Development Of Measurement Model
The increasing use of structural equation modeling provides social scientists with a powerful analytic tool for describing the interrelations of both manifest and latent variables (Anderson and Gerbing, 1988). Although a number of writers recommend (Loehlin, 1998) simultaneous solutions of the measurement model and the structural model, the two-step approach (Anderson and Gerbing, 1988) presents some unique advantages by separating the two phases. The study presented here performs the first step of the two-step approach; that of developing a measurement model with confirmatory factor analysis (Hatcher, 1994).
The data are from a correlation matrix produced in a study (Hitt et al., 1996) of the relationship of the market for corporate control, management control systems, and firm innovation. This study included both archival and survey data from a sample of 250 industrial manufacturing firms. The use of archival data is common in the strategic management literature and, although......
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