For the Ghana sample, PCA results (Table 5.5) show a third factor emerging as the most important factor (Factor 1). This factor embodies one item (Q38) from the realised benefits construct and three items (Q32 to Q34) from the expected benefits construct. However, for the realised benefits construct (Q35 to Q38), which is ranked as Factor 2, all the items were confirmed as valid. For the expected benefits construct (Q30 to Q34) PCA confirms three out of the five items (Q30 to Q32) as valid.
Table 5.5: Benefits Constructs Validity for Ghana
Ghana: Benefits
Factors Factor 1:?? Factor 2: Realised
Benefits
Factor 3: Expected Benefits q30. Enhanced company image is a benefit
that a socially responsible company is more likely to derive
0.000 0.000 0.869
q31. Increased sales is a benefit that a socially responsible company is more likely to derive
0.293 0.000 0.839
q32. Greater worker productivity is a benefit that a socially responsible company is more likely to derive
0.589 0.000 0.443
q33. Low operating costs due to lower legal costs and penalties is a benefit that a socially responsible company is more likely to derive
0.761 0.000 0.000
q34. Increased level of customer loyalty is a benefit that a socially responsible company is more likely to derive
0.762 0.274 0.000
q35. Employee attendance has improved in
my company over the last three years 0.000 0.783 0.000
q36. Sales has been growing in my
company over the last three years 0.275 0.759 0.376
q37. Overall financial performance has been improving in my company over the last
three years 0.000 0.684 0.000
q38. Number of loyal customers has been increasing in my company over the last
three years 0.645 0.535 0.000
Factor percentage of Total variation 40.99% 13.62% 12.78%
Total of First 3 Factors= 67.39%
Table 5.6: Benefits Constructs Validity for South Africa
South Africa: Benefits
Factors and % of total variation
Factor 1: Realised Benefits Factor 2: Expected Benefits q30. Enhanced company image is a benefit
that a socially responsible company is
more likely to derive 0.000 0.828
q31. Increased sales is a benefit that a socially responsible company is more likely to derive
0.267 0.812
q32. Greater worker productivity is a benefit that a socially responsible company is more likely to derive
0.362 0.689
q33. Low operating costs due to lower legal costs and penalties is a benefit that a socially responsible company is more likely to derive
0.000 0.691
q34. Increased level of customer loyalty is a benefit that a socially responsible company is more likely to derive
0.262 0.843
q35. Employee attendance has improved
in my company over the last three years 0.784 0.000
q36. Sales has been growing in my
company over the last three years 0.926 0.000
q37. Overall financial performance has been improving in my company over the
last three years 0.860 0.283
q38. Number of loyal customers has been increasing in my company over the last
three years 0.852 0.000
Factor percentage of Total variation 52.17% 19.01%
Total of First 2 Factors= 71.18%
Note: loadings less than 0.250 were set to 0.000
For the South African data, PCA results (Table 5.6) for benefits constructs (expected benefits and realised benefits) matched the ones in the instrument exactly. With a factor percentage of total variation of 52.17%, realised benefits are a more important factor for SMME BSR performance in the South Africa sample than expected benefits (factor percentage of total variation of 19.01%). Therefore, items Q30 to Q38 are valid from the perspective of the South Africa sample.
Overall, factor analysis confirms as valid all nine items under the benefits constructs (expected and realised) in the South Africa sample; seven out of nine items are validated in the Ghana sample. However, a third factor, which is a mixture of items from the two benefits constructs, emerges as the most important factor in the Ghana sample.
5.3.5 Criterion-related Validity
As explained in Sub-section 4.7.10 of Chapter 4, criterion-related validity comprises concurrent validity and predictive validity (Welman et al. 2005:144; Creswell, 2014:160; Kumar, 2014:215). In this study, concurrent validity is measured by comparing the results of the two countries with each other while predictive validity is determined by comparing the results of this study to those of Dzansi (2004).
In terms of concurrent validity, the analysis of construct validity for both countries above shows that the instrument has been able to measure the BSR constructs (customers, community, environment, employees) and the benefits constructs (expected benefits, realised benefits) for both samples to a large extent. Employee issues emerge as the least important BSR construct in both countries. Secondly, results in the factor coefficient tables in the ensuing sections (e.g., Table 5.12) show that factor loadings (coefficients) are equal to or greater than 0.4 for most of the items in relation to their constructs. For instance, factor loadings for the Ghana sample in Table 5.12 range from 0.772 to 0.894 compared to 0.885 to 0.938 for South Africa.
To determine the predictive validity of the instrument, it is important to recall the primary objective of Dzansi’s (2004) study: “To determine the extent to which the notion of BSR has permeated the SMME owner/manager mindset”. In that study, Dzansi was able to establish the BSR awareness and performance levels of SMME owner-managers using the measuring instrument. In fact, his findings showed that SMME owner-managers in the Greater Taung Local Municipality in South Africa were significantly aware of—and to
some extent, undertook—BSR activities. The results in the next section of this study (Tables 5.10 to 5.12) accord with Dzansi’s finding, even though the level of awareness for Ghana seems to be significantly higher than for South Africa. Thus, the measuring instrument can be depended on to measure SMME BSR awareness across time and space with some modification. This is reinforced by the high Cronbach’s alphas for the awareness construct for Ghana (0.726) and South Africa (0.894) in Table 5.12.