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Structural equation modeling in practice: A review and recommended two-step approach
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.”
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
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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]
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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.”
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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
In the citing paper
“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
In the citing paper
“Due to the high amount of the observed variables in this study (altogether 57), we could not fully follow the two-step approach suggested by Anderson and Gerbing (1988)”
From Job demands–resources model in the context of recovery: Testing recovery experiences as mediators (2011) · cites this paper as Anderson and Gerbing, 1988
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Metadata
- Authors
- Anderson, J. C., & Gerbing, D. W.
- Affiliations
- Northwestern University (US)
- Portland State University (US)
- Venue
- Psychological Bulletin
- Published
- 1988-05
- Volume
- 103
- Issue
- 3
- Pages
- 411-423
- ISSN
- 0033-2909 (ISSN-L)
- 1939-1455
- 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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