How to reduce the factor loadings of a rotated component matrix?

By Priya Chetty on August 3, 2022

Sometimes, after you run the PCA test of Factor analysis in SPSS, the rotated components matrix shows the grouping of some statements into two components. This happens when a statement is represented by two components. In that case, you may want to reduce it to one component only.

EXAMPLE

In the image below, the statements CS6, CS7 and CS8 show factor loadings in two components; 3 and 8.

Case example showing the statements CS6, CS7 and CS8 showing factor loadings in two components
Figure 1: Case example showing the statements CS6, CS7 and CS8 showing factor loadings in two components

The factor loadings value of CS6, CS7 and CS8 in component 8 are between 0.5 and 0.6. To show factor loadings only in component 3, change the ‘absolute value below’ option in the factor analysis test to .600.

Changing the 'absolute value below' criteria in factor analysis (PCA) in SPSS
Figure 2: Changing the ‘absolute value below’ criteria in factor analysis (PCA) in SPSS

This will eliminate the statements with factor loadings values below 0.600. Therefore, now the table will show CS6, CS7 and CS8 only in component 3.

Reduced number of components for the statements CS6, CS7 and CS8 after changing the 'absolute value below' criteria
Figure 3: Reduced number of components for the statements CS6, CS7 and CS8 after changing the ‘absolute value below’ criteria

Priya is the co-founder and Managing Partner of Project Guru, a research and analytics firm based in Gurgaon. She is responsible for the human resource planning and operations functions. Her expertise in analytics has been used in a number of service-based industries like education and financial services.

Her foundational educational is from St. Xaviers High School (Mumbai). She also holds MBA degree in Marketing and Finance from the Indian Institute of Planning and Management, Delhi (2008).

Some of the notable projects she has worked on include:

  • Using systems thinking to improve sustainability in operations: A study carried out in Malaysia in partnership with Universiti Kuala Lumpur.
  • Assessing customer satisfaction with in-house doctors of Jiva Ayurveda (a project executed for the company)
  • Predicting the potential impact of green hydrogen microgirds (A project executed for the Government of South Africa)

She is a key contributor to the in-house research platform Knowledge Tank.

She currently holds over 300 citations from her contributions to the platform.

She has also been a guest speaker at various institutes such as JIMS (Delhi), BPIT (Delhi), and SVU (Tirupati).

 

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