ABSTRACT
Structural equation modeling (SEM) evaluates, estimates, and specifies models of relationships between set of unobserved and observed variables. It inspects the interrelations through various equations that describe the relations among independent and dependent variables. The core of SEM analysis indicates the fitness of the hypothesized model observed data and examination of the coefficients of hypothesized relationships. SEM analysis finds the variables that best explained the nature of the relationship between the variables and the model. The unstandardized SEM_MC model shows the regression coefficients that link the variables. The output of this model provides the ordinary regression coefficient, covariance between independent variables, the error calculations of all variables, and the significance level for each relation. Various important factors required for the SEM_MC model – i.e. production planning and control, management product concept, and quality control – were formulated from the questionnaire, case studies, analytical hierarchical processes, and from the extensive literature review.
