IDEAS home Printed from https://ideas.repec.org/a/eee/ijrema/v28y2011i3p258-268.html

Two new methods for estimating structural equation models: An illustration and a comparison with two established methods

Author

Listed:
  • Lu, Irene R.R.
  • Kwan, Ernest
  • Thomas, D. Roland
  • Cedzynski, Marzena

Abstract

The application of structural equation models (SEMs) is common in marketing and the behavioral sciences. Accordingly, the exploration of more effective methods to estimate SEMs is also a popular area of research. Croon (2002) and Skrondal and Laake (2001) have each proposed a new method for estimating SEMs, but since these proposals nearly a decade ago, these methods have been mostly overlooked by applied researchers. We suggest that reasons for this oversight may include not only a lack of guidance in implementing these new methods but also the absence of a formal comparison to review these new methods relative to the more familiar maximum likelihood structural equation modeling (MLSEM) and partial least squares (PLS). In this paper, our goal was to make the Croon and Skrondal–Laake (SL) methods more accessible to applied researchers. We first provide a step-by-step illustration of how to implement the Croon and SL methods. We also present the first comprehensive evaluation of the new methods relative to MLSEM and PLS. From this evaluation, we can better appreciate the circumstances under which these new methods are preferable to MLSEM and PLS. Thus, we intend to help readers understand how and when to apply these new methods.

Suggested Citation

  • Lu, Irene R.R. & Kwan, Ernest & Thomas, D. Roland & Cedzynski, Marzena, 2011. "Two new methods for estimating structural equation models: An illustration and a comparison with two established methods," International Journal of Research in Marketing, Elsevier, vol. 28(3), pages 258-268.
    • Handle: RePEc:eee:ijrema:v:28:y:2011:i:3:p:258-268
    DOI: 10.1016/j.ijresmar.2011.03.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167811611000486
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijresmar.2011.03.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Rajdeep Grewal & Murali Chandrashekaran & F. Robert Dwyer, 2008. "Navigating Local Environments with Global Strategies: A Contingency Model of Multinational Subsidiary Performance," Marketing Science, INFORMS, vol. 27(5), pages 886-902, 09-10.
    2. Heungsun Hwang & Yoshio Takane, 2004. "Generalized structured component analysis," Psychometrika, Springer;The Psychometric Society, vol. 69(1), pages 81-99, March.
    3. Derek D. Rucker & Adam D. Galinsky, 2008. "Desire to Acquire: Powerlessness and Compensatory Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 257-267, April.
    4. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    5. Anders Skrondal & Petter Laake, 2001. "Regression among factor scores," Psychometrika, Springer;The Psychometric Society, vol. 66(4), pages 563-575, December.
    6. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    7. Jörg Henseler, 2010. "On the convergence of the partial least squares path modeling algorithm," Computational Statistics, Springer, vol. 25(1), pages 107-120, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarstedt, Marko & Wilczynski, Petra & Melewar, T.C., 2013. "Measuring reputation in global markets—A comparison of reputation measures’ convergent and criterion validities," Journal of World Business, Elsevier, vol. 48(3), pages 329-339.
    2. Becker, Jan-Michael & Ismail, Ida Rosnita, 2016. "Accounting for sampling weights in PLS path modeling: Simulations and empirical examples," European Management Journal, Elsevier, vol. 34(6), pages 606-617.
    3. Theo Dijkstra & Karin Schermelleh-Engel, 2014. "Consistent Partial Least Squares for Nonlinear Structural Equation Models," Psychometrika, Springer;The Psychometric Society, vol. 79(4), pages 585-604, October.
    4. Adrian T. H. Kuah & Yi Xia & Pengji Wang, 2022. "How Do Corporate Social Responsibility Engagements Drive Consumer–Company Identification in Singapore?," Sustainability, MDPI, vol. 14(10), pages 1-23, May.
    5. Bacq, Sophie & Alt, Elisa, 2018. "Feeling capable and valued: A prosocial perspective on the link between empathy and social entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 33(3), pages 333-350.
    6. Xiaohan Yan & Dongxiao Gu & Changyong Liang & Shuping Zhao & Wenxing Lu, 2018. "Fostering Sustainable Entrepreneurs: Evidence from China College Students’ “Internet Plus” Innovation and Entrepreneurship Competition (CSIPC)," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    7. Yount, Kathryn M. & Bergenfeld, Irina & Anderson, Katherine M. & Trang, Quach Thu & Sales, Jessica M. & Cheong, Yuk Fai & Minh, Tran Hung, 2022. "Theoretical mediators of GlobalConsent: An adapted web-based sexual violence prevention program for university men in Vietnam," Social Science & Medicine, Elsevier, vol. 313(C).
    8. Dongxiao Gu & Xuejie Yang & Xingguo Li & Hemant K. Jain & Changyong Liang, 2018. "Understanding the Role of Mobile Internet-Based Health Services on Patient Satisfaction and Word-of-Mouth," IJERPH, MDPI, vol. 15(9), pages 1-23, September.
    9. Tuzovic, Sven & Simpson, Merlin C. & Kuppelwieser, Volker G. & Finsterwalder, Jörg, 2014. "From ‘free’ to fee: Acceptability of airline ancillary fees and the effects on customer behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 98-107.
    10. M. Isabel Sánchez-Hernández & Tomás M. Bañegil-Palacios & Ramón Sanguino-Galván, 2017. "Competitive Success in Responsible Regional Ecosystems: An Empirical Approach in Spain Focused on the Firms’ Relationship with Stakeholders," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    11. Luo, Mingjie & Ma, Zhuanglin & Zhao, Wenjing & Enoch, Marcus & I-Jy Chien, Steven, 2022. "An ex-post evaluation of the public acceptance of a license plate-based restriction policy: A case study of Xi’an, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 259-282.
    12. Rainer Schlittgen & Marko Sarstedt & Christian M. Ringle, 2020. "Data generation for composite-based structural equation modeling methods," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 14(4), pages 747-757, December.
    13. Hair, Joseph F. & Astrachan, Claudia Binz & Moisescu, Ovidiu I. & Radomir, Lăcrămioara & Sarstedt, Marko & Vaithilingam, Santha & Ringle, Christian M., 2021. "Executing and interpreting applications of PLS-SEM: Updates for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    14. Yen, Barbara T.H. & Mulley, Corinne & Meza, Gerardo, 2023. "Exploring the attitudes and perceptions influencing user participation in gamification schemes for TDM," Research in Transportation Economics, Elsevier, vol. 99(C).
    15. M. Isabel Sánchez-Hernández & Juan José Maldonado-Briegas, 2019. "Sustainable Entrepreneurial Culture Programs Promoting Social Responsibility: A European Regional Experience," Sustainability, MDPI, vol. 11(13), pages 1-19, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    2. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    3. Philippe Cohard, 2020. "Information Systems Values: A Study of the Intranet in Three French Higher Education Institutions," Post-Print hal-02987225, HAL.
    4. Kusa, Rafał & Suder, Marcin & Duda, Joanna, 2023. "Impact of greening on performance in the hospitality industry: Moderating effect of flexibility and inter-organizational cooperation," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    5. DeMarree, Kenneth G. & Briñol, Pablo & Petty, Richard E., 2014. "The effects of power on prosocial outcomes: A self-validation analysis," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 20-30.
    6. Calabrò, Andrea & Campopiano, Giovanna & Basco, Rodrigo & Pukall, Thilo, 2017. "Governance structure and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation," European Management Journal, Elsevier, vol. 35(2), pages 238-248.
    7. Sarstedt, Marko & Wilczynski, Petra & Melewar, T.C., 2013. "Measuring reputation in global markets—A comparison of reputation measures’ convergent and criterion validities," Journal of World Business, Elsevier, vol. 48(3), pages 329-339.
    8. Seohee Park & Seongeun Kim & Ji Hoon Ryoo, 2020. "Latent Class Regression Utilizing Fuzzy Clusterwise Generalized Structured Component Analysis," Mathematics, MDPI, vol. 8(11), pages 1-16, November.
    9. Minerva Martínez Avila & Juan José García-Machado & Eréndira Fierro Moreno, 2021. "A Multiple Full Mediating Effect in a PLS Hierarchical Component Model: Application to the Collaborative Public Management," Mathematics, MDPI, vol. 9(16), pages 1-19, August.
    10. Elodie Gentina & Thomas Li-Ping Tang & Qinxuan Gu, 2018. "Do Parents and Peers Influence Adolescents’ Monetary Intelligence and Consumer Ethics? French and Chinese Adolescents and Behavioral Economics," Journal of Business Ethics, Springer, vol. 151(1), pages 115-140, August.
    11. Gyeongcheol Cho & Heungsun Hwang & Marko Sarstedt & Christian M. Ringle, 2020. "Cutoff criteria for overall model fit indexes in generalized structured component analysis," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(4), pages 189-202, December.
    12. van den Heuvel, Frank P. & Rivera, Liliana & van Donselaar, Karel H. & de Jong, Ad & Sheffi, Yossi & de Langen, Peter W. & Fransoo, Jan C., 2014. "Relationship between freight accessibility and logistics employment in US counties," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 91-105.
    13. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    14. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    15. Sandra Escamilla-Solano & Antonio Fernández-Portillo & Jessica Paule-Vianez & Paola Plaza-Casado, 2019. "Effect of the Disclosure of Corporate Social Responsibility on Business Profitability. A Dimensional Analysis in the Spanish Stock Market," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    16. Rodríguez-Pinto, Javier & Carbonell, Pilar & Rodríguez-Escudero, Ana I., 2011. "Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 145-154.
    17. M. Isabel Sánchez-Hernández & Tomás M. Bañegil-Palacios & Ramón Sanguino-Galván, 2017. "Competitive Success in Responsible Regional Ecosystems: An Empirical Approach in Spain Focused on the Firms’ Relationship with Stakeholders," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    18. Rezaei, Sajad, 2015. "Segmenting consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 1-15.
    19. Wang, Yi & Chen, Yang & Benitez-Amado, Jose, 2015. "How information technology influences environmental performance: Empirical evidence from China," International Journal of Information Management, Elsevier, vol. 35(2), pages 160-170.
    20. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijrema:v:28:y:2011:i:3:p:258-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-research-in-marketing/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.