Verification of centrality to extract proper factors in model construction process by using creativity technique

Abstract

This paper describes the verification of measure to extract factors in a factor model construction process. We have proposed a factor model construction process that uses structural equation modeling and KJ method to construct an objective factor model. KJ method is a creativity technique and a bottom-up approach which members of small group think out, refine, and organize ideas. We apply degree centrality to extract factors from a model constructed by KJ method in this process. There are several different centralities such as closeness and betweenness, which may be superior to degree centrality. Therefore, we verified a method for selecting a centrality by determining the changes in a goodness-of-fit-index and the features of a constructed model by three centralities. © 2011 Springer-Verlag.