Does my structural model represent the real phenomenon?: a review of the appropriate use of Structural Equation Modelling (SEM) model fit indices

2009 ◽  
Vol 9 (3) ◽  
pp. 199-212 ◽  
Author(s):  
Ramendra Singh
Author(s):  
Ho Yin Wong ◽  
Anthony Perrone

The aim of this study is to undertake empirical research investigating the nature and magnitude of the determinants of word-of-mouth behaviour from the point of view of service performance and post-purchase perceptions. A quantitative study was undertaken. A theoretical model linking service quality issues and word-of-mouth behaviour was developed and tested using structural equation modelling of 280 surveyed participants at various day spa locations. All major fit indices from structural equation modelling methods show satisfactory results for the measurement and structural models. The results confirm significant relationships between the constructs in the model. While the quality of the product, customer service, and servicescape atmosphere lead to customer satisfaction, it is servicescape atmosphere and customer satisfaction that drive word-of-mouth behaviour. The results of this study provide insights to aid service providers and marketing professionals in the service industry in fully understanding that the enhancement of the delivery of high quality service, an accommodating environment, and instilling feelings of satisfaction with their customers will more likely lead to positive word-of-mouth referrals. One major limitation is that the survey was conducted within one industry in one country. The major value of this chapter is the establishment of the role of service quality on word-of-mouth behaviour. This research provides empirical results of the impacts of service performance and post-purchase perceptions on word-of-mouth behaviour.


2019 ◽  
Vol 45 ◽  
Author(s):  
Pieter Schaap

Orientation: The rigid application of conventional confirmatory factor analysis (CFA) techniques, the overreliance on global model fit indices and the dismissal of the chi-square statistic appear to have an adverse impact on the research of psychological ownership measures.Research purpose: The purpose of this study was to explicate the South African Psychological Ownership Questionnaire’s (SAPOS’s) CFA model fit using the Bayesian structural equation modelling (BSEM) technique.Motivation for the study: The need to conduct this study derived from a renewed awareness of the incorrect use of the chi-square statistic and global fit indices of CFA in social sciences research.Research approach/design and method: The SAPOS measurement model fit was explicated on two study samples consisting, respectively, of 712 and 254 respondents who worked in various organisations in South Africa. A Bayesian approach to CFA was used to evaluate if local model misspecifications were substantive and justified the rejection of the SAPOS model.Main findings: The findings suggested that a rejection of the SAPOS measurement model based on the results of the chi-square statistic and global fit indices would be unrealistic and unfounded in terms of substantive test theory.Practical/managerial implications: BSEM appeared to be a valuable diagnostic tool to pinpoint and evaluate local CFA model misspecifications and their effect on a measurement model.Contribution/value-add: This study showed the importance of considering local misspecifications rather than only relying the chi-square statistic and global fit indices when evaluating model fit.


2016 ◽  
Vol 8 (5(J)) ◽  
pp. 222-239
Author(s):  
Bokang Ncube ◽  
Ntebogang Dinah Moroke

The purpose of the study is to investigate the structural relationships among constructs of the statistics attitudes-outcomes model (SA-OM) using exploratory structural equation modelling (ESEM) methodology. The sample consists of 583 first-year undergraduate students enrolled for statistics courses at the university in South Africa. ESEM reveal that all but two of the nine constructs have well to excellent reliability. To enhance the model, we deleted the eight variables. All other indicators have a significant loading into a construct. Congruency of the SA-OM and expectancy value model (EVM) is noted. The SRMR for all modified models are less than 0.10 suggesting that all these models have acceptable fit. Moreover, all the modified models have RMSE values within the ranges of adequate fit. On the contrary, all the models have unacceptable fit according to PCF, CFI, AGFI and PGFI statistics, i.e. according to all parsimony fit indices except the RMSE. The results also reveal that all incremental fit indices but the BBNFI approve the modified models as acceptable since most of these indices are almost equal to a cut-off point of 0.9. However, BBNNI disapprove the ML3 and ML5 models as being acceptable. A host of inconsistencies in fit indices are noted.


2020 ◽  
Vol 7 (1) ◽  
pp. 1-27
Author(s):  
Marta Mas-Machuca ◽  
◽  
Frederic Marimon

The objective of this paper is to analyse the process of the definition and deployment of a company’s mission, to obtain a better understanding of the employees’ role. On the basis of the literature investigating the dimensions of the internalization of a mission (leadership, importance, knowledge, co-workers’ engagement and implication), the paper proposes a model that shows the cause and effect relationships among these dimensions. A survey addressed to Spaniards was launched, and 400 valid responses were received. The data was analysed using Structural Equation Modelling (SEM) for an initial model that shows the causal relations among the dimensions for the internalization of a mission. An array of Lagrange multiplier tests suggested modifications for refining the model and proposed one with acceptable fit indices, where the last dimension to be accomplished is “Implication”. The findings show a direct effect between “Leadership” and “Implication”, and double mediation. On the one hand, there is second order mediation through “Knowledge” and “Importance”. On the other hand, there is mediation through “Co-workers’ engagement”. This sequencing among the five dimensions of the internalization of the mission gives new clues and evidence for managers that will help them to define and implement a successful mission statement.


2016 ◽  
Vol 47 (1) ◽  
pp. 23-34 ◽  
Author(s):  
Frederick Stander ◽  
Sebastiaan Rothmann ◽  
Elrie Botha

Information is needed regarding the antecedents and outcomes of flourishing, particularly in sports contexts, where the study of this optimal well-being state has remained largely unexplored. This study examined the role of strength use to facilitate flourishing, enhance team embeddedness, and counter withdrawal behaviour of athletes. It further investigated the role of flourishing to retain athletes to their sport and teams and examined the role of team embeddedness in this relationship. A cross-sectional research design was utilised with structural equation modelling to assess model fit and examine postulated relationships. The sample comprised 235 student athletes. The results suggested that team strength use predicts flourishing. It further revealed positive paths to team embeddedness from both individual and team strength use. Flourishing was also positively related to team embeddedness. Lastly, a negative association was found between team embeddedness and withdrawal behaviour among the athletes.


2016 ◽  
Vol 8 (1(J)) ◽  
pp. 58-68
Author(s):  
Sanjana Brijball Parumasur ◽  
Nabendra Parumasur

This study develops and validates a scale to assess the impact of consumer confidence and persuasibility on dissonance and applies the instrument to high-end consumers. It also assesses the relationship between consumer confidence and persuasibility as these constructs merge to influence dissonance. A sample of 200 new motor vehicle buyers who purchased from a leading and reputable motor vehicle company in KwaZulu-Natal, South Africa, was drawn using stratified random sampling based on range of motor vehicle (bottom, middle, top). Initially, exploratory factor analysis (EFA) was used to extract the factors. The reliability of the modified questionnaire was then assessed using Cronbach’s Coefficient Alpha. Thereafter, confirmation factor analysis (CFA) was undertaken to develop and test the model structure in SEM, which generated a good model fit. Pearson r was computed to assess the relationship amongst the dimensions. Using structural equation modelling, the results support a significant relationship between consumer persuasibility and dissonance and a significant but inverse relationship between consumer confidence and dissonance, and confidence and persuasibility respectively.


Author(s):  
Lilian Macha

This study examines the Tanzania citizens’ participation in domestic tourism. The study was based on the Social Exchange Theory and its components of trust on transport and destination visit price. The choice of the theory aimed to overcome possible limitations of using the theory in Tanzania. The study extends the applicability of the component of Social Exchange Theory to include additional construct such destination visit price (DVP) variable as a mediator. Data collection questionnaires were distributed to 400 respondents in Dar es Salaam, Arusha and Bagamoyo. Being a quantitative study, Structure Equation Modelling (SEM) was deployed to establish whether trust infrastructure (TI) and destination visit price (DVP) lead to the participation of Tanzania citizens in domestic tourism (PDT). The results of the study show that the measurement and structural model exhibited better model fit indices. The relationship between trust on transport results to participation in domestic tourism through destination visit price (DVP). It is recommended that the variables analyzed in this study be recognition for influencing the participation of Tanzania citizens in domestic tourism. 


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