Table Of ContentIntroducing
USREL
ISM Introducing Statistical Methods
Series editor: Daniel B. Wright, University of Bristol
This series provides accessible but in-depth introductions to statistical methods
that are not covered in any detail in standard introductory courses. The books
are aimed both at the beginning researcher who needs to know how to use a
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Glynis Breakwell, University of Surrey
Jan de Leeuw, University of California, Los Angeles
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Howard Schuman, University of Michigan
Karl van Meter, Centre National de la Recherche Scientifique, Paris
Other titles in this series
Introducing Social Networks
Alain Degenne and Michel Forse
Introducing Multilevel Modeling
Ita Kreft and Jan de Leeuw
Introducing ANOVA and ANCOVA: A GLM Approach
Andrew Rutherford
Introducing
LISREL
A Guide
for the Uninitiated
ADAMANTIOS DIAMANTOPOULOS
JUDY A. SIGUAW
SAGE Publications
London · Thousand Oaks · New Delhi
© Adamantios Diamantopoulos and Judy Siguaw 2000
First published 2000
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British Library Cataloguing in Publication data
A catalogue record for this book is available
from the British Library
ISBN 0 7619 5170 9
ISBN 0 7619 5171 7 (pbk)
Library of Congress catalog card number is available
Typeset by Mayhew Typesetting, Rhayader, Powys
Printed in Great Britain by Athenaeum Press, Gateshead
To Heidi, Holly, Winkie and Legend
for making me happy
Adamantios Diamantopoulos
To my husband and my daughters for all
their support and encouragement
Judy Siguaw
CONTENTS
About the authors ix
Preface xi
Acknowledgements xiii
1 WHAT IS LISREL ALL ABOUT? 1
A brief background 4
Sequential steps in LISREL modeling 6
APPENDIX 1A
Variance and covariance 10
APPENDIX IB
Implied covariance matrix 1 1
2 MODEL CONCEPTUALIZATION 13
APPENDIX 2A
Reflective and formative indicators 21
3 PATH DIAGRAM CONSTRUCTION 22
APPENDIX 3A
Path diagram construction for a LISREL model 28
4 MODEL SPECIFICATION 30
APPENDIX 4A
Covariance matrix to be analyzed 41
APPENDIX 4B
Direct entry of covariance matrix into the SIMPLIS input file 42
APPENDIX 4C
Selected output from SIMPLIS input file for illustrative model 43
APPENDIX 4D
Parameter matrices of a comprehensive LISREL model 45
APPENDIX 4E
Illustrative model in matrix form 46
5 MODEL IDENTIFICATION 48
6 PARAMETER ESTIMATION 55
Reading the program output: SIMPLIS format 57
Reading the program output: LISREL format 62
VIM CONTENTS
APPENDIX 6A
Estimation problems 76
APPENDIX 6B
Path diagram as produced by LISREL 8 program 79
APPENDIX 6C
Standardized and completely standardized indirect and total
effects 80
7 ASSESSMENT OF MODEL FIT 82
Overall fit assessment 82
Assessment of measurement model 89
Assessment of structural model 92
Power assessment 93
APPENDIX 7A
Different types of discrepancy in evaluating a LISREL model 101
8 MODEL MODIFICATION 102
Specification searches 103
Diagnostics for model modification 105
Modification of illustrative model: fit improvement 1 1 8
Modification of illustrative model: model simplification 1 22
9 MODEL CROSS-VALIDATION 129
Cross-validating the illustrative model (final version) 1 31
Cross-validation and model comparison 1 35
Equivalent models 1 38
APPENDIX 9A
SIMPLIS input file for validation sample 142
10 AN INTRODUCTION TO PRELIS 2 143
APPENDIX 10A
Thresholds for ordinal variables 156
References 157
Index 167
ABOUT THE AUTHORS
Adamantios Diamantopoulos (BA, MSc, PhD, MCIM, MMRS) holds the
chair of Marketing and Business Research and is Research Director of
Loughborough University Business School. Previously he held the Chair of
International Marketing at the European Business Management School,
University of Wales Swansea, where he headed the Marketing Group. He
has held full-time appointments at the University of Edinburgh and the
University of Strathclyde and Visiting Professorships at the University of
Miami, Vienna University of Economics and Business, Universite Robert
Schuman (Strasbourg) and University of Dortmund. During 1997-99 he
was also the Nestle Visiting Research Professor of Consumer Marketing at
Lund University, Sweden. His research interests are in pricing, sales fore-
casting, marketing research and international marketing and he is the
author/co-author of some 160 publications in these areas. He has presented
his research at more than 60 international conferences and has been the
recipient of several Best Paper Awards. His work has appeared, among
others, in the International Journal of Research in Marketing, Journal of
Business Research, International Journal of Forecasting, Journal of Inter
national Marketing, Journal of the Market Research Society, Journal of
Strategic Marketing, European Journal of Marketing and Journal of
Marketing Management. He sits on the editorial review boards of eight
marketing journals, is the UK Country Coordinator for the European
Marketing Academy (EMAC), a founder member of the Consortium for
International Marketing Research (CIMaR), Associate Editor of the Inter
national Journal of Research in Marketing, and a referee for several academic
journals, professional associations and funding bodies. He is also a member
of the Senate of the Chartered Institute of Marketing (CIM).
Judy A. Siguaw is an Associate Professor of Marketing in the School of
Hotel Administration at Cornell University. Prior to entering academia, Dr
Siguaw spent ten years in the corporate environment, including a stint as a
sales representative with General Foods Corporation, a subsidiary of Philip
Morris. She has published numerous journal articles including those appear-
ing in the Journal of Marketing Research, Journal of Marketing, Journal of
the Academy of Marketing Science, Journal of Strategic Marketing, Industrial
Management, Journal of Business Ethics and the Cornell Hotel and Restaur
ant Administration Quarterly. She is co-author of Marketing: Best Practices
and American Lodging Excellence: The Key To Best Practices in The U.S.
Lodging Industry. She is also a contributor to four other textbooks and the
author/co-author of 25 national and international conference papers. She
