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This article deals with how to test for and evaluate interdependence among control practices in a management control system using structural equation modeling. Empirical research on the levers of control (LOC) framework is used as an example. In LOC research, a path model approach to interdependence has been developed. The appropriateness of this approach is evaluated, developed, and compared with the correlation of residuals approach (seemingly unrelated regression) implemented in the wider complementarity literature. Empirical examples of the different models are shown and compared by using a data set on LOC of 120 SBUs in Sweden. The empirical results show that modeling interdependence among control practices in a management control system as non-recursive (bi-directional) paths or as residual correlations evidently affects the conclusions drawn about interdependence in terms of both presence and magnitude. The two models imply different views on how to conceptualize interdependence and are not statistically and empirically comparable. If using non-recursive path models, several model specification issues appear. To be able to identify such models, this needs to be carefully considered in the theory and research design prior to data collection.

Suggests that, as a service industry, education must pay attention to the quality of its “products” and its relationships with its “customers”. Investigates students’ perceptions of the quality of lectures offered in an institute imparting professional courses. Identifies the importance of various quality attributes and the level of student satisfaction as they relate to post‐lecture intentions.

The purpose of this paper is to provide a better understanding of the antecedents of organisational performance (OP), both financial and marketing, and the influence of holding a strategic market orientation (MO) where customer‐base volatility is taken into account.

A sample of 167 marketing organisations in Australia was surveyed to test the hypothesised model. Structural equation modelling was employed in the data analysis.

Use of the world wide web (Web) reported by organisations in this study indicates that there is still separate use of the Web and that it has yet to be fully integrated into the marketing strategy of many organisations. The study finds that traditional marketing effort mediates the relationship between holding a MO and OP in terms of financial indicators.

A major limitation of this study is that it surveys organisations from many industries rather than selected industries. This tends to mask some of the possible outcomes.

The findings in this study suggest that traditional and online elements of marketing effort each mediate the influence of holding a MO on OP, but differently. Innovation culture is found to influence both marketing practice and marketing performance, directly. A single measure of environmental turbulence – customer‐base turbulence or churn – negatively affects marketing performance, and ultimately financial performance.

A major contribution of this study is the examination of use of the Web in marketing effort and how this usage influences financial and marketing performance.

The direction of causality between job satisfaction and job performance (known as the holy grail of industrial psychologists) is undetermined and related research findings in different organizational contexts are mixed. Based on the ample literature, mainly from Western countries, on the relationship between job satisfaction and job performance, a non-recursive bow pattern model was utilized to investigate the direct relationship between these two variables in an Asia–Pacific higher education system.

This study is quantitative in approach and survey in design. Additionally, to meet the statistical requirements of non-recursive bow pattern analysis, the authors added welfare as a theory-driven instrumental variable to introduce exogenous variability. Using the efficient partial least squares (PLSe2) estimator, the authors fitted the model to the data collected from 2008 academics affiliated with Malaysian public universities and polytechnics.

The results showed that while job satisfaction is considerably influenced by welfare, it is not a significant predictor of job performance directly. In addition, a meaningful positive correlation between the disturbance terms of job satisfaction and job performance was observed, suggesting the existence of other factors that could increase both job satisfaction and job performance. The findings' theoretical and practical implications are discussed, and a list of theory-driven evidenced-based policies in this regard is provided.

This is the first study to test a non-recursive bow pattern model and examine the holy grail of industrial psychology based on the PLSe2 methodology, as a parametric approach to partial least squares (PLS), in a higher education context. This study also provides higher education researchers with the advantages of the PLSe2 method, especially in causal-predictive modeling, in the context of applied higher education research.

The purpose of this paper is to investige whether online environment cues (web site quality and web site brand) affect customer purchase intention towards an online retailer and whether this impact is mediated by customer trust and perceived risk. The study also aimed to assess the degree of reciprocity between consumers' trust and perceived risk in the context of an online shopping environment.

The study proposed a research framework for testing the relationships among the constructs based on the stimulus‐organism‐response framework. In addition, this study developed a non‐recursive model. After the validation of measurement scales, empirical analyses were performed using structural equation modelling.

The findings confirm that web site quality and web site brand affect consumers' trust and perceived risk, and in turn, consumer purchase intention. Notably, this study finds that the web site brand is a more important cue than web site quality in influencing customers' purchase intention. Furthermore, the study reveals that the relationship between trust and perceived risk is reciprocal.

This study adopted four dimensions – technical adequacy, content quality, specific content and appearance – to measure web site quality. However, there are still many competing concepts regarding the measurement of web site quality. Further studies using other dimensional measures may be needed to verify the research model.

Online retailers should focus their marketing strategies more on establishing the brand of the web site rather than improving the functionality of the web site.

This study proposed a non‐recursive model for empirically analysing the link between web site quality, web site brand, trust, perceived risk and purchase intention towards the online retailer.

The author analyzes households' inflation expectations data for India, collected quarterly by the RBI for more than a decade. The contribution of this paper lies in two folds. First, this study examines the relationship between relatively recent inflation expectations survey of households (IESH) and the actual inflation for India. Secondly, the author employs a structural VAR with the time period 2006 Q2 to 2020 Q2 on inflation expectation survey data of India. A short-term non-recursive restriction is imposed in the model in order to capture the simultaneous co-dependence causal effect of inflation expectation and realized inflation.

This paper studies the dynamic behavior of inflation expectations survey data in two folds. First, the author analyzes the time series property of the survey data. The author begins with testing the stationarity property of the series, followed by the casual relationship between the expected and actual inflation. The author further examines the short-run and long-run behavior of the IESH with actual inflation. Employing autoregressive distributed lag and Johansen co-integration, the author tested if a long-run relationship exists between the variables. In the second approach, the author investigates the determinants of inflation expectations by employing a non-recursive SVAR model.

The preliminary explanatory test reveals that inflation expectation is a policy variable and should be used in monetary policy as an instrument variable. The model identifies the price puzzle for India. The author finds that the response of inflation to a monetary policy shock is neutral. The results also indicate that the expectations of the general public are self-fulfilling.

IESH has only commenced from September 2005, hence is relatively new as compared to other survey in developed countries. Being a new data set so far, the author could not locate any study devoted in analyzing the behavior of the data with other macroeconomic variables.

Sustainability has become a priority for companies due to pressure from multiple stakeholders. In an overly competitive market, shareholders push for economic results, allowing lean manufacturing to establish itself as dominant paradigm in manufacturing. However, concerns grow regarding how lean implementation can allow companies to achieve sustainable development goals, or, if the resources required for a successful lean implementation can result in a detriment of environmental and social performance. This paper intends to help close the knowledge gap regarding the effects of lean manufacturing on sustainable performance from a triple bottom line perspective, and how operational, environmental and social outcomes interact between themselves.

Two models for the interaction between lean and sustainability were proposed. The first is called the “sand-cone” model, which poses that performance improvements derived from lean are cumulative on each one of the sustainability dimensions. The second is called the “trade-offs” approach. In this case, the resources required to improve one dimension of sustainability clash with those required by the others. Data were gathered from a sample of 133 Colombian metalworking companies and processed using structural equations models.

The results support the cumulative “sand-cone”, which follows a sequence of operational-environmental-social improvement in the presence of lean. For the “trade-offs” model, partial evidence suggests that they can occur in detriment of social performance.

The “sand-cone” and “trade-offs” are empirically tested for the first time in the context of sustainability, providing further knowledge into its interaction with lean manufacturing. The models’ results contribute to practitioners by providing a tested path for companies to improve their performance in a cumulative sequence that will provide better long-term results.

Partial least squares (PLS) path modeling is a variance-based structural equation modeling (SEM) technique that is widely applied in business and social sciences. Its ability to model composites and factors makes it a formidable statistical tool for new technology research. Recent reviews, discussions, and developments have led to substantial changes in the understanding and use of PLS. The paper aims to discuss these issues.

This paper aggregates new insights and offers a fresh look at PLS path modeling. It presents new developments, such as consistent PLS, confirmatory composite analysis, and the heterotrait-monotrait ratio of correlations.

PLS path modeling is the method of choice if a SEM contains both factors and composites. Novel tests of exact fit make a confirmatory use of PLS path modeling possible.

This paper provides updated guidelines of how to use PLS and how to report and interpret its results.

This chapter provides an empirical investigation into the process by which subsidiaries in multinational firms add capabilities in a given line of business. We describe the process of subsidiary capability development as a non-recursive relationship between the parent's transfer of decision-making power and capability development, which then affects subsidiary performance. The empirical results from survey data confirm such mutually reinforcing mechanisms and highlight the importance of both external and internal forces that facilitate or impede the developmental process.