International Journal of Academic Research in Business and Social Sciences

search-icon

The Confirmatory Factor Analysis (CFA) of E-Procurement Adoption Model in Malaysian Construction Industry

Open access
Structural equation modelling (SEM) is the first generation path modelling that is widely used by researchers and practitioners nowadays to analyse the interrelationship among variables in a model. In this study, the questionnaire was designed based on nine constructs of exogenous, mediating and endogenous used. Performance expectancy, effort expectancy, social influence and facilitating condition are as exogenous constructs. The mediating constructs consists of usage, user satisfaction, user anxiety and user resistance. Performance impact becomes one single endogenous construct. The questionnaires were distributed to 300 contractors from G4 and G5 classifications in Malaysia Construction Industry during the workshops organized by CIDB. The total of 250 questionnaires were returned to the researcher for the validity and reliability test in this study. The ultimate objective of this article is to acquire the best fit of a research instrument for the effective study using structural equation model (SEM) that enables the study to take into account the unreliable factors (items) between exogenous and endogenous constructs. The items of the constructs undergo the confirmatory factor analysis (CFA) procedure involved in the uni dimensionality test, convergent validity, construct validity and discriminant validity. The result revealed the constructs of the research model achieved the validity and reliability for other further analysis in acquiring high accuracy on the prediction outcomes.
Awang, Z. (2012). Research Methodology for Business and Social Science. Shah Alam: Universiti Teknologi MARA Publication Centre (UPENA).
Awang, Z. (2015). SEM Made Simple: A Gentle Approach to Learning Structural Equation Modeling. Bandar Baru Bangi: MPWS Rich Resources.
Awang, Z., Afthanorhan, A., Mohamad, M., & Asri, M. A. M. (2015). Evaluation of measurement model for medical tourism research: the confirmatory factor analysis approach. International Journal of Tourism Policy, 6(1), 29-45.
Bove, P., & Shiu. (2009). Service worker role in encouraging customer organizational citizenship behaviors. Journal of Business Research 62 (7), 698-705.
Brown, T. A. (2015). Confirmatory Factor Analysis for Applied Research, Guilford Press, New York, NY.
Campbell, D. T., & Fisk, D. W. (1959). Convergent and discriminant validation by the multitrait- multimethod matrix. Psychological Bulletin, 56, 811-105.
Chang, H. H., Tsai, Y.-C., & Hsu, C.-H. (2013). E-procurement and supply chain performance. Supply Chain Management: An International Journal, 18(1): p. 34-51.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982-1003.
Elias, S., Sundram, V. P. A. K., & Ismail, N. (2020). Exploring the Items for Measuring e-Procurement Usage Construct: An Exploratory Factor Analysis. International Journal of Academic Research in Business and Social Sciences, 10(12), 822–837.
Fornell, C., & Larcker, D. F. (1981). Factor Analysis and Discriminant Validity: A Brief Review of Some Practical Issue.
Gioconda, Q., Marvin, E. G., James, M., & Rene, M. (2010). Impact of e-procurement on procurement practices and performance. Benchmarking: An International Journal, 2010. 17(4), 516-538.
Hair, J. E., Back, W. C., Babin, B. J., & Rolph, E. A. (2010). Multivariate data analysis. New Jersey: Pearson Hall.
Holmes-Smith, P., Coote, L., & Cunningham, E. (2006). Structural Equation Modelling: from the Fundamentals to Advanced Topics. Melbourne: School Research, Evaluation and Measurement Services.
Hoque, A. S. M. M., & Awang, Z. (2016). The Exploratory Factor Analysis (EFA) of Entrepreneurial Marketing Scale - Development and Validation. Tourism Conference 20-22 APRIL 2016 (p. 22).
Joreskog, K. G. (1969). A general approach to confirmatory maximum likelihood factor analysis. Psychometrika, 34(2), 183-202.
Joreskog, K. G., & Sorbom. (1993). Statistical analysis of sets of congeneric tests. Psychometrika 36 (2), 109-133.
Kashif, M., Awang, Z., Walsh, J., & Altaf, U. (2015). I’m loving it but hating the US: understanding consumer emotions and perceived service quality of US fast-food brands. British Food Journal, 117(9), 2344-2360.
Kashif, M., Samsi, S. Z. M., Awang, Z., & Mohamad, M. (2016). EXQ: measurement of healthcare experience quality in Malaysian settings: A contextualist perspective. International Journal of Pharmaceutical and Healthcare Marketing, 10(1), 27-47.
Kline, R. B. (2011). Principles and practice of structural equation modeling. USA : The Guilford Press.
Mohamad, M., Mohammad, M., Ali, N. A. M., & Awang, Z. (2016a). Measuring Positive Youth Development: The Confirmatory Factor Analysis (CFA). IJABER, Vol. 14, N0. 13, 9441-9451.
Mohamad, M., Mohammad, M., Ali, M. N. A., & Awang, Z. (2016b). The impact of life satisfaction on substance abuse: delinquency as a mediator. International Journal of Adolescence and Youth, 1-11.
Murali, S., Wemyss, G. P., & Raduan, C. R. (2010). User acceptance of a G2B system: a case of the electronic procurement system in Malaysia, Internet Research, Vol. 20, Issue 2, 169-187.
Norzaidi, M. D., Nurliyana, M., Erwany, A., & Intan Salwani, M., (2013). Factors Influencing the Usage of E-Procurement among Contractor Companies in Malaysia. Business and Management Quarterly Review, 4(3&4), 62-80
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric teory (3rd edu.). New York: McGraw-Hill. Journal of Psychoeducational Assessment, 17(1), 275-280.
Preedy, V. R., & Watson, R. R. (2009). Handbook of Disease Burdens and Quality of Life Measures. New York: Springer.
Shukla, A., Khan, M. A., & Shah, M. (2016). Literature review of the adoption of e-procurement practices by construction industries. AIMA Journal of Management & Research, May 2016, Volume 10 Issue 2/4, ISSN 0974 – 497
Tai, Y.-M. (2011). Exploring the performance impact of web-based direct procurement systems: from the perspective of process integration. WSEAS Transactions on Information Science and Applications, 8(9), 380-390.
Teo, T. S. H., & Lai, K.-H. (2009). Usage and Performance Impact of Electronic Procurement. Journal of Business Logistics, 30(2), 125-139.
Turban, E., King, D., Lee, J., & Viehland, D. (2006). Electronic Commerce 2006: A Managerial Perspective, Pearson/ Prentice-Hall, Englewood Cliffs, NJ.
Yusof, Y., Awang, Z., Jusoff, K., & Ibrahim, Y. (2017). The influence of green practices by non-green hotels on customer satisfaction and loyalty in the hotel and tourism industry. International Journal of Green Economics, 11(1), 1-14.
In-Text Citation: (Elias et al., 2022)
To Cite this Article: Elias, S., Ismail, N., & Basri, B. S. (2022). The Confirmatory Factor Analysis (CFA) of E-Procurement Adoption Model in Malaysian Construction Industry. International Journal of Academic Research in Business and Social Sciences, 12(5), 491– 502.