components and parameters of corporate reputation - sbr ...

Table 3: Correlations (Part II) 

4.5 CORRELATION ANALYSIS 

Corporate Reputation 

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One way to proceed would have been to construct an index for each of the categories 

mentioned in section 4.2, e.g., by estimating a MIMIC model. Since MIMIC 

models are linear models, high correlations between variables pose a potential 

threat. 

Bravais-Pearson coefficients for all pairs of variables are shown in Table 2 and 

Table 3, where we integrated not only the 21 independent items, but also six 

endogenous items, to measure sympathy and competence. We return to them in 

section 4.6. 

The variance inflation factors (VIF) given in Table 4 {in parentheses} show values 

between 1.230 und 2.815 and are far below the common threshold 10 72. But we 

must consider that correlations between (formative) indicators forming different 

constructs should be as low as possible. For this reason we applied a principal 

72 See Reinartz et al. (2003), p. 18. 

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sbr 56 (1/2004) 61

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