“…Based on the EFA, factor loadings for all items ranged from 0.409 (AC-1) to 0.899 (AC-4; see Table 3). Seven items displayed have lower than 0.4 factor loadings (AC-3: We are effective in transforming existing information into new knowledge, RA-2: The company's financial capital, MT-2: Our customers tend to look for a new product all the time, MT-3: We are witnessing demand for our products and service from customers who never bought them before, TT-4: A large number of new product ideas have been made possible through technological breakthroughs in our industry, and CE-1: Our firm's reconfiguration built heavily on prior technology), which were not considered for further analysis to ensure the quality of the measures (Costello & Osborne, 2005). Although one item of CE (CE-4: Simple adjustments to existing technology), two items of AC (i.e., AC-1: We have effective routines to identify, value, and import new information and knowledge, AC-2: We have adequate routines to assimilate new information and knowledge), three items of CI (i.e., CI-1: Competition in our industry is cutthroat, CI-2: There are many "promotion wars" in our industry, CI-3: Anything that one competitor can offer, others can match readily), and one item of MT (typically MT-1: In our kind of business, customer's product preferences change quite a bit over time) fell below the minimum of 0.5 as a common cutoff point (Anderson & Gerbing, 1988), they still satisfied the criteria of 0.4 set by other work such as Hair et al (2010).…”