Innovation, Entrepreneurial Financing Choice, Sustainable Performance, Entrepreneurial Resilience : The Measurement Model

Abstract

The purpose of this study is to evaluate the indicators used in the model to ensure that a construct (variable) can be defined. To estimate the measurement of the research model, Confirmatory Factor Analysis (CFA) technique is used for innovation, entrepreneurial financing choice, sustainable performance, and entrepreneurial resilience. The aim is to find out how each indicator correlates with its latent variable. Structural Equation Modeling (SEM) is very helpful in determining the truth of the variables and the components that influence them. The research results have met the convergent validity value in accordance with the required value for innovation, entrepreneurial resilience, sustainable performance, and entrepreneurial financing choice variables. These indicators can describe the variables of Innovation, Entrepreneurial Financing Choice, Sustainable Performance, Entrepreneurial Resilience. All indicators of each variable have Standardized Loading (SL) values above 0.5 and CR values greater than 2, which indicates valid variable relationships and all indicators have a level of 0.001. CFA measurement results of Innovation, Entrepreneurial Financing Choice, Sustainable Performance, Entrepreneurial Resilience have met convergent validity and all Goodness of Fit (GOF) values show a better fit that has met the cut off value. So that from the measurement results all variables have shown a good fit and it can be said that the measurement model is appropriate.