Structural Equation Modeling as a Basis for Theory Development within Logistics and Supply Chain Management Research

Carl Marcus Wallenburg () and Jürgen Weber ()
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Carl Marcus Wallenburg: Otto Beisheim Graduate School of Management (WHU)
Jürgen Weber: Otto Beisheim Graduate School of Management (WHU)

A chapter in Research Methodologies in Supply Chain Management, 2005, pp 171-186 from Springer

Abstract: Summary Despite the recent debate on theories, logistics and SCM research still lacks a focus on theory development. Research will undoubtedly advance through rigorous empirical approaches, such as the use of structural equation modeling (SEM) within theory construction. SEM is well established in many fields of economic research, as it allows for validity of the structures and constructs in proposed theoretical models to be tested. This paper discusses the contribution of SEM to theory development and presents guidelines for the application of SEM to analyze both measurement and structural models. It exemplifies the use of SEM to capture and analyze the impact of logistics on the performance of companies. Based on a sample of 245 German companies, it emerges that logistics service levels have a greater impact on the performance of companies than logistics costs.

Keywords: Structural Equation Modeling; Theory Development; Firm Performance; Logistics Services; Logistics Costs (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-7908-1636-5_12

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DOI: 10.1007/3-7908-1636-1_12

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