Structural Equation Modelling

(SEM)
An Introduction (Part 2)
SEM: Basic Concepts
Measured Variable or Indicator Variable
Latent Variable
Measurement Model
Structural Model
Basic Concepts: Measured Variable/Indicator
Measured variable(s) are the variables that are actually measured in the
study.

Latent Variable

Measured Variable 1 Measured Variable 2 Measured Variable 3

Basic Concepts: Latent Variable
Intangible constructs that are measured by a variety of indicators
(more is better!)

Latent Variable

Measured Variable 1 Measured Variable 2 Measured Variable 3

Basic Concepts: Measurement Model
The measurement model can be described as follows. It shows the
relationship between a latent variable and its measured
items(variables).

Latent Variable

Measured Variable 1 Measured Variable 2 Measured Variable 3

Basic Concepts: Structural Models
Often used to specify models in SEM
Causal flow is from left to right; top to bottom
Straight arrows represent direct effects
Curved arrows represent bidirectional correlational
relationships
Ellipses represent latent variables
Boxes/rectangles represent observed variables
Example: Structural Models
Variants of Structural Equation Modelling
Confirmatory Factor Analysis (CFA)
Path Analysis with observed variables
Path analysis with latent variables
Confirmatory Factor Analysis
Measurement Model
Tests model that specifies relationships between variables (items) and
factors
And relationships among factors

Confirmatory
Because model is specified a priori
Example: Oblique CFA Model
Confirmatory vs. Exploratory Factor
Analysis
In CFA the model is specified a priori
Based on theory

EFA is not a member of the SEM family

Includes a class of procedures involving centroids, principal components, and
principal axis factor analysis
Does not require a priori hypothesis about relationships within your model
Inductive vs. deductive approach
More restrictions on the relationships between indicators and latent factors
Example: Oblique EFA Model
Observed Variable Path Analysis (OVPA)
Tests only a structural model
Relationships among constructs represented by direct measured
(observed variables)
i.e., each box in model is an idem, subscale, or scale

Analogous to a series of multiple regressions

But, with MR, we would need k different analyses, where k is # of
DVs
With SEM, can test entire model at once
Example: OVPA
 Latent Variable Path Analysis (LVPA)
Simultaneous test of measurement and structural parameters
CFA and OVPA at same time

LVPA models incorporate.

Relationships between observed and latent variables (i.e., measures and factors)
Relationships between latent variables
Error & disturbances/residuals
Example: LVPA
Data Considerations
Sample Size
SEM is a large-sample technique
The required Sample size needed depends on.
Complexity of model
Ratios of sample size to estimated parameters ranging from
5:1 to 20:1 (Bentler & Chou, 1987; Kline, 2005)
Data Quality
Larger samples for non-normal data
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