Exploratory factor analysis

Conceptual and methodological issues

Abstract

The purpose of this article is to provide an overview of several important contributions regarding Exploratory Factor Analysis (EFA). After briefly addressing the differences between the two main methods of EFA, i.e. Principal Component Analysis and Common Factor Analysis, the standards that have to be met for its implementation, as well as certain methods of factor extraction and rotation are discussed in detail. Furthermore, the criteria for defining the number of factors to retain when conducting EFA are presented and some guidelines for evaluating the significance of factor loadings based on the sample size are offered.