Structural equation modeling in practice: A review and recommended two-step approach

Anderson, James C.; Gerbing, David W.

doi:10.1037/0033-2909.103.3.411

Cited by 41,941Psychometric Methodologies and TestingStatistical Methods and Bayesian InferenceMental Health Research Topics

Structural equation modeling in practice: A review and recommended two-step approach

Anderson, James C., Gerbing, David W.·1988·Psychological Bulletin

DOI 10.1037/0033-2909.103.3.411

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Abstract

In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.

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When the 95% CI for the correlation between two constructs does not include 1.0, this provides evidence of discriminant validity for the two constructs involved.
“When the 95% CI for the correlation between two constructs does not include 1.0, this provides evidence of discriminant validity for the two constructs involved.”
From Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations (2024) · cites this paper as Anderson & Gerbing, 1988
Unidimensionality requires no cross-loaded indicator, a condition for assigning meaning to a latent construct.
“Unidimensionality requires no cross-loaded indicator, a condition for assigning meaning to a latent construct (Anderson & Gerbing, 1988).”
From Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations (2024) · cites this paper as Anderson & Gerbing, 1988
Discriminant validity requires that each indicator loads uniquely on only one construct.
“In addition to establishing convergent validity, discriminant validity requires that each indicator loads uniquely on only one construct.”
From Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations (2024) · cites this paper as Anderson & Gerbing, 1988
The most widely-used approach to evaluate discriminant validity is to test whether the correlation between two constructs is statistically significantly less than unity.
“First proposed by Jöreskog (1971), with subsequent recommendations by Bagozzi and Phillips (1982, p. 476) and by Anderson and Gerbing (1988, p. 416), this is the most widely-used approach to evaluate discriminant validity.”
From Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations (2024) · cites this paper as Anderson & Gerbing, 1988
No cross-loaded indicators represents a suitable minimum requirement for discriminant validity, but it is insufficient because it does not guarantee two constructs are distinct.
“While this represents a suitable minimum requirement for discriminant validity, it is insufficient because it does not guarantee two constructs are distinct”
From Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations (2024) · cites this paper as Anderson & Gerbing, 1988

Selecting participants to cover current and potential users of VUI is a commonly used and valid way to investigate users' adoption intention of specific technologies.
“We aim to cover current and potential users of VUI, which is a commonly used and valid way to investigate users’ adoption intention of specific technologies [91,98].”
From The Investigation of Adoption of Voice-User Interface (VUI) in Smart Home Systems among Chinese Older Adults (2022) · cites this paper as [98]
Data were analyzed using Structural Equation Modeling (SEM) in AMOS 28 following the two-step approach.
“Data were analyzed using Structural Equation Modeling (SEM) in AMOS 28 following the two-step approach (Anderson & Gerbing, 1988).”
From Balancing Affective Engagement and Cognitive Load in Generative-AI-Based Learning: Empathy, Immersion, and Emotional Design in Design Education (2025) · cites this paper as Anderson & Gerbing, 1988
The measurement model exhibits convergent validity, with each indicator loading significantly on its intended construct and minimal cross-loadings.
“Further, our measurement model exhibits convergent validity since each indicator loads significantly on the construct they were supposed to represent, which indicates minimal cross-loadings, and establishes convergent validity (Anderson & Gerbing, 1988).”
From Influence of need for affiliation on small business customer loyalty (2025) · cites this paper as Anderson & Gerbing, 1988
The reliability and convergent validity of the constructs were confirmed, as all five factors reached construct reliabilities exceeding 0.70 and average variances extracted exceeding 0.50.
“The reliability and the convergent validity were confirmed, as all five factors reached construct reliabilities (CRs) exceeding the generally recommended 0.70 threshold [31] and (b) the average variances extracted (AVE) exceeding the suggested 0.50 threshold [33], indicating that more than 50% of a factor's variance is due to its measurement items.”
From Digitalization of the Healthcare Supply Chain through the Adoption of Enterprise Resource Planning (ERP) Systems in Hospitals: An Empirical Study on Influencing Factors and Cost Performance (2023) · cites this paper as [31]
A confirmatory factor analysis was employed to verify the reliability of the constructs.
“Before testing the hypotheses, a confirmatory factor analysis (CFA) was employed to verify the reliability of the constructs (Anderson & Gerbing, 1988).”
From Digital government transformation: A structural equation modelling analysis of driving and impeding factors (2021) · cites this paper as Anderson & Gerbing, 1988
The square root of AVE for each construct was substantially larger than the correlation between PEEIM and structural assurance.
“The nested model comparison (chi-square difference test, Anderson and Gerbing 1988) supported the discriminant validity, and square root of average variance extracted (AVE) for each of the constructs was substantially larger than the correlation between these two constructs.”
From Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms1 (2014) · cites this paper as Anderson and Gerbing 1988
The nested model comparison (chi-square difference test) supported discriminant validity between PEEIM and structural assurance.
“The nested model comparison (chi-square difference test, Anderson and Gerbing 1988) supported the discriminant validity, and square root of average variance extracted (AVE) for each of the constructs was substantially larger than the correlation between these two constructs.”
From Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms1 (2014) · cites this paper as Anderson and Gerbing 1988
Chi-square difference test confirmed that correlations between each pair of constructs were significantly different from unity (1.0).
“First, through chi-square difference test (Anderson et al 1988; Joreskog 1993), it was confirmed that correlations between each pair of constructs were significantly different from 'unity' (i.e. 1.0).”
From Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms1 (2014) · cites this paper as Anderson et al 1988

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Authors: Anderson, J. C., & Gerbing, D. W.
Affiliations: Northwestern University (US)
Portland State University (US)
ORCID: Anderson, James C.
Gerbing, David W.
Venue: Psychological Bulletin
Publisher: American Psychological Association (APA)
Published: 1988-05
Volume: 103
Issue: 3
Pages: 411-423
ISSN: 0033-2909 (ISSN-L)
1939-1455
DOI: 10.1037/0033-2909.103.3.411
OpenAlex: W2122912498
Semantic Scholar: 2265a198e55665ed3df0f19688350567dab593de
Cited by: 41,941
References: 70
Citations by year: 2026: 1902 · 2025: 2183 · 2024: 2385 · 2023: 2571 · 2022: 2705 · 2021: 2802 · 2020: 2420 · 2019: 2305 · 2018: 2082 · 2017: 2000 · 2016: 1933 · 2015: 1887 · 2014: 1912 · 2013: 1767 · 2012: 1613
FWCI: 51.70
Type: journal article
Language: en
Open access: closed
Locations: Psychological Bulletin (publishedVersion)
Topics: Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Bayesian Inference
Social Sciences › Psychology › Experimental and Cognitive Psychology › Mental Health Research Topics
Keywords: structural equation modeling, nested models, chi-square difference test, model fit assessment, confirmatory factor analysis, exploratory factor analysis, theory testing, predictive modeling, estimation methods

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Structural equation modeling in practice: A review and recommended two-step approach

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