Factor Retention Decisions in Exploratory Factor Analysis: a Tutorial on Parallel Analysis
Open accessAbstract
The decision of how many factors to retain is a critical component of exploratory factor analysis. Evidence is presented that parallel analysis is one of the most accurate factor retention methods while also being one of the most underutilized in management and organizational research. Therefore, a step-by-step guide to performing parallel analysis is described, and an example is provided using data from the Minnesota Satisfaction Questionnaire. Recommendations for making factor retention decisions are discussed.
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Four factors were extracted for both the supplier and consumer perspectives, with the number of factors retained decided by the Minimum-Average-Partial-Test (MAP test).
“The decision on how many factors to retain was based on the Minimum-Average-Partial-Test (MAP test, Hayton et al. 2004). We therefore decided to extract four factors for both perspectives.”
From Trust in the Sharing Economy (2016) · cites this paper as Hayton et al. 2004
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- Authors
- Hayton, J. C., Allen, D. G., & Scarpello, V.
- Affiliations
- Utah State University (US)
- University of Memphis (US)
- University of Florida (US)
- Venue
- Organizational Research Methods
- Publisher
- SAGE Publications
- Published
- 2004-04
- Volume
- 7
- Issue
- 2
- Pages
- 191-205
- ISSN
- 1094-4281 (ISSN-L)
- 1552-7425
- OpenAlex
- W2160643014
- Cited by
- 3,104
- References
- 2
- Citations by year
- 2026: 214 · 2025: 203 · 2024: 211 · 2023: 209 · 2022: 223 · 2021: 220 · 2020: 222 · 2019: 177 · 2018: 194 · 2017: 153 · 2016: 153 · 2015: 149 · 2014: 147 · 2013: 137 · 2012: 148
- FWCI
- 22.59
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- Organizational Research Methods (publishedVersion)
- Archivio istituzionale della Ricerca - Bocconi (submittedVersion)
- Newcastle University ePrints (Newcastle Univesity)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Applications
- Social Sciences › Psychology › Experimental and Cognitive Psychology › Mental Health Research Topics
- Keywords
- factor retention, parallel analysis, exploratory factor analysis, Minnesota Satisfaction Questionnaire, satisfaction measurement
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