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Book part
Publication date: 1 August 2004

Larry J Williams, Mark B Gavin and Nathan S Hartman

The objective of this chapter is to provide strategy researchers with a general resource for applying structural equation modeling (SEM) in their research. This objective…

Abstract

The objective of this chapter is to provide strategy researchers with a general resource for applying structural equation modeling (SEM) in their research. This objective is important for strategy researchers because of their increased use of SEM, the availability of advanced SEM approaches relevant for their substantive interests, and the fact that important technical work on SEM techniques often appear in outlets that may not be not readily accessible. This chapter begins with a presentation of the basics of SEM techniques, followed by a review of recent applications of SEM in strategic management research. We next provide an overview of five types of advanced applications of structural equation modeling and describe how they can be applied to strategic management topics. In a fourth section we discuss technical developments related to model evaluation, mediation, and data requirements. Finally, a summary of recommendations for strategic management researchers using SEM is also provided.

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Research Methodology in Strategy and Management
Type: Book
ISBN: 978-1-84950-235-1

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Book part
Publication date: 13 August 2012

Mehmet Mehmetoglu

Tourism research contains a large share of consumer behavior-orientated studies using multidimensional constructs (exogenous/endogenous). Accordingly, scholars have mainly…

Abstract

Tourism research contains a large share of consumer behavior-orientated studies using multidimensional constructs (exogenous/endogenous). Accordingly, scholars have mainly made use of a two-step approach that can be referred to as PCA-MLR (principal component analysis and then ordinary least squares multiple linear regression analysis) to examine the relationships among exogenous and endogenous constructs in a statistical model. Although this two-step approach has contributed to the advancement of tourism research, it still suffers from a number of drawbacks which can readily be overcome by a so-called second-generation statistical tool, namely, partial least squares approach to structural equation modeling (PLS-SEM). The current chapter explains and illustrates (with an application to tourism data) the advantages (e.g., several layers of estimations, suiting small sample sizes, robustness to multicollinearity, model-based clustering, etc.) of PLS-SEM both from a statistical and practical point of view. Finally, an elucidation is also provided for suggesting PLS-SEM as an alternative to PCA-MLR instead of COV-SEM (covariance-based structural equation modeling). The chapter concludes by proposing that PLS-SEM is a reliable and flexible statistical approach that is of high value, in particular, for applied research.

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Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-78052-936-3

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Article
Publication date: 8 June 2015

Göran Svensson

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…

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.

Details

European Business Review, vol. 27 no. 4
Type: Research Article
ISSN: 0955-534X

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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

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E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

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Article
Publication date: 12 November 2018

Ahmet Usakli and Kemal Gurkan Kucukergin

The purpose of this study is to review the use of partial least squares-structural equation modeling (PLS-SEM) in the field of hospitality and tourism and thereby to…

Abstract

Purpose

The purpose of this study is to review the use of partial least squares-structural equation modeling (PLS-SEM) in the field of hospitality and tourism and thereby to assess whether the PLS-SEM-based papers followed the recommended application guidelines and to investigate whether a comparison of journal types (hospitality vs tourism) and journal qualities (top-tier vs other leading) reveal significant differences in PLS-SEM use.

Design/methodology/approach

A total of 206 PLS-SEM based papers published between 2000 and April 2017 in the 19 SSCI-indexed hospitality and tourism journals were critically analyzed using a wide range of guidelines for the following aspects of PLS-SEM: the rationale of using the method, the data characteristics, the model characteristics, the model assessment and reporting the technical issues.

Findings

The results reveal that some aspects of PLS-SEM are correctly applied by researchers, but there are still some misapplications, especially regarding data characteristics, formative measurement model evaluation and structural model assessment. Furthermore, few significant differences were found on the use of PLS-SEM between the two fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

Practical implications

To enhance the quality of research in hospitality and tourism, the present study provides recommendations for improving the future use of PLS-SEM.

Originality/value

The present study fills a sizeable gap in hospitality and tourism literature and extends the previous assessments on the use of PLS-SEM by providing a wider perspective on the issue (i.e. includes both hospitality and tourism journals rather than the previous reviews that focus on either tourism or hospitality), using a larger sample size of 206 empirical studies, investigating the issue over a longer time period (from 2000 to April, 2017, including the in-press articles), extending the scope of criteria (guidelines) used in the review and comparing the PLS-SEM use between the two allied fields (hospitality and tourism) and between the journal tiers (top-tier and other leading).

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 11
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 29 April 2014

Nebojsa S. Davcik

The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based…

Abstract

Purpose

The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based SEM. The purpose of this paper is to question the current research myopia in management research, because the paper adumbrates theoretical foundations and guidance for the two SEM streams: covariance-based and variance-based SEM; and improves the conceptual knowledge by comparing the most important procedures and elements in the SEM study, using different theoretical criteria.

Design/methodology/approach

The study thoroughly analyzes, reviews and presents two streams using common methodological background. The conceptual framework discusses the two streams by analysis of theory, measurement model specification, sample and goodness-of-fit.

Findings

The paper identifies and discusses the use and misuse of covariance-based and variance-based SEM utilizing common topics such as: first, theory (theory background, relation to theory and research orientation); second, measurement model specification (type of latent construct, type of study, reliability measures, etc.); third, sample (sample size and data distribution assumption); and fourth, goodness-of-fit (measurement of the model fit and residual co/variance).

Originality/value

The paper questions the usefulness of Cronbach's α research paradigm and discusses alternatives that are well established in social science, but not well known in the management research community. The author presents short research illustration in which analyzes the four recently published papers using common methodological background. The paper concludes with discussion of some open questions in management research practice that remain under-investigated and unutilized.

Details

Journal of Advances in Management Research, vol. 11 no. 1
Type: Research Article
ISSN: 0972-7981

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Article
Publication date: 8 January 2018

Faizan Ali, S. Mostafa Rasoolimanesh, Marko Sarstedt, Christian M. Ringle and Kisang Ryu

Structural equation modeling (SEM) depicts one of the most salient research methods across a variety of disciplines, including hospitality management. Although for many…

Abstract

Purpose

Structural equation modeling (SEM) depicts one of the most salient research methods across a variety of disciplines, including hospitality management. Although for many researchers, SEM is equivalent to carrying out covariance-based SEM, recent research advocates the use of partial least squares structural equation modeling (PLS-SEM) as an attractive alternative. The purpose of this paper is to systematically examine how PLS-SEM has been applied in major hospitality research journals with the aim of providing important guidance and, if necessary, opportunities for realignment in future applications. Because PLS-SEM in hospitality research is still in an early stage of development, critically examining its use holds considerable promise to counteract misapplications which otherwise might reinforce over time.

Design/methodology/approach

All PLS-SEM studies published in the six SSCI-indexed hospitality management journals between 2001 and 2015 were reviewed. Tying in with the prior studies in the field, the review covers reasons for using PLS-SEM, data characteristics, model characteristics, the evaluation of the measurement models, the evaluation of the structural model, reporting and use of advanced analyses.

Findings

Compared to other fields, the results show that several reporting practices are clearly above standard but still leave room for improvement, particularly regarding the consideration of state-of-the art metrics for measurement and structural model assessment. Furthermore, hospitality researchers seem to be unaware of the recent extensions of the PLS-SEM method, which clearly extend the scope of the analyses and help gaining more insights from the model and the data. As a result of this PLS-SEM application review in studies, this research presents guidelines on how to accurately use the method. These guidelines are important for the hospitality management and other disciplines to disseminate and ensure the rigor of PLS-SEM analyses and reporting practices.

Research limitations/implications

Only articles published in the SSCI-indexed hospitality journals were examined and any journals indexed in other databases were not included. That is, while this research focused on the top-tier hospitality management journals, future research may widen the scope by considering hospitality management-related studies from other disciplines, such as tourism research or general management.

Originality/value

This study contributes to the literature by providing hospitality researchers with the updated guidelines for PLS-SEM use. Based on a systematic review of current practices in the hospitality literature, critical methodological issues when choosing and using the PLS-SEM were identified. The guidelines allow to improve future PLS-SEM studies and offer recommendations for using recent advances of the method.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 1
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 8 April 2014

Yamen Koubaa, Rym Srarfi Tabbane and Rim Chaabouni Jallouli

– The purpose of this paper is to assess the use of structural equation modeling in one specific field of marketing research, the image research.

Abstract

Purpose

The purpose of this paper is to assess the use of structural equation modeling in one specific field of marketing research, the image research.

Design/methodology/approach

A meta-analysis of a sample of image marketing works using structural equation modeling (SEM). The period of investigation is limited to the last five years to test for possible positive return of previous assessments of SEM use on the current SEM application.

Findings

Following this work, three major conclusions emerged: the study of homogenous samples of SEM models is required to get to accurate assessment of using the technique; SEM application is getting better probably due to learning from SEM reviews; and the reliance on a conjoint assessment of the various SEM issues is necessary to avoid parsimonious assessments. This study has provided a concise and refreshed view on the use of SEM in one marketing field, the image research.

Research limitations/implications

47 SEM papers and 99 models along five years were examined through this research. Although the authors reviewed four of the most consulted databases in marketing, the authors might miss several interesting works not available in these databases during the investigation. It is interesting to add on the works reviewed in this study and to re-conduct the analysis. The objective is not to doubt the consistency of SEM image research but to provide writers and readers with tools that enable them to produce better quality SEM research. Moreover, the quantitative analysis could be larger. Future research can consider computing other statistics. Finally, in the standards of most of marketing journals, this paper is a bit long. But as suggested by Babin et al., journal editors should allow more space to SEM-based reviews as the nature of the discussion requires lengthening.

Practical implications

Mastering the statistical tool in marketing research is as important as mastering the conceptual tool. Statistical learning and/or cooperation with statisticians is recommended.

Originality/value

A multi-criteria review of works from one specific field in marketing research and across a recent period of time allowing for the test of possible positive return from previous reviews of SEM use on the quality of the current publications of SEM papers.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 26 no. 2
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 2 September 2019

Nasser Javid, Kaveh Khalili-Damghani, Ahmad Makui and Farshid Abdi

This paper aims to propose a multi-dimensional model on the basis of the key factors of the flexibility and the complexity through structural equation modeling (SEM)…

Abstract

Purpose

This paper aims to propose a multi-dimensional model on the basis of the key factors of the flexibility and the complexity through structural equation modeling (SEM). Dimensions of the flexibilities and complexity, including 16 main factors and 34 sub-factors, are investigated. The sampling of the research is accomplished using both academic and industrial experts.

Design/methodology/approach

A huge electronic questionnaire analysis, including 1,250 samples from which 1,036 were returned, was accomplished in various universities and manufacturing companies throughout the USA, Europe and Asia. Partial least square-SEM (PLS-SEM) is used to test the hypotheses through confirmatory factor analysis.

Findings

The results reveal insightful information about the impacts of different dimensions of flexibility on each other and also the effect of the flexibility on the complexity. Finally, system of linear mathematical equations for flexibility-complexity trade-off is proposed. This can be applied to realize the trade-off among dimensions of flexibility and complexity.

Originality/value

Flexible manufacturing systems are formed to meet the needs of the customers. Such systems try to produce products in appropriate quality at the right time and at the specified quantity. These, in turn, require flexibility and will cause complexity. Although flexibility and complexity are both important, there is no comprehensive framework in which the multi-dimensional relationships of the manufacturing flexibility and complexity, as well as their dimensions, are demonstrated.

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Book part
Publication date: 10 December 2015

Chun Kit Lok

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption…

Abstract

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

Details

E-services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-709-7

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1 – 10 of over 11000