Uses of factor analysis in business research

V. Pemajayantha, Robert Mellor, M. Shelton Peiris, Jay R. Rajasekera

    Research output: Chapter in Book / Conference PaperConference Paper

    Abstract

    ![CDATA[Factor analysis is an important multivariate statistical technique, which examines the structure of the interrelationships among a large number of variables, by determining a set of underlying dimensions or factors. This paper examines two examples of the use of factor analysis in business research. In the first application, factor analysis was utilised to identify the key strategy dimensions underlying 66 elements of new product development, identified in normative strategy literature, previous research into the determinants of new product success and failure, and previous studies of firms’ new product strategies. Cluster analysis was then used on the factor scores of identified dimensions to determine the different types of strategies that firms elect for their new product programs. The second example describes how factor analysis was employed to explore groupings of 83 indicators of destination competitiveness found in the tourism literature and the wider management literature. The results of the factor analysis were compared with a theoretical model of tourism competitiveness. Factor analysis seems to confirm many of the considerations identified by tourism practitioners and researchers, in a formal sense.]]
    Original languageEnglish
    Title of host publicationCurrent Research in Modelling, Data Mining & Quantitative Techniques
    PublisherUniversity of Western Sydney
    Number of pages11
    ISBN (Electronic)0975159909
    ISBN (Print)9780975159903
    Publication statusPublished - 2003
    EventWorkshop on Advanced Research Methods -
    Duration: 1 Jan 2003 → …

    Conference

    ConferenceWorkshop on Advanced Research Methods
    Period1/01/03 → …

    Keywords

    • factor analysis
    • classification
    • business
    • research
    • multivariate analysis
    • new products

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