Methodological review demonstrates strategies for evaluating structural equation model fit using simulated data, highlighting guidelines for navigating conflicting goodness-of-fit indices.
For structural equation models, a huge variety of fit indices has been developed. These indices, however, can point to conflicting conclusions about the extent to which a model actually matches the observed data. The present article provides some guidelines that should help applied researchers to evaluate the adequacy of a given structural equation model. First, as goodness-of-fit measures depend on the method used for parameter estimation, maximum likelihood (ML) and weighted least squares (WLS) methods are introduced in the context of structural equation modeling. Then, the most common goodness-of-fit indices are discussed and some recommendations for practitioners given. Finally, we generated an artificial data set according to a "true" model and analyzed two misspecified and two correctly specified models as examples of poor model fit, adequate fit, and good fit.
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Schermelleh-Engel et al. (2003) studied this question.
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