Page 234 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 234
In Pursuit of Eco-innovation
measures, obtained from the GVIN database, which includes different
companies’ parameters related to the profitability indicator ratios, com-
pany growth, and so on for most Slovenian companies.
Construct validity of product eco-innovation model
All measurement items and Cronbach’s alpha values are reported in Ta-
ble 82. Content validity for the survey instrument is supported by the
literature, in-depth interviews with environmental managers and a pi-
lot test. A confirmatory factor analysis (CFA) using EQS 6.1 is estimated
to assess the construct validity of the product eco-innovation model. In
the model, each item is linked to its corresponding construct with freely
estimated covariance. The model fit indexes are as follows: Chi-square =
1421.120; df = 836; NFI = 0.817; NNFI = 0.903; CFI = 0.914; RMSEA =
234 0.061; SRMR = 0.064. These results suggest that the measurement mod-
el is acceptable. In addition, the Cronbach’s alpha is 0.938, while the reli-
ability coefficient RHO is 0.977.
From Table 82, we can see that all factor loadings are greater than
0.50, and the p-values are significant at the 0.05 level, except for the item
pertaining to the construct company growth (“Number of employees –
growth through 2 business years”); therefore, convergent validity (per-
taining to reliability) is ensured (Fornell and Larcker 1981). In addition,
the composite reliability of all constructs (except for the construct com-
pany growth) is greater than 0.70, indicating acceptable reliability (Hair
et al. 2009). Additionally, the square root of average variance extracted
(AVE) for each construct is greater than 0.50, except for the construct
company growth, for which has not been calculated (instead, the correla-
tion between the two items pertaining to the construct company growth
is given).
measures, obtained from the GVIN database, which includes different
companies’ parameters related to the profitability indicator ratios, com-
pany growth, and so on for most Slovenian companies.
Construct validity of product eco-innovation model
All measurement items and Cronbach’s alpha values are reported in Ta-
ble 82. Content validity for the survey instrument is supported by the
literature, in-depth interviews with environmental managers and a pi-
lot test. A confirmatory factor analysis (CFA) using EQS 6.1 is estimated
to assess the construct validity of the product eco-innovation model. In
the model, each item is linked to its corresponding construct with freely
estimated covariance. The model fit indexes are as follows: Chi-square =
1421.120; df = 836; NFI = 0.817; NNFI = 0.903; CFI = 0.914; RMSEA =
234 0.061; SRMR = 0.064. These results suggest that the measurement mod-
el is acceptable. In addition, the Cronbach’s alpha is 0.938, while the reli-
ability coefficient RHO is 0.977.
From Table 82, we can see that all factor loadings are greater than
0.50, and the p-values are significant at the 0.05 level, except for the item
pertaining to the construct company growth (“Number of employees –
growth through 2 business years”); therefore, convergent validity (per-
taining to reliability) is ensured (Fornell and Larcker 1981). In addition,
the composite reliability of all constructs (except for the construct com-
pany growth) is greater than 0.70, indicating acceptable reliability (Hair
et al. 2009). Additionally, the square root of average variance extracted
(AVE) for each construct is greater than 0.50, except for the construct
company growth, for which has not been calculated (instead, the correla-
tion between the two items pertaining to the construct company growth
is given).
