EconPapers    
Economics at your fingertips  
 

The Use And Misuse Of Structural Equation Modeling In Management Research

Nebojsa Davcik

No 13-07, Working Papers Series 2 from ISCTE-IUL, Business Research Unit (BRU-IUL)

Abstract: The research practice in management research is dominantly based on structural equation modeling, but almost exclusively, and often misguidedly, on covariance-based SEM. We adumbrate theoretical foundations and guidance for the two SEM streams: covariance-based, also known as LISREL, covariance structure analysis, latent variable analysis, etc.; and variance-based SEM, also known as a component-based SEM, PLS, etc. Our conceptual framework discusses the two streams by analysis of theory, measurement model specification, sample and goodness-of-fit. We question the usefulness of Cronbach’s alpha research paradigm and discuss alternatives that are well-established in social science, but not well-known in the management research community. We conclude with discussion of some open questions in management research practice that remain under-investigated and unutilized.

Keywords: Structural equation modeling; covariance- and variance-based SEM; formative and reflective indicators; LISREL; PLS (search for similar items in EconPapers)
JEL-codes: C18 C3 M0 (search for similar items in EconPapers)
Date: 2013-09-13
New Economics Papers: this item is included in nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://bru-unide.iscte.pt/RePEc/pdfs/13-07.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://bru-unide.iscte.pt/RePEc/pdfs/13-07.pdf [302 Found]--> https://bru.iscte-iul.pt/RePEc/pdfs/13-07.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isc:iscwp2:bruwp1307

Access Statistics for this paper

More papers in Working Papers Series 2 from ISCTE-IUL, Business Research Unit (BRU-IUL) Contact information at EDIRC.
Bibliographic data for series maintained by Henrique Monteiro ().

 
Page updated 2024-07-01
Handle: RePEc:isc:iscwp2:bruwp1307