The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addit...

Evaluating Structural Equation Models with Unobservable Variables and Measurement Error

In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.

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Structural equation modeling in practice: a review and recommended two-step approach

Information technology (IT) acceptance research has yielded many competing models, each with different sets of acceptance determinants. In this paper, we (1) review user acceptance literature and discuss eight prominent models, (2) empirically compare the eight models and their extensions, (3) formulate a unified model that integrates elements across the eight models, and (4) empirically validate the unified model. The eight models reviewed are the theory of reasoned action, the technology acceptance model, the motivational model, the theory of planned behavior, a model combining the technology acceptance model and the theory of planned behavior, the model of PC utilization, the innovation diffusion theory, and the social cognitive theory. Using data from four organizations over a six-month period with three points of measurement, the eight models explained between 17 percent and 53 percent of the variance in user intentions to use information technology. Next, a unified model, called the Unified Theory of Acceptance and Use of Technology (UTAUT), was formulated, with four core determinants of intention and usage, and up to four moderators of key relationships. UTAUT was then tested using the original data and found to outperform the eight individual models (adjusted R2 of 69 percent). UTAUT was then confirmed with data from two new organizations with similar results (adjusted R2 of 70 percent). UTAUT thus provides a useful tool for managers needing to assess the likelihood of success for new technology introductions and helps them understand the drivers of acceptance in order to proactively design interventions (including training, marketing, etc.) targeted at populations of users that may be less inclined to adopt and use new systems. The paper also makes several recommendations for future research including developing a deeper understanding of the dynamic influences studied here, refining measurement of the core constructs used in UTAUT, and understanding the organizational outcomes associated with new technology use.

User acceptance of information technology: toward a unified view

Criteria for evaluating structural equation models with latent variables are defined, critiqued, and illustrated. An overall program for model evaluation is proposed based upon an interpretation of converging and diverging evidence. Model assessment is considered to be a complex process mixing statistical criteria with philosophical, historical, and theoretical elements. Inevitably the process entails some attempt at a reconcilation between so-called objective and subjective norms.

On the evaluation of structural equation models

There appears to be general agreement among social psychologists that most human behavior is goal-directed (e. g., Heider, 1958 ; Lewin, 1951). Being neither capricious nor frivolous, human social behavior can best be described as following along lines of more or less well-formulated plans. Before attending a concert, for example, a person may extend an invitation to a date, purchase tickets, change into proper attire, call a cab, collect the date, and proceed to the concert hall. Most, if not all, of these activities will have been designed in advance; their execution occurs as the plan unfolds. To be sure, a certain sequence of actions can become so habitual or routine that it is performed almost automatically, as in the case of driving from home to work or playing the piano. Highly developed skills of this kind typically no longer require conscious formulation of a behavioral plan. Nevertheless, at least in general outline, we are normally well aware of the actions required to attain a certain goal. Consider such a relatively routine behavior as typing a letter. When setting this activity as a goal, we anticipate the need to locate a typewriter, insert a sheet of paper, adjust the margins, formulate words and sentences, strike the appropriate keys, and so forth. Some parts of the plan are more routine, and require less conscious thought than others, but without an explicit or implicit plan to guide the required sequence of acts, no letter would get typed.

From Intentions to Actions: A Theory of Planned Behavior

Several issues relating to goodness of fit in structural equations are examined. The convergence and differentiation criteria, as applied by Bagozzi, are shown not to stand up under mathematical or...

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Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics:

Are there economic benefits to improving customer satisfaction? Many firms that are frustrated in their efforts to improve quality and customer satisfaction are beginning to question the link betwe...

Customer satisfaction, market share, and profitability: Findings from Sweden.

Many individual companies and some industries monitor customer satisfaction on a continual basis, but Sweden is the first country to do so on a national level. The annual Customer Satisfaction Baro...

A National Customer Satisfaction Barometer: The Swedish Experience:

The American Customer Satisfaction Index (ACSI) is a new type of market-based performance measure for firms, industries, economic sectors, and national economies. The authors discuss the nature and...

/pdf/the-american-customer-satisfaction-index-nature-purpose-and-34k94qjuh5.pdf

Claes Fornell

Papers

Evaluating Structural Equation Models with Unobservable Variables and Measurement Error

Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics:

Customer satisfaction, market share, and profitability: Findings from Sweden.

A National Customer Satisfaction Barometer: The Swedish Experience:

The American Customer Satisfaction Index: Nature, Purpose, and Findings