Chi-Square Tests and Cramer’s V

Data from the 18 independent variables were also used in the Chi-Square Tests in this section. As mentioned in Section 5.3.5 of Chapter 5, the Chi-Square Test is a statistical tool for investigating the relationship between an independent variable and a dependent variable. To answer the second research question, the following 18 hypotheses need to be tested:

H1 : There is a relationship between size of organisation and existence of R&D activities. H2 : There is a relationship between nationality of ownership and existence of R&D activities

H3 : There is a relationship between type of industry and existence of R&D activities

H4 : There is a relationship between reasons for investing in the industry and existence of R&D activities

H5 :There is a relationship between type of ownership and existence of R&D activities

H6 : There is a relationship between obtainment of exclusive contracts to manufacture and existence of R&D activities

H7 : There is a relationship between obtainment of general contracts to manufacture and existence of R&D activities

155 H9 :There is a relationship between the ability to modify production or products and existence of R&D activities

H10 : There is a relationship between consideration of investment in research and design and existence of R&D activities

H11 : There is a relationship between the sources of component parts for Thai suppliers and existence of R&D activities

H12 : There is a relationship between methods of acquiring technology and existence of R&D activities

H13 :There is a relationship between the need for foreign technicians or expert assistance and existence of R&D activities

H14 :There is a relationship between government policies to promote technological capability development and existence of R&D activities

H15 :There is a relationship between government incentives supporting the firm and existence of R&D activities

H16 :There is a relationship between concern about government regulations and existence of R&D activities

H17 :There is a relationship between concern about government taxes and existence of R&D activities

H18 : There is a relationship between satisfaction with government policy in the auto industry and existence of R&D activities

Table 7.20 shows the results of the Chi-Square tests. 12 out of the 18 variables comprising of X1, X2, X3, X5, X6, X9, X10, X12, X13, X15, X16 and X17 were found to have p-value less than 0.05, so their corresponding hypotheses were accepted. In other words, a relationship between these variables and the existence of R&D activities was established.

185

Table 7.20 Results of Chi-Square Tests for All Independent Variables in the Conceptual Framework

Independent Variables

(Factors

)

Names of Variables Degree of Freedom (Df) Pearson Chi-Square Value Asymp. Sig. (2-sided) Continuity Correction Value Asymp. Sig. (2-sided) Fisher's Exact Test with Exact Sig. (2-sided)

X1 Size of the company 4 82.080 .000**

X2 Nationality of ownership 2 86.149 .000**

X3 Type of industry _{5 38.425 .000**}

X4 Reasons for investing in

the industry 5 5.393 .370 X5 Type of ownership _{3 115.4 .000**} X6 Obtainment of exclusive contracts 4 42.035 .000** X7 Obtainment of general contracts to manufacture 4 4.371 .358

X8 Product technology type 4 4.810 .307

X9 Ability to modify production or products 3 136.7 .000** X10 Consideration of investment in research and design 1 75.944 .000** 73.248 .000** .000** X11 Sources of component parts 1 1.021 .312 .780 .377 .374 156

186

Table 7.20 Results of Chi-Square Tests for All Independent Variables in the Conceptual Framework (Cont.)

Independent Variables

(Factors

)

Names of Variables Degree of Freedom (Df) Pearson Chi-Square Value Asymp. Sig. (2-sided) Continuity Correction Value Asymp. Sig. (2-sided) Fisher's Exact Test with Exact Sig. (2-sided) X12 Methods of acquiring technology 5 24.843 .000**

X13 Need for foreign technicians

or expert assistance 4 24.741 .000**

X14 Technological capability development support from government

1 .246 .620 .139 .709 .625

X15 Government incentives

supporting the firm 3 31.950 .000**

X16 Concern about Government

regulations 4 12.290 .015**

X17 Concern about Government

taxes 4 62.445 .000**

X18 Satisfaction with

Government policy 1 .868 .352 .663 .416 .410

Note 1) The data for X10

,

X11

,

X14

, and

X18 are presented in the 2

×

2 tables of 7.10, 7.11, 7.14 and 7.18 respectively. In these cases, the Continuity Correction Test and Fisher's Exact Test had to be used as presented in Column 6 to 8, and their results are used to confirm the result of the Pearson Chi-Square Value as shown in Column 4 and 5.

2) ** means that the p-value of the variable is less than the significance level of 0.05.

158

Table 7.21 All Factors with Cramer’s V Scores and Their Levels of Association Order Names of Variables (Factors) Independent

Variables

Cramer’s V Scores

Level of Association

1 Ability to modify production or products

X9 0.675** Very Strong

2 Type of ownership X5 0.622** Very Strong

3 Nationality of ownership X2 0.536** Very Strong

4 Size of the company X1 0.523** Very Strong

5 Consideration of investment in research and design

X10 0.503** Very Strong

6 Concern about Government taxes X17 0.456** Very Strong

7 Obtainment of exclusive contracts X6 0.374** Very Strong

8 Type of industry X3 0.358** Very Strong

9 Government incentives supporting the firm

X15 0.330** Strong

10 Method of acquiring technology X12 0.288** Moderately

strong 11 Need for foreign technicians or expert

assistance

X13 0.287** Moderately

strong 12 Concern about Government

regulations

X16 0.203** Moderate

13 Reasons for investing in the industry X4 0.134 Weak

14 Product technology type X8 0.127 Weak

15 Obtainment of general contracts to manufacture

X7 0.121 Weak

16 Sources of component parts X11 0.058 Very weak

17 Satisfaction with Government policy X18 0.054 Very weak

18 Technological capability development support from government

X14 0.029 Very weak

Note: 1) ** means that the p-value of the factor is less than the significance level of 0.05.

This shows that a relationship between the factor and the existence of R&D activities was found.

2) Cramer’s V scores and their levels of association are presented in Table 5.6 in Chapter 5.

159 In Table 7.21, all independent variables are used to calculate the Cramer’s V scores. 12 out of 18 variables were found to have a moderate or stronger level of association with the existence of R&D activities. With p-values less than 0.05, these associations (or relationships) are statistically significant. In this table, the variables of ability to modify production or products (X9), type of ownership (X5) and nationality of ownership (X2) exhibit the highest three Cramer’s V scores. In Table 7.22, all 12 statistically significant variables (factors) from the Chi-Square and Cramer’s V tests, which are grouped into five key concepts, are used as inputs for the logistic regression calculations in Section 7.3.3.

Table 7.22 All Factors for Each Key Concept Having Relationships with the Existence of R&D Activities (Results from Chi-Square Test and Cramer’s V)

Five Key Concepts Independent Variables

(Factors)

Names of Significant Variables (Factors)

Organisation &

Organisational Learning

X1 Size of the company

X2 Nationality of ownership

X12 Methods of acquiring technology International Strategic

Alliance

X5 Type of ownership

X6 Obtainment of exclusive contracts Innovation Strategies X9 Ability to modify production or products

X10 Consideration of investment in research and design

Technology Transfer X3 Type of industry

X13 Need for foreign technicians or expert assistance Government Policies X15 Government incentives supporting the firm

X16 Concern about Government regulations X17 Concern about Government taxes

In document An examination of technological capability development in the Thailand automotive industry : the role of Thai government policy from 1960-2009 (Page 177-182)