A Short Review on Structural Equation Modeling: Applications and Future Research Directions

Abstract

The application of multivariate techniques is mainly to expand the researchers explanatory ability and statistical efficiency. The first generation analytical techniques share a common limitation i.e. each technique can examine only a single relationship at a time. Structural Equation Modeling, an extension of several multivariate techniques is the technique popularly used today can examine a series of dependence relationships simultaneously. The purpose of this study is to provide a short review on Structural Equation Modeling (SEM) being used in social sciences research. A comprehensive literature review of article appearing in top journals is conducted in order to identify how often SEM theory is used. Also the key SEM steps have been provided offering potential researchers with a theoretical supported systematic approach that simplify the multiple options with performing SEM.