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A review of exploratory factor analysis in tourism and hospitality research: Identifying current practices and avenues for improvement

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  • Howard, Matt C.
  • Henderson, Jennifer

Abstract

We perform a literature review of exploratory factor analysis (EFA) in six premier tourism and hospitality journals to (1) identify best practices, (2) ensure that researchers apply these best practices, and (3) enable future authors to be more precise in their reporting of EFA. Our results identify that researchers (1) frequently obtain large sample sizes and perform data quality checks, (2) overwhelmingly prefer the principal component approach rather than the common factor approach, (3) are reliant on varimax and other orthogonal rotations, (4) utilize the Kaiser criterion rather than more supported approaches, (5) produce large primary and secondary loadings, and (6) have never identified concerning common method variance via Harman’s one-factor test. We urge researchers to utilize oblique rotations and supported factor retention approaches, and we recommend that researchers should place more attention on their secondary loadings. We lastly call for a moratorium on Harman’s one-factor test.

Suggested Citation

  • Howard, Matt C. & Henderson, Jennifer, 2023. "A review of exploratory factor analysis in tourism and hospitality research: Identifying current practices and avenues for improvement," Journal of Business Research, Elsevier, vol. 154(C).
  • Handle: RePEc:eee:jbrese:v:154:y:2023:i:c:s0148296322007937
    DOI: 10.1016/j.jbusres.2022.113328
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    1. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    2. MacKenzie, Scott B. & Podsakoff, Philip M., 2012. "Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies," Journal of Retailing, Elsevier, vol. 88(4), pages 542-555.
    3. Henry Kaiser, 1970. "A second generation little jiffy," Psychometrika, Springer;The Psychometric Society, vol. 35(4), pages 401-415, December.
    4. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    5. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    6. Patil, Vivek H. & Singh, Surendra N. & Mishra, Sanjay & Todd Donavan, D., 2008. "Efficient theory development and factor retention criteria: Abandon the `eigenvalue greater than one' criterion," Journal of Business Research, Elsevier, vol. 61(2), pages 162-170, February.
    7. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    8. J. C.F. de Winter & D. Dodou, 2012. "Factor recovery by principal axis factoring and maximum likelihood factor analysis as a function of factor pattern and sample size," Journal of Applied Statistics, Taylor & Francis Journals, vol. 39(4), pages 695-710, August.
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    3. Ricardo Martín & Víctor Yepes, 2023. "Landscape Values in a Marina in Granada (Spain): Enhancing Landscape Management through Public Participation," Land, MDPI, vol. 12(2), pages 1-23, February.

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