Index of Paper Presentations for the Parallel Sessions - Academy of ...

We used a 2-step structural equation modeling approach, refining the measurement model before analyzing the pathmodel (Anderson and Gerbing 1988). We also tested CommonMethod Variance and found no evidence. Having purified the measurement model, we first analyzed a base modelwithout the second order factor, store environment with direct paths from ambient, social and design factors to themediators and found a poor fit. Next, we analyzed the model with the standard reflective factor structure, whichshowed a poor fit (χ2 = 860.33, df = 372, χ2/df = 2.3, RMSEA = .07, SRMR = .05, CFI = .91). While the fitimproved considerably, it was still below par. We then analyzed the model in Figure 3, the formative second ordermodel. We found that the fit improved further (χ2 = 388.52, df= 155, χ2/df = 2.51, RMSEA = .05, SRMR = .05, CFI = .95) with all the fit-indices better than the recommendedcut-off values (RMSEA < .06, SRMR < .08, CFI > .95). Finally, the Schmid-Leiman Factor Structure provided thebest fit (as expected) compared to the models without a second order factor structure and a reflective second orderone (χ2 =664.96, df = 356, χ2/df = 1.9, RMSEA = .04, SRMR = 0.03, CFI = 0.95).DISCUSSIONIn this research, we evaluated four models, one a base model with no second order factor; two, a model with thedefault reflective second order factor model; three, a model with a formative second order factor model and finally amodel with the SLS factor structure.We demonstrate the efficacy of using a formative second order and SLS factor structure.Hence, researchers using a second order model should not jump to the conclusion that a reflective second orderfactor is the only option.We empirically demonstrate that a formative second order model works better if there is a conceptual basis tobelieve that the first order factors drive the second order factor.However, if some of the problems present in formative second factors are anticipated, researchers may use the SLSfactor structure. Based on the findings in this paper, future researchers may ask the following questions: