Validation Analysis Construct validity of the measurement instrument for integration and centralization of organizational decision making was evaluated through factor analysis. The constructs loaded as two distinct factors. The organizational centralization construct had an eigenvalue of 2.65 and an alpha coefficient of 0.77. The integration construct had an eigenvalue of 3.20 and an alpha coefficient of 0.91. Cluster analysis was used to empirically derive the IT structural taxonomy.
Cluster analysis is a multivariate technique for identifying similar entities.
The first step in cluster analysis is to determine the number of clusters. One procedure for empirically determining the number of groups is the Ward Method of agglomerative hierarchical cluster analysis. Because this hierarchical cluster analysis is somewhat subjective, it is important to validate and examine the stability of the chosen clusters. Initial validation of grouping is carried out by determining that the four clusters are significantly different from each other using multivariate analysis of variance. Each of the groups' observed F statistic revealed differences significant at the 0.001 level.