Prepared by:

Assoc. Prof. Dr Bahaman Abu Samah

Department of Professional Development and Continuing Education
Faculty of Educational Studies
Universiti Putra Malaysia
Serdang
 Structural Equation Modeling is an extension of
the General Linear Model (GLM)
SEM is used more as a confirmatory technique
rather than exploratory technique
i.e. SEM is used to confirm model rather than to
discover a new model
A multivariate techniques combining
Confirmatory Factor Analysis, Multiple
Regression and Path Analysis
SEM is also known as:
Linear Causal Analysis
Latent Variable Analysis
Dependent Analysis
Analysis of Covariance Structure
Linear Structural Relations (LISREL)
Simultaneous Equation Modeling
Covariance Structural Modeling
Linear Structural Relationships
 Model interdependencies between several
outcome (DVs) and their causal factors (IVs)
SEM provide overall tests of model fit and
individual parameter estimate tests simultaneously
Regression coefficients, means, and variances
may be compared simultaneously, even across
multiple between-subjects groups
It improves statistical estimation by incorporate
measurement errors
It enables use of latent (unobserved) variables in
dependence relationships
 AMOS
LISREL
CALIS of SAS/STAT
EQS
LISCOMP
SEPATH
Mx
(http://www.vcu.edu/mx/index.html)
 Stands for Analysis of MOment Structures
Moment structures refer to:
:: Mean
:: Variance
:: Covariance
A computer application
under SPSS
User friendly utilizing
graphical interface
 Exogenous = Independent variable
Endogenous = Dependent or mediating
variables
Manifest = observed variable
Latent = unobserved variable
Correlations and covariances
are represented by
bidirectional arrows
Causal effects are represented
by single-headed arrows
Number 1 refers to the paths
coefficients have fixed values
of 1.00
Symbol Pronunciation Meaning
xi An exogenous measured variable X
eta An endogenous measured variable Y
x lambda x A path representing the factor loading
between a latent construct and a
measured x variable
y lambda y A path representing the factor
loading between a latent construct
and a measured y variable
gamma A causal relationship (regression
coefficient) from a to an
phi Covariance or correlation estimate
delta The error term associated with an
estimated, measured x variable
 8

7
1 2
6

3 4

6
5 6

1 2 8

3 3

1 Exogenous() = Independent variable

2 Endogenous () = Dependent variable
3 Latent = Unobserved
4 Manifest = Observed
5 Correlation/Covariance ()
6 Causal effect
7 Measurement error
8 Residual
 2
1
4
3

1 Factor loading ()
2 Squared Factor loading (2)
3 Regression coefficient ()
4 Coefficient of determination (R2)
5 Correlation coefficient ()
Cont.

Tool Box
Use mouse and click the
appropriate icons to draw
a figure of the proposed
model
Draw manifest variables Select all objects

Draw latent variables Deselect all objects

Draw a latent variable and add

Duplicate objects
an indicator to it

Draw causal path Move objects

Rotate the indicators of a latent

Draw covariance/correlation
variable
Add a unique variable to an
Select data file(s)
existing variable

Figure captions Analysis properties

List variables in the model Calculate estimates

List variables in the data set Object properties

Select one object at a time Resize diagram to fit page

1. Draw the model
2. Click to select data
3. Click to display variable list
4. Drag variable into the observed variable box
and label the unobserved/latent variables
5. Type the following commands in the Title to
display indices
6. Click Analysis Properties
7. Click to Calculate Estimates
8. Click to view the detailed text output
Use the drawing tools to draw the model
Click the Select data file(s) button to select
the SPSS data file
At the following dialog box, click File Name
button and select the data file
Click the List variable in data
set button to display the
variable list
Drag the variables into the respective manifest
variables in the model
If you want the indices to be displayed in the
output, click on the Figure
captions button Chi-Square=\cmin
At the dialog box, type the DF=\df
following commands: p=\p
GFI=\gfi
AGFI=\agfi
CFI=\cfi
NFI=\nfi
TLI=\tli
RMSEA=\rmsea
:: For CFA may want to select
- Normality and Outliers
:: For Structural Model, select Indirect
1. CFA for Individual Construct
2. CFA for 1st Level Measurement
Model
3. Structural Model
 Confirmatory Factor Analysis for the individual
construct are used to:
1. Test the construct validity of the instrument.
Specifically to test the convergent validity
2. Test the model fit
The following slides explain the details
Convergent validity refers to a set of variables (items)
that presume to measure a construct (Kline, 2005)
It can be tested using:
Average Variance Extracted (AVE)
A high AVE (> .5) indicates a high convergent
validity (Fornell & Larcker, 1981)
Factor loadings
High factor loadings ( .5) on a factor indicate high
convergent validity (Hair, et al, 2006)

Valid if:
1. AVE > .5
2. Each Factor loading > .5
 In this example, LEADERSHIP instrument comprises
five indicators (items).
Calculate AVE:

2
AVE =
n
.48 + .62 + .56 + .50 + .48
=
5
2.64
=
5
= .528

The instrument for LEADERSHIP has high convergent

validity because:
1. Factor loadings for each indicator > .5
2. AVE (.528) > .50
 A number of fit indices can be used to test for
model fit
Generally we need to present at least four
(4) fit indices
The recommended indices include:
:: GFI
:: CFI
:: NFI
:: TLI
:: RMSEA
Recommended criteria for Fit Indices
Fit Indices Authors Recommended Current
value Fit Indices
CMIN/DF Marsh & Hocevar, 1985 < 5.0
Bentler, 1990 < 5.0
Reported if n > 200
GFI Chau, 1997 > .90
Segars & Grover, 1993 > .90
CFI Bentler, 1990 > .90
Hatcher, 1994 > .90
RMSEA Byrne, 2001 < .08
Hu & Bentler, 1999 < .05
NFI Bentler & Bonett, 1980 > .90
CMIN Tabachnik & Fidell, 1996 Reported if n
between 100 - 200
 CFA is applied on the first level measurement
model to:
1. Test the construct validity of the instrument.
Specifically to test the discriminant validity
2. Test the model fit
3. Test for multivariate normality
4. Check for outliers
The following slides explain the details
 Discriminant validity refers to the extent in which
a construct is truly distinct from other constructs
In order to test for discriminant validity, compare
AVE for two factors against the square of
correlation between the two factors
AVE for the two factors must be greater than
their r 2

Valid if:
AVE > r 2
 In this example, we want to test the discriminant
validity between LEADERSHIP and INFORMATION
instruments
AVE for:
Leadership = .528
Information = .546
Correlation between the
two constructs (r= .35)
r 2 = .1225
Since both AVEs > .1225
The two constructs
exhibit sufficient
discriminant validity
 A number of fit indices can be
used to test for model fit
Generally we need to present
at least four (4) fit indices
The recommended indices
include:
:: GFI
:: CFI
:: NFI
:: TLI
:: RMSEA
Recommended criteria for Fit Indices
Fit Indices Authors Recommended Current
value Fit Indices
CMIN/DF Marsh & Hocevar, 1985 < 5.0
Bentler, 1990 < 5.0
Reported if n > 200
GFI Chau, 1997 > .90
Segars & Grover, 1993 > .90
CFI Bentler, 1990 > .90
Hatcher, 1994 > .90
RMSEA Byrne, 2001 < .08
Hu & Bentler, 1999 < .05
NFI Bentler & Bonett, 1980 > .90
CMIN Tabachnik & Fidell, 1996 Reported if n
between 100 - 200
 Refer to the Assessment of normality in the
Text View output
Data is considered to be normal if:
:: Skewness is
between
-2 to +2
:: Kurtosis is
between
-7 to +7 (Byren,
2010)
 Refer to the Observations farthest from
the centroid in Text View output
High Mahalanobis
d-squared values with
both p1 and p2 equal
.000 and .000 are
potential of outliers
The related cases may
be considered for
deletion
1. Total Disaggregation
2. Partial Disaggregation
3. Total Aggregation
1. Total Disaggregation
Only latent constructs are in the structural model; no
manifest constructs

1 2


1,1
2.,1
1 2,1 2

1,2
1


2

2. Partial Disaggregation
A mixture of latent and manifest constructs in the
structural model
3. Total Aggregation
Only manifest constructs are in the structural model;
no latent constructs