Question 1

What is the difference between factor analysis and PCA?

Accepted Answer

Factor analysis is based on latent factor models; PCA is pure linear transformation. Management questionnaire research typically uses factor analysis for latent variables; PCA for dimensionality reduction.

Question 2

What if KMO is only 0.6?

Accepted Answer

KMO between 0.6-0.7 is marginal. Try: delete low-correlation variables; increase sample size; or consider alternative methods. Below 0.6 makes factor analysis unreliable.

Factor Analysis Paper Guide | Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA)

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