Goodness of Measures
The 21-item scale measuring the e-readiness of the SMEs (dependent variable) was submitted
to a principal components analysis with varimax rotation. All the items have value of
Measures of Sampling Adequacy (MSA) more than 0.5. Besides, Kaiser-Meyer-Olkin
Measure of Sampling Adequacy is 0.86 and Bartlett's Test of Sphericity is significant with
Based on the rotated component matrix, out of the 21 items, ten items (question 2, 3, 4, 5, 7, 9,
10, 11, 12 and 21) were dropped as they have high cross loadings. Four factors met the
selection criteria of eigenvalues greater than 1.0, explaining a total of 74.95% of the variance.
All the items selected had factor loadings greater than 0.50. However, factor 3 has been
dropped because it had only one item (question 19). Thus, we have retained only three factors
with 10 items for the e-readiness measurement with a total variance explained of 67.27%.
(see Table 5)
[Insert Table 5 about here]
Reliability of the Measures
Table 6 presents the reliability coefficients for the main variables of the study.
[Insert Table 6 about here]
The reliability analysis, assessed with Cronbach’s Alpha reliability test, was carried out in
order to ensure the internal stability and consistency of the items used in each variable. The
values ranged from 0.68 to 0.94 and can be considered to be reliable.