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Describes research which continues the quest to model performance using structural equation models. The objective is to provide meaningful and substantively interpretable predictions of process performance using structural equation modelling. Develops structural equation models which clearly define the performance relationships for a backroom bank card remittance process using criteria such as process quality errors, employee turnover rates, labour productivity, on‐time delivery, and unit cost. Also defines the idea of a process quality equilibrium point (error rate) using structural equation modelling, and investigates how to use these structural equation models to help set internal and external standards of performance.

Nowadays, structural equation modeling is a buzz word in the arena of research in management, social sciences, and other equivalent fields. Although the theoretical base bears its significance in building the measurement and structural models, assessing different goodness-of-fit indices (GOFI) equally retains its importance for model validity and conformity. There are various alternative GOFI available for the researchers and the threshold values of each differ. The present paper discussed all the well-accepted and reported GOFI and their threshold value, which will be a great help to researchers and practitioners who use structural equation modeling in research. The author has also presented the different GOF values and validity results of her current research carried out in an Indian power transmission organization in Odisha, India.

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.

Structural equation modeling (SEM) is a well-established and frequently applied method in various disciplines. New methods in the context of SEM are being introduced in an ongoing manner. Since formal proof of statistical properties is difficult or impossible, new methods are frequently justified using Monte Carlo simulations. For SEM with covariance-based estimators, several tools are available to perform Monte Carlo simulations. Moreover, several guidelines on how to conduct a Monte Carlo simulation for SEM with these tools have been introduced. In contrast, software to estimate structural equation models with variance-based estimators such as partial least squares path modeling (PLS-PM) is limited.

As a remedy, the R package cSEM which allows researchers to estimate structural equation models and to perform Monte Carlo simulations for SEM with variance-based estimators has been introduced. This manuscript provides guidelines on how to conduct a Monte Carlo simulation for SEM with variance-based estimators using the R packages cSEM and cSEM.DGP.

The author introduces and recommends a six-step procedure to be followed in conducting each Monte Carlo simulation.

For each of the steps, common design patterns are given. Moreover, these guidelines are illustrated by an example Monte Carlo simulation with ready-to-use R code showing that PLS-PM needs the constructs to be embedded in a nomological net to yield valuable results.

The purpose of this paper is to illustrate how international business (IB) researchers can benefit from meta-analytic structural equation modeling (MASEM) by introducing a statistically rigorous approach (i.e. two-stage meta-analytic structural equation modeling or TSSEM) and comparing it with a conventional approach (i.e. the univariate-r approach). The illustration and comparison present a methodological overview of MASEM that will assist IB researchers in selecting an optimal method.

In this paper, the MASEM method is elaborated upon, and methodological issues are addressed, by comparing the TSSEM and the univariate-r approaches using an empirical illustration. In this illustrative example, which is based on transaction cost economics, the effects of a firm’s internal factors on its levels of commitment in an international entry strategy are examined.

The MASEM method can help IB researchers to test and build on IB theories by synthesizing findings in the extant literature because this method reflects the theoretical complexity of IB (e.g. intercorrelationships among factors). Comparing the two approaches of MASEM, it is found in this study that due to its statistical rigorousness TSSEM has methodological advantages in helping IB researchers test theoretical models.

This is the first study to introduce MASEM into the discipline of IB strategies. In this paper, the authors introduce an advanced research method and illustrate two ways of using it.

The aim of this paper is to study the effect of strategic and project related potential risks on project delivery in Qatar. Two objectives have been defined. The first is to identify potential risk indicators (manifest variables) and categorize them (constructs/latent variables) based on a literature review, while the second is to examine and rank the relationships between the indicators and constructs by developing a structural equation model.

Twenty-five indicators were identified from the literature review and categorized into five groups. To collect the data, an online questionnaire was distributed in Qatar, and 116 responses were obtained. Structural equation modeling (SEM) was used to examine the model. The model that was developed based on the research hypothesis met goodness-of-fit, reliability and validity requirements.

The results showed that all constructs contributed well to the model and that the project parties (PPs) have the highest contribution with an effect weight of 0.209 followed by economic and legal (EL) conditions with an effect weight of 0.205. Site and safety (SS) conditions were third with an effect weight of 0.200 while environmental, natural and technological (ENT) conditions were fourth with an effect weight of 0.1989. The last ranked construct is political and social (PS) conditions with an effect weight of 0.186. Based on the outcome of the SEM, recommendations were provided to industry professionals in Qatar about mitigating the impact of potential risks on construction project.

To the authors' best knowledge, this is the first study to quantify the effects of strategic and project related risks on a construction project using SEM, considering the risk management indicators of SS, EL, ENT, PS in Qatar. The study's practical implications are to enlarge the project's risk management plan by considering the strategic and project related risks to enhance the project performance for the cost overrun and delay. The study is intended for construction projects in Qatar, but it can easily be adapted to other parts of the world given the local circumstances.

The purpose of this paper is to integrate the findings of articles appearing in European Journal of Marketing’s special section on covariance-based versus composite-based structural equations modeling (SEM).

This is an editorial which uses literature review to draw conclusions regarding areas of agreement, areas for further research, and changing the discussion around composite-based SEM methods.

There are now four new areas of agreement regarding composite-based SEM. Researchers should adopt a toolbox approach to their methods and know the strengths and weaknesses of the research tools in their toolbox. Partial least squares (PLS) SEM and covariance-based SEM are not substitutes, and it is inappropriate to use the language of confirmatory factor analysis (CFA) in reporting measurement estimates from PLS SEM. Measurement matters and researchers need to devote effort to using reliable and valid multi-item measures in their investigations.

This postscript article outlines recommendations for authors, reviewers and editors regarding the analysis of data and reporting of results using structural equations models.

The purpose of this paper is to analyse the complex interrelationships among thedifferent variables purporting to explain household energy consumption and carbon emissions. Energy consumption and carbon emissions in dwellings have been argued to be a complex socio-technical problem that involves interaction of many variables that are interdependent on one another.

The paper investigates the explanatory power of these variables through the use of structural equation modelling which has the advantage of handling complex real-life problems that cannot be modelled by other multivariate analysis methods. This study uses the publicly available datasets of the Scottish House Condition Survey and the Scottish Environmental Attitudes and Behaviours datasets.

This paper found that floor area, energy efficiency in terms of standard assessment procedure value, number of occupants in the dwelling, household income, dwelling age, consumption behaviour and age of householders are among the variables explaining dwellings energy consumption and carbon emissions. The explanatory power of each of these variables was therefore explored.

The paper concludes that understanding the complex–causal relationships among the explanatory variables would help decision-makers draw more realistic policies for household energy consumption which is critical to the agenda pertaining to carbon emission.

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.

In this chapter, the authors consider the role of time for research in occupational stress and well-being. First, temporal issues in studying occupational health longitudinally, focusing in particular on the role of time lags and their implications for observed results (e.g., effect detectability), analyses (e.g., handling unequal durations between measurement occasions), and interpretation (e.g., result generalizability, theoretical revision) were discussed. Then, time-based assumptions when modeling lagged effects in occupational health research, providing a focused review of how research has handled (or ignored) these assumptions in the past, and the relative benefits and drawbacks of these approaches were discussed. Finally, recommendations for readers, an accessible tutorial (including example data and code), and discussion of a new structural equation modeling technique, continuous time structural equation modeling, that can “handle” time in longitudinal studies of occupational health were provided.