Essays on supplier responsiveness and buyer firm value - Nyenrode ...

4.6 SEM
The SEM model was identified with a good fit with 10 measured variables. This gave
us a ratio of about eight respondents for every observed variable (87/10), which is
below the recommended limit of ten respondents for every item (Hair et al., 2006, p.
166). We have five constructs, which is less than the maximum recommended of 20
for using the SEM technique. The results of the SEM are presented in Table 4.5.
We have one exogenous construct, supplier responsiveness. We have four
endogenous constructs: IdRR, satisfaction, supplier brand value, and buyer firm
value. We also tested for unidimensionality. Our results indicated that our factors load
on more than one factor, so unidimensionality is not a concern. We used the
maximum likelihood option for estimating our model. The model has 55 distinct
sample moments, 35 distinct parameters to estimate, and 30 degrees of freedom. A
good model fit is achieved with 10 items. Our model has a good GFI value of 0.909.
Our current model is acceptable with a RMSEA of 0.087. The second category of fit
indices is incremental fit measures. Our model has a TLI value of.923 an incremental
fit index, which is considered good. The comparative fit index (CFI) is an indices
specifically meant for samples with small sizes (Hair et al., 2006). The objective
model scores well with 0.949 and is a very good fit.
The hypothesis supplier responsiveness negatively influences IdRR is
supported. It indicates also that supplier responsiveness is indeed an antecedent to
IdRR with a β=-0.957, p