Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Second Order Confirmatory Factor Analysis of Consulting Services in the Industrial Business Sector

Author(s): Tanin Silpcharu, Thanapat Panthanapratez

Because the sustainable competitive edge of an organization is derived from the use of consulting services in the industrial business sector, this research aimed to develop the use of consulting services using guidelines in the industrial business sector to achieve sustainable success. Quantitative data were collected from 500 executives with experience in consulting service through a Likert scale questionnaire. Data were analysed with second order confirmatory factor analysis. Four components such as consultant use of policy, information technology, consultant characteristics, and resource allocation were examined. The model that was developed was found to pass an evaluation criterion and match empirical data with a chi-square probability level of 0.117; relative chi-square of 1.1.32; goodness-of-fit index of 0.964; and root mean square error of approximation of 0.016. Results revealed that the most important components in the study are 1) the consultant’s use of recruitment and selection policies; 2) the use of current and up-to-date information; 3) consultant characteristics of devotion, determination, and responsibility; and 4) management of the work schedule of employees working with consultants. The findings can be useful for the public and private sectors as well as for consulting service providers.

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