I am stuck. I am developing a new scale and am currently carrying out EFA. The theoretical factors are 6, with 40 variables measuring it. My sample size is 214 (sample to item ratio of > 5:1). I need insights on the following:

1.  While the KMO measure of sampling adequacy for the 40 variables is 0.946, for individual variables (as seen in the Anti-image matrix) is quite low (0.2 to 0.5). I have done PCA (varimax rotation). Bartlett’s Test is also highly significant. What should I do? Should I be concerned about this?

2.  I get 6 components and have considered loadings above 0.4. I find few items quite similar and intuitively feel dropping few should be fine. I look at the inter-item correlations and find them ranging between 0.5 to 0.65. Are these high enough for me to drop? What else can I consider to drop items? Cross loading I am dropping...

Will deeply value insights.

Regards,

Vikas.

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