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This studyexamines the dimensionality of our measures by conducting aprincipal components factor analysis with varimax rotation. Theresults support two factors of innovation performance that haveeigenvalues greater than 1 and explain 82.17% of the variance,as shown in Appendix Table A1. Each item loads on itsappropriate factor with primary loadings exceeding 0.81 andcross-loadings lower than 0.42. The Cronbach's alpha coefficientsin parentheses indicating the internal consistencyreliability of the measures in the two factors are both abovethe suggested value of 0.70 (Hair et al., 1998). The administrativefactor includes four items to measure the extent ofresponsiveness to environmental changes and the degree ofinnovative administration in terms of planning procedures,process control systems, and integrated mechanisms (α=0.919).The technical factor consists of three questions to measure theextent to which the firm develops new technologies, incorporatestechnologies into new products, and facilitates newprocesses to improve quality and lower cost (α=0.896).3.2.2. Strategic human resource practicesDrawing upon previous researches (e.g., Youndt et al., 1996;Collins and Clark, 2003; MacDuffie, 1995; Tannenbaum andDupuree-Bruno, 1994), this study adapts five aspects, includingstaffing, training, participation, performance appraisal, andcompensation, in the construct of strategic human resourcepractices with development of a sixteen-item scale. The studyexamines the dimensionality of the measures by conducting aprincipal components factor analysis with varimax rotation. Theresults support five factors with eigenvalues greater than 1 andexplain 80.56% of the variance, as shown in Appendix TableA2. Each item loads on its appropriate factor with primaryloadings greater than 0.60, and cross-loading lower than 0.43.The Cronbach's alpha coefficients in parentheses indicating theinternal consistency reliability of the measures in the five factorsare all above the suggested value of 0.70 (Hair et al., 1998). Thestaffing factor consists of three items regarding selectivity inhiring, selection for expertise and skills, and selection for futurepotential (α=0.815). The training factor includes four items toindicate the availability of formal training activities, comprehensivetraining policies and programs, training for new hires,and training for problem-solving ability (α=0.897). Theparticipation factor consists of three indicators reflecting thedegree to which firms allow the employees to make decisions;provide the employees the opportunity to suggest improvementsinto their work; and value the voices of the employees(α=0.762). This study uses three items, including developmentalfocus, results-based appraisal, and behavior-basedappraisal, to measure the performance appraisal factor(α=0.903). The compensation factor includes three items thataddress the degree to which there are profit sharing, incentivepay, and the link between performance and reward (α=0.934).
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