THE ROLE OF CORPORATE ENTREPRENEURSHIP IN COMPETITIVENESS. DATA ANALYSIS OF QUANTITATIVE. PART 2

Abstract

The article presents conclusions regarding application of Principal Component Analysis to data about to measure the entrepreneurial potential of the company. A method of principal components analysis was used in the research in order to separate significantly correlated variables. The method gives opportunity to replace an input set of correlated features through a low number of non-correlated principal components, which constitute linear rearrangement of variables. Minimisation of the number of variables required to explain a particular variable simplifies interpretation of results. Using basic model formula requires verification what part of total variability is captured and also defining what part of variability would be explained by additional components.

Keywords

• principal components analysis
• dimensionality reduction