ANALYSIS OF CONFIRMATIORY FACTORS OF LATENT AND EMPIRICAL VARIABLES THAT AFFECTS THE SUCCESS IN THE BUSINESS OPERATION OF THE AUTO PARTS INDUSTRY

Niyom Suwandej; Chatkaew Hartrawung; Wilailuk Rakbumrung

Niyom Suwandej College of Innovation and Management, Suan Sunandha Rajabhat University, Bangkok, Thailand
Chatkaew Hartrawung College of Innovation and Management, Suan Sunandha Rajabhat University, Bangkok, Thailand
Wilailuk Rakbumrung College of Innovation and Management, Suan Sunandha Rajabhat University, Bangkok, Thailand

Keywords: Factor, Leadership, Planning, Support, Operation, Performance Evaluation, Improvement, Success in the Business Operation

Abstract

The purpose of this research was to study the confirmatory factors (Confirmatory Factor Analysis) of latent and empirical variables that affecting business success in the business operation of the auto parts industry with LISREL program to verify the validity and reliability of the empirical variables towards latent variables.
Factor analysis, is conducted to analyze the validity constructed by using confirmed method analysis. (Confirmatory factor analysis) and to validate the consistency between every model factor and the level of leadership variable, planning variable, supporting variable, operation variable, performance evaluation and improvement variable (Improvement) according to theory and empirical data.
The research result found that the lead variable consists of 5 components. The latent variable has a composite reliability (c) equal to 0.85 with the average variability extracted (Average Variable Extracted, v) equal to 0.53. The plan variable consists of 4 components with a composite reliability of latent variable c) equal to .83 with average variability extracted (Average Variable Extracted, v) equal to 0.56 with supportive latency variables. (supp) consists of 3 components. The latent variable has a composite reliability(c) equal to 0.86 with averaged variable Extracted (v) equal to .68. For the operative variable (oper) consists of 5 components. The latent variable has a composite reliability (c) equal to 0.87 with the average variability extracted (Average Variable Extracted, v) equal to 0.58. For the performance evaluation variable (peev) consists of 4 components. The latent variable has a composite reliability (c) equal to 0.89 with the average variability extracted (Average Variable Extracted, v) equal to 0.68. For the improvement variable (impr) consists of 3 components. The latent variable has a composite reliability (c) equal to 0.84 with the average variability extracted (Average Variable Extracted, v) equal to 0.65. For the operational success variable (suss) consists of 4 components. The latent variable has a composite reliability (c) equal to 0.80 with the average variability extracted (Average Variable Extracted, v) equal to 0. 50. This can be explained that the variance of all latent variables and each indicator has reliability (Reliability) value at 40 -85 percent with statistical significance at the level of 0.05