This study
examines the dimensionality of our measures by conducting a
principal components factor analysis with varimax rotation. The
results support two factors of innovation performance that have
eigenvalues greater than 1 and explain 82.17% of the variance,
as shown in Appendix Table A1. Each item loads on its
appropriate factor with primary loadings exceeding 0.81 and
cross-loadings lower than 0.42. The Cronbach's alpha coefficients
in parentheses indicating the internal consistency
reliability of the measures in the two factors are both above
the suggested value of 0.70 (Hair et al., 1998). The administrative
factor includes four items to measure the extent of
responsiveness to environmental changes and the degree of
innovative administration in terms of planning procedures,
process control systems, and integrated mechanisms (α=0.919).
The technical factor consists of three questions to measure the
extent to which the firm develops new technologies, incorporates
technologies into new products, and facilitates new
processes to improve quality and lower cost (α=0.896).
3.2.2. Strategic human resource practices
Drawing upon previous researches (e.g., Youndt et al., 1996;
Collins and Clark, 2003; MacDuffie, 1995; Tannenbaum and
Dupuree-Bruno, 1994), this study adapts five aspects, including
staffing, training, participation, performance appraisal, and
compensation, in the construct of strategic human resource
practices with development of a sixteen-item scale. The study
examines the dimensionality of the measures by conducting a
principal components factor analysis with varimax rotation. The
results support five factors with eigenvalues greater than 1 and
explain 80.56% of the variance, as shown in Appendix Table
A2. Each item loads on its appropriate factor with primary
loadings greater than 0.60, and cross-loading lower than 0.43.
The Cronbach's alpha coefficients in parentheses indicating the
internal consistency reliability of the measures in the five factors
are all above the suggested value of 0.70 (Hair et al., 1998). The
staffing factor consists of three items regarding selectivity in
hiring, selection for expertise and skills, and selection for future
potential (α=0.815). The training factor includes four items to
indicate the availability of formal training activities, comprehensive
training policies and programs, training for new hires,
and training for problem-solving ability (α=0.897). The
participation factor consists of three indicators reflecting the
degree to which firms allow the employees to make decisions;
provide the employees the opportunity to suggest improvements
into their work; and value the voices of the employees
(α=0.762). This study uses three items, including developmental
focus, results-based appraisal, and behavior-based
appraisal, to measure the performance appraisal factor
(α=0.903). The compensation factor includes three items that
address the degree to which there are profit sharing, incentive
pay, and the link between performance and reward (α=0.934).