Determination constructs validity of an agile organization model by using factor analysis

Abstract

During 21st century, manufacturing success and survival are becoming more difficult to ensure this fact is originated in the emergency of new business era that has "change" as one of its major characteristics. Change in business environment and uncertainly have entered management study and research for the last two decades. Agility enhances the organization ability to provide high quality products and services, and is, therefore crucial to organization competitiveness. The paper briefly reviews the literature in this field and offers a model of agility based on leadership, human resource, organizational structure, organizational culture, process and system in the organization. This paper discusses the concept and the development of the methodology to achieve effective factors on organizational agility. An introduction of subject is given and followed by a detailed discussion of the proposed factor analysis methodology. One of the defining construct validity is using a factor analysis method. Factor analysis is a statistical method through which the number and nature of variables which measures the test are clarified. In factor analysis, this is done by combining various variables together as we have been making a few variables as a factor. This method defines the interrelations of analysis data and decreases variables to factors for simplicity. In the performed case study in Iranian industrial organization in order to define effective factors on organization agility, on the base of conceptual model, a questionnaire was compiled. The results of questionnaires were analysed by descriptive statistics and all variables were categorized in twelve factors through exploratory factor analysis. Using confirmatory factor analysis method, exploratory factors were surveyed whose result has a close adaptation with literature of organization agility and condition of studied Iranian industrial organization.