number of employees
(growth through two business years) and net sales (growth through two
business years). Therefore, for the construct company growth, confirma-
tory factor analysis has not been conducted. Instead, we have calculated
only correlation between those two items. Correlation was estimated at
0.249, which is quite low but showed to be positive and statistically signif-
icant at the 0.01 level. This construct has been retained for further analy-
ses because of its importance.
Internationalization
In our survey, 151 companies out of 223 total are engaged in interna-
tional activities (i.e., are active on foreign markets). This means that the
majority of analyzed companies, which accounts for 67.7% of the total
sample, are internationalized. In our study, we measured international-
ization with three variables: operation modes, number of foreign mar-
kets (in which the company operates) and, lastly, company’s share of sales
on foreign markets in the year 2013. Regarding company age when start-
ing to operate on foreign markets, the results demonstrate that compa-
nies on average started to internationalize at between one year and three
years. In more detail, among the internationalized companies, 34 compa-
= 0.522; RMSEA = 0.418). We can see that all goodness-of-fit indexes
showed a poor fit.
224 Figure 21: Diagram of company performance dimension – construct Company profitabili-
ty with the standardized solution
Note: Measurement items: ROA = Return on assets; ROE = Return on equity; ROS = Re-
turn on sales; Chi-square = 37.225; p = 0.00; Goodness-of-fit indexes: NFI = 0.820; NNFI =
0.468; CFI = 0.823; SRMR = 0.522; RMSEA = 0.418; Reliability coefficients: Cronbach’s alpha
= 0.681; RHO = 0.870; Internal consistency reliability = 0.927.
Moreover, the second construct related to company performance,
company growth, is composed of only two items: number of employees
(growth through two business years) and net sales (growth through two
business years). Therefore, for the construct company growth, confirma-
tory factor analysis has not been conducted. Instead, we have calculated
only correlation between those two items. Correlation was estimated at
0.249, which is quite low but showed to be positive and statistically signif-
icant at the 0.01 level. This construct has been retained for further analy-
ses because of its importance.
Internationalization
In our survey, 151 companies out of 223 total are engaged in interna-
tional activities (i.e., are active on foreign markets). This means that the
majority of analyzed companies, which accounts for 67.7% of the total
sample, are internationalized. In our study, we measured international-
ization with three variables: operation modes, number of foreign mar-
kets (in which the company operates) and, lastly, company’s share of sales
on foreign markets in the year 2013. Regarding company age when start-
ing to operate on foreign markets, the results demonstrate that compa-
nies on average started to internationalize at between one year and three
years. In more detail, among the internationalized companies, 34 compa-
