Evaluation and analysis of criteria and sub-criteria of a ... - Emerald

Importance of criteria in determining business performanceRespondents of the survey were asked to rate the importance of each criterion indetermining organisational business performance in Question 1 of the questionnaire.The results of this question are summarised in terms of the mean and lower 5 per centconfidence limit of each criterion, and illustrated in Figure 4. These results werecomputed on an Excel spreadsheet using its embedded functions. The line chart showsan above average rating of importance for all criteria and close to maximum rating formany of them. Leadership, customer focus and people management showed the highestrelevance, among all criteria, to improving organisational business performance. Theonly criterion having extreme non-normality (leadership), as discussed in the dataexploration sub-section was negatively peaked. Its computed confidence limit based onnormality is expected to provide an understatement of the actual lower confidence limits.A constructionexcellence model31Factor analysis of excellence criteriaConfirmatory factor analysis differs than exploratory factor analysis in the postulationof a factor structure, whereas in exploratory factor analysis the factor structure isdetermined within the analysis (Cramer, 2003). To ensure that the items load on onlyone variable a preliminary “exploratory factor analysis” is conducted on SPSS, then aconfirmatory factor analysis (CFA) is conducted using a specialised statistical softwareLISREL (LInear Structural RELationships).In the exploratory factor analysis, the method of principle component analysis wasused on SPSS and the scree plot of eigen values is illustrated in Figure 5. The scree plotindicates a single variable to be extracted as the eigen value of the first factor is 8.557and the second is 1.308. The difference between both factors is rather large and thechange in direction of the scree plot occurs after the first factor, thus indicating theappropriateness of extracting the first factor only.Figure 4.Mean and 5 per cent lowerconfidence limit ofmodel criteria