Application of factor analysis in company management – selected examples related to competitiveness and market success

Factor analysis is a standard statistical technique for reducing data dimensionality, which is widely used in sociology, psychology, and demography. Also, financial and insurance institutions commonly use such a technique for marketing research. In recent years, factor analysis has been used, at the...

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Autores principales:	Jurczak Jolanta, Jurczak Grzegorz
Formato:	article
Lenguaje:	EN
Publicado:	Sciendo 2021
Materias:	factor analysis confirmatory factor analysis exploratory factor analysis management Production management. Operations management TS155-194
Acceso en línea:	https://doaj.org/article/e0ba7a87cd5c493a92f9ac06e81276dc
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spelling	oai:doaj.org-article:e0ba7a87cd5c493a92f9ac06e81276dc2021-12-05T14:11:07ZApplication of factor analysis in company management – selected examples related to competitiveness and market success2543-912X10.2478/emj-2021-0019https://doaj.org/article/e0ba7a87cd5c493a92f9ac06e81276dc2021-09-01T00:00:00Zhttps://doi.org/10.2478/emj-2021-0019https://doaj.org/toc/2543-912XFactor analysis is a standard statistical technique for reducing data dimensionality, which is widely used in sociology, psychology, and demography. Also, financial and insurance institutions commonly use such a technique for marketing research. In recent years, factor analysis has been used, at the beginning rather diffidently, to analyse selected problems of business management, e.g. to troubleshoot consumer and company communication. There are some literature reports about the successful use of factor analysis in managing a company area. Nevertheless, the literature seems to lack examples with successful use of the method with a clear explanation of its rather difficult application in the field of competitiveness or potential company boost. The modest popularity of such a powerful technique in this particular field seems to be attributed mainly to the complexity of the method and its requirements concerning the data quantity. Besides, the factor analysis technique has great potential and can be used as an efficient tool to reduce the complexity of observed phenomenon or verify the accuracy of theoretical models. Therefore, the purpose of this paper is to present a vast potential of factor analysis (both exploratory and confirmatory) applied to solve various problems in company management, especially related to competitiveness and market success. Two case studies covering the subject of business management are presented to illustrate the benefits of factor analysis application. The exploratory factor analysis is exemplified by the search of factors related to the commercial success of the company, while the confirmatory technique is illustrated by a case study of the intellectual capital of the company and its factors related to competitiveness. The paper also presents the essence of the factor analysis, types of analysis, subsequent procedures, purposes, and its specific features. Finally, the applicability of the factor analysis to solve management issues and possible gain in management are discussed.Jurczak JolantaJurczak GrzegorzSciendoarticlefactor analysisconfirmatory factor analysisexploratory factor analysismanagementProduction management. Operations managementTS155-194ENEngineering Management in Production and Services, Vol 13, Iss 3, Pp 25-36 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	factor analysis confirmatory factor analysis exploratory factor analysis management Production management. Operations management TS155-194
spellingShingle	factor analysis confirmatory factor analysis exploratory factor analysis management Production management. Operations management TS155-194 Jurczak Jolanta Jurczak Grzegorz Application of factor analysis in company management – selected examples related to competitiveness and market success
description	Factor analysis is a standard statistical technique for reducing data dimensionality, which is widely used in sociology, psychology, and demography. Also, financial and insurance institutions commonly use such a technique for marketing research. In recent years, factor analysis has been used, at the beginning rather diffidently, to analyse selected problems of business management, e.g. to troubleshoot consumer and company communication. There are some literature reports about the successful use of factor analysis in managing a company area. Nevertheless, the literature seems to lack examples with successful use of the method with a clear explanation of its rather difficult application in the field of competitiveness or potential company boost. The modest popularity of such a powerful technique in this particular field seems to be attributed mainly to the complexity of the method and its requirements concerning the data quantity. Besides, the factor analysis technique has great potential and can be used as an efficient tool to reduce the complexity of observed phenomenon or verify the accuracy of theoretical models. Therefore, the purpose of this paper is to present a vast potential of factor analysis (both exploratory and confirmatory) applied to solve various problems in company management, especially related to competitiveness and market success. Two case studies covering the subject of business management are presented to illustrate the benefits of factor analysis application. The exploratory factor analysis is exemplified by the search of factors related to the commercial success of the company, while the confirmatory technique is illustrated by a case study of the intellectual capital of the company and its factors related to competitiveness. The paper also presents the essence of the factor analysis, types of analysis, subsequent procedures, purposes, and its specific features. Finally, the applicability of the factor analysis to solve management issues and possible gain in management are discussed.
format	article
author	Jurczak Jolanta Jurczak Grzegorz
author_facet	Jurczak Jolanta Jurczak Grzegorz
author_sort	Jurczak Jolanta
title	Application of factor analysis in company management – selected examples related to competitiveness and market success
title_short	Application of factor analysis in company management – selected examples related to competitiveness and market success
title_full	Application of factor analysis in company management – selected examples related to competitiveness and market success
title_fullStr	Application of factor analysis in company management – selected examples related to competitiveness and market success
title_full_unstemmed	Application of factor analysis in company management – selected examples related to competitiveness and market success
title_sort	application of factor analysis in company management – selected examples related to competitiveness and market success
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/e0ba7a87cd5c493a92f9ac06e81276dc
work_keys_str_mv	AT jurczakjolanta applicationoffactoranalysisincompanymanagementselectedexamplesrelatedtocompetitivenessandmarketsuccess AT jurczakgrzegorz applicationoffactoranalysisincompanymanagementselectedexamplesrelatedtocompetitivenessandmarketsuccess
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Application of factor analysis in company management – selected examples related to competitiveness and market success

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