Cronbach's Alpha Case Study

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In this study, Cronbach’s alpha was used to measure the reliability of the variables in measuring the competencies, which are factors. The Cronbach’s alpha value show in above table is greater than 0.70 which indicating that the factors employed in this study is highly reliable since all the value are above 0.80 (Pallant, 2001). 4.2 Descriptions of the Population The survey questionnaires were conducted with 100 SMEs in the clothing and textile industry in mainland China. The participated firms in this study include of manufacturing firms, retail stores, distributors and wholesalers that registered under the Small and Medium Enterprise in China National Textile and Apparel Council (CNTAC). Following sections provided the descriptive statistic…show more content…
The main reason was sole trader required a lower start-up cost and it is easier to set-up for this type of business structure compare with propriety limited company and co-operative. The next larger group was the partnership structure with total of 35%, and majority of the partnership are come from family members such as father, sons, mother and daughters. Highly labor intensive industry such as clothing and textile industry in China, especially for small and medium-sized firms which require more manpower compare in other industries. As shown in Table 4.4, more than 60% of the small and medium-sized manufacturer firms employ more than 50 full-time employees. However, compare with manufacturer, both retailer and distribution sector consume less labor in the industry. The study results show that about 25% of the respondents hire 1 to 10 full-time employees and majority of it are from retailers and distributors sector. Table 4.5 shown about 21% of the respondents that their firm’s turnover in year 2012 is fall between 1 to less than 3 million yuan which the amount is relatively small while there is total of 54% in this study was below 30 million yuan which fall under the small enterprises’ category. The balanced of 46% which having sales turnover above 30 million yuan are medium sized…show more content…
This is in line with the results indicated in Table 4.16 where majority of the respondents firm invested insignificant amount in R&D. 75.82% of the respondents firm spend between 1 to 50000 yuan on R&D while only 7.69% firms spent above 1 million yuan per year in R&D. Study also shown that 9 out 100 SMEs did not invest on R&D at all. As shown in Table 4.17, most SMEs did not spend significant amount of resources on R&D, so the percentage of R&D cost in company yearly expenses is relatively small (5% and below). Only five firms spent above 11% on their total expenses on R&D cost. These result also in line with the number of products produced by the firms. Usually SMEs will start their businesses in the domestic market and majority of the marketing activity such as promotion, advertisement and market segment analysis will focus on domestic market. Table 4.18 indicated that, most of the firms spent a significant amount of resources on marketing in the domestic market compare to overseas market (Table 4.19). The study results also show that, there are 10 firms without doing any expenditure in the domestic market since all the products are only for overseas market while over 41% spent above 0.5 million yuan on marketing costs for their domestic
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