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Article
Publication date: 1 October 1995

David A. Collier

Describes research which continues the quest to model performanceusing structural equation models. The objective is to provide meaningfuland substantively interpretable…

Abstract

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.

Details

International Journal of Service Industry Management, vol. 6 no. 4
Type: Research Article
ISSN: 0956-4233

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Article
Publication date: 16 February 2012

J. Samuel Baixauli, Susana Alvarez and Antonina Módica

The purpose of this paper is to, first, analyse to what extent the default probability based on structural models provides additional information and that accounting…

Abstract

Purpose

The purpose of this paper is to, first, analyse to what extent the default probability based on structural models provides additional information and that accounting ratios do not contemplate. Second, to design hybrid models by including the default probability from structural models as explanatory variable, in addition to accounting ratios, in order to evaluate the differences in the accuracy of default predictions using an accounting‐based model and a hybrid model.

Design/methodology/approach

The authors calculated the scores from the accounting models annually during the period from 2003 to 2007 and estimated several structural models.

Findings

The results show that the market information obtained from the structural models includes additional information not reflected in the accounting information. Also, it can be concluded that including default probability from structural models as an explanatory variable allows the out‐sample predictive capacity of accounting‐based models to be improved.

Practical implications

The study highlights the importance of combining a structural model with an accounting model rather than expending energy on determining which of the two provides a greater predictive capacity. In fact, recent literature demonstrates no superiority of one approach over the other because both approaches capture different aspects related to the risk of bankruptcy in companies and they should be combined to improve credit risk management.

Originality/value

This study expands on the existing literature on the probability of business failure in the real estate sector. The authors present a comparative analysis of the accuracy of default predictions using accounting‐based models and hybrid models which will consider the default probability implicit in market information.

Details

International Journal of Managerial Finance, vol. 8 no. 1
Type: Research Article
ISSN: 1743-9132

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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.

Details

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

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Book part
Publication date: 13 December 2013

Victor Aguirregabiria and Arvind Magesan

We derive marginal conditions of optimality (i.e., Euler equations) for a general class of Dynamic Discrete Choice (DDC) structural models. These conditions can be used to…

Abstract

We derive marginal conditions of optimality (i.e., Euler equations) for a general class of Dynamic Discrete Choice (DDC) structural models. These conditions can be used to estimate structural parameters in these models without having to solve for approximate value functions. This result extends to discrete choice models the GMM-Euler equation approach proposed by Hansen and Singleton (1982) for the estimation of dynamic continuous decision models. We first show that DDC models can be represented as models of continuous choice where the decision variable is a vector of choice probabilities. We then prove that the marginal conditions of optimality and the envelope conditions required to construct Euler equations are also satisfied in DDC models. The GMM estimation of these Euler equations avoids the curse of dimensionality associated to the computation of value functions and the explicit integration over the space of state variables. We present an empirical application and compare estimates using the GMM-Euler equations method with those from maximum likelihood and two-step methods.

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Structural Econometric Models
Type: Book
ISBN: 978-1-78350-052-9

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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.

Details

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

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Book part
Publication date: 11 November 2019

Malabika Sahoo

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…

Abstract

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.

Details

Methodological Issues in Management Research: Advances, Challenges, and the Way Ahead
Type: Book
ISBN: 978-1-78973-973-2

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Article
Publication date: 27 April 2020

Murat Gunduz and Hesham Ahmed Elsherbeny

This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be…

Abstract

Purpose

This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the industry stakeholders to measure the construction contract administration (CCA) performance and identify the strengths and weaknesses of the CCA system for running or completed projects.

Design/methodology/approach

The research design follows a sequential mixed methodology of qualitative and quantitative data collection and analysis. In the first phase, contract administration indicators were collected from relevant literature. In the second phase, an online questionnaire was prepared, and data were collected and analyzed using the crisp value of fuzzy membership function, and structural equation modeling (SEM). The fuzzy set was chosen for this study due to the presence of uncertainty and fuzziness associated with the importance of several key indicators affecting the CCA performance. Finally, SEM was used to test and analyze interrelationships among constructs of CCA performance.

Findings

The data collected from 336 construction professionals worldwide through an online survey was utilized to develop the fuzzy structural equation model. The goodness-of-fit and reliability tests validated the model. The study concluded a significant correlation between CCA performance, CCA operational indicators, and the process groups.

Originality/value

The contribution of this paper to the existing knowledge is the development of a fuzzy structural equation model that serves as a measurement tool for the contract administration performance. This is the first quantitative structural equation model to capture contract administration performance. The model consists of 93 Construction Contract Administration(CCA) performance indicators categorized into 11 project management process groups namely: project governance and start-up; team management; communication and relationship management; quality and acceptance management; performance monitoring and reporting management; document and record management; financial management; changes and control management; claims and dispute resolution management; contract risk management and contract closeout management.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 6
Type: Research Article
ISSN: 0969-9988

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Book part
Publication date: 18 November 2013

Abstract

Details

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

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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: 2 November 2015

Ibrahim Motawa and Michael G. Oladokun

The purpose of this paper is to analyse the complex interrelationships among thedifferent variables purporting to explain household energy consumption and carbon…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Energy Sector Management, vol. 9 no. 4
Type: Research Article
ISSN: 1750-6220

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