Exam

Read the Case below and answer the questions as follows:

Study of drivers of performance of manufacturing firms in India

A researcher designed a survey research questionnaire in order to understand the drivers of the firm performance for Indian manufacturing firms. The survey was floated to the top management of the manufacturing firm. The survey was conducted on the following $8$ questions:

D$1.$ How many employees in the organization

Show your agreement on the following statements on a scale of $1$ to $7($Likert Scale$)$

A$1.$ We efficiently control our labor cost

A$2.$ We efficiently control our product cost

A$3.$ We efficiently control our raw material cost

A$4.$ The customer service in our organization is given due attention

A$5.$ Our operations are able to ensure a high delivery speed of our products to the market

A$6.$ Our operations ensures a high delivery reliability of our products to customers

Profit: Our firm performance have been growing in last five years consistently

The data collected of the survey is presented as follows:

No$.$ of Employees Labor cost Product cost Raw mat cost Customer Service Del speed Del reliability Firm Performance

D$1$ A$1$ A$2$ A$3$ A$4$ A$5$ A$6$ Profit

$304435554$

$1002245345$

$1504444444$

$4005454353$

$104445442$

$155343664$

$304445554$

$15003553223$

$15004454665$

$155555664$

$2004332563$

$853445455$

$3004435554$

$3005444445$

$1404546754$

$117654566$

$504442446$

$904337663$

$3007565456$

The dimension reduction technique has lead to the following required output:

Rotated Component Matrix

Component

$12$

A$2\mathrm{.}877$

A$3\mathrm{.}876$

A$1\mathrm{.}835$

A$5\mathrm{.}894$

A$6\mathrm{.}863$

A$4\mathrm{.}484$

Answer the following questions:

Q$1.$ Define meaningful names for the factors, and determine the factor score. $($Write the score in the answer sheet for all the factors$)(10)$

Q$2.$ find the reliability and convergent validity of the factors. $(20)$

Q$2.$ Develop a bivariate correlation matrix among the factors identified, including the firm performance. Provide interpretation of the matrix. $(10)$

Q$3.$ Identify the drivers of firm performance, and their order of importance? Discuss the results in detail. Describe the percentage variance explained by the predictive model? $(20)$

Q$4.$ Are the drivers or their importance for firm performance different for small firms viz a viz large size firms. If yes, identify the drivers of firm performance for each type of firms. A firm with employee strength less than $100$ is defined