SEM in business research: Critical issues and practical recommendations

What is it about?

This study aims to conduct an extensive review and empirical analysis of a broad variety of classic and recent controversies and issues related with the use of Structural Equation Modelling (SEM), in order to identify problematic questions and prescribe a compendium of solutions for its suitable application.

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Why is it important?

This is a valuable and timely study of the application of SEM in marketing and business research, and is also useful as a guiding framework for good practice. Likewise, as the problems discussed here presumably occur in other areas of social science using SEM, this paper should be welcome beyond the borders of the business disciplines.