ABSTRACT

Structural equation models have been developed in a number of academic disciplines to substantiate and test theory. Structural equation models have further helped to establish the relationship between latent variables or constructs, given a theoretical perspective. The structural equation modeling approach involves developing measurement models to define latent variables and then establishing relationships or structural equations among the latent variables. The focus of this chapter is on providing researchers with a better understanding of how to develop structural equation models. An attempt is made to minimize matrix and statistical notation so that the reader can better understand the structural equation modeling approach.