Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 7

V. V alidity and R eliability Subsequently, the model was tested to determine if it satisfies the requirement for discriminant validity, convergent validity and reliability. The factor loadings from the CFA result was used to compute the Composite Reliability (CR), Average Variance Extracted (AVE) for each individual construct (Fornell & Larcker, 1981; Hjorth, 1993). Factors loadings of 0.5 are accepted, Cronbach alpha ( α ) values should be 0.6 and above for each of the constructs, which met the recommendation by Nunnally (1978). The result of reliability and convergent validity test is presented in Table 2 a) Business Performance The variable of business performance was measured by using nine items. The construct achieved a Cronbach alpha of 0.958, composite reliability of 0.958 and average variance extracted of 0.72. Subsequent to these findings, convergent validity is met for the variable of business performance. b) Entrepreneurial Orientation The variable of entrepreneurial orientation was measured by using nine items. The construct achieved a Cronbach alpha of 0.807, composite reliability of 0.868 and average variance extracted of 0.50. Given this result, it can be concluded that the variable meets the condition for reliability and validity. c) Social Capital The variable of social capital was measured by using five items. The construct achieved a Cronbach alpha of 0.946, composite reliability of 0.950 and average variance extracted of 0.79. Subsequent to these findings, convergent validity is met for the variable of social capital. d) Capability Development The variable of capability development was measured by using four items. The construct achieved a Cronbach alpha of 0.912, composite reliability of 0.919 and average variance extracted of 0.74. Subsequent to these findings, convergent validity is met for the variable of capacity development. e) Market Competition The variable of market competition was measured by using three items. The construct achieved a Cronbach alpha of 0.665, composite reliability of 0.70 and average variance extracted of 0.50. Given this result, it can be concluded that the variable meets the condition for reliability and validity. f) Market Uncertainty The variable of market uncertainty was measured by using three items. The construct achieved a Cronbach alpha of 0.846, composite reliability of 0.852 and average variance extracted of 0.65. Subsequent to these findings, convergent validity is met for the variable of market uncertainty. g) Technology Uncertainty The variable of technology uncertainty was measured by using two items. The construct achieved a Cronbach alpha of 0.846, composite reliability of 0.809 and average variance extracted of 0.69. Subsequent to these findings, convergent validity is met for the variable of market uncertainty. Table 2: Reliability and Convergent Validity Model Fit Indexes: χ 2 = 221.870; d.f. = 125; χ 2 /d.f. = 1.775; RMSEA = 0.046; GFI = 0.938; CFI = 0.930; IFI = 0.932; TLI = 0.915; SRMR: 0.069 Constructs Label Factor Loadings Cronbach's Alpha Composite Reliability (CR) AVE Business Performance 0.958 0.958 0.72 My firm is usually satisfied with return on investment 0.837 My firm is usually satisfied with return on equity 0.901 My firm is usually satisfied with return on assets 0.857 My firm is usually satisfied with sale growth 0.851 My firm is usually satisfied with employee growth 0.783 My firm is usually satisfied with market share growth 0.861 My firm is usually satisfied with return on sales 0.786 My firm is usually satisfied with net profit margin 0.88 My firm is usually satisfied with gross profit margin 0.88 Entrepreneurial Orientation 0.807 0.868 0.50 In this organization, entrepreneurial behavior is a central principle 0.51 In this organization, innovation is emphasized above all. 0.571 In this organization, people are very dynamic 0.815 In this organization, people are willing to take risks 0.69 The Moderating Factor of Social Capital and Capability Development as Entrepreneurial Orientation Enablers for SMEs Business Performance in Nigeria 47 Global Journal of Management and Business Research Volume XXII Issue VII Version I Year 2022 ( ) A © 2022 Global Journals