*5.3. Descriptive Statistics and Correlation Analysis of Final Model Items*

Recall from the CFA results analysis that the items SM8, SM21 and SM12 from the cultural and enforced choice constructs were dropped, and the SEM was conducted on the final 13 items presented in Table 5. The final four factors extracted from the EFA now representing the IGO context were examined in Tables 5 and 6 for their descriptive statistics and their correlations and Cronbach Alpha, respectively. Table 5 presents the means, standard deviations (S.D.), skewness and kurtosis. The results indicate that responses, in general, were more inclined towards agreement (towards one), with questions on strategic intent concerning incrementalism and culture even closer to strongly agree. Moreover, the average of the mean for SF indicates inclination towards disagreement, suggesting fewer managers agree on strategic formulation issues such as strategy being made explicit, procedures for strategic objective made precise and the use of systematic analysis for strategic decisions. Respondents were on the average neutral in relation to IP with the average of its mean equal to 3.44. This may suggest that some organizations experience stronger IPs than others, and is a clear indication of a future research direction.


**Table 5.** Descriptive statistics of final items.

S.D.—Standard deviation.

Table 6 presents the correlation between the final model items and the factor's Cronbach Alpha. The correlation matrix confirms the results of the SEM, as the coefficients of items are stronger and significant in relation to items in their own factor. The Cronbach Alpha for all factors is strong, with values greater than the acceptable threshold of 0.7.

**SM22 SM6 SM24 SM23 SM11 SM1 SM2 SM3 SM13 SM7 SM19 SM20 SM14** Institutional Pressure (IP) Cronbach Alpha: 0.837 **SM22** 1 0.554 \*\* 0.532 \*\* 0.494 \*\* 0.510 \*\* <sup>−</sup>0.320 \*\* 0.004 <sup>−</sup>0.337 \*\* −0.262 \*\* −0.249 \*\* −0.242 \* −0.221 \* <sup>−</sup>0.144 **SM6** 0.554 \*\* 1 0.514 \*\* 0.494 \*\* 0.400 \*\* <sup>−</sup>0.085 0.113 <sup>−</sup>0.049 <sup>−</sup>0.161 <sup>−</sup>0.208 \* −0.211 \* <sup>−</sup>0.178 <sup>−</sup>0.079 **SM24** 0.532 \*\* 0.514 \*\* 1 0.646 \*\* 0.456 \*\* <sup>−</sup>0.003 0.135 <sup>−</sup>0.035 <sup>−</sup>0.255 \*\* −0.236 \* −0.267 \*\* <sup>−</sup>0.146 0.016 **SM23** 0.494 \*\* 0.494 \*\* 0.646 \*\* 1 0.470 \*\* <sup>−</sup>0.223 \* <sup>−</sup>0.033 <sup>−</sup>0.090 <sup>−</sup>0.305 \*\* −0.312 \*\* −0.267 \*\* −0.249 \*\* <sup>−</sup>0.088 **SM11** 0.510 \*\* 0.400 \*\* 0.456 \*\* 0.470 \*\* <sup>1</sup> <sup>−</sup>0.370 \*\* <sup>−</sup>0.159 <sup>−</sup>0.135 <sup>−</sup>0.217 \* −0.303 \*\* <sup>−</sup>0.160 <sup>−</sup>0.234 \* <sup>−</sup>0.097 Strategic Intent (SI) Cronbach Alpha: 0.748 **SM1** <sup>−</sup>0.320 \*\* <sup>−</sup>0.085 <sup>−</sup>0.003 <sup>−</sup>0.223 \* <sup>−</sup>0.370 \*\* 1 0.570 \*\* 0.511 \*\* 0.282 \*\* 0.470 \*\* 0.271 \*\* 0.491 \*\* 0.324 \*\* **SM2** 0.004 0.113 0.135 −0.033 −0.159 0.570 \*\* 1 0.411 \*\* 0.296 \*\* 0.470 \*\* 0.313 \*\* 0.434 \*\* 0.378 \*\* **SM3** −0.337 \*\* −0.049 −0.035 −0.090 −0.135 0.511 \*\* 0.411 \*\* 1 0.343 \*\* 0.374 \*\* 0.245 \* 0.346 \*\* 0.391 \*\* Strategic Formulation (SF) Cronbach Alpha: 0.878 **SM13** <sup>−</sup>0.262 \*\* <sup>−</sup>0.161 <sup>−</sup>0.255 \*\* −0.305 \*\* <sup>−</sup>0.217 \* 0.282 \*\* 0.296 \*\* 0.343 \*\* 1 0.730 \*\* 0.663 \*\* 0.463 \*\* 0.404 \*\* **SM7** <sup>−</sup>0.249 \*\* <sup>−</sup>0.208 \* <sup>−</sup>0.236 \* −0.312 \*\* −0.303 \*\* 0.470 \*\* 0.470 \*\* 0.374 \*\* 0.730 \*\* 1 0.722 \*\* 0.564 \*\* 0.442 \*\* **SM19** <sup>−</sup>0.242 \* <sup>−</sup>0.211 \* <sup>−</sup>0.267 \*\* −0.267 \*\* <sup>−</sup>0.160 0.271 \*\* 0.313 \*\* 0.245 \* 0.663 \*\* 0.722 \*\* 1 0.602 \*\* 0.460 \*\* Strategic Change (SC) Cronbach Alpha: 0.817 **SM20** <sup>−</sup>0.221 \* <sup>−</sup>0.178 <sup>−</sup>0.146 <sup>−</sup>0.249 \*\* <sup>−</sup>0.234 \* 0.491 \*\* 0.434 \*\* 0.346 \*\* 0.463 \*\* 0.564 \*\* 0.602 \*\* 1 0.691 \*\* **SM14** −0.144 −0.079 0.016 −0.088 −0.097 0.324 \*\* 0.378 \*\* 0.391 \*\* 0.404 \*\* 0.442 \*\* 0.460 \*\* 0.691 \*\* 1

**Table 6.** Correlation matrix and Cronbach Alpha of final model items.

\*: *p* < 0.05; \*\*: *p* < 0.01.

This study also confirms that S.F. has a partial mediation effect on S.I. and S.C. The results show that the mediated model (S.I. → S.F. → S.C.) is much better than the direct model (S.I. → SF) in the model fit by comparing the indices. The mediation model (*p* < 0.01, CFI = 0.997, RMSEA = 0.046) is more significant than the direct model.

*Therefore, there is a partial mediation effect, and H6 is supported.*
