A Brief Guide to Structural Equation Modeling

To complement recent articles in this journal on structural equation modeling (SEM) practice and principles by Martens and by Quintana and Maxwell, respectively, the authors offer a consumer’s guide to SEM. Using an example derived from theory and research on vocational psychology, the authors outline six steps in SEM: model specification, identification, data preparation and screening, estimation, evaluation of fit, and modification. In addition, the authors summarize the debates surrounding some aspects of SEM (e.g., acceptable sample size, fit indices), with recommendations for application. They also discuss the need for considering and testing alternative models and present an example, with details on determining whether alternative models result in a significant improvement in fit to the observed data.