Comparing CB-SEM and PLS-SEM: A case showing management accounting impact on performance

ŠIŠKA, Ladislav. Comparing CB-SEM and PLS-SEM: A case showing management accounting impact on performance. Polish Journal of Management Studies. CZESTOCHOWA UNIV TECHNOLOGY, 2017, vol. 15, No 2, p. 240-249. ISSN 2081-7452. Available from: https://dx.doi.org/10.17512/pjms.2017.15.2.22.

Basic information

• Original name: Comparing CB-SEM and PLS-SEM: A case showing management accounting impact on performance
• Name in Czech: Porovnání přístupů CB-SEM a PLS-SEM: případová studie vlivu manažerského účetnictví na výkonnost
• Authors: ŠIŠKA, Ladislav (203 Czech Republic, guarantor, belonging to the institution).
• Edition: Polish Journal of Management Studies, CZESTOCHOWA UNIV TECHNOLOGY, 2017, 2081-7452.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50204 Business and management
• Country of publisher: Poland
• Confidentiality degree: is not subject to a state or trade secret
• WWW: URL
• RIV identification code: RIV/00216224:14560/17:00097527
• Organization unit: Faculty of Economics and Administration
• Doi: http://dx.doi.org/10.17512/pjms.2017.15.2.22
• UT WoS: 000404991500022
• Keywords (in Czech): Kovarianční přístup k SEM; PLS přístup k SEM; Výkonnost; Strukturální modelování; Strategicky zaměřené manažerské účetnictví
• Keywords in English: Covariance based SEM; Partial least squares; Performance; SEM; Strategic management accounting
• Tags: structural equation modeling
• Tags: International impact, Reviewed

Abstract

The objective of this article is to contrast two broad approaches to structural equation modelling (SEM): covariance-based (CB-SEM) and variance-based partial least square (PLS-SEM). Each approach was applied to estimate parameters of the same case model. Even though the results reveal some numerical differences, these differences do not seem to be of a great practical importance and less restrictive assumptions speak in favour of PLS-SEM. This study is one of the first attempts to apply and compare both approaches to SEM on actual (and not simulated) data, in this case data on management accounting (MA) obtained from 101 Czech and Slovak companies. From managerial viewpoint, the final model demonstrates that adoption of strategic MA techniques themselves without increase in organizational capabilities is insufficient for achieving higher return-on-assets (ROA).

Links

• MUNI/A/1001/2016, interní kód MU: Name: Nástroje podnikového controllingu a jejich IT podpora

Investor: Masaryk University, Category A