Variance-Based Structural Equation Modeling

Author(s):  
José L. Roldán ◽  
Manuel J. Sánchez-Franco

Partial Least Squares (PLS) is an efficient statistical technique that is highly suited for Information Systems research. In this chapter, the authors propose both the theory underlying PLS and a discussion of the key differences between covariance-based SEM and variance-based SEM, i.e., PLS. In particular, authors: (a) provide an analysis of the origin, development, and features of PLS, and (b) discuss analysis problems as diverse as the nature of epistemic relationships and sample size requirements. In this regard, the authors present basic guidelines for the applying of PLS as well as an explanation of the different steps implied for the assessment of the measurement model and the structural model. Finally, the authors present two examples of Information Systems models in which they have put previous recommendations into effect.

2015 ◽  
Vol 7 (2) ◽  
pp. 113-130 ◽  
Author(s):  
Ned Kock

The partial least squares (PLS) method has been extensively used in information systems research, particularly in the context of PLS-based structural equation modeling (SEM). Nevertheless, our understanding of PLS algorithms and their properties is still progressing. With the goal of improving that understanding, we provide a discussion on the treatment of reflective and formative latent variables in the context of three main algorithms used in PLS-based SEM analyses –PLS regression, PLS Mode A, and PLS Mode B. Two illustrative examples based on actual data are presented. It is shown that the “good neighbor” assumption underlying modes A and B has several consequences, including the following: the inner model influences the outer model in a way that increases inner model coefficients of association and collinearity levels in tandem, and makes measurement model analysis tests dependent on structural model links; instances of Simpson’s paradox tend to occur with Mode B at the latent variable level; and nonlinearity is improperly captured. In spite of these mostly detrimental outcomes, it is argued that modes A and B may have important and yet unexplored roles to play in PLS-based structural equation modeling analyses.


Author(s):  
João Corrêa ◽  
João Turrioni ◽  
Carlos Mello ◽  
Ana Santos ◽  
Carlos da Silva ◽  
...  

The purpose of this study is to develop and validate a measurement model that evaluates the Brazilian hospital accreditation methodology (ONA), based on a multivariate model using structural equation modeling (SEM). The information used to develop the model was obtained from a questionnaire sent to all organizations accredited by the ONA methodology. A model was built based on the data obtained and tested through a structural equation modeling (SEM) technique using the LISREL® software (Scientific Software International, Inc., Skokie, IL, USA). Four different tests were performed: Initial, calibrated, simulated, and cross-validation models. By analyzing and validating the proposed measurement model, it can be verified that the selected factors satisfy the required criteria for the development of a structural model. The results show that leadership action is one of the most important factors in the process of health services accredited by ONA. Although, leadership, staff management, quality management, organizational culture, process orientation, and safety are strongly linked to the development of health organizations, and directly influence the accreditation process.


InFestasi ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 321
Author(s):  
Jullie J. Sondakh

<p class="Ventura-Abstract">The purpose of this research is to predict the tax payer behavioral intention of using the e-SPT through the application of Technology Acceptance Model (TAM).</p><p class="Ventura-Abstract">This research used survey method to collect primary data from the population of tax payer in the city of Manado and Bitung with 156 respondents while using judgement sampling method.The data analysis is using Structural Equation Modeling (SEM) that consists of two steps; the measurement model and structural model. The focus of this research is on the first step of SEM modeling, which is the measurement model by using the Confirmatory Factor Analysis (CFA). The purpose of this analysis is to test the validity and reliability from the indicator of the construct or latent variable researched, thus, we will obtain the fit construct or latent variable before proceeding to the next step of SEM which is the structural model.Based on the confirmatory factor analysis (CFA), we obtained the validity test result, convergent validity, and reliability test result, construct reliability and variance extracted, from the indicator of construct or latent variable which are perceived usefulness, perceived ease of use, attitude towards e-SPT, and behavioral intention to use e-SPT. The reliabilty and validity test result showed that there is no indicator from all the tested latent variable to be excluded for the next step of Structural Equation Modeling (SEM)  which is the structural model.</p><p class="Ventura-Abstract"> </p><p class="Ventura-Abstract">Tujuan penelitian ini adalah melakukan prediksi minat perilaku wajib pajak menggunakan  e-SPT melalui penerapanTechnology Acceptance Model (TAM). Penelitian ini menggunakan metode survei untuk mengumpulkan data primer dari populasi yaitu wajib pajak di Kota Manado dan Bitung dengan jumlah sampel sebanyak 156 responden serta penentuan sampel berdasarkan metode  judgment sampling. Teknik analisis data menggunakan pemodelan Structural Equation Modeling (SEM) yang terdiri  dari dua tahapan yaitu model pengukuran (measurement model) dan model struktural (structural model). Fokus penelitian ini adalah pada pemodelan SEM tahap pertama yaitu model pengukuran (measurement model)  melalui  analisis faktor konfirmatori (Confirmatory Factor Analysis - CFA). Analisis ini  bertujuan  untuk menguji validitas dan reliabilitas dari indikator-indikator pembentuk konstruk atau variabel laten yang diteliti sehingga diperoleh  konstruk atau variabel laten yang fit  sebelum lanjut ke tahap pemodelan SEM berikutnya  yaitu model struktural. Berdasarkan analisis faktor konfirmatori (Confirmatory Factor Analysis - CFA) diperoleh hasil uji validitas yaitu signifikansi  factor loading (convergent validity) dan reliabilitas (construct reliability dan variance extracted) dari indikator pembentuk konstruk atau variabel laten kegunaan persepsian (Perceived Usefulness), kemudahan penggunaan persepsian (Perceived ease of use), sikap terhadap penggunaan  e-SPT (Attitude towards e-SPT) dan  minat perilaku  menggunakan e-SPT (Behavioral intention to use e-SPT). Hasil uji validitas dan reliabilitas ini menunjukan bahwa tidak ada indikator dari variabel kegunaan persepsian (Perceived Usefulness), kemudahan penggunaan persepsian (Perceived ease of use), sikap terhadap penggunaan  e-SPT (Attitude towards e-SPT) dan  minat perilaku  menggunakan e-SPT (Behavioral intention to use e-SPT) yang di hilangkan pada analisis selanjutnya yaitu pemodelan Structural Equation Modeling (SEM) tahap kedua  sehingga  dapat dilakukan estimasi model persamaan struktural (structural model).</p>


2016 ◽  
Vol 46 (3) ◽  
pp. 338-352 ◽  
Author(s):  
Peyman Akhavan ◽  
Farnoosh Khosravian

Purpose It is commonly known that intellectual capital (IC) plays a remarkable role in organizations, especially in colleges and academic centers. The purpose of this study is to investigate the effects of knowledge sharing (KS) on IC. Design/methodology/approach Based on the extensive literature review, a questionnaire was designed. The questions were composed of two parts; KS questions and IC questions. In total, 352 students completed questionnaires in the Shahinshahr branch of Payam-e-Noor University. Structural equation modeling was used to develop the measurement model. Findings The findings showed that KS has a significant positive correlation with IC and its dimensions. The structural equation modeling confirmed the research model and showed a good match with it. Originality/value Given that this study aimed to examine KS and IC, it implies that with optimized knowledge management in universities, providing the infrastructures of KS and strengthening students’ motivational factors, KS capacities can be enhanced and IC of universities would be strengthened.


Author(s):  
Nina Fei ◽  
Youlong Yang ◽  
Xuying Bai

Structural equation modeling (SEM) is a system of two kinds of equations: a linear latent structural model (SM) and a linear measurement model (MM). The latent structure model is a causal model from the latent parent node to the latent child node. Meanwhile, MM’s link is from latent variable parent node to observed variable child node. However, researchers should determine the initial causal order between variables based on experience when applying SEM. The main reason is that SEM does not fully construct causal models between observed variables (OVs) from big data. When the artificial causal order is contrary to the fact, the causal inference from SEM is doubtful, and the implicit causal information between the OVs cannot be extracted and utilized. This study first objectively identifies the causal order of variables using the DirectLiNGAM method widely accepted in recent years. Then traditional SEM is converted to expanded SEM (ESEM) consisting of SM, MM and observation model (OM). Finally, through model testing and debugging, ESEM with good fit with data is obtained.


1995 ◽  
Vol 16 (3) ◽  
pp. 178-183 ◽  
Author(s):  
Alan D. Moore

Structural equation modeling is a method for analysis of multivariate data from both nonexperimental and experimental research. the method combines a structural model linking latent variables and a measurement model linking observed variables with latent variables. its use in special education research has been limited to date, but the approach offers promise as a method useful in theory-based research. a nontechnical introduction to the method and cautions concerning the limits of its use are presented.


Author(s):  
Theresa M. Edgington ◽  
Peter M. Bentler

Structural Equation Modeling (SEM) continues to grow in use as an important research analysis tool in Information Systems research. While evaluating SEM results and interpreting them depends on a variety of reported details, SEM results continue to be reported in an inconsistent manner. Key reporting elements are discussed with regard to contemporary practices which can serve as a guide for future submissions and reviewing. This chapter contributes to the literature by providing an overview of important considerations in reporting results from covariance-based structural equation modeling execution and analysis. It incorporates models and other examples of EQS, one of the leading SEM software applications. While EQS is increasingly used by IS researchers, exemplars of its code and output have not been well published within the IS community, overly complicating the reviewing process for these papers.


Author(s):  
Nicholas Roberts ◽  
Varun Grover

Structural equation modeling (SEM) techniques have significant potential for assessing and modifying theoretical models. There have been 171 applications of SEM in IS research, published in major journals, most of which have been after 1994. Despite SEM’s surging popularity in the IS field, it remains a complex tool that is often mechanically used but difficult to effectively apply. The purpose of this study is to review previous applications of SEM in IS research and to recommend guidelines to enhance the use of SEM to facilitate theory development. The authors review and evaluate SEM applications, both component-based (e.g., PLS) and covariance-based (e.g., LISREL), according to prescribed criteria. Areas of improvement are suggested which can assist application of this powerful technique in IS theory development.


2018 ◽  
Vol 21 (4) ◽  
pp. 1087-1112 ◽  
Author(s):  
Subash Chandra Pattnaik ◽  
Rashmita Sahoo

The purpose of this research article is to examine the relationship between human resource (HR) practices and organizational performance. Though this research theme has been extensively researched in Western countries, very limited research has been done in the prevailing HRM scenario obtained in developing economies, especially in India. Hence, this article attempts to study the relationship and fill this research gap. A two-stage structural equation modeling (SEM) has been used to study this relationship. In the first stage, the proposed measurement model is validated through confirmatory factor analysis (CFA) and, in the second, the structural model examines the hypothesized relationship between the HR practices and organizational performance. It is found that the two are positively related. The findings of this study strengthen existing literature in the area and have important implications for managers engaged in HR functions.


2005 ◽  
Vol 28 (3) ◽  
pp. 295-309 ◽  
Author(s):  
Ron D. Hays ◽  
Dennis Revicki ◽  
Karin S. Coyne

This article provides an overview of the basic underlying principles of structural equation modeling (SEM). SEM models have two basic elements: a measurement model and a structural model. The measurement model describes the associations between the indicators (observed measures) of the latent variables, whereas the structural model delineates the direct and indirect substantive effects among latent variables and between measured and latent variables. The application of SEM to health outcomes research is illustrated using two examples: (a) assessing the equivalence of the SF-36 and patient evaluations of care for English- and Spanish-language respondents and (b)evaluating a theoretical model of health in myocardial infarction patients. The results of SEM studies can contribute to better understanding of the validity of health outcome measures and of relationships between physiologic, clinical, and health outcome variables.


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