ABSTRACT
This chapter examines structural relations between latent variables within and between groups. The first part extends the basic latent two-level latent variable model developed in the last chapter to examine relationships between covariates with random slopes. The second part extends the use of latent constructs at two levels in the investigation of structural parameters between latent variables. The proposed multilevel model with latent variables illustrates how the factor model is brought with separate structural models. The various multilevel models can be estimated in the same way as outlined by decomposing a population covariance matrix into separate within-group and between-group covariance matrices. In defining the basic within-group and between-group models, the chapter provide both the name of the Greek letters and corresponding symbols. First, between groups defines the organizational process factor as measured by observed indicators. Second, it will simplify the model statements by removing the constraints on the observed items measuring the two latent dependent variables within and between groups.
