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

In: Research Methodologies in Supply Chain Management

Author

Listed:
  • Carl Marcus Wallenburg

    (Otto Beisheim Graduate School of Management (WHU))

  • Jürgen Weber

    (Otto Beisheim Graduate School of Management (WHU))

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.

Suggested Citation

  • Carl Marcus Wallenburg & Jürgen Weber, 2005. "Structural Equation Modeling as a Basis for Theory Development within Logistics and Supply Chain Management Research," Springer Books, in: Herbert Kotzab & Stefan Seuring & Martin Müller & Gerald Reiner (ed.), Research Methodologies in Supply Chain Management, pages 171-186, Springer.
    • Handle: RePEc:spr:sprchp:978-3-7908-1636-5_12
    DOI: 10.1007/3-7908-1636-1_12
    as

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