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    Structural Equation Modelling

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    Please reflect on business leadership theory and find (using Web of Science or ProQuest for example) three papers (ideally from top-ranked journals) that used SEM.

    1) What are the measured constructs?
    2) Why did the authors need to use SEM?
    3) Comment on the validity of these constructs using the provided statistics and the guidelines for reporting SEM results (e.g., papers by Geffen)
    4) Comment on the goodness of fit of these models using the provided fit statistics
    5) Could the authors do a better job on reporting their SEM results?

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    Solution Preview

    The three scholarly articles we identified are Knies et. al. (2017), Robert and You (2017) and Zare and Crawford (2017).

    1) What are the measured constructs?

    In the first article, the construct is the people management indicator, which was accurately reflected in a four-dimensional construct consisting of 17 items that further demonstrated strong internal consistency. Moreover, the author's measure was shown to be metric invariant as well as stable over time, indicating that comparisons of the latent variable are valid over time. Eventually, these analyses have shown that our people management scale is related to other established constructs to which it should theoretically relate (i.e. job satisfaction and commitment). The results from measuring the constructs support the criterion-related validity of the people management scale.

    For the second paper, the authors employed a survey approach, collecting data to represent constructs in the research model. They chose this approach for two reasons: (1) it allowed us to examine our model across many different teams and individuals, and (2) it allowed us to directly compare our results to those of previous studies that employed a survey approach. Hence, in the second paper, the constructs are: Individual satisfaction, Individual autonomy, Individual trust and Shared Leadership.

    The third paper provides a review of past meta-analyses of transformational leadership (TFL) and leader-member exchange relationship (LMX), and compares their similarities and relationships with common related constructs. Hence, the two constructs are TFL and LMX.

    2) Why did the authors need to use SEM?

    In the first paper, the authors reviewed all articles that apply SEM, analyzed their research objectives and methodology choices, and assessed whether the PLS-SEM papers followed the best practices outlined in the past.

    In the second paper, the authors argue that the field's dynamic nature and the sometimes-early stage of theory development more often require a partial least squares SEM (PLS-SEM) approach. The purpose of this paper is to critically review the application of SEM techniques in the field.

    In the third paper, the authors need to use SEM to investigate whether differential effects exist between the two theoretical perspectives, we conducted incremental validity and meta-analytic structural equation modeling, which is a technique that integrates meta-analysis and structural equation modeling.

    3) Comment on the ...

    Solution Summary

    The Solution identifies measured constructs, discusses the use of SEM, and the goodness of fit for the models used.