The Use of Structural Equation Modeling in IS Research: Review and Recommendations

Abstract

The structural equation modeling (SEM) technique has significant potential as a research tool for assessing and modifying theoretical models. There have been 139 applications of SEM in IS research published in major journals, most of which have been after 1994. However, despite its increasing use in the field, it remains a complex tool that is often difficult to apply effectively. The purpose of this study is to evaluate the previous IS applications of SEM and to suggest guidelines to realize the potential of SEM in IS research. The 72 empirical applications of SEM gathered from leading IS journals are reviewed and evaluated according to prescribed criteria. Avenues for improvement are suggested which can facilitate application of this important technique in IS theory development and testing.