Factors versus Composites: Guidelines for Choosing the Right Structural Equation Modeling Method
Joseph F. HairMitchell College of Business, University of South Alabama, Mobile, AL, USAMarko SarstedtOtto-von-Guericke University Magdeburg, Magdeburg, Germany
2019en
ABI
Abstract
Structural equation modeling (SEM) is a widely applied and useful tool for project management scholars. In this Thoughtlet article, we critically reflect on the measurement philosophy underlying the two streams of SEM and their adequacy for estimating relationships among concepts commonly encountered in the field (e.g., team performance). We also discuss considerations to ponder when making the choice between the two types of SEM as well as between SEM and regression analysis.
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Cited by 20 references