Role of Principal Component Analysis (PCA) in the Evaluation of Competitiveness of Small Firms

Abstract:

Principal Component Analysis (PCA) is a method of multivariate statistical analysis and has been widely used in statistical and mathematical analysis. We use this method in the evaluation of competitiveness of small firms. Using the data of 30 small firms, we build the index system to evaluate competitiveness. Our results show that Principal Component Analysis (PCA) is useful in dimension reducing and we find that profitability, growth,size and human resource are important influencing factors in the competitiveness of small firms.

• Periodical: Advanced Materials Research (Volumes 926-930)
• Pages: 3954-3957
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.926-930.3954
• Online since: May 2014
• Authors: Li Ping Xiao, Yang Liu*
• Keywords: Evaluation of Competitiveness, Index System, Principal Component Analysis (PCA), Small Firms

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