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Chapter 93: Structural Equation Modelling in Marketing – Part 2: Model Calibration
The central thesis of SEM model calibration is twofold:
- The statistical relationship between the observed variables (in fact, the estimated covariances between them) can be used to provide estimates of the regression coefficients which link the unobserved, latent constructs.
- The adequacy, or goodness of fit, of the hypothesized structural model can be statistically tested using methods closely aligned with conventional chi-square (χ2) goodness-of-fit approaches.
It is, however, not quite that simple.
Whereas computer packages such as AMOS, LISREL® and EQS in principle make the calibration process ‘easy’, there are many traps for the tyro modeller.
Not the least significant of these is the issue of identification.
Paraphrasing Garson (2007), we can explain ...