Applications of structural equation modelling (SEM) in business management research

Abstract

Structural equation modeling (SEM) is a powerful multivariate statistical analysis technique that is widely used in scientific research to test and evaluate multivariate causal relationships. SEMs differ from other modeling approaches in that they test direct and indirect effects on previously hypothesized causal relationships. This technique is the combination of factor analysis and multiple regression analysis, and it is used to analyze the structural relationship between measured variables and latent constructs.