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1 – 10 of over 2000Ellen Roemer, Florian Schuberth and Jörg Henseler
One popular method to assess discriminant validity in structural equation modeling is the heterotrait-monotrait ratio of correlations (HTMT). However, the HTMT assumes…
Abstract
Purpose
One popular method to assess discriminant validity in structural equation modeling is the heterotrait-monotrait ratio of correlations (HTMT). However, the HTMT assumes tau-equivalent measurement models, which are unlikely to hold for most empirical studies. To relax this assumption, the authors modify the original HTMT and introduce a new consistent measure for congeneric measurement models: the HTMT2.
Design/methodology/approach
The HTMT2 is designed in analogy to the HTMT but relies on the geometric mean instead of the arithmetic mean. A Monte Carlo simulation compares the performance of the HTMT and the HTMT2. In the simulation, several design factors are varied such as loading patterns, sample sizes and inter-construct correlations in order to compare the estimation bias of the two criteria.
Findings
The HTMT2 provides less biased estimations of the correlations among the latent variables compared to the HTMT, in particular if indicators loading patterns are heterogeneous. Consequently, the HTMT2 should be preferred over the HTMT to assess discriminant validity in case of congeneric measurement models.
Research limitations/implications
However, the HTMT2 can only be determined if all correlations between involved observable variables are positive.
Originality/value
This paper introduces the HTMT2 as an improved version of the traditional HTMT. Compared to other approaches assessing discriminant validity, the HTMT2 provides two advantages: (1) the ease of its computation, since HTMT2 is only based on the indicator correlations, and (2) the relaxed assumption of tau-equivalence. The authors highly recommend the HTMT2 criterion over the traditional HTMT for assessing discriminant validity in empirical studies.
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Jörg Henseler, Geoffrey Hubona and Pauline Ash Ray
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Originality/value
This paper provides updated guidelines of how to use PLS and how to report and interpret its results.
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Waheed Ali Umrani, Kabiru Maitama Kura and Umair Ahmed
The purpose of this paper is to investigate the relationship between corporate entrepreneurship (CE), organizational culture (OC) and business performance (BP). Additionally, the…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between corporate entrepreneurship (CE), organizational culture (OC) and business performance (BP). Additionally, the study has attempted to address the moderating influence of OC on CE–BP relationship.
Design/methodology/approach
Data were collected from middle managers of Big Five banks of Pakistan. A two-step approach to structural equation modeling was used. Using confirmatory factor analysis, the measurement model fit was determined. The significance of the theoretical relationship was assessed using structural model.
Findings
The results have supported the hypothesized direct and moderated relationship.
Originality/value
The present study extends the body of knowledge in testing the resource-based view of the firm theory and contingency theory through providing empirical evidence on the hypothesized relationships. Additionally, the study has contributed in the existing theory through evaluating the moderating of OC by using interaction effect in partial least squares structural equation modeling (PLS-SEM).
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Nicole Franziska Richter, Rudolf R. Sinkovics, Christian M. Ringle and Christopher Schlägel
Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research. While the covariance-based SEM…
Abstract
Purpose
Structural equation modeling (SEM) has been widely used to examine complex research models in international business and marketing research. While the covariance-based SEM (CB-SEM) approach is dominant, the authors argue that the field’s dynamic nature and the sometimes early stage of theory development more often require a partial least squares SEM (PLS-SEM) approach. The purpose of this paper is to critically review the application of SEM techniques in the field.
Design/methodology/approach
The authors searched six journals with an international business (and marketing) focus (Management International Review, Journal of International Business Studies, Journal of International Management, International Marketing Review, Journal of World Business, International Business Review) from 1990 to 2013. The authors reviewed all articles that apply SEM, analyzed their research objectives and methodology choices, and assessed whether the PLS-SEM papers followed the best practices outlined in the past.
Findings
Of the articles, 379 utilized CB-SEM and 45 PLS-SEM. The reasons for using PLS-SEM referred largely to sampling and data measurement issues and did not sufficiently build on the procedure’s benefits that stem from its design for predictive and exploratory purposes. Thus, the procedure’s key benefits, which might be fruitful for the theorizing process, are not being fully exploited. Furthermore, authors need to better follow best practices to truly advance theory building.
Research limitations/implications
The authors examined a subset of journals in the field and did not include general management journals that publish international business and marketing-related studies. Fur-thermore, the authors found only limited use of PLS-SEM in the journals the authors considered relevant to the study.
Originality/value
The study contributes to the literature by providing researchers seeking to adopt SEM as an analytical method with practical guidelines for making better choices concerning an appropriate SEM approach. Furthermore, based on a systematic review of current practices in the international business and marketing literature, the authors identify critical challenges in the selection and use of SEM procedures and offer concrete recommendations for better practice.
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Jun-Hwa Cheah, Wolfgang Kersten, Christian M. Ringle and Carl Wallenburg
Jorge Ramón D’Acosta Rivera, Rafael Ricardo Jacomossi, Alcides Barrichello and Rogerio Scabim Morano
The purpose of this paper is to analyze patterns and trends of articles that present the use of structural equation modeling (SEM) and that were published in several Brazilian…
Abstract
Purpose
The purpose of this paper is to analyze patterns and trends of articles that present the use of structural equation modeling (SEM) and that were published in several Brazilian journals. In addition, this paper maps the institutions where the authors of the identified articles are affiliated, and discusses aspects of searching the articles in journals’ archives and other scientific databases.
Design/methodology/approach
The work used bibliometrics, which is one of the forms of evaluation and measurement of information flows in scientific knowledge, using mathematical and statistical methods.
Findings
The study showed an exponential growth in using SEM in several areas in recent years, with predominance in marketing. Most of the publications were produced by authors from institutions such as USP, FGV and UFRGS, but most authors published only one article using SEM. Almost all published articles used one of the three most common software, especially AMOS®. Surprisingly, many articles did not mention the software used, indicating methodological flaw.
Practical implications
Weaknesses were found regarding the search for articles in the different sources used, indicating that, for literature reviews, the research should be conducted in several databases in a complementary way and not alternatively. This fact becomes critical especially when expressions in languages other than Portuguese were used. This situation suggests an aggravating lack of visibility for the Brazilian scientific community since the articles are less likely to be found.
Originality/value
The paper shows that among the various techniques of multivariate data analysis used in the field of administration, SEM has gained prominence being operationalized using specific software.
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Hoang Nam Trinh, Hong Ha Tran and Duc Hoang Quan Vuong
The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived…
Abstract
Purpose
The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived risk, which is tested on the intended use of credit cards in Vietnam.
Design/methodology/approach
The data were collected from 485 bank customers through a nationwide online survey. An exploratory and confirmatory factor analyzes were performed to validate the factor structure of the measurement items while structural equation modeling was used to validate the proposed model and testing the hypotheses.
Findings
The results of structural equation modeling reveal that perceived risk, perceived usefulness, social influence and perceived ease of use were significant determinants of consumer intention to use a credit card. Of them, only perceived risk discouraged the intended use of a credit card, which was synthesized from psychological, financial, performance, privacy, time, social and security risk.
Research limitations/implications
This study measured the first-order risk dimensions based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards.
Practical implications
This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base.
Originality/value
The study adds value to the literature on consumer behavior by confirming the impact of second-order perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. The research also provides an empirical evidence to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.
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This study aims to propose and test a model that examines the potential connections between two teacher situational variables (teacher immediacy and credibility) and three learner…
Abstract
Purpose
This study aims to propose and test a model that examines the potential connections between two teacher situational variables (teacher immediacy and credibility) and three learner affective factors (motivation, attitudes and communication confidence) and to examine how such associations predict learners’ L2WTC (Foreign/second language willingness to communicate) in a language class via a comprehensive communication model to structurally verify the theoretically based associations among these variables.
Design/methodology/approach
In total, 214 females and 198 males took part in the study with age range between 19 and 38 years. Participants filled in a verified, translated Arabic version of the questionnaires using an online questionnaire. Data were gathered using questionnaires and were analyzed using descriptive statistics, confirmatory factor analysis, path analysis and sequential mediation analysis using bootstrapping methods to identify and verify direct and indirect paths in the model.
Findings
The initial L2 communication structural model showed acceptable goodness of model fit. Teacher credibility and immediacy behaviors only indirectly predicted L2WTC through the mediation of affective variables. Motivation and communication confidence mediated the relationship between credibility and L2WTC, while the association between immediacy and L2WTC was mediated by communication confidence.
Originality/value
The findings of this study have important pedagogical implications globally for professions related to communication instruction, especially with regard to teacher credibility behaviors and particularly for practitioners and beneficiaries in EFL contexts where learners are widely acknowledged for their unwillingness to communicate in foreign language classes.
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Michela Matarazzo and Adamantios Diamantopoulos
The purpose of the study is to highlight the relevance of reactance theory for modeling consumer responses to COVID restrictions. The study also aims to critically evaluate the…
Abstract
Purpose
The purpose of the study is to highlight the relevance of reactance theory for modeling consumer responses to COVID restrictions. The study also aims to critically evaluate the appropriateness of the most established reactance model (the intertwined model) for studying reactance specifically in relation to freedom threats arising from measures aimed at combatting the spread of the pandemic.
Design/methodology/approach
Following a conceptual analysis of the intertwined model of reactance, structural equation modeling is applied to Rain's (2013) meta-analytic data to compare the model to alternative model specifications.
Findings
The analysis reveals both conceptual and statistical shortcomings of the intertwined model of reactance in its current/traditional form. It also draws attention to other model specifications that provide just as good statistical fit and offer promising alternative ways of modeling reactance in a COVID context.
Originality/value
The study is the first attempt to explicitly discuss conceptual and statistical problems associated with the most widely accepted model of reactance, illustrate these issues with specific reference to consumer reactions to COVID restrictions, identify alternative promising model specifications and suggest a respecification of the intertwined model.
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