Employee perceptions to standards capability: A cross second order confirmatory factors analysis in manufacturing firms-Indonesia

This study examined the variables and indicators in the approach of ISO Methodology to measure benefits of standards. The main focus of testing the approach is the Standards Capability which has three manifest variables such as Level of Competence (LoC), Ability in Implementing Standards (AiIS) and Company´s Attitude toward Standards. There are three hypotheses which were tested in relation to the model of Standards Capability. The hypotheses were tested with Second Order Confirmatory Factors Analysis in three manufacturing companies separately and in combination, i.e. Dodo, Soso, Toto and Gogo. The test results have shown that the hypotheses are acceptable for all the analysis units although there are four indicators on Toto that should be removed and two indicators are not confirmed as a manifestation of LoC construct. The ability to predict the first order construct in all of the analysis units can also be said as strong and very strong although there is one construct (LoC) in Toto that is moderate. In general, the Model can predict that the first order constructs in all of the analysis units are as the manifestation of Standards Capability. To develop this research, a survey research approach will be able to provide a more extensive analysis of various characteristics of business organizations.