Search results

1 – 10 of over 15000
Article
Publication date: 5 October 2016

Christian Nitzl

In management accounting research, the capabilities of Partial Least Squares Structural Equation Modelling (PLS-SEM) have only partially been utilized. These yet…

Abstract

In management accounting research, the capabilities of Partial Least Squares Structural Equation Modelling (PLS-SEM) have only partially been utilized. These yet unexploited capabilities of PLS-SEM are a useful tool in the often explorative state of research in management accounting. After reviewing eleven top-ranked management accounting journals through the end of 2013, 37 articles in which PLS-SEM is used are identified. These articles are analysed based on multiple relevant criteria to determine the progress in this research area, including the reasons for using PLS-SEM, the characteristics of the data and the models, and model evaluation and reporting. A special focus is placed on the degree of importance of these analysed criteria for the future development of management accounting research. To ensure continued theoretical development in management accounting, this article also offers recommendations to avoid common pitfalls and provides guidance for the advanced use of PLS-SEM in management accounting research.

Details

Journal of Accounting Literature, vol. 37 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

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.

Details

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

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.

Details

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

Keywords

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

Keywords

Article
Publication date: 9 March 2018

Tobias Johansson

This article deals with how to test for and evaluate interdependence among control practices in a management control system using structural equation modeling. Empirical…

Abstract

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.

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.

Details

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

Keywords

Article
Publication date: 18 December 2018

Gabriel Cepeda-Carrion, Juan-Gabriel Cegarra-Navarro and Valentina Cillo

Structural equation modelling (SEM) has been defined as the combination of latent variables and structural relationships. The partial least squares SEM (PLS-SEM) is used…

3793

Abstract

Purpose

Structural equation modelling (SEM) has been defined as the combination of latent variables and structural relationships. The partial least squares SEM (PLS-SEM) is used to estimate complex cause-effect relationship models with latent variables as the most salient research methods across a variety of disciplines, including knowledge management (KM). Following the path initiated by different domains in business research, this paper aims to examine how PLS-SEM has been applied in KM research, also providing some new guidelines how to improve PLS-SEM report analysis.

Design/methodology/approach

To ensure an objective way to analyse relevant works in the field of KM, this study conducted a systematic literature review of 63 publications in three SSCI-indexed and specific KM journals between 2015 and 2017.

Findings

Our results show that over the past three years, a significant amount of KM works has empirically used PLS-SEM. The findings also suggest that in light of recent developments of PLS-SEM reporting, some common misconceptions among KM researchers occurred mainly related to the reasons for using PLS-SEM, the purposes of PLS-SEM analysis, data characteristics, model characteristics and the evaluation of the structural models.

Originality/value

This study contributes to that vast KM literature by documenting the PLS-SEM-related problems and misconceptions. Therefore, it will shed light for better reports in PLS-SEM studies in the KM field.

Details

Journal of Knowledge Management, vol. 23 no. 1
Type: Research Article
ISSN: 1367-3270

Keywords

Book part
Publication date: 18 November 2013

Abstract

Details

Intellectual Capital and Public Sector Performance
Type: Book
ISBN: 978-1-78350-169-4

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…

2179

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

Keywords

Article
Publication date: 8 January 2018

Faizan Ali, Woo Gon Kim, Jun (Justin) Li and Cihan Cobanoglu

Structural equation modelling (SEM) has increasingly been used by hospitality and tourism researchers to examine complex relationships. This paper aims to highlight the…

1579

Abstract

Purpose

Structural equation modelling (SEM) has increasingly been used by hospitality and tourism researchers to examine complex relationships. This paper aims to highlight the benefits and limitations of SEM for hospitality and tourism research and compare its two main approaches, i.e. covariance-based SEM (CB-SEM) and partial least squares-SEM (PLS-SEM).

Design/methodology/approach

By using a comparative approach, this study parallels SEM’s two main approaches, i.e. CB-SEM and PLS-SEM, using three different examples from hospitality and tourism industry. Both the approaches are compared side by side in terms of assumptions, validity and reliability of measurement models, item retention and loadings, strength and significance of path relationships and coefficient of determinations.

Findings

The findings show that even though both methods analyse measurement theory and structural path models, there are relatively higher advantages for hospitality and tourism researchers in applying PLS-SEM.

Research limitations/implications

Because of the limitations of only using three examples, the results and trends generated in this study may not be generalized to all research in hospitality and tourism discipline. Moreover, the Likert scale has been used to measure the constructs in both the studies, which may have biased the results.

Originality value

This study is the first to compare the usage of both the SEM approaches in hospitality and tourism research. The findings of this study provide significant implications and directions for hospitality and tourism researchers to apply PLS-SEM in the future.

Details

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

Keywords

1 – 10 of over 15000