Factor is a set of variables that are highly interrelated.
Factor analysis...
is a statistical method used to describe variability among observed variables.
explains the interrelationships among a set of observed variables.
is a technique used to reduce a large number of variables into fewer numbers of factors.
EFA explores the data & provides information about how many constructs are needed to represent the data.
EFA is an exploratory technique applied to a set of observed variables that seeks to find underlying factors.
The constructs are derived from statistical results, not from theory, & so the constructs can only be named/labelled after the EFA.
EFA is data driven.
CFA is theory driven.
Prior to CFA, the researcher MUST:
Specify the number of constructs that exist within a set of items.
Specify at which construct each item will load highly on.
CFA does not assign item to construct, instead the items are assigned to construct based on theory prior to the CFA.
For a research that does not focus on scale development, the use of both CFA and EFA is likely unnecessary. In general, the use of CFA is preferred.
SEM does not apply EFA, instead it only applies CFA.
Factor analysis is only applied for reflective constructs, not formative constructs.
Comparing EFA and CFA. Please download a dataset here.
Mooi, E., Sarstedt, M., & Mooi-Reci, I. (2018). Principal component and factor analysis. In Market research (pp. 265-311). Springer, Singapore.