Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 10

structural equation model Related Abstracts

10 Between Subscribers of Two Telecommunication Providers in Indonesia: Factors Involved in Customer Retention

Authors: Frista Dearetha Marasabessy, Usep Suhud, Mohammad Rizan


The study objective was to compare influencing factors on customer retention of two brands – SimPATI and IM3 – of telecommunication services owned by Telkomsel and Indosat, two giant mobile telecommunication providers in Indonesia. The authors applied predictor variables including perceived tariff, perceived quality, switching barriers, and customer satisfaction. These variables were used after reviewing literature in quantitative studies on consumer behaviour relating to telecommunication services. This study used indicators adopted and adapted from literature. The quantitative data were gathered in Jakarta, involving 205 subscribers of SimPATI and 202 subscribers of IM3. The authors selected respondents purposively. Data were analysed using both exploratory and confirmatory factor analyses. Two fitted models were developed confirming factors that were involved in customer retention as stated on the proposed model: perceived tariff, perceived quality, switching barriers, and customer satisfaction. However, parts of the hypotheses were rejected.

Keywords: Indonesia, customer retention, switching barriers, telecommunication providers, structural equation model, SimPATI, IM3

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9 Life in Bequia in the Era of Climate Change: Societal Perception of Adaptation and Vulnerability

Authors: Sherry Ann Ganase, Sandra Sookram


This study examines adaptation measures and factors that influence adaptation decisions in Bequia by using multiple linear regression and a structural equation model. Using survey data, the results suggest that households are knowledgeable and concerned about climate change but lack knowledge about the measures needed to adapt. The findings from the SEM suggest that a positive relationship exist between vulnerability and adaptation, vulnerability and perception, along with a negative relationship between perception and adaptation. This suggests that being aware of the terms associated with climate change and knowledge about climate change is insufficient for implementing adaptation measures; instead the risk and importance placed on climate change, vulnerability experienced with household flooding, drainage and expected threat of future sea level are the main factors that influence the adaptation decision. The results obtained in this study are beneficial to all as adaptation requires a collective effort by stakeholders.

Keywords: Adaptation, structural equation model, Bequia, multiple linear regression

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8 Assessing the Vulnerability Level in Coastal Communities in the Caribbean: A Case Study of San Pedro, Belize

Authors: Sherry Ann Ganase, Sandra Sookram


In this paper, the vulnerability level to climate change is analysed using a comprehensive index, consisting of five pillars: human, social, natural, physical, and financial. A structural equation model is also applied to determine the indicators and relationships that exist between the observed environmental changes and the quality of life. Using survey data to model the results, a value of 0.382 is derived as the vulnerability level for San Pedro, where values closer to zero indicates lower vulnerability and values closer to one indicates higher vulnerability. The results showed the social pillar to be most vulnerable, with the indicator ‘participation’ ranked the highest in its cohort. Although, the environmental pillar is ranked as least vulnerable, the indicators ‘hazard’ and ‘biodiversity’ obtained scores closer to 0.4, suggesting that changes in the environment are occurring from natural and anthropogenic activities. These changes can negatively influence the quality of life as illustrated in the structural equation modelling. The study concludes by reporting on the need for collective action and participation by households in lowering vulnerability to ensure sustainable development and livelihood.

Keywords: Climate Change, Participation, structural equation model, vulnerability index, San Pedro

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7 An Analysis of the Relation between Need for Psychological Help and Psychological Symptoms

Authors: Ismail Ay


In this study, it was aimed to determine the relations between need for psychological help and psychological symptoms. The sample of the study consists of 530 university students getting educated in University of Atatürk in 2015-2016 academic years. Need for Psychological Help Scale and Brief Symptom Inventory were used to collect data in the study. In data analysis, correlation analysis and structural equation model with latent variables were used. Normality and homogeneity analyses were used to analyze the basic conditions of parametric tests. The findings obtained from the study show that as the psychological symptoms increase, need for psychological help also increases. The findings obtained through the study were approached according to the literature.

Keywords: correlation, structural equation model, psychological symptoms, need for psychological help

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6 Information Technology and Business Alignments among Different Divisions: A Comparative Analysis of Japan and South Korea

Authors: Michiko Miyamoto


This paper empirically investigates whether information technology (IT) strategies, business strategies, and divisions are aligned to meet overall business goals for Korean Small and medium-sized enterprises (SMEs), based on structure based Strategic Alignment Model, and make comparison with those of Japanese SMEs. Using 2,869 valid responses of Korean Human Capital Corporate Panel survey, a result of this study suggests that Korean human resources (HR) departments have a major influence over IT strategy, which is the same as Japanese SMEs, even though their management styles are quite different. As for IT strategy, it is not related to other departments at all for Korean SMEs. The Korean management seems to possess a great power over each division, such as Sales/Service, Research and Development/Technical Experts, HR, and Production.

Keywords: structural equation model, IT-business alignment, structured based strategic alignment model, human resources department

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5 Comparing Business Excellence Models Using Quantitative Methods: A First Step

Authors: Mohammed Alanazi, Dimitrios Tsagdis


Established Business Excellence Models (BEMs), like the Malcolm Baldrige National Quality Award (MBNQA) model and the European Foundation for Quality Management (EFQM) model, have been adopted by firms all over the world. They exist alongside more recent country-specific BEMs; e.g. the Australian, Canadian, China, New Zealand, Singapore, and Taiwan quality awards that although not as widespread as MBNQA and EFQM have nonetheless strong national followings. Regardless of any differences in their following or prestige, the emergence and development of all BEMs have been shaped both by their local context (e.g. underlying socio-economic dynamics) as well as by global best practices. Besides such similarities, that render them into objects (i.e. models) of the same class (i.e. BEMs), BEMs exhibit non-trivial differences in their criteria, relations, and emphasis. Given the evolution of BEMs (e.g. the MBNQA underwent seven evolutions since its inception in 1987 while the EFQM five since 1993), it is unsurprising that comparative studies of their validity are few and far in between. This poses challenges for practitioners and policy makers alike; as it is not always clear which BEM is to be preferred or better fitting to a particular context. Especially, in contexts that differ substantially from the original context of BEM development. This paper aims to fill this gap by presenting a research design and measurement model for comparing BEMs using quantitative methods (e.g. structural equations). Three BEMs will be focused upon in particular for illustration purposes; the MBNQA, the EFQM, and the King Abdul Aziz Quality Award (KAQA) model. They have been selected so to reflect the two established and widely spread traditions as well as a more recent context-specific arrival promising a better fit.

Keywords: Total Quality Management, structural equation model, business excellence, Baldrige, European Foundation for Quality Management

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4 Field Environment Sensing and Modeling for Pears towards Precision Agriculture

Authors: Tatsuya Yamazaki, Kazuya Miyakawa, Tomohiko Sugiyama, Toshitaka Iwatani


The introduction of sensor technologies into agriculture is a necessary step to realize Precision Agriculture. Although sensing methodologies themselves have been prevailing owing to miniaturization and reduction in costs of sensors, there are some difficulties to analyze and understand the sensing data. Targeting at pears ’Le Lectier’, which is particular to Niigata in Japan, cultivation environmental data have been collected at pear fields by eight sorts of sensors: field temperature, field humidity, rain gauge, soil water potential, soil temperature, soil moisture, inner-bag temperature, and inner-bag humidity sensors. With regard to the inner-bag temperature and humidity sensors, they are used to measure the environment inside the fruit bag used for pre-harvest bagging of pears. In this experiment, three kinds of fruit bags were used for the pre-harvest bagging. After over 100 days continuous measurement, volumes of sensing data have been collected. Firstly, correlation analysis among sensing data measured by respective sensors reveals that one sensor can replace another sensor so that more efficient and cost-saving sensing systems can be proposed to pear farmers. Secondly, differences in characteristic and performance of the three kinds of fruit bags are clarified by the measurement results by the inner-bag environmental sensing. It is found that characteristic and performance of the inner-bags significantly differ from each other by statistical analysis. Lastly, a relational model between the sensing data and the pear outlook quality is established by use of Structural Equation Model (SEM). Here, the pear outlook quality is related with existence of stain, blob, scratch, and so on caused by physiological impair or diseases. Conceptually SEM is a combination of exploratory factor analysis and multiple regression. By using SEM, a model is constructed to connect independent and dependent variables. The proposed SEM model relates the measured sensing data and the pear outlook quality determined on the basis of farmer judgement. In particularly, it is found that the inner-bag humidity variable relatively affects the pear outlook quality. Therefore, inner-bag humidity sensing might help the farmers to control the pear outlook quality. These results are supported by a large quantity of inner-bag humidity data measured over the years 2014, 2015, and 2016. The experimental and analytical results in this research contribute to spreading Precision Agriculture technologies among the farmers growing ’Le Lectier’.

Keywords: Precision Agriculture, Sensor Fusion, structural equation model, pre-harvest bagging

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3 Using the Structural Equation Model to Explain the Effect of Supervisory Practices on Regulatory Density

Authors: Jill Round


In the economic system, the financial sector plays a crucial role as an intermediary between market participants, other financial institutions, and customers. Financial institutions such as banks have to make decisions to satisfy the demands of all the participants by keeping abreast of regulatory change. In recent years, progress has been made regarding frameworks, development of rules, standards, and processes to manage risks in the banking sector. The increasing focus of regulators and policymakers placed on risk management, corporate governance, and the organization’s culture is of special interest as it requires a well-resourced risk controlling function, compliance function, and internal audit function. In the past years, the relevance of these functions that make up the so-called Three Lines of Defense has moved from the backroom to the boardroom. The approach of the model can vary based on the various organizational characteristics. Due to the intense regulatory requirements, organizations operating in the financial sector have more mature models. In less regulated industries there is more cloudiness about what tasks are allocated where. All parties strive to achieve their objectives through the effective management of risks and serve the identical stakeholders. Today, the Three Lines of Defense model is used throughout the world. The research looks at trends and emerging issues in the professions of the Three Lines of Defense within the banking sector. The answers are believed to helping to explain the increasing regulatory requirements for the banking sector. While the number of supervisory practices increases the risk management requirements intensify and demand more regulatory compliance at the same time. The Structural Equation Modeling (SEM) is applied by making use of conducted surveys in the research field. It aims to describe (i) the theoretical model regarding the applicable linearity relationships, (ii) the causal relationship between multiple predictors (exogenous) and multiple dependent variables (endogenous), (iii) taking into consideration the unobservable variables and (iv) the measurement errors. The surveys conducted on the research field suggest that the observable variables are caused by various latent variables. The SEM consists of the 1) measurement model and the 2) structural model. There is a detectable correlation regarding the cause-effect relationship among the performed supervisory practices and the increasing scope of regulation. Supervisory practices reinforce the regulatory density. In the past, controls were placed after supervisory practices were conducted or incidents occurred. In further research, it is of interest to examine, whether risk management is proactive, reactive to incidents and supervisory practices or can be both at the same time.

Keywords: Risk management, structural equation model, supervisory practice, three lines of defense

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2 Empirical Study on Grassroots Innovation for Entrepreneurship Development with Microfinance Provision as Moderator

Authors: Bhaskar Bhowmick, Sonal H. Singh


The research hypothesis formulated in this paper examines the importance of microfinance provision for entrepreneurship development by engendering a high level of entrepreneurial orientation among the grassroots entrepreneurs. A theoretically well supported empirical framework is proposed to identify the influence of financial services and non-financial services provided by microfinance institutes in strengthening the impact of grassroots innovation on entrepreneurial orientation under resource constraints. In this paper, Grassroots innovation is perceived in three dimensions: new learning practice, localized solution, and network development. The study analyzes the moderating effect of microfinance provision on the relationship between grassroots innovation and entrepreneurial orientation. The paper employed structural equation modelling on 400 data entries from the grassroots entrepreneurs in India. The research intends to help policymakers, entrepreneurs and microfinance providers to promote the innovative design of microfinance services for the well-being of grassroots entrepreneurs and to foster sustainable entrepreneurship development.

Keywords: Entrepreneurship Development, India, structural equation model, grassroots innovation

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1 The Dark Side of Tourism's Implications: A Structural Equation Modeling Study of the 2016 Earthquake in Central Italy

Authors: B. Kulaga, A. Cinti, F. J. Mazzocchini


Despite the fact that growing academic attention on dark tourism is a fairly recent phenomenon, among the various reasons for travelling death-related ones, are very ancient. Furthermore, the darker side of human nature has always been fascinated and curious regarding death, or at least, man has always tried to learn lessons from death. This study proposes to describe the phenomenon of dark tourism related to the 2016 earthquake in Central Italy, deadly for 302 people and highly destructive for the rural areas of Lazio, Marche, and Umbria Regions. The primary objective is to examine the motivation-experience relationship in a dark tourism site, using the structural equation model, applied for the first time to a dark tourism research in 2016, in a study conducted after the Beichuan earthquake. The findings of the current study are derived from the calculations conducted on primary data compiled from 350 tourists in the areas mostly affected by the 2016 earthquake, including the town of Amatrice, near the epicenter, Castelluccio, Norcia, Ussita and Visso, through conducting a Likert scale survey. Furthermore, we use the structural equation model to examine the motivation behind dark travel and how this experience can influence the motivation and emotional reaction of tourists. Expected findings are in line with the previous study mentioned above, indicating that: not all tourists visit the thanatourism sites for dark tourism purpose, tourists’ emotional reactions influence more heavily the emotional tourist experience than cognitive experiences do, and curious visitors are likely to engage cognitively by learning about the incident or related issues.

Keywords: Experience, Motivation, Dark Tourism, structural equation model, emotional reaction

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