Contemporary process to test the theory of a research model through covariance-based structural equation modeling in business research: Is it science, quasi-science or just non-science …?

Abstract

Purpose

The purpose of this paper is to describe potential flaws and pitfalls in the contemporary process of testing the theory of a research model in business research through the use of covariance-based structural equation modeling (CB-SEM).

Design/methodology/approach

This paper offers a foundation for discussion, debate and questioning regarding the contemporary process of testing the theory of a research model in business research through CB-SEM.

Findings

The contemporary process to test theory of a research model through CB-SEM in business research lacks to a large extent a stepwise and iterative process of an accumulation of knowledge to build sound and rigorous business theory that is both reliable and valid over time as well as across contexts.

Research limitations/implications

This paper provides an awakening toward further debate and discussion on the relevance and suitability of the contemporary process to test the theory of a research model through CB-SEM in business research – is it science, quasi-science or just nonsense?

Practical implications

The primary implication of this paper is that its content will challenge most readers ' preconceptions of the topic and stimulate debate. Subsequently, it is the author’s hope that the content is thought-provoking and counterintuitive. Some scholars might reject the content, while others may find it valuable.

Originality/value

The paper intends to provide counterintuitive thoughts regarding the contemporary process of testing the theory of a research model in business research through the use of CB-SEM. CB-SEM offers potentially valuable merits in business research settings, if applied and performed properly.

Citation

Svensson, G. (2015), "Contemporary process to test the theory of a research model through covariance-based structural equation modeling in business research: Is it science, quasi-science or just non-science …?", European Business Review, Vol. 27 No. 4, pp. 447-458. https://doi.org/10.1108/EBR-08-2013-0104