scholarly journals A critical look at the use of SEM in international business research

2016 ◽  
Vol 33 (3) ◽  
pp. 376-404 ◽  
Author(s):  
Nicole Franziska Richter ◽  
Rudolf R. Sinkovics ◽  
Christian M. Ringle ◽  
Christopher Schlägel
Keyword(s):  
Best Practices ◽  
International Business ◽  
Structural Equation ◽  
Early Stage ◽  
Theory Development ◽  
Marketing Research ◽  
Equation Modeling ◽  
Content Type ◽  
Practical Guidelines ◽  
Advance Theory

Purpose – Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research. While the covariance-based SEM (CB-SEM) approach is dominant, the authors argue that the field’s dynamic nature and the sometimes early stage of theory development more often require a partial least squares SEM (PLS-SEM) approach. The purpose of this paper is to critically review the application of SEM techniques in the field. Design/methodology/approach – The authors searched six journals with an international business (and marketing) focus (Management International Review, Journal of International Business Studies, Journal of International Management, International Marketing Review, Journal of World Business, International Business Review) from 1990 to 2013. The authors reviewed all articles that apply SEM, analyzed their research objectives and methodology choices, and assessed whether the PLS-SEM papers followed the best practices outlined in the past. Findings – Of the articles, 379 utilized CB-SEM and 45 PLS-SEM. The reasons for using PLS-SEM referred largely to sampling and data measurement issues and did not sufficiently build on the procedure’s benefits that stem from its design for predictive and exploratory purposes. Thus, the procedure’s key benefits, which might be fruitful for the theorizing process, are not being fully exploited. Furthermore, authors need to better follow best practices to truly advance theory building. Research limitations/implications – The authors examined a subset of journals in the field and did not include general management journals that publish international business and marketing-related studies. Fur-thermore, the authors found only limited use of PLS-SEM in the journals the authors considered relevant to the study. Originality/value – The study contributes to the literature by providing researchers seeking to adopt SEM as an analytical method with practical guidelines for making better choices concerning an appropriate SEM approach. Furthermore, based on a systematic review of current practices in the international business and marketing literature, the authors identify critical challenges in the selection and use of SEM procedures and offer concrete recommendations for better practice.

The country context in Triple-A supply chains: an advanced PLS–SEM research study in emerging vs developed countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José A.D. Machuca ◽  
Juan A. Marin-Garcia ◽  
Rafaela Alfalla-Luque
Keyword(s):  
Structural Equation ◽  
Research Study ◽  
Theory Development ◽  
Developed Countries ◽  
Emerging Countries ◽  
Equation Modeling ◽  
Synergy Effect ◽  
Content Type ◽  
Manufacturing Plants ◽  
Potential Synergy

PurposeThis paper analyzes whether the Triple-A supply chain (SC)–competitive advantage (CA) relationship is influenced by the country context and considers the case of emerging vs developed countries. Any differences in the importance of the three Triple-A SC dimensions (agility, adaptability and alignment) and a potential synergy effect among them when pursuing CA are also analyzed.Design/methodology/approachPartial least squares structural equation modeling (PLS-SEM) method is applied to an international multiple informant sample of 304 manufacturing plants in nine developed and five emerging countries.FindingsA significant positive relationship is found between the Triple-A SC and CA in the full sample and in the two separate samples of emerging and developed countries, which is more intense in the emerging countries. For the same samples, it is also concluded that (1) there are no significant differences in the importance of SC adaptability (SC-Ad), SC agility (SC-Ag) and SC alignment (SC-Al) as levers in the Triple-A SC–CA relationship and (2) a synergy effect among the Triple-A SC dimensions when pursuing CA is not supported.Research limitations/implicationsThe present study brings new evidence to the previous research on Triple-A SC and its relationship with CA in different country contexts. For managers, this work (1) shows that Triple A should be considered in the design of global SCs irrespective of the country context and (2) offers a first approach for determining the Triple-A SC levers that must be taken into consideration when pursuing a CA.Originality/valueThis paper contributes to Triple-A SC theory development. It is the first research study that analyzes the effect of the country context on the Triple-A SC–CA relationship and the importance of each of the Triple-A SC dimensions and their possible synergy effect when pursuing CA using a multiinformant international sample taken from different country contexts.

Assessing endogeneity issues in international marketing research

2016 ◽  
Vol 33 (3) ◽  
pp. 483-512 ◽  
Author(s):  
Ruey-Jer "Bryan" Jean ◽  
Ziliang Deng ◽  
Daekwan Kim ◽  
Xiaohui Yuan
Keyword(s):  
Structural Equation ◽  
A Priori ◽  
International Marketing ◽  
Sample Selection ◽  
Marketing Research ◽  
Equation Modeling ◽  
Potential Threat ◽  
Comprehensive Overview ◽  
Content Type ◽  
Main Independent Variable

Purpose – Endogeneity is a potential threat to the validity of international marketing (IM) research. The purpose of this paper is to draw the attention of IM researchers to issues of endogeneity, to provide a comprehensive overview of the sources of endogeneity, and to discuss the statistical solutions. Design/methodology/approach – The authors conduct the research in two steps. In the first step, the authors review the nature and sources of endogeneity specifically in IM research. In the second step, the authors review 60 IM papers on endogeneity published in the period 1995-2014 and assess the current practice of addressing endogeneity in the IM literature. Findings – Sample selection bias and simultaneity are prevalent sources of endogeneity in IM research. Internationalization-performance relationship and innovation-export nexus are the two most frequently adopted models subject to potential endogeneity. Simply lagging the main independent variable is statistically flawed in dealing with endogeneity despite its popularity in IM research. Research limitations/implications – First, a careful choice and application of methods are critical when addressing endogeneity. Second, the authors suggest the employment of multiple study methods to address endogeneity robustly. Third, to prevent or solve endogeneity in structural equation modeling, researchers may either collect data on independent and dependent variables from different respondents or employ a two-stage least squares approach. Finally, it is helpful to design dedicated models to prevent proactively potential endogeneity a priori. Originality/value – The contribution of this study is twofold. First, it is the first in the literature to discuss the endogeneity issue specifically in IM research. In particular, the study elaborates the origins and consequences of the three most frequently confronted types of endogeneity in IM research. Second, the authors assess the four major methods of addressing endogeneity in IM research with a systematic discussion of the literature from the last two decades. The authors offer suggestions on how to minimize endogeneity in model design and empirical implementation for future IM research.

Inclusive leadership and work engagement: the mediating role of procedural justice

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ada Tuna Cenkci ◽  
Tuba Bircan ◽  
Jeff Zimmerman
Keyword(s):  
Procedural Justice ◽  
Work Engagement ◽  
Structural Equation ◽  
Theory Development ◽  
Mediating Effect ◽  
Equation Modeling ◽  
It Professionals ◽  
Inclusive Leadership ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to explore the relationship between inclusive leadership (IL) and employee work engagement (WE), as well as the mediating effect of procedural justice (PJ) on this relationship. Design/methodology/approach An online, self-administered questionnaire was used to collect data. A total of 201 information technology (IT) professionals in Turkey participated in the study. The authors used structural equation modeling to analyze the collected data. The authors then used a series of nested model comparisons to test the hypothesized mediating relationship. Findings The outcomes suggest that IL is positively related to PJ while PJ is positively associated with WE. In addition, PJ mediates the relationship between IL and WE. Practical implications The outcomes underline the importance of IL to effectively lead IT professionals. Organizational leaders can cultivate IL by demonstrating openness, availability and accessibility toward their employees and create work environments in which employees’ ideas are valued. Additionally, for employee PJ perceptions, organizations need to ensure that their procedures and policies are transparent and fair in terms of how decisions are made. Moreover, organizations can offer training to their IT managers on IL and PJ topics. Originality/value This study adds to the very scarce literature on IL. In addition, to the researchers’ knowledge, this is the first study to test the IL and PJ relationship. Furthermore, this is the first study to explore the concept of IL in the Turkish context. Moreover, the findings of this research can be beneficial for future theory development on IL in cross-cultural contexts.

scholarly journals Evaluating the online shopping behavior among Egyptian college-educated community

2020 ◽  
Vol 5 (1) ◽  
pp. 21-37 ◽  
Author(s):  
Mayada M. Aref ◽  
Ahmed E. Okasha
Keyword(s):  
Technology Acceptance ◽  
Structural Equation ◽  
Online Shopping ◽  
Early Stage ◽  
Ease Of Use ◽  
Shopping Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Stage Of Development ◽  
Online Shopping Behavior

Purpose In a dynamic environment, understanding the consumer’s behavior in an online market is critical for the development of online retailers’ strategies. In Egypt, although the number of internet users is growing rapidly, online shopping is at an early stage of development. In addition, there is a lack of knowledge about the behavior of Egyptians toward online shopping and the factors that influence their behavior. Design/methodology/approach To demonstrate the applicability of the technology acceptance model (TAM), this research applies an extended TAM to analyze the factors that impact the Egyptian consumers’ online shopping behavior. Structural equation modeling is used for fitting the data and testing the hypothesis. Findings Findings revealed that perceived enjoyment, perceived ease of use, social norm and perceived risk have significant influences on the respondents to shop online; while the site language effect was insignificant. Research limitations/implications This study has mainly four limitations. The first concerning the sample, it should cover diversified areas other than Cairo and should include respondents from different education levels. Future studies may consider using a national sample of current and potential online shoppers to be able to generalize the results. Second, the questionnaire should include questions about the levels of education and the level of income to analyze if they influence actual online shopping. Third, although the benefits of using online surveys such as reducing the costs and time and collecting data more accurately compared to paper-pencil surveys, the low response rate may lead to non-response bias. Finally, constructs such as website content, design, and response could be added to the TAM to examine different aspects of website functionalities on the actual shopping. Originality/value Considering that online shopping is still at the early stage of development in Egypt, there is a need to examine the factors that influence the behavior of Egyptian consumers while adopting online shopping. To fill in this gap, this study is analyzing the factors impacting the consumers’ decisions to shop online by examining a sample of students from the Faculty of Economics and Political Science, Cairo University. This study will contribute to providing an empirical application of the TAM on the Egyptian consumers in addition to, enhancing the knowledge of electronic retailers about the factors that drive consumers toward shopping online.

Understanding the determinants of mobile payment continuance usage

2014 ◽  
Vol 114 (6) ◽  
pp. 936-948 ◽  
Author(s):  
Tao Zhou
Keyword(s):  
Structural Equation ◽  
Early Stage ◽  
Mobile Internet ◽  
Perceived Usefulness ◽  
Equation Modeling ◽  
Mobile Payment ◽  
System Quality ◽  
Content Type ◽  
Performance Expectancy ◽  
Continuance Usage

Purpose – The purpose of this paper is to identify the factors affecting continuance usage of mobile payment. Design/methodology/approach – Based on the valid responses collected from a survey questionnaire, structural equation modeling (SEM) technology was employed to examine the research model. Findings – The results indicated that performance expectancy, trust in mobile payment and flow affect continuance usage. Among them, flow has a relatively larger effect. In addition, system quality has strong effects on performance expectancy and flow. Research limitations/implications – This research is conducted in China, where mobile internet is still in its early stage. Thus, the results need to be generalized to other countries that have developed mobile internet. Originality/value – Extant research has mainly focussed on the effects of instrumental beliefs such as perceived usefulness on mobile payment user behavior, and has seldom considered the effect of flow experience. This research tries to fill the gap.

An empirically validated quality management measurement instrument

2006 ◽  
Vol 13 (4) ◽  
pp. 493-522 ◽  
Author(s):  
Prakash J. Singh ◽  
Alan Smith
Keyword(s):  
Quality Management ◽  
Structural Equation ◽  
Theory Development ◽  
Empirical Support ◽  
Reliability And Validity ◽  
Measurement Instrument ◽  
Psychometric Validation ◽  
Equation Modeling ◽  
Content Type ◽  
Manufacturing Organizations

PurposeTo develop a quality management (QM) measurement instrument that has sound psychometric properties and recognizes a key feature of the field, i.e. QM is currently characterized by three competing approaches: standards‐based; prize‐criteria; and, elemental implementation approaches.Design/methodology/approachThe three disparate approaches were analyzed to identify sets of key constructs and associated items. The assembled instrument was empirically validated through a survey of 418 Australian manufacturing organizations. A full set of reliability and validity tests were performed. Wherever applicable, confirmatory approach using structural equation modeling was used.FindingsThe results of psychometric tests suggest that the constructs of the three approaches have good empirical support. In the manner in which the instrument is presented, it is possible to separately measure constructs related to each of the three approaches.Research limitations/implicationsThe measurement instrument has been validated with manufacturing organizations from Australia. It is applicability to other industry sectors or country contexts needs to be verified.Practical implicationsPractitioners and consultants can use the measurement instrument for conducting QM benchmarking exercises within and across organizations. Researchers can use the instrument in future studies for, inter alia, theory development in the area.Originality/valueThe measurement instrument overcomes the shortcomings of the existing instruments by explicitly including all three practical approaches to quality management. Also, a rigorous psychometric validation process is adopted that provides credible outcomes.

Factors affecting intention to adopt halal practices: case study of Indonesian small and medium enterprises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sahat Aditua Fandhitya Silalahi ◽  
Fachrurazi Fachrurazi ◽  
Achmad Muchaddam Fahham
Keyword(s):  
Structural Equation ◽  
Consumer Demand ◽  
Early Stage ◽  
Policy Formulation ◽  
Government Support ◽  
Equation Modeling ◽  
Research Subjects ◽  
Competition Intensity ◽  
Content Type ◽  
Intention To Adopt

Purpose This study aims to investigate the effect of religiosity, government support, consumer demand, the expectation for higher revenue and competition intensity on Indonesian small and medium-sized enterprises’ (SMEs) intention to adopt halal practices. Design/methodology/approach This study used a quantitative approach and surveyed 228 SME owners through electronic media and direct contact. The study then applied the structural equation modeling to evaluate the relationship between constructs. This study also conducted some modifications on the hypotheses structured to obtain the best model. Findings This study found that religiosity, government support and expectation for higher revenue have positive and significant effects on SMEs’ intention to adopt halal practices; conversely, consumer demand and competition intensity do not have significant effects. Originality/value While in Indonesia, many studies have been conducted on consumers as subjects concerning halal awareness and they revealed a positive effect on the intention to consume the products, still, to the best of the authors’ knowledge, there are no studies targeting producers, especially SMEs, as the research subjects. This study had fulfilled some gaps on contributing factors that encourage the adoption of halal practices on the producers’ side, especially on SMEs. Therefore, this study provided insights into how to bridge the producers’ and consumers’ interests regarding halal fulfillment. The findings also provided input on the policy formulation at the early stage of halal policy implementation.

Ecosystem network health and SMEs’credit quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hua Song ◽  
Sijie Chen ◽  
Kangkang Yu
Keyword(s):  
Structural Equation ◽  
Marketing Research ◽  
Structural Equations ◽  
Equation Modeling ◽  
Content Type ◽  
B2b Marketing ◽  
Credit Quality ◽  
Positive Effects ◽  
Effect Model ◽  
Business To Business

Purpose In industrial and business-to-business (B2B) marketing research, a business network ecosystem is an important antecedent of small- and medium-sized enterprises’ (SMEs’) performance. The purpose of this study is to clarify the direct and indirect effects of ecosystem network health on SMEs’ credit quality. Design/methodology/approach The data is collected from a survey of operations managers and financial managers of 282 SMEs in China. Structural equation modeling is used to test the hypotheses, and latent moderated structural equations are used to estimate the moderating effect model. Findings This research indicates that ecosystem network health can directly affect SMEs’ credit quality and have an indirect impact on credit quality through value co-creation capability. In addition, better informal institutional arrangements in the ecosystem can amplify the positive effects of network health and value co-creation capability on SMEs’ credit quality. Originality/value From an ecosystem perspective, it is necessary to bring the ecosystem characteristics into business scenario and explore their impacts on SMEs’ financing behaviors. This study contributes to B2B marketing research in terms of investigating the role played by ecosystem characteristics and value co-creation capability.

The role of endorsers in bringing defunct brands back to life: theory and evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naeem Gul Gilal ◽  
Faheem Gul Gilal ◽  
Jing Zhang ◽  
Rukhsana Gul Gilal ◽  
Zhenxing Gong ◽  
...  
Keyword(s):  
Structural Equation ◽  
Source Credibility ◽  
Marketing Research ◽  
Chief Executive ◽  
Credibility Theory ◽  
Equation Modeling ◽  
Consumer Attitude ◽  
Full Potential ◽  
Content Type ◽  
Hedonic Products

Purpose This study aims to investigate a randomized 3 (endorser type: celebrity vs CEO vs expert) × 2 (product type: hedonic vs utility) between-respondents factorial experiment to inspect the effects of the endorsers and product types on consumers’ engagement in BRM through brand-relationship variables [i.e. self-brand connection (SBC), perceived product attachment (PPA) and source credibility (SC)]. Marketing in a digital era is witnessing a rising trend of “brand resurrection as revolution” led by consumer power. The successful revitalization of various dead brands provides some new opportunities for companies to engage millennial consumers in brand resurrection movements (BRM) through the right choice of brand endorsers. The new-found love of companies for the revitalization of long-forgotten brands has attracted considerable interest among scholars and marketing practitioners. Despite the brand resurrection’s high practical relevance, little is known in marketing research about how to revive failing brands back to life. Design/methodology/approach Using source credibility theory (SCT) as a lens, this study conducted two studies (i.e. Study 1, N = 300; Study 2, N = 300) and builds on an analysis of data from Pakistani millennials. The hypotheses were inspected using both structural equation modeling and SPSS’s PROCESS macro. Findings Through two studies, the authors find that the match between endorser types and product types affects customer motivation to engage in BRM via SBC, PPA and SC (i.e. attractiveness, trustworthiness and expertise).[AQ2] The results showed that for utilitarian products, both SBC and PPA mediate the link between endorser types and BRM, but for hedonic products, PPA does not play a role. Similarly, the authors’ results indicate that for hedonic products, attractiveness, trustworthiness and expertise mediate the link between endorser types and BRM, but for utilitarian products, trustworthiness does not play a role. Practical implications The results of this research will help marketing managers devise effective brand endorsers strategies in reviving failing brands. Specifically, this endeavor highlights that understanding brand advertisements merely in terms of celebrity endorsement restricts the full potential that brand advertisements could have and also that a comprehensive understanding must include expert and chief executive officers (CEO) endorsers. Therefore, one of the central contributions of this research is the introduction of expert and CEO endorsers and the evidence that both celebrity (i.e. celebrity and CEO) and non-celebrity endorsers (i.e. experts) have an impact on consumers’ motivation to engage in BRM. Originality/value To the best of the authors’ knowledge, this is one of the first endeavors of its kind to empirically explore consumer attitude/motivation behind participation in reviving failing brands. The significance of this work is underscored by the fact that numerous dead brands are being brought back by companies because of consumer–brand co-creation movements.

How can trading stamp promotions entice customers?

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Weichen Teng
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Marketing Research ◽  
Sampling Bias ◽  
Customer Participation ◽  
Equation Modeling ◽  
Extensive Literature ◽  
Content Type ◽  
Perceived Effort ◽  
The Usa

Purpose Although trading stamps were popular in the USA and are still popular in some countries, few studies have investigated why customers are willing to participate in the promotional campaign despite the inconvenience of accumulating and storing stamps. The purpose of this paper is to examine the factors influencing customer participation in trading stamp campaigns. Design/methodology/approach Through an extensive literature review, a research model was proposed and its validity evaluated through structural equation modeling. An empirical investigation using a questionnaire survey was conducted among Taiwanese consumers. Findings The functional value of premiums and the enjoyment value of a campaign will directly entice a customer to participate, whereas a customer’s purchase intention will be enhanced due to the functional and emotional values of the premiums, social influence of the campaign and motivation to help others obtain premiums through gift-giving. However, the perceived effort to accumulate stamps will inhibit a customer from participating. Research limitations/implications The possibility of sampling bias may limit the applicability of the findings. Practical implications Effective trading stamp campaigns can be implemented by the careful design of premiums to emphasize their functional and emotional values and by emphasizing enjoyment and social values of the campaign. Originality/value This study aims to pioneer the application of the consumption value model in discussing trading stamp campaigns to fill the gap in marketing research. Another goal is to help retailers design successful campaigns.

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