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Structural Equation Modeling as a Basis for Theory Development within Logistics and Supply Chain Management Research

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Research Methodologies in Supply Chain Management

Summary

Despite the recent debate on theories, logistics and SCM research still lacks a focus on theory development. Research will undoubtedly advance through rigorous empirical approaches, such as the use of structural equation modeling (SEM) within theory construction. SEM is well established in many fields of economic research, as it allows for validity of the structures and constructs in proposed theoretical models to be tested. This paper discusses the contribution of SEM to theory development and presents guidelines for the application of SEM to analyze both measurement and structural models. It exemplifies the use of SEM to capture and analyze the impact of logistics on the performance of companies. Based on a sample of 245 German companies, it emerges that logistics service levels have a greater impact on the performance of companies than logistics costs.

The authors thank Wolfdieter Keppler, WHU — Otto-Beisheim Graduate School of Management for his input in the process of developing the conceptual framework on the impact of logistics on overall firm performance.

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Author information

Authors and Affiliations

  1. Kühne-Center for Logistics Management, Otto Beisheim Graduate School of Management (WHU), 56179, Vallendar, Germany

    Dr. Carl Marcus Wallenburg Dipl.-Wi.-Ing.

  2. Otto Beisheim Graduate School of Management (WHU), 56179, Vallendar, Germany

    Prof. Dr. Jürgen Weber (Chair of Controlling and Telecommunications)

Authors
  1. Dr. Carl Marcus Wallenburg Dipl.-Wi.-Ing.
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  2. Prof. Dr. Jürgen Weber
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Editor information

Editors and Affiliations

  1. Department of Operations Management SCM-Group, Copenhagen Business School, Solbjerg Plads 3, 2000, Frederiksberg, Denmark

    Herbert Kotzab

  2. Supply Chain Management Center, Institute of Business Adaministration, 26111, Oldenburg, Germany

    Stefan Seuring  & Martin Müller  & 

  3. Department of Production Management, Vienna University of Economics and Business Administration, Nordbergstraße 15, 1090, Vienna, Austria

    Gerald Reiner

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Wallenburg, C.M., Weber, J. (2005). Structural Equation Modeling as a Basis for Theory Development within Logistics and Supply Chain Management Research. In: Kotzab, H., Seuring, S., Müller, M., Reiner, G. (eds) Research Methodologies in Supply Chain Management. Physica-Verlag HD. https://doi.org/10.1007/3-7908-1636-1_12

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