RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

180 RESPONSIBLE ENTREPRENEURSHIP
Table 5: Regression Weights Final
Hypothesis Estimate S.E. C.R P Decision
H5 (4←1) 0.752 0.205 3.667 *** √ Accept
H6 (4←2) 0.215 0.169 1.271 0.204 Deny
H7 (4←3) 0.370 0.174 2.125 0.034 √ Accept
Thus, we have to eliminate Factor 2 (employee quality) since the hypothesis is denied.
Figure 1: SEM 2
Table 6: Model Fit
NFI
(Normative
Fit Index)
RFI
(Relative
Fit Index)
IFI
(Incremental
Fit Index)
TLI
(Tucker-Lewis
Index)
CFI
(Comparative
Fit Index)
0.911>0.0 0.897 0.962>0.9 0.956>0.9 0.962 > 0.95
In order to estimate the model fit, we have to look at comparative fit index and root mean
square error of approximation. The Comparative Fit Index (CFI) is equal to the discrepancy
function adjusted for sample size. CFI ranges from 0 to 1 with a larger value indicating better
model fit.
Root Mean Square Error of Approximation (RMSEA) is related to residual in the model.
RMSEA values range from 0 to 1 with a smaller RMSEA value indicating better model fit.
Acceptable model fit is indicated by an RMSEA value of 0.06 or less (Hu & Bentler, 1999).
For a final check we verify that CMIN/DF (1.672) is less than 2 and that RMSEA (0.068)
is close to the value of 0.06, in order to decide how good is the model. Regarding model fit,
we should look at the following indices: TLI (Tucker-Lewis Index), which should be greater