Workplace Innovation: Exploratory and Confirmatory Factor Analysis for Construct Validation

Abstract

Workplace innovation enables the development and improvement of products, processes and services leading simultaneously to improvement in organisational performance. This study has the purpose of examining the factor structure of workplace innovation. Survey data, extracted from the 2014 APS employee census, comprising 3,125 engineering professionals in the Commonwealth of Australia's departments were analysed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). EFA returned a two-factor structure explaining 69.1% of the variance of the construct. CFA revealed that a two-factor structure was indicated as a validated model (GFI = 0.98, AGFI = 0.95, RMSEA = 0.08, RMR = 0.02, IFI = 0.98, NFI = 0.98, CFI = 0.98, and TLI = 0.96). Both factors showed good reliability of the scale (Individual creativity: α = 0.83, CR = 0.86, and AVE = 0.62; Team Innovation: α = 0.82, CR = 0.88, and AVE = 0.61). These results confirm that the two factors extracted for characterising workplace innovation included individual creativity and team innovation.