What is Absolute Fit Measures

The aim of this chapter is to act as a point of reference for researchers, especially new users, who would like to use structural equation modeling (SEM) to perform business analytics. SEM is a multipurpose statistical modeling technique that can be applied in various business disciplines and is a useful tool to conduct business analytics. This chapter explains some common terminologies in the SEM literature and states general steps of performing SEM analysis along with an integration of the wide range of views and empirical findings on the topic. The chapter discusses the assumptions of SEM analysis, followed by a three-stage process of conducting, which includes assumptions, specification, evaluation, and modifications.